Tag: Grain Marketing

  • Live Webinar: Managing Farm Data

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    The BIGGEST challenge in farming right now is managing all the data that happens throughout the season and being able to make better management and financial decisions based on that data.

    Watch as Scott walks you through solutions to managing the data into an actionable format.

    Cash Cow Farmer was created to keep you from leaving a single dollar of profit on the table. Give it a look to learn more about how Cash Cow optimizes your operation!

    To learn more about the Cash Cow Farmer program, including software and consulting, give us a ring![/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″][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=”MAXIMIZE PROFITS WITH CASHCOW FARMER!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]POWERFUL FARM FINANCIAL SOFTWARE THAT IS AFFORDABLE & EASY TO USE![/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 30 DAY TRIAL” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||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]

    NO CREDIT CARD REQUIRED. START TODAY!

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  • Adding Personal Living Expenses to Your Farm and Viewing Profits Per Field

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    The biggest challenge in farming right now is managing all the data that happens throughout the season and being able to make better management and financial decisions based on that data.

    Do you know how your family living expenses impact your farm production costs and profit margin?  Check out the video below:

    [/vc_column_text][vc_column_text]Here is a link to the above video.

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    Cash Cow Farmer was created to keep you from leaving a single dollar of profit on the table. Give it a look to learn more about how Cash Cow optimizes your operation!

    To learn more about the Cash Cow Farmer program, including software and consulting, give us a ring![/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″][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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  • 6 Methods for Farm Tax Management

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    [smart_track_player url=”http://traffic.libsyn.com/cashcowfarmer/EP_009-_6_Methods_for_Farm_Tax_Management.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.

    My accountant and lawyer are pretty smart.
    Farmers, they tell me, are not always so smart. They say farmers are afraid to pay taxes and make some of the worst tax decisions around. Farmers try to get their income to zero every year, which can end up destroying their cash flow and thus, their whole operation.
    My two advisors have taught me some valuable lessons about taxes that other farmers need to hear, too. The simple lesson running through this article is this: pay, but plan, your taxes.
    Specifically, there are six things you need to consider for farm tax management.

     1) Accelerated Depreciation
    Section 179 of the tax code is available to everyone. It “allow[s] businesses to deduct the full amount of the purchase price of equipment (up to certain limits).”
    Let’s say you’ve made a lot of money this year—$500,000. That puts you above $400,000, the highest tax bracket, so you’re going to pay 40% in taxes plus any state tax. Section 179 allows you an accelerated depreciation of new machinery up to $500,000, to get your tax liability down.
    In other words, you can buy $150,000 worth of equipment that you need, or a bunch of stuff you don’t, to get your tax liability down to zero. Farmers are often guilty of this. They go out and buy many things that they don’t necessarily need to improve their operation.
    The problem is, when you do that you burn through your cash. If you made $500,000 and want to get your tax liability down to $250,000, you’ll have to spend $250,000 in cash. But just because you have a quarter-million dollars in tax liability, it doesn’t mean you have a quarter-million in cash.
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    Accelerated depreciation, I think, is a weapon of business destruction, because it rewards businesses for burning cash. Tread lightly.[/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]2) Cash Flow
    Don’t spend a dollar to save 40 cents.
    If you don’t need to buy anything, don’t. The cash you relinquish by making unnecessary purchases outweighs any benefits..
    You’ve got to have enough cash to cover your land and equipment payments. Businesses don’t fail because they don’t make enough money: they fail because they don’t have enough cash. The last thing you want to do is ruin your cash position to save a little tax liability.
    We talked about “Cash is King” in an earlier post. 

    3) Do You Need It
    Sam Walton and other “lean and mean operators” have set an awesome business standard with their office setups. Corporate offices often have lavish expenditures, on desks and tables and window curtains. In contrast, Sam Walton literally had card tables set up in his back offices, not wanting to spend more than he needed.
    You might want to run your farm the same way. Your combine’s not obsolete after one year, so stick with it. Buy what you need and leave what you don’t. 

    4) Tax Planning
    If your farm size is consistent over a period of 3-5 years, you can probably figure out what to expect for income. Once you do, you can manage your budget to plan for tax payment. You can put aside 40% (or whatever appropriate percentage) of your average annual income in cash, so tax time doesn’t sneak up on you.[/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) Estate Planning
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    When I’m dead, I won’t care what happens to my farm.
    This is a common sentiment among farmers. Others expect their affairs to sort themselves out in the end. When left alone, they rarely do.
    When you pass away, depending on the laws at that time, you could lose a lot of your farm because of inheritance tax. Inheritance tax is the top rate: 40%, plus any state tax. Think about preparing your heirs for that future tax as you go, by purchasing life insurance or giving them a lot of your assets before you pass away.
    Many farm magazines have specific sections on moving to the next generation. Check them out! 

