The end of the year signals a time of financial data collection for most farms, ranches and other agribusinesses. While doing tasks like taxes and bookkeeping, you’ll have an opportunity to go over your operation’s financial information with a fine-tooth comb. Take the opportunity to examine the following areas to improve your agribusiness’s fiscal health:
- Ensure that you’re not missing any expenses on your taxes. Commonly missed expenses include deteriorating machinery and equipment and prepaid expenses from the prior year, according to AgAmerica’s SVP of Underwriting, Bryce Philpot.
- Compare your farm’s performance with that of other similar farms in your area. This can help to show the strengths and weaknesses of your farm or ranch. Land loan specialists like AgAmerica Lending or your local extension services are two resources for such peer farm information.
- Compare 2015 data to your budgeted amounts and to financial information from past years. Examine any discrepancies between the three different sets of data.
- Look for patterns in production that will allow you to pre-pay expenses, according to Senior Underwriter Bree Scarano; an example of such would be buying chemicals or fertilizers and holding them in inventory so that you take the expense in one year but use the items in the next.
- Look at your farm’s debt situation and find ways to strengthen it. Our Senior Underwriter Tim Rainey points out that “the best time to refinance is when your farm is economically strong. And it remains a good time to refinance your land while interest rates remain historically low.” Utilizing the expertise of agricultural lenders like AgAmerica Lending is a good way to explore all the options for your farm or ranch.
At AgAmerica Lending, it’s our business to make your operation as financially strong as possible. We have a long history of helping the nation’s agribusinesses to grow and thrive with our low interest rates, long amortizations, and outstanding 10-year line of credit.
Photo above: AgAmerica team members Bryce, Bree, and Tim.