Farming Isn't Fair

Farming today is challenging, especially with the current market conditions. Grain prices are tight, and many farmers are struggling to make ends meet. Unfortunately, not everyone is preparing adequately by putting together detailed cash flow projections. For those who do, the numbers are looking tight, but that’s where the difference between success and failure begins.

Why Are Your Neighbors Doing Better?

It's easy to fall into the trap of comparing yourself to your neighbors. You might wonder why they seem to be growing more or doing better than you. The truth often comes down to one simple factor: financial monitoring. Some operations meticulously track their finances, while others are shooting from the hip and hoping for the best.

Who Will Survive the Tough Times?

We're in a tough market environment, and everyone is worried about losing money. However, well-rounded, financially sound operations that keep a close eye on their numbers are positioning themselves to thrive. Over the next few years, the top 25% of farmers and ranchers—those who consistently track their finances—are going to expand and grow, even in these challenging times.

On the other hand, the bottom 25% of farmers, who rely on hope and guesswork rather than data, are likely to face significant financial challenges. We've seen this before. Back in 2012-2014, farmers experienced a similar cycle. While $5.7 billion was made during the price surge from 2009 to 2012, the losses in the following years totaled $6.2 billion, wiping out much of that gain.

Are You Prepared?

This cycle is bound to repeat itself. The top 25% of farmers, who diligently track their numbers and aim to break even during tough years, will survive and even thrive. They focus on "hitting singles" and staying in the game for the long haul. When prices eventually rebound, these farmers will still be standing, ready to capitalize on the upswing.

Meanwhile, the bottom 25%—those who have been guessing and hoping for the past decade—will struggle to stay afloat. Their lack of financial discipline will leave them vulnerable, and many will go out of business.

Which Type of Farmer Will You Be?

So, ask yourself: What type of farmer do you want to be? Will you have the courage to face your numbers, become a student of your finances, and position yourself in the top 25%? Or will you continue down the path of ignoring the truth in your numbers, hoping and praying that things will work out?

One of these approaches leads to success, the other to failure. Do yourself a favor—step up, take control of your finances, and secure your place among the top 25% of farmers moving forward.

If you're ready to take control of your farm's financial future, click here to book a free call with us today. We’ll work together to secure your place among the top farmers who will thrive no matter the market conditions.