Get a jump on planning for next year to prepare for growth for your agribusiness in 2017.
As the year draws to a close and the new year is on the horizon it’s time to start thinking about next year’s goals. It’s time to make sure your business plan is set for your agribusiness for a successful growing and harvesting year in 2017. Consider these important financial reminders below to ensure your game plan is solid.
Analyze Your Agribusiness by Looking Back, and then Forward
To know where you’re going, you need to know where you’ve been. If you’ve been keeping up with your farm business records, it’s time to look over the numbers for 2016 in order to assess what can be improved upon or changed for 2017. Look at:
- Harvest yields over the past few years. Assess what factors created good and bad yields, and plan on how to replicate those conditions within your control.
- Look for expenses that can be reduced. Remember that any input must pay for itself and then some.
- Analyze land management policies that can be streamlined for better efficiency.
Consider Options for Increased Revenue
Look for options and additions that will boost the revenue of your agribusiness. The diversification of crops is one option to consider to add additional revenue streams. Your local Extension services are a gold mine of ideas for:
- Alternative crops for your area; this includes intercropping options like double cropping.
- Diversification of your methods, such as combining conventional and organic crops, or combining traditional row crops with vertical crops.
- Agritourism options that compliment your agribusiness.
Talk to the Financial Experts
Your lender is another resource for discussing all of your options. Your agribusiness may benefit from a global refinance to consolidate debt. Talk to your lender about:
- Is a line of credit your solution for leverage in 2017?
- What are your options for lowering your loan payments?
- Will diversification into another crop help you supplement your agribusiness income?
These are questions that your AgAmerica team can help answer. Schedule a consultation to get started.
Have a chat with neighboring farmers about the upcoming year. Agribusiness peers can be one of your greatest resources. Over coffee and some holiday cookies, make sure to discuss:
- The need to coordinate nutritional or pest/disease sprays for better coverage.
- How are your neighbors and colleagues dealing with labor and/or food safety policies?
- What’s their plan for 2017 — offer to show them yours in return
There is no telling what 2017 will bring for agribusinesses and the agriculture economy. Being prepared is always the best course of action. Farmers and ranchers are in the same boat, and AgAmerica Lending is here to help support the industry with our low interest rates, long amortizations, and an outstanding 10-year line of credit.