Division of Extension
The cash flow budget is a valuable planning tool for the farm manager. It enables the manager to know and plan borrowing needs and investment opportunities throughout the year. With a cash flow budget, the manager has an initial cash position for each time period. It can also serve as a communication tool to share with a lender to set up a line of credit, make capital investments, or perhaps discuss the reduction of debt.
Investing in capital replacement or new investments is appealing, but building working capital and paying off dead-weight debt may be the more prudent financial decision.
The farm press is filled with stories of farm injuries, workplace fatalities and life-threatening health concerns from exposure to toxic gases, dusts and other hazards. Articles and radio and TV interviews often provide safety tips and other prevention recommendations. All are important, but if you operate a farm, a critical key to effective farm safety and health management is a thoughtful, well-written workplace safety policy that you review often with all who live and work on the farm.
Like any business, farms depend on good employees for things to run smoothly. When you have a vacancy on your team, structure your interviews so that you can hire the best available employee. Make sure you prepare for interviews in advance, and allow yourself enough time to consider each individual carefully.
Job descriptions add clarity to farm tasks and procedures, helping to avoid confusion and potential disagreements about the work at hand, and delineating who is responsible for those tasks. This can also improve working relationships and keep things running smoothly for all employees, including family members working on the farm.
The development of a meaningful vision is not easy or instantaneous. It takes time, thought, effort, and teamwork. Once you have thought through the following steps, share your vision with the members involved in your farm business. The farm vision will need their input as well, if they are to be involved in the future of the business.
As agricultural and rural community professionals, it is important to understand how to effectively communicate with farmers and family members who face highly stressful situations. Based on cited research and interactions with thousands of farmers and ranchers throughout the US, ten key suggestions have been developed. Understand the basic physical, chemical and physiological workings of […]
Business succession planning doesn’t happen on its own. Producers must intentionally focus on the planning and work with a team of professionals such as a tax specialist, attorney, financial planner, and lender. Family businesses in particular, should first recognize that family and business systems focus on different goals. A family farm inherently mixes family and […]
Regardless of the time of year, it is important for farm operators to spend some time in their office completing their least favorite activity – paperwork. Most farmers enjoy getting their hands dirty, from digging in the soil, repairing machinery, or working with livestock. They will reluctantly compile the necessary information for income tax preparation, credit borrowing, and crop reporting.
With economists at the U.S. Department of Agriculture predicting farm debt will reach a record high this year, Wisconsin agricultural leaders are warning farmers against the dangers of unregulated lenders.
Explore ideas to finding your own path to financial well-being.
Farming ranks as one of the most dangerous industries in the U.S. Stress, long hours and fatigue contribute to injury risk. Thus, proper safety precautions are essential for preventing such incidents.
Strategic thinking helps farm businesses make decisions by thinking ahead, visualizing potential problems, and finding solutions. A comprehensive SWOT analysis helps a farm respond to opportunities and threats by taking advantage of their strengths and weaknesses. Developing realistic strategies and goals helps the farm adapt and make proactive decisions.
