Cash Cow Farmer

Category: Finance

  • 3 Simple Income Tax Management Strategies

    [vc_row][vc_column][vc_column_text]How Farmers Can Ensure They Enter a Lower Tax Bracket[/vc_column_text][vc_column_text]

    Don’t have time to read? Listen to the podcast here:
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     Income tax is a huge cost on any farming operation, because as farmers we can’t depreciate land purchases.
     Since tax season is coming up, it’s time to talk about some of the best income tax management strategies for farmers. Here are three of the best. (more…)

  • 7 Sources of Off Farm Income

    [vc_row][vc_column][vc_column_text]1
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     Let’s set the stage: you’re a farmer with a can-do attitude, but unfortunately you’re on the brink of having to give up the farm. Your main operation just isn’t making what you need.
     But there’s a wonderful reality working in your favor: there are people out there who aren’t like you. In fact, they will pay you to do certain work for them in more places than just the farm. This extra work just might help you keep the farm.
     I recently interviewed Matt Brechwald, co-host of the Off Farm Income Podcast, about what that extra work might look like for you. Today, we’re going to go over seven sources of off farm income. (more…)

  • Financial Principles of Ancient Babylon (Part 4): Inheritance

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     Farmers as a group are extremely wealthy—at least with the assets they own.
     Think about it: if you own a combine, you own a $200,000-$300,000 machine. And if you own a quarter of land, you own half a million to a million dollars worth of agricultural real estate. Once you own a quarter of land, you’re pretty much automatically in the 1% or 2% of most wealthy individuals.
     At least on paper (though that may not translate to cash), farmers are wealthy. Many are understandably concerned about passing those assets down and not having the next generation ruin the business. Some don’t even let their kids make business decisions until they’re almost completely out of the picture, which might not be until they’re in their 80s.
     There are two really good stories from The Richest Man in Babylon that deal with the concept of inheritance. I think they hold a lot of wisdom for farmers and landowners today.[/vc_column_text][ult_buttons btn_title=”SCHEDULE A FREE GRAIN MARKETING STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text] Story #1: Goodbye and good luck, my son
     A certain father sent his son away for 10 years with a clear rule: if he came back broke, his father would donate all his assets to the church. But if he became a hard-working man, his father would hand over his “keys” and leave his son in charge of his own business and wealth.
     The kid found himself broke, having lost his gold, but out of desperation he read the five laws of gold that his father had written on a tablet. He put the laws into practice and came back extremely wealthy. For the bag of gold he’d been given, he repaid his father five times.

     Story #2: The luckiest man in Babylon
     Story #1 is a bit hard to translate to modern life. You can’t really kick your kids out for years and force them to make it or break it. Well, I guess you technically could…
     The second story is probably closer to what you should do. It’s one of my favorite stories in the book, the very last one in the volume. The title is “The Luckiest Man in Babylon.”
     An older gentleman was riding across the desert in a caravan with all his merchandise. He rode with the grandson of his recently passed business partner.
     When he looked over, he saw a cocky kid with jewelry all over and fancy robes. The grandfather had been well-respected, while the father was one of those men who spent all the money that came in. The kid was well on his way to following in his father’s footsteps.
     The old business partner saw an opportunity to help the young man. He said, “Would you like to learn how your grandfather and I became partners?”
     “No,” the young man said. “I just want to make money.” Yet, something happened that allowed the old man to tell his story anyway.[/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text] They were coming up to Babylon and saw farmers. The old partner knew the slaves, even knew they had been farming there for 40 years. The kid asked how he knew, and he said he knew because he was shackled as a slave himself 40 years ago.
     He had become a slave unfairly and bounced around to a handful of cruel owners. In the midst of his misfortune, another slave he was chained to told him, “Hard work is the best friend I’ve ever known. You work hard, you’ll get recognized, and you’ll progress.”
     Eventually, the business partner met the kid’s grandfather, who was also a slave. When the kid learned his grandfather had been a slave, he could hardly believe it. How could it be so? His grandfather had been so well-respected by all!
     But he’d bought himself out of slavery by working hard; his work ethic was what led to his respectability.
     Later, the partner was transferred to the most brutal slave owner he’d ever had. But on the second day, the kid’s grandfather showed up and bought him out of slavery. They became business partners and became extremely successful because of how hard they both worked.
     By the end of the story, the kid had done a total 180 in his thinking. He took off his jewelry and started being respectful to everyone around. His life was changed forever.

