Farm Leadership
-
Is Condo Storage for You
Most farmers are of an independent nature, however, in one area they may want to consider partnering up on is grain storage. The decision to build on-farm grain storage can be very complex. Farms that are mid-size or smaller usually find it cheaper to continue to bring their grain to an elevator versus storing it on […]
-
CRI Trumps APH
Crop insurance has been available to farmers for many years. Until recent years most of this insurance was based upon Actual Production History (APH). Insurance products based upon Crop Revenue Insurance (CRI) have been introduced to enhance and/or replace APH. Marcia Taylor of DTN/Progressive farmer had a good blog on how one farmer in Ohio […]
-
Corporate Farms in Africa
In the latest issue of Business Week magazine is a very good article on the farm land rush that is occurring in Africa and other under-developed countries around the world. There are many issues surrounding these investments in third word farming enterprises. Although it may provide jobs for these people, it also is disturbing the […]
-
Happy Thanksgiving and Update on Kid’s Wages Post
Some of my fondest memories as a child was going to my grandparent’s house for Thanksgiving. My mother was the oldest of 12 kids and many times we would have 30 to 40 people at the house. The best thing was my grandmother’s pumpkin and apple pie. I know if she was still alive and […]
-
5 + 5 + 5 = Home Run
Many farmers do a good job of benchmarking their operations to other operations in the same state of region. By doing this benchmarking, they are able to see where they are either behind or ahead of other farmers. Some get discouraged trying to get out of the middle range into the top 20%. Most think […]
-
What’s Your Working Capital to Revenue Ratio
There is a saying in business that a company does not go out of business from a lack of net worth, but from a lack of cash. An important measure of this “business cash” is to determine your working capital divided by your gross revenues. The higher this number is, the more “business cash” you […]
-
Farmer as CFO
My friend Alex Tiller recently had a great post on how a farmer must be a good CFO in order to be a successful farmer in today’s complex financial world. As I quote him “Most ag producers are their own chief financial officer”. Most farmers are doing this job right now, but many of them do […]
-
Solutions – Not Empathy is What Matters Most
About two months ago, I messed up with paying a bill for another business that I am involved in. I sent a check for $6,500 made payable to one vendor to a different vendor for a $45 bill. Of course, they cashed the check and my other vendor wondered why they did not get paid. […]
-
Four Key Steps to Expand Your Operation
Top Producer Magazine / Website is a great resource for farmers that are trying to be the “Top Producer”. I recently came across a short article from their editor, Greg Vincent, about expanding a farm. He interviewed former Farm Credit Services of America (FCSA) financial officer turned financial consultant, Roger Schlitter. I thought it had […]
-
Minnesota Median Farm Income Down 15% in 2008
The University of Minnesota has a Center for Farm Financial Management that performs an survey of farms in Minnesota. In August, they issued their report for 2008. Some of the key findings are as follows: Median net farm income was $90,039 which was down from $105,489 in 2007. This represents an approximate 14.6% decrease. Median net […]