Tough Economy Producers Risks and Opportunities
With corn closing in on $3 and soybeans under $10, some producers are working at cutting costs and streamlining their operations while others see opportunities for growth and diversification. Byron Bennett, with Farm Credit Mid-America, says no matter which position you are in, getting your financial records in shape is important, “I think it is essential to fully understand your financial position because that is the real driver behind all your decisions.”
Bennett says there are some common mistakes that are made when updating your balance sheet, “It is easy to overlook open contracts as well as failing to update the value of your assets like land.” He noted that cash on hand and retirement funds can also get overlooked when putting together your balance sheet.”
Now putting all this data together and interpreting it properly as you consider your future plans can be a daunting task, but Bennett says don’t overlook a key partner in this process, your lender, “Your lender should have the resources to help you pull together all this information.”
For more financial tips, resources, and insights from FCMA visit e-farmcredit.com