     A suggestion for passing down the farm:
     Story #2 reveals a better way to onboard the next generation. You may not want to throw them to the wolves for 10 years. Probably, the best alternative is coaching them along and introducing them to your mentors and the people who brought you along.
     The relationship between parents in children is always filled with strife and tension. The kid will never be smarter than the dad, in the dad’s eyes, and vice versa.
     It’s hard to be a mentor to your own children; sometimes it’s better to introduce them to other mentors that can impact them.

     Conclusion
    2-1_5
     I strongly recommend reading The Richest Man in Babylon or listening to it once a year. It’s so valuable, and it’ll change your perspective on making money, spending it, and on how to handle your family.
     You’re riding on your combine all day anyway. Why not listen to material that will change your life while you’re at it?

    This post was based on an episode of the Cash Cow Farmer Podcast. To hear more content like this in audio form,     subscribe to the show here.[/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”40″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”40″ screen_tablet_spacer_size=”30″ screen_mobile_spacer_size=”20″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”FREE GRAIN MARKETING STRATEGY SESSION!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]DON’T LET THE MARKETS WIN…SCHEDULE YOUR FREE SESSION TODAY![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

    SCHEDULE YOUR FREE SESSION TODAY!

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  • Financial Principles of Ancient Babylon (Part 3): Debt Management

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    Don’t have time to read? Listen here:
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     One thing is clear in my conversations with farmers: the biggest challenge they face is making their debt payments.
     Part three of our series on the financial principles of ancient Babylon pulls from The Richest Man in Babylon. Today’s lesson is about managing your debt and working with the holders of your debt to have a realistic plan in place.
     Debt can just pile up. Have you ever had credit card debt? If you make the minimum payment on $5,000, it takes something like 40 years to pay off. The interest rates can really crush a person.
     Thankfully, a story from ancient Babylon can help us today.

    The story of Dabasir, the camel trader
    2-2_6    [/vc_column_text][ult_buttons btn_title=”SCHEDULE A FREE GRAIN MARKETING STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text] Dabasir, a man recently married, was living over his means and had a lot of debt. He sent his wife back to live with her father and tried to figure out how to hide.
     He fell in with the wrong crowd, a group of robbers who robbed merchants. One day, they robbed the wrong merchant, one who had a local tribe protecting him. Several of Dabasir’s fellow robbers were killed, and he himself was enslaved.
     He was sold to a tribe, where one of the four wives of the tribesman soon had mercy on him.
     He told her he was not born a slave but a free man. She asked, “Do you have the heart of a slave or a free man? Because you’re a slave now.” That question troubled him.
     She gave him a chance to escape, and he took that chance, trekking across the desert back to Babylon. He had decided that the will of a free man was to face his debt like a challenge and overcome it rather than collapse under the weight of it.
     After almost dying in the desert, he made it back. He met with all his debt holders and laid out a plan. He would live off 70% of his income, use 20% to pay off the debt, and keep the final 10%. (Remember, the first cure for a lean purse is to pay yourself 10% of what you earn.)
     That’s what he did. He divvied out his 20% proportionally. As a camel trader his income fluctuated, but he paid more when he could and less when he couldn’t.  In that way, he paid off the debt in three years.[/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text] What this means for farmers
     Debt plagues many farmers and business people who aggressively grow their business during high prices and live high on the hog. Eventually, they feel buried.
     I know debt management is a lot less personal today. It’s not like you can go to Fanny Mae and Freddy Mac and say you’re not able to make your payment right now.
     But you can get all your debtors together and say, “This year is going to be a hard year for me, but I’m going to live off of rice and beans and minimize my personal expenses. Don’t increase my interest rate; don’t kill my credit.”
     A lot of farmers did this in the ‘80s. I’ve met them. They told me they went in with their bankers, made deals, then made good on those deals. On the Cash Cow Farmer Podcast, my co-host James even told the story of a friend who negotiated his student loan debt down from $120,000 to $40,000 by paying more in a shorter amount of time.
     Also, it’s not popular, but bankruptcy is a financial reorganization. If you’ve watched The Big Short, you know how people got crushed by adjustable rate mortgages.
     As a farmer, you might have a closer relationship with the holders of your debt and have an opportunity to make due on it. Many farmers still work with small banks, and they’re a lot more flexible than larger institutions.

