NW Call to Action
I posed this question to X and received 90 responses: “Fungicide pays. Tile pays. What else do you swear by that is worth the expense?”
Here are various improvements you could make that other farmers feel have been well worth the expense:
Paying labor well and providing “fringe benefits” – 401k, vehicle, paid for tools, meals/food while on the clock, paid for vacation, discounted use of equipment, etc. -@steveconaway1
Lime, P, K and S. Always never stop doing those things right. -@benjaminaustic
Running your own sprayer, and grain bins (when used correctly) -@farmmillennial
Organization and a good CPA -@Jones6807
Good data, the planter pass, and variable rate -@Dustin_SD
1. Proper calibration of seeding equipment and seeding practices (speed, depth, fert placement, etc) 2. Irrigation systems and regularly checking soil moisture. -@voss_ag
A good agronomist. Allows for growers to have a second set of eyes on their fields and opportunities to accomplish tasks in the time spend in the fields. -@AgronomyChad
Quality seed treatment, especially in early planting situations. Lime in low pH environments. Soil testing, albeit not a perfect science. High rates of pre-emerge herbicides to control weeds before emergence. -@jazzerCYZ
The right balance of faith, family, and farming. -@TyWillis77
NE Current Events
@UNL_CAP presents a weekly webinar you can sign up for. Here are a few highlights from last week’s presentation:
Financial ranking of ag sectors from a profitability standpoint: 1. Beef Cattle 2. Soybeans 3. Sorghum 4. Corn 5. Chicken
Expect expenses to rise slightly with lower projected grain commodity prices the next 3 years.
Soybeans have some support thanks to strong crush demand and renewable diesel expansion.
Inflation is the strongest headwind to profitability. Manage your margins to find success!
SW Financial Literacy
Advisors.
Who are you core advisors? -Agronomist -CPA -Lender -Marketer -Attorney -Crop Insurance
Are you working with the best? Who do you need to upgrade this off-season to better your operation?
How do you know you are working with a good advisor? -Do they make recommendations you’ve not considered before? -Do they come up with multiple solutions to your problems? -Are they able to communicate complex ideas in an easy to understand manner? -Are they involved with the industry outside of their job? -Are they working with top producers in the area? -Do they solve problems and communicate in a timely manner? -Can they refer you to other top advisers? I look for these traits in my advisors for my farm.
Have a plan for buying farms.
If the farm across the road from you right now were offered privately, but they need an answer by Friday, are you ready? Have a plan. Make sure your lender is on the same page as you and you have a clear understanding of their opinion of your position.
Buying and financing a farm rarely provides you with increased cash flow. You will need to have supplemental income to build your working capital back up after making the initial farm down payment.
Many individuals don’t realize that the seller carry financing is an option. Your landlord could prefer to sell the ground to you on contract on favorable terms instead of continuing to rent out or sell and pay realtor fees. Create win-win scenarios.
Loan structure matters.
Different loan types (i.e. LOC, equipment notes, leases, real estate) have a different interest rates, tax, benefits, and loan terms. Take advantage of these different structures to get ahead.
If you delivered two more loads of grain, could you stop paying interest on your operating note?
Have a great week!