Making sure the farm is financially organized could be a key to running a successful and sustainable operation. Unlike many other industries, farmers are faced with unique challenges such as fluctuating market prices, unpredictable weather and potentially volatile cash flows. Ensuring you are aware of the current financial position of the farm by creating accurate and timely reports can allow you to make quick decisions when necessary.

The current business climate of high interest rates and ongoing inflation is challenging. It requires business owners to be proactive and strategic with cash management, debt management and requires an overall increased focus on every aspect of the business.

In agriculture, uncertainty is a constant challenge. However, these uncertainties should not paralyze decision-making or delay essential long-term strategies such as succession planning.

Investing in replacement heifers without financially stressing the ranch is every beef producer’s goal. They must consider risks facing the operation, manage their financial health and discover additional income streams the ranch provides.

While I could go with the ordinary list of things like global events, market volatility, geopolitical issues, global economics and poor financial records, the things that really keep me awake at night fall more into the symptoms or characteristics of what leads to financial issues on a farm. Let’s take a look at a few that top my list.

While drought and other economic challenges tightened the U.S. cattle herd in recent years, the constriction eventually created a significant – and welcomed – upswing in profitability for many beef cattle producers.

Trust. It’s the glue that holds together the relationship between the bank and the borrower. And just like any other relationship, trust can take years to build through communication, setting expectations and following through.

Between high production costs, drought and other unpredictable market factors, there are many challenges facing those in the cattle industry. But one challenge no cattle producer wants to experience is when a buyer of cattle defaults on payment.