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MANAGEMENT

Manage employees, analyze yield drivers, explore forage markets, become more confident in preparing farm financial statements, and untangle farm succession issues.

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In ordinary times, dairy farms would only apply manures to alfalfa fields before they were seeded to build fertility and then rely on commercial fertilizers, when needed, for annual top-dressing.

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“Alexa, order me a pizza and find me a custom harvester.” Alexa, the voice-controlled virtual assistant created by Amazon, has skills. It’s entertaining, can play Jeopardy with you and can definitely order a pizza, but it likely won’t find you a custom harvester (not yet, anyway).

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In part 1 of “9 things your banker doesn’t want to hear,” we discussed praying really hard for rain, paying employees cash, winning the lottery, bouncing checks and balance sheets (all such fun topics, am I right?). But I promised you nine items; so true to my word, here are the rest of the things your banker doesn’t want to hear:

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Financing a farm or ranch is usually stressful – no matter on which side of the banker’s desk you sit.

Earlier this year, ag economists noted shrinking commodity prices and the lowest ag incomes since the recession – all in the midst of a trade war with China. And now the Federal Reserve is ending a prolonged period of low interest rates, and as a result, banks pushed the fixed rate on farm loans to a five-year high of 5.6 percent.

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Appraising farmground isn’t an exact science, but the approaches and the details that can separate one property from a neighboring property are the same.

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Pricing your custom harvesting services is a difficult yet critical business management activity. Set your prices too high, and potential customers may look elsewhere.

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