     Conclusion
     Remember Dabasir’s breakdown: live off 70%, pay debts with 20%, and keep 10%. Even if you’re living in your car, keep that 10%.
     Meet with holders of your debt to have a realistic payment plan in which you don’t get harassed if your income is down. If you present a solid plan and hold yourself to it, your debt holders will be happy to receive a timely payoff…

     This post was based on an episode of the Cash Cow Farmer Podcast. To hear more content like this in audio form, subscribe to the show here.[/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”40″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”40″ screen_tablet_spacer_size=”30″ screen_mobile_spacer_size=”20″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”FREE GRAIN MARKETING STRATEGY SESSION!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]DON’T LET THE MARKETS WIN…SCHEDULE YOUR FREE SESSION TODAY![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

    SCHEDULE YOUR FREE SESSION TODAY!

    [/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”10″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”10″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”15″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][/vc_column][/vc_row]

  • Financial Principals of Ancient Babylon (Part 2) : 5 Laws of Gold

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    Don’t have time to read? Listen here:
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     One weekend, my son and I went to Minneapolis, and I had him listen to The Richest Man in Babylon. I wanted him to hear it, since it’s had such an impact on me.
     Then I found that the one listen wasn’t enough for me. I listened to it again the next day after our trip, and I couldn’t help thinking about how much rich wisdom it held.
     It’s especially helpful for where farming’s at right now, when things are tight and stress is high. I just had to share what I’ve learned with you. (more…)

  • Financial principals of ancient Babylon (Part 1) : 7 Cures for a Lean Purse

    [vc_row][vc_column][vc_column_text]The 7 cures for a lean purse[/vc_column_text][vc_column_text]1
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     The Richest Man in Babylon is one of my favorite books of all time. It’s so good, I read it twice in one weekend.
     Babylon was one of the wealthiest cities of ancient times, because of the financial principles of its people. They recorded stories and fables with these lessons on clay tablets which were unearthed not too long ago. Those tablets are the foundation for the several stories that make up The Richest Man in Babylon.
     One of my favorite principles from the book is the one we’ll be discussing today: seven cures for a lean purse. (more…)

  • 5 key steps to run your farm like a fortune 500 company

    [vc_row][vc_column][vc_column_text]Something like 90% of businesses fail within the first two years.[/vc_column_text][vc_column_text]0_9
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    The main reasons? Structure, strategy, and accountability.
     When you’ve got millions of shareholders you have to report to (like Apple, for example), Wall Street analysts break down your company and try to out-predict you, and you’re on a whole other level of business. Most small businesses don’t have that same pressure to perform, though, which can be both good and bad.
     With my background on Wall Street, helping businesses raise money from investors, I’ve learned a lot of strategies that Fortune 500 companies use. In this post, we’re going to apply those to the common farm.
     You can take these five steps to whatever level you want, but they’re essential to maximizing your business.

