It's common for producers to take their tractors and combines into the shop on an annual basis for a tune-up, but it seems less common for them to take time for a financial tune-up. While the equipment is worth a lot of money, the financial health of your business could be worth even more. This story outlines four steps to help you take stock of your farm or ranch finances and use them for informed decision making.
Shortly before Christmas, I was watching a Christmas movie with my family about a farm family who was in jeopardy of losing the operation if they didn’t come up with the required payments by January 2. It made me wish the struggles of the real farm economy could be fixed in less than two hours. While this isn't possible, there are steps farmers can take to prepare for a meeting with their banker. This story outlines key points to consider.
Producers often feel there is no need to do tax planning in years when there is no profit, but in many ways, it’s more important to do tax planning in low income years than it is in high income years. There are many planning strategies that can be used to help save tax dollars over the long term if there is enough time to plan.
In the July 13 UNL Cornhusker Economics, Tina Barrett, executive director of Nebraska Farm Business, Inc., writes: "It seems just about every farm management topic/article/presentation is talking about working capital these days. We’ve heard experts talk about “Cash is King” for years but why is it really important?
A closer look at costs and income for a group of Nebraska farms served by Nebraska Farm Business Inc. shows that while commodity prices and annual income may be similar to 2002, many other economic factors, including debt, have changed significantly. See what top third producers are doing, as well as what red flags to avoid.