It’s no secret that farmers are the backbone of America, growing the ingredients that put food on the table and clothes on our backs. At Friendly Meadows, we want to see grain farmers thrive, so here we offer our first in a two-part series that will make your operation that much more successful:
1. Build positive working capital and short-term risk bearing ability. It’s hard to run a business without working capital. So always ensure you always have positive working capital at all times.
2. Pursue additional income sources. Outstanding farmers don’t let their income streams go stagnant. Additional forms of income may be found on-farm, such as diversifying with livestock or taking on more custom acres. Or, an off-farm job can also be a good source of stable income.
3. Develop solid financial acumen: Acumen is the ability to make good judgements and quick decisions. This requires thorough record keeping and a solid understanding of your farm’s financials.
4. Use enterprise analysis: The next step is using those sound financial records to do an enterprise analysis. Excellent farmers know how the pieces of their farm work together, and which operations are most profitable and least profitable.
5. Understand family living costs: Great farmers know their family living costs – and how what they can or can’t afford when it comes to fluctuating price, margin, and profit environments. They are prepared to make adjustments.
6. Negotiate cash rents: Building good relationships with landlords is key for successful farmers. It’s important to be proactive when negotiating cash rent.
Think of Friendly Meadows as your partner in farming success. We offer a selection of grain cleaners and separators designed to make your grain farming process easier, more efficient, and ultimately, more successful. For more information, give us a call today.