     1) Know your exact production costs
     You should know your production costs, down to the penny, for every commodity and field in your operation.
     This is the budgeting side of things. Budgeting is step #1: it’s the first thing you do in building a business. What’s it going to cost to run this business, acquire a customer, or to grow a bushel of a crop?
     This can get complicated, which is the whole reason the Cash Cow Farmer software was invented. It’s the easiest way to track where every penny is spent and made.
     Whatever method you use, have a system where data can be collected in one place and help you drive real decisions that impact your bottom line.

     2) Make a sales strategy
     Unlike most companies, we sell commodities rather than products like iPhones or refrigerators. And grain marketing is a lot different from traditional marketing.
     The biggest challenge for farmers is in forecasting production and having a sales strategy, where you’re taking into account your storage and logistics for basis, your insurance levels protecting future crop, price targets working with an advisor using futures options, and so on… You have to have a great strategy, or you’re going to fumble this thing.
     I’m actually at the tail-end of writing a book about this. It’s called The Grain Marketing Bible: 7 Steps To A Bulletproof Grain Marketing Plan. I’ve spent the last several months writing it, and it’s my gift to farmers.[/vc_column_text][ult_buttons btn_title=”SCHEDULE A FREE GRAIN MARKETING STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text] 3) Develop a board of directors
    1
     It’s good to ask advice from people who aren’t emotionally involved in your business. Having a board of directors is a perfect way to get that advice.
     Your partners should definitely be on such a board. You should also have a few other key people: bankers, accountants, legal staff, mentors, and other successful farmers and entrepreneurs. Obviously, you don’t want your neighbor farmer on the board if he’s not crushing it or if you don’t trust him with certain aspects of your business, though.
     A board of directors is a huge resource for being accountable to people. When five or six people say it looks like you need to build a grain marketing plan, you’re probably going to do it. Accountability is the main benefit, then having them ask you hard questions that you’ll have to dig deep into the market to answer.
     Sometimes it can be like herding cats: everybody’s got their own lives or businesses. You can consider paying them a small amount.
     Either way, accountability is how a Fortune 500 company stays successful.

     4) Quarterly reports with your banker or accountant
     For a farmer, “quarterly” might be more often than necessary. You might change it to an annual report. Your first few quarters might look bad if you’re financing and you sell at the end.
     However, you should have at least one annual report of what exactly happened in your business. When you do an earnings report, you can glean key takeaways about what you could do better: five key points you did well and five you’re going to improve, for example.
    2
    You’re going to go far if you do that sort of reporting. Your banker will see you as an aggressive, intuitive businessperson.[/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text] 5) Have a 5 and 10 year business plan
     In the recent Tony Robbins documentary, Tony says, “People overestimate what they can get done in a year and underestimate what they can get done in two or three decades.”
     That’s one thing that entrepreneurs and farmers need to be thinking about.  There’s only so much you can achieve in a year, given your circumstances. But think ahead to the next 5, 10, and 20 years, and set goals for yourself.
     Let’s say right now you’re renting farmland. You might have an 80-year-old farmer who owns land next to you; maybe you should have a conversation, and let them know when they’re ready to hang up their hat to keep you in mind.  Forming those relationships now can pay off down the line.
     If you’re a 50- or 60-year-old farmer, this works in reverse too. You’ve seen a lot, and you can build the next generation on your farm. Sit down with your children or other young farmers to put together a long-term plan. For them to successfully buy farmland, they will have to plan years in advance.

     Conclusion
     Start planting seeds early if you want great yields 5-10 years down the road. Run your farm like a Fortune 500 company: with structure, smart strategy, and regular accountability.
     Farming is a business just like any other.

     If you’re interested in running a farm like a Fortune 500 company, try out our free trial.[/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”40″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”40″ screen_tablet_spacer_size=”30″ screen_mobile_spacer_size=”20″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”FREE GRAIN MARKETING STRATEGY SESSION!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]DON’T LET THE MARKETS WIN…SCHEDULE YOUR FREE SESSION TODAY![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

    SCHEDULE YOUR FREE SESSION TODAY!

