“Over the last three years, wider margins, government payments, fantastic yields and marketing opportunities we could never dream up have created a lot of working capital in farm country. But inflation has wreaked havoc on the balance sheet, and farmers need to be careful about the moves they make right now,” says Alan Rosendahl, a farmer and senior vice president at Iowa State Bank.
In addition to the majority of Iowa's farmland being owned outright, 66% is owned by someone over 65 years old, 23% is in a trust and 58% is under a lease (primarily fixed cash rent).
For today’s complex farm operations, accrual accounting can remove some of the guesswork and provide better information for multiyear projections. It can also make your loan renewal process easier.
The Inflation Reduction Act is the most significant climate legislation ever enacted. The package includes more than $19 billion to support USDA conservation programs, but the money won't last forever.
The latest Ag Economy Barometer shows farmer sentiment has soured as crop prices have tumbled over the past month, but it's not all gloom and doom. Strong working capital can help address the downturn in farm country.