    6) Get a Professional
    You need help from two people when tax time rolls around.
    One is a professional accountant who understands your industry. That last part is important: you don’t want one from California who works with movies. You want the right fit.
    Ernst & Young accountants are great examples, but ask the big farmers in your area who they use.
    The second professional you need is an estate planning legal advisor. Again, you need someone very familiar with your industry, who knows how to write deeds for land purchases and how to wrap things up into estates.
    Yes, it’s an added cost, but it may save you a million dollars over the next five years. That kind of advice is priceless.

    Conclusion
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    Taxes are daunting, but it’s possible to handle them well.
    If you’ve read a few Cash Cow blog posts, you’ve probably notice a trend: I highly suggest finding an advisor for every part of your farm operation. That’s the most important piece of advice I can give for farm tax management.
    Get good people on your team, and you’ll go far.

    You may take a hit with taxes, but the government also offers a few great benefits for farmers. Check them out.
    Cash Cow Farmer was created to keep you from leaving a single dollar of profit on the table. Give it a look to learn more about how Cash Cow optimizes your operation!
    To learn more about the Cash Cow Farmer program, including software and consulting, give us a ring!

     [/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=”MAXIMIZE PROFITS WITH CASHCOW FARMER!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]POWERFUL FARM FINANCIAL SOFTWARE THAT IS AFFORDABLE & EASY TO USE![/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 30 DAY TRIAL” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||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]

    NO CREDIT CARD REQUIRED. START 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 Things You should know about Hedging Grain with Futures Contracts

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    [smart_track_player url=”http://traffic.libsyn.com/cashcowfarmer/Ep_008-_5_Things_You_should_know_about_Hedging_Grain_with_Futures_Contracts.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.

    Every farmer needs to take advantage of futures contracts, here’s an important first question:
    What are they?
    Futures are derivatives of a commodity that allow buyers and sellers of that commodity to fix prices at some point in the future. The whole purpose of the futures market (for you, the farmer) is to manage price risk.
    For a stock or bond, you buy and sell it whenever you want. Futures, on the other hand, have contracts that expire. That’s what makes them so complicated: every contract moves at a different rate than the next.
    Still, with a little knowledge, you can use futures contracts to hedge your grain. These five nuggets will help you learn how to use futures to manage your risk.

    1) The Farmer’s Natural Position is Long
    Every wise business choice you make must start with this foundational understanding: your natural position as a farmer is “long.”
    Long, in this case, is similar to owning stock. If you think Apple stock will go up, you buy it and keep it in your portfolio. When it goes up, you make money; when it goes down, you lose money.
    Farmers are in a similar position, growing a commodity this year and the next and the next. Let’s say you grow 100,000 bushels of soybeans. In general, for every dollar increase in the commodity’s value, you make $100,000 in increased revenue; for every dollar decrease, you lose $100,000.
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    Farming sounds a little risky when you view it in that light, doesn’t it? Don’t panic: this only underscores the importance of risk management.

    2) Getting to Market Neutral
    While your natural position is long, you can shorten it by getting to market neutral.
    This should be your first goal, and you can do it in many ways, including options, futures, and cash sales. If you’re happy about today’s price, get to market neutral. Your revenue is locked in.
    Here’s how this looks: if you’re going to grow 100,000 bushels of soybeans and you think their value will go down, you can neutralize your position and sell 20 contracts worth 5,000 bushels each. If the price goes up, you don’t make any more; if it goes down, you don’t lose.[/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]3) Protecting the Downside
    Protecting the downside is basically assuring yourself that if the market goes down, you will make money. In the futures market, that’s “selling short.” It’s complicated to explain, but essentially it’s betting that the market will go down.
    First, identify if the market’s trending up or down. If you see a downward trend, consider selling short.
    To sell short, borrow a contract and sell it. It doesn’t actually take place like that, but that’s technically what happens in your account. You can’t sell something you don’t own, so in order to sell short, you have to borrow the contract from your broker and sell it in the market.
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    Let’s say you borrowed 20 contracts, sold them short for $9, and the market went down to $8. At that point, you can buy the contracts back at $8, collect the dollar that you sold them at, and give the contracts back to your broker. You end up in the same position as before, but the market’s downward movement has actually made you a little money.
    It’s definitely complicated, but it’s worth your energy. Start small, and once you’ve done a few trades, the light bulb will go off.