    [/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”10″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”10″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”15″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][/vc_column][/vc_row]

  • Overwhelmed with Debt: 6 Must-Do Steps to Ease the Burden

    [vc_row][vc_column][vc_column_text]farming Don’t have time to read? Listen to the podcast!
    [smart_track_player url=”http://traffic.libsyn.com/cashcowfarmer/Overhelmed_with_debt_6_must_do_steps_Master.mp3″ social=”true” social_twitter=”true” social_facebook=”true” social_gplus=”true” ]

    During the boom years of $8 corn and $17 soybeans, many farm operations bought lots of new machinery and built giant shops. These added assets altered the balance sheet, creating a large liability in debt payments.
    Today, with tight margins in farming, these liabilities are massively burdensome for many operators. I’ve been banging the drum for a long time, but you need to know that cash is king. You won’t go broke because you don’t make money; you’ll go broke because you run out of cash.
    You’re burdened with debt, but there steps to get out from under it. Follow these six steps to lighten the load.

     1) Refinance Debt With the FSA at Lower Interest Rates
     This should be your #1 priority. Basically, your goal in refinancing is to make your annual cash payments less. The FSA has a lot of programs. By going to the FSA, or your bank, you can likely lower the interest rate, which lowers your payments.

     2) Extend the Terms of the Loan Out as Long as Possible to Help Cash Flow
     Obviously, a 10-year loan is more expensive than a 20-year loan on an annualized basis. Yeah, you’ll pay more in interest, but if you need to extend your loan in order to get through these lean years, do it.
    And if your bank is willing to help you out, take advantage.[/vc_column_text][ult_buttons btn_title=”SCHEDULE A FREE GRAIN MARKETING STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text] 3) Sell Any Absolutely Unnecessary Assets
     Take a look around at your assets (equipment, etc.). If you’ve got augers, old trucks, or scrap metal lying around, liquidate that stuff: turn it into cash.
    Figure out how much of the stuff on your balance sheet you actually use. Eliminate the rest; you don’t want things just sitting around. Your banker will be pumped.

    farming
    If you’ve got old augers, bring them in for the winter, keep the guys busy, replace the bearings, put a new paint coat on, and then try to sell them for $1,000-$2,000 or whatever you need. You might be able to take the winter’s work, give the guys enough work to stay paid, and be able to pay off some debt at the same time.

     4) Rent Out Shop Space When It’s Not at Full Capacity
     Maybe you haven’t bought too much equipment, but you have built big shops with too much empty space. The guys that have too much equipment usually need a place to store all that equipment, so you can rent shop space.
    I’ve done this quite a bit. I’ve got all these sheds, and I’ll store boats, sprayers, trailers, everything. I make sure all my space is filled out, with either my stuff or my neighbors’.
    Also, if you’re next to a co-op, and you’ve got a nice shop, you could get a good premium to have their guys working in there.

     5) Rent Out Any Unused Machinery to Help Make the Payments
    farming
     There’s a really interesting company called MachineryLink. Check it out: you can rent your combines and other equipment out. This is a great idea, especially since you’re only using certain equipment for a couple of months a year and then it’s just sitting around. For those guys that didn’t buy a lot of machinery or had to liquidate it, they can rent it from you.
    Yeah, you’ll have to do a little extra maintenance, but the cash will be there in the end.[/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text] 6) Offer Custom Services, if Possible, to Help Pay for the Machinery
     If you can offer custom planting/spraying and give a better price than others, do it. I hire a lot of help; it costs me money, but stuff gets done. Most farm work is time-sensitive, and people are willing to pay to get it done.
    Get creative, too. Clean driveways, hay ditches: I mean, you can offer just about any service if you’ve got a little excess capacity.

