• Dec 2, 2014

    What happens when repayment fails?

    Throughout the country many lenders and producers dealing with the grain industry may face situations when repayment is not possible this winter and into 2015. With high cash rents and leases, along with input cost creep, there is a strong possibility that 2014 and 2015 may not cash flow and may show negative repayment capacity for many grain producers. Now what?...More
  • Oct 28, 2014

    Tips for farmer-lender meetings, communication

    Recently, a farmer asked a panel I was a member of, “How often should farmers and lenders communicate during the year, particularly during the planning season?” The panel recommended having a meeting during planning season followed by a quarterly or semi-annual assessment, along with a year-end evaluation, which is imperative to determine financial success....More
  • Jul 22, 2014

    Back to the Future, Part 2: Ag lending and financial management

    An interesting trend in both the 1980s and today is that late in the economic cycle, many lending institutions saw opportunity in the agriculture industry, and thus came into the field of agriculture for profits....More
  • Jun 10, 2014

    Working capital: The shock absorber

    While 33% working capital to revenue is appropriate for cash grain and market livestock businesses because of significant inventory, is this level of working capital too aggressive for dairies, since milk inventory is picked up every day or every other day?...More
  • Mar 18, 2014

    Farm management, finances make difference in profit

    After analyzing a data summary of farmers in low, middle and high income brackets, David Kohl shares some core perspectives on asset turnover, coverage ratio and debt servicing ability and profit margins in agriculture....More
  • Mar 11, 2014

    3 Benchmarks farmers and lenders need to know

    There are three benchmarks every producer and lender needs to know when handling the moderating grain industry and the positive economics of the livestock sector: the current ratio, net working capital and working capital to gross revenue ratio....More
  • Dec 17, 2013

    Perspectives on Farm Finance: Part 1 1

    The great commodity super cycle has kicked in with high prices. However, the top 20% of producers have developed a total system of management which includes operations, risk management, finance and marketing....More
  • Dec 3, 2013

    Farm Balance Sheets: 2010s vs. 1980s

    The U.S. farm balance sheet from a debt and equity position is much stronger now than it was in the 1980s. The debt to asset ratio in the 1980s ranged from 20% to 24%, compared to 10% today. That being said, debt was dispersed over a larger number of producers in the prior periods....More
  • Nov 26, 2013

    Tips for high-quality balance sheets 31

    High-quality balance sheets initially can be difficult and time-consuming to prepare, particularly given all the livestock and crops involved in diversified and multi-entity operations, but if updated in a timely manner, they're a good financial management tool for farm operations....More
  • Nov 19, 2013

    Business tips for low-equity, young farmers: Part 2

    If you're a young, low-equity farmer, David Kohl recommends examining incentive programs specifically for beginning farmers, building capital when experiences are profitable and seek a relationship-based lender....More

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