Find tips for achieving financial strength in your ag business, like exploring ag land loans and reviewing insurance
The ag industry has been steady for the last few years, but ag economists are forecasting a downturn in the agricultural economy in the coming years. For finance—from an agricultural land loan to farming diversification—the future rewards those who are prepared; those ag businesses that get their finances in order now will best weather the downturn. Explore the tips below to get your farm or ranch on track financially.
- Guard your cash flow. Having cash flow is important when hard economic times hit. Look at the future expenditures your farm or ranch has or may be considering. Trim any that won’t generate the cash flow needed to pay for themselves over a reasonable period of time.
- Formulate a farm budget and stick to it. A budget is your financial roadmap. Track income and expenses in a timely manner to stay on track, especially when the economic road gets bumpy.
- Analyze farm finances and performance. Look at the returns generated from your farm investments, assets, and income, and identify areas for improvement. Can you boost any sectors or let underperforming sections of the business go?
- Review your insurance packages. Look for areas that may be underinsured as well as those that are over-insured to make sure you’re fully covered but not paying too much, either. From hazard and fire insurance to life insurance, shop around the best insurance rate.
- Examine your agricultural land loan packages and debt structure, and get expert assistance. Finding an ag lender with experience is invaluable. A farm lending team will be able to tailor ag loans and debt restructure packages to your farm or ranch’s long and short-term financial needs. AgAmerica Lending’s 10-year line of credit is a perfect example of a loan product that offers financial flexibility during unsure times.
AgAmerica Lending is the country’s premier land lender, and we understand the ups and downs of the ag industry. We have a long history of helping the nation’s farmers and ranchers grow and succeed with our low interest rates, long amortizations, and outstanding 10-year line of credit.