Forage Production

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:

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.

“If your combine was throwing 80 percent of what it took in back on the ground, you’d be pretty unhappy,” Steve Kenyon points out. A cow, on the other hand, has a greater purpose.

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.

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

Soil sampling, although it costs money, can save your dollars by applying the right nutrients in the right places.