     Conclusion
     Debt is a stifling reality for any farm operation, but as you can see, there are usually ways to wiggle out of it—or at the very least, to keep your business afloat.
    Two more resources:

     Want some more strategies for overcoming low commodity prices and shedding debt? Check us out @ Cash Cow Farmer.[/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”40″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”40″ screen_tablet_spacer_size=”30″ screen_mobile_spacer_size=”20″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”FREE GRAIN MARKETING STRATEGY SESSION!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]DON’T LET THE MARKETS WIN…SCHEDULE YOUR FREE SESSION TODAY![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

    SCHEDULE YOUR FREE SESSION TODAY!

    [/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”10″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”10″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”15″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][/vc_column][/vc_row]

  • 6 Ways to Show Dad You Have What It Takes to Farm

    [vc_row][vc_column][vc_column_text]6_ways_to_show_dad_you_have_what_it_takes
    Don’t have time to read? Listen to our podcast:
    [smart_track_player url=”http://traffic.libsyn.com/cashcowfarmer/6_ways_to_show_dad_Master.mp3″ social=”true” social_twitter=”true” social_facebook=”true” social_gplus=”true” ]

    The whole story behind Cash Cow Farmer originates with my dad.
    He’d been in charge of a farming operation for decades, and I wanted to prove my value to him. And not only that, but to prove it so well that I could completely take the reins from my dad.
    When he thought of me running the operation, I wanted him to feel proud, comfortable, and excited.
    Here I was with this business background, so I built a spreadsheet to show him what every bushel of corn, beans and wheat cost to produce, and then I developed the Cash Cow system as an expanded version of the spreadsheet.
    I knew I wasn’t the only farmer who wanted to prove himself to his father. So this is for all the next generation farmers out there who want to take over their family farming operation.
    Here are six things you can do to prove you have what it takes.

    1) Know How to Run Every Piece of Equipment on Your Farming Operation
     When you’re a farm manager, you have to know everything about your business.
    If you’re running Microsoft or Apple, you don’t need to know all the millions of ins and outs, but on a farm you have to know how every piece of machinery works.
    That’s how you become a leader. Nobody’s going to work for you if you don’t know what their job entails.
    farm_equipment_store
    It took me about two years to learn everything by doing everything myself. I bought a combine, and the first time I drove it was on the way home and into the soybean field that I was about to harvest. I just figured it out. Anytime I hit an issue, I’d look through the operating manual or call a friend.
    I did the same with every new piece of machinery. Now, when I assign people to work on machinery, I can ask specific questions: What’s your concave at? Are the cobs coming out broken? And so on.
    The employees know they can ask me anything, and if I don’t have the answer, I’ll get it fast. On a farming operation (and for leaders in general), that’s essential.

    2) Demonstrate Financial Discipline
     Here’s a simple rule: don’t buy unnecessary stuff.
    If you build that reputation, your dad will know that the minute he gives you the keys, you’ll be in debt up to your eyeballs.
    Be the cheapest guy out there. Not cheapskate cheap, but conservative. Imagine you’re Warren Buffett. Thrift is a virtue!
     I didn’t buy anything until I proved to my dad that we were going to make money from it. When I took over, the newest piece of machinery was eight years old, and I’ve only slowly bought new machinery. Even if the truck exploded, my dad would just say, “Fix it,” and I would try.
    If you demonstrate financial discipline, your dad will say, “This one’s gonna make it.”prius_on_a_highway
    Take the example of my 11-year-old son. I asked him what car he would want, and he said a Prius! He said, “Dad, it gets 50 miles to the gallon.” That’s my boy!
    Apply that to farming. Give numbers to your father, and blow his mind by mapping out how you’ll save money.[/vc_column_text][ult_buttons btn_title=”SCHEDULE A FREE GRAIN MARKETING STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text] 3) Know Your Inputs and What Is a Good Price for Each Input Every Year
     Can’t stress this one enough. Know what a good price would be for your inputs: your fertilizers, seeds, fuel, everything.
    Cash Cow is one of those great tracking tools where you can see everything you paid last year and bring that to negotiations. You can use it to your advantage.
    The dad usually does the negotiating. I established trust with my dad by always knowing where the best deal was: what we paid last year, the difference in what we’re going to pay this year, and why the difference is there.
    My dad eventually said to himself, “Why would I waste my time negotiating anymore when Scott has all the answers?”
    How did I know where the best prices are? I asked around.

