I Am Your Red Flag

NW Call to Action

Not Enough? Or The Wrong Thing?

I'm in Savannah, Georgia right now prepping to speak at the Georgia Dairy Conference!

Your 3:30 pm speaker is Farm640!

I've had a big focus in my content this year on how management drives profitability more than anything else. Here is a short clip on how to approach 2026 if you made changes for 2025 but still experienced losses: https://m.youtube.com/shorts/1P6fEqR6Igg

SW Financial Literacy

I Am Your Red Flag

I don’t really like today’s message, but it needs to be said.

Corn and soybean producers are definitely hurting right now. Many have three consecutive years of working capital losses: 2023, 2024, & 2025.

Those losses were deep. It is very possible that an operation with $600 of working in capital per acre after a profitable 2022 has no cash left today (many didn’t actually start with that much cash to begin with).

We all know this. That wasn’t the tough part of the message.

If you are one of those people with consecutive years of losses, you’re running out of time to act and make changes. The urgency needs to be brought forward right now. If you were waiting for your bank to throw up the red flag, it is probably too late. Most lenders won’t give you a heads up until they shut you off.

I’m waving the red flag for you right now.    

Make significant changes to impact your post harvest bottom line before you plant this crop (switching acres from corn to soybeans is doubtful to be the answer).

If you are in a negative working capital position today, then your changes need to happen today. Right now. For this year. Don’t do the same thing you have done the last three years.

Find out where the deepest losses were, (which requires you to know your numbers!) and start making massive cuts. Re-price all your inputs with a third-party provider, and actually make the switch when they come in lower.

Run break evens for each landlord. Negotiate all contracts lower and negotiate out of the contract for your least profitable farm.

For old crop grain, get some working strike prices in place below your breakeven, take base hits to lessen your losses.

Find a job that can pay you benefits. Even a low wage can save you $20,000 per year in health insurance. Hire yourself out to the neighbor.

Stop blaming the prices.

The prices are what they are, and are outside of our control. Make your plan for $4.00 corn, not $5.00corn. If you’re negative working capital today and want to farm in 2027, find a way to make $4.00 corn work in 2026.

If you take these steps and I am wrong, then you just had a profitable 2026. Congratulations! I hope that you do.

This is not a sky is falling in agriculture post. I am bullish ag. This is me giving you the red flag that you need if this is your personal position.

Need help with your operation's financials?

I have limited spots available for 1-hour consultations helping you:

• Understand your farm's financial position.

• Prepare for future growth opportunities.

• Discuss purchase & finance options on farm transactions you are working through now.

Sign-up here if my services can benefit your operation:

https://calendly.com/grant-farm640/60min

Have a great week!

Grant