In tougher times, it pays to plan ahead to manage financial risk
Author
Published
7/13/2015
While production risks are at the forefront of most producers’ minds, don’t ignore the need to manage your farm’s overall financial risks. The initial concern may be trying to market crops at cash prices not seen since 2009, but part of the solution is looking beyond the next six months.
Despite the tight profit margins expected for 2015, consider these five financial risk management strategies.
Working capital
Maintain adequate cash reserves, which are typically working capital (current assets minus current liabilities) as well as operating lines of credit. By the late summer months, these reserves...
Members Only Content
Join Iowa Farm Bureau or login to view all members only content and receive other member benefits.