Farming can be a tricky industry to navigate. How can you keep as many dollars as possible in your bank account? These helpful hints may help you out.
- If you don’t already have one, make a farm budget – and stick to it. Be honest with yourself about your spending, and write it down. Always include an “Emergency Fund” for those inevitable unexpected events. Notice what you are spending; is there anything that could be lowered?
- Look around for extra money. Do you have old machinery sitting around not getting used? Try to sell it, or scrap it depending on condition to get some money back. Do you have a piece of equipment that is much bigger than you need? Look into downgrading for a machine that will better suit your operation.
- Talk to your banker. Scary? Maybe. Helpful? Definitely. Having a good working relationship with your banker can be a big bonus. Bring all of your financial paperwork: cash flow, budgets, balances, bills, etc. Talk about your financial status and debts you may have. Could you consolidate? Are you paying them off in the smartest way? Ask about USDA guaranteed farm and rural development loan programs – do you qualify?
- Make sure before you buy something you can afford it. Whether you buy it outright, or have to take out a loan, know your budget and make sure you can handle the payments. Would a used machine work in place of a brand new one?
- Do your research. Machines, loans, land, commodity prices, taxes, all of them affect your bottom dollar. Research to make sure you know you are getting reasonable pricing whether you are buying or selling.
Gloy, Brent and Widmar, David. “9 Tips for Securing Your Financial Footing in 2016.” Successful Farming
Gordon, Rosemary. “10 Tips to Help Deal with Financial Difficulties on the Farm.” Growing Produce