The agricultural industry has seen a lot of ups and downs, especially over the last five years. Farmers are now looking at tight margins, high uncertainty, and a major swing in profitability since 2012. But despite today's ag business environment, there continue to be farmers out there whose businesses are not merely staying afloat, but actually thriving.
Water Street Director Jason Ladman recently spoke with ag broadcaster Dewey Nelson on this topic. Ladman outlined three steps he believes are crucial to a farm's success in this environment:
- Do a thorough financial analysis of the farm so you know where it currently stands
- Set the farm's goals
- Write up a game plan for how to reach those goals
These steps, along with accurate financial updates along the way and possibly the assistance of a financial advisor specializing in the ag industry, will greatly help a farm leader keep an eye on the prize as they course-correct along the way, shifting cash flows and other facets of the plan to realign the operation toward its goals.
Listen to the full interview below.