     4) Study All the Farm Programs From the FSA and NRCS
     If you’ve read just about any Cash Cow blog post, you’ve seen me mention this.
    If you know what’s going on with government programs, then you can go in and take care of everything.
    No farmers really enjoy going in to the FSA office, so take the burden off your family, know all the deadlines, learn everything you can, and always be looking for new programs you can enroll your farm in to help pay for your improvements.
    By the way, governments will help cost-share a lot of technology. GPS is an example. You can easily pay for your GPS bill every year with government programs.

     5) Understand All the Insurance Options and How to Valuate Them
    farming
     Insurance is huge.
    You’ve got to understand the insurance games, including which level of insurance to buy: trend yield, yield exclusion, etc.
    If you don’t understand it, you won’t want to buy it. And if you don’t buy it, you won’t be around for long in business.
    How to learn this is obvious: go to your insurance agent and ask them. It’s as simple as that.
    If you need help finding the best insurance providers, shoot me an email. I’ll be glad to help.[/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text] 6) Know Exactly What Every Field Brings for Profit and Loss on Your Farm
     If your dad asks what you guys are making on a rental ground, and you don’t know, guess how much confidence he’ll have in you?
    Not much.
    So find out. This means you’re using pencil and paper, or spreadsheets, or if you really want to save time, the Cash Cow tool. You’ve got to know what every single field is making on your farm, and if it’s losing money, how to make it profitable.

     Conclusion
    The discipline of learning and putting good information in your head is essential, especially for future generations who want to make their mark in farming. One way to keep growing your knowledge and impress dad is to subscribe to the Cash Cow podcast.
    Another idea is to get a coach/mentor. This could be someone in your area. If there’s no one available, we do some consulting here.
    Our core value is giving back to farmers. Even if you’re not a paying customer, we love talking to farmers and strategizing with them. Give us a call![/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”40″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”40″ screen_tablet_spacer_size=”30″ screen_mobile_spacer_size=”20″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”FREE GRAIN MARKETING STRATEGY SESSION!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]DON’T LET THE MARKETS WIN…SCHEDULE YOUR FREE SESSION TODAY![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

    SCHEDULE YOUR FREE SESSION TODAY!

    [/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”10″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”10″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”15″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][/vc_column][/vc_row]

  • 5 Strategies to Swallow the Losses of 2014 & 2015 on the Farm

    [vc_row][vc_column][vc_column_text]aha
    [smart_track_player url=”http://traffic.libsyn.com/cashcowfarmer/5_strategies_to_swallow_Master.mp3″ social=”true” social_twitter=”true” social_facebook=”true” social_gplus=”true” ]
    Don’t have time to read, click play above or subscribe to our podcast on itunes.

    Most farmers know that 2015 was a tough year. Unless they owned their land free and clear, they probably lost money.
    And 2014? It was even worse—twice as bad, in fact.
    If you lost $25/acre in 2015, then you likely lost $50/acre in 2014. That’s $75/acre in losses that you have to make up. The problem is bigger than most farmers want to think about.
    However, you’re not doomed to repeat those losses in perpetuity. Making a few adjustments will allow you to swallow the losses of the last two years and move forward on an even playing field.
    Follow these five strategies to wipe away the past and work toward a profitable operation in 2016.[/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]1) Restructure Your Debts
     In 2012-13, farmers everywhere souped up their operations, bought new machinery, and built shops. In doing so, they set themselves up for huge payments. And right now, those liabilities are like belts around their necks, cinched tight.
    Right now, we’re in a low-interest rate environment, which means that when you’re in a risky business like farming, it’s very hard to get money. So the best thing to do, hands down, is to work with the Farm Service Agency (FSA) and restructure that debt.
    aha
    Sometimes you have to get creative in order to get interest rates where you want them, but rates of 1.25% on machinery and 2.2% on land are within your grasp.
    I can attest to this. I bought some farmland, half with the bank and half with the FSA. My interest rate with the FSA was 2.25% for 40 years on a land deal.
    Talk about some beautiful cash flow! I’m basically paying $5,000 a year for half of that land.

