Agri Business is a Real Business
Understanding current global and domestic economics is imperative to Farmers and their businesses. Fine-tuned management is critical in Farm Operations. Producers get small windows to make money on their crops. Most people that live in urban areas struggle with viewing farming as an industry. Today’s farmer is working in an environment where there is a worldwide surplus of most commodities including corn and soybeans.
Individuals who raise crops have to be as sophisticated at managing their farm operation as any Fortune 500 CEO. These folks wear many hats and low prices dictate that they have to be able to make quick decisions in order to sell their goods at prices that will turn a profit.
Conversations with your Agri-Business banker should include:
- Land rents and how those will be affected in the next 3-5 years.
- Cash flow and the impact of a low commodity environment on financial planning and decisions.
- Farm succession planning. Who is going to run this operation when I’m gone?
A successful Producer/Banker relationship can be critical to effective management and marketing.