    2) Manage Cash Flow With Commodity Loans on Inventory
     Debt has a drastic impact on your cash flow.
    We farmers usually sell our crops one or two times a year and only have an inflow of cash during those times. So we have to borrow money and use our operating lines in the meantime.
    But if those operating lines are stressed out from losing money in 2014-2015, they might not have additional space. What to do?
    One way of getting additional cash flow is to take a commodity loan on those grains that aren’t sold yet—the ones sitting in the bin in the farm or at the co-op. If you do this, you can get low-interest debt to cash flow your operation until your marketing plan (see below) executes your goal.

    3) Requote Cash Rent, Split Payment Up, or Drop Unprofitable Land
     This is probably the hardest one to go through with.
    I’ve seen so many examples of farmers paying too much for cash rent. Here’s one:
    There was a farmer who was paying $350/acre cash rent. He went to his landlord asking to adjust the rent to $325, which the landlord quickly refused.
    The landlord went out on the market looking for more than $350 and ended up getting . . . $200! He was so greedy that he wouldn’t take $25 less, and he ended up getting $200 because that was what the market was paying.
    aha
    The moral? If your cash rent is drowning you, let it go. Your first reaction might be to average your machinery cost per acre. But just let it go.
    Of course, be a gentleman about it, as I’ve talked about before. Try to help your landlord out, and don’t burn bridges.
    If you can’t get a better requoted cash rent, and you’re not brave enough to let it go, split the payment up differently.
    Let’s say you’re paying $200 in cash rent. Do $100 down, and $102 in the fall. The extra $2 isn’t going to cost you anything, and it might be enough to put the landlord over the edge, since he or she is getting a smudge more.[/vc_column_text][ult_buttons btn_title=”SCHEDULE A FREE GRAIN MARKETING STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]4) Max Out Government Programs
     Farmers have subsidies with the government, and you’ve got to max them out. Otherwise, you’re losing out.
    Make sure you’ve got CRP income for land that’s not productive right now. CSP, Equip, and NRCS are other programs to look at.
    You’ve got to spend time in the FSA office if you want to make money there.

    5) Make a Plan for Grain Marketing
     Every farmer needs a grain marketing plan. That’s priority #1.
    You’ve likely got a lot of crops from 2015. You’ll need a plan to break up the inventory into marketable units, so that when 2016 harvest comes—and it will come faster than you think—you have a plan.
    Ideally, you want to be one year ahead in your marketing. You’ll want to have almost all of that 2016 crop marketed, with prices locked in, before you harvest. And, if you’ve got grain storage, you can work the basis with it.
    Your banker’s going to love you if you’re one year ahead, and you’ll be happier and more stress-free.

    Conclusion
    aha
    The years 2014 and 2015? They’re history—unless you’re still paying for them.
    Let’s keep the past in the past, and move forward without dragging our debts behind us.

     To get more help on making it through tough times, check this out.
     Give us a call, or check out the free trial. We’ll be in touch![/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”40″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”40″ screen_tablet_spacer_size=”30″ screen_mobile_spacer_size=”20″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”FREE GRAIN MARKETING STRATEGY SESSION!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]DON’T LET THE MARKETS WIN…SCHEDULE YOUR FREE SESSION TODAY![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

    SCHEDULE YOUR FREE SESSION TODAY!

    [/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”10″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”10″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”15″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][/vc_column][/vc_row]