    4) Doubling Down
    In this next suggestion, you become somewhat of a speculator in order to increase your income.
    Let’s paint a picture: you’re going to grow 100,000 bushels of soybeans, and you need 20 contracts sold short to offset their price risk. All the research you’ve read indicates that soybeans are “at a bottom.” What you might do is buy more contracts, thereby eliminating your short position and getting back to your natural long position.
    But you can also double down by buying more contracts. I’ll be honest: this increases your risk, but it also increases your potential for reward. At that point, you’re speculating, but if you’ve got a good track record and have done your homework, making decisions from the head rather than the heart, then you’ll be successful.[/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]5) Which Side to Choose
    Which side to choose—that is, long or short—all depends on your ability to cut your emotions cold, much like a successful day trader or speculator. You can execute trades at the worst time based on your emotions; make sure you’re cool in the heat of the moment.
    This applies not only to the markets, but business in general. Stick to a well thought-out strategy instead of getting impatient and rushing your goals. Everybody wants to make a lot of money, but there’s no shortcut to that point.
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    As Charlie Munger said, “Step-by-step you get ahead, but not necessarily in fast spurts. But you build discipline by preparing for fast spurts. Slug it out one inch at a time day by day. At the end of the day, if you live long enough, most people get what they deserve.”
    If you’re trying to be a hero in the futures market, you’ll end up with your head chopped off. But if you stick to your guns, enduring the wins and losses, you’ll eventually get ahead.

    Conclusion
    JP Morgan was a great man, regardless of his reputation. When asked about what would happen in the stock market the next day, he liked to cleverly reply, “It will fluctuate.”
    Risk management is, in a sense, all a farmer has, because the future of the corn markets is really no different than the stock market: it will fluctuate.
    You can bet on that.

    For more strategies for hedging grain, here’s a
    great resource I recently published.
    Cash Cow Farmer was created to keep you from leaving a single dollar of profit on the table. Give it a look to learn more about how Cash Cow optimizes your operation!
    To learn more about the Cash Cow Farmer program, including software and consulting, give us a ring![/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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  • 7 Strategies to Hedge Stored Grain

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    [smart_track_player url=”http://traffic.libsyn.com/cashcowfarmer/EP_007-_7_Strategies_to_Hedge_Stored_Grain.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.

    Hope is not a good grain marketing strategy.
    The price risk you run when you store grain doesn’t go away, even if you hold your breath. Even though harvest is over, a lot of the numbers are coming out. If you’re already tight with your break-even cost of production, you want to make sure you’re not losing more money as that grain sits at the elevator.
    How do you this? By developing a specific risk management strategy—or multiple strategies.
    Here are seven strategies you can use to hedge stored grain.

    1) Hire At Least 2 Professional Grain Marketing Consultants
    Farmers in general are really bad at marketing grain.
    It’s not an insult; it’s the reality of your job. You’re busy, and you don’t have time to analyze markets, weather forecasts, etc.
    But you need to invest in grain marketing because it’s the most important decision you’re going to make year in and year out. Hire a couple of grain marketing consultants. By a quick Google search, you’ll find a whole slew of them.
    I say two because everyone reads the market differently, so it’s good to have multiple perspectives. You could hire 10 if you want, but keeping up with that many advisers might be a little overwhelming.[/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]2) Have a Plan With Price Goals
    a1
    Before you even put grain in the bin, have a plan to get rid of it.
    You should have a general idea of when you can get to market, so keep tabs on things such as the basis on those contracted months, and build a plan.
    Your first priority is knowing what it cost you to produce your grain. That will inform you on what to do from there.
    Talk with your grain consultants about this. Usually, you can call them and speak to them directly.
    As Benjamin Franklin said, “If you don’t have a plan, you’re planning to fail.”

    3) Futures Contracts
    Futures contracts are just instruments. They were essentially developed to hedge risk in price. With them, you can lock in your entire operation at a certain price.
    One futures contract will cover 5,000 bushels of corn or soybeans. Make sure you know what you’ve got in the bin. Cash Cow Farmer is a tremendous help for this and can give you an exact number when you’re counting bushels.
    Once you figure out your bushels, select how many contracts you want to work with. You’re either buying or selling a contract; talk to your consultants to know which side you want to be on to hedge your risk.

    4) Options on Futures Contracts
    Options are a little bit different from regular futures contracts.
    a1
    One option is worth 5,000 bushels just like a regular futures contract. But there are three parts to an option:

    1. Is it a put or call? – Meaning long or short.
    2. Strike price – The price at which the option can be executed to buy or sell the contract.
    3. Time – Probably the most important aspect. For example, if you try to buy a put option on corn for one year out, it’ll be expensive. There’s so much time between when you buy and when it executes the strike price. (Note: there are short-dated options available now.)

    Options can be extremely valuable. My favorite thing to do with them is sell them, because they lose value every day that they get closer to when they execute.
    I’m not greedy about options: I definitely don’t sell my whole crop with them. But it’s a nice strategy for protection and for possibly pulling 20 or 30 cents out of the market for some of those bushels.
    If your head is spinning a little, don’t worry. Do your homework and talk to your consultants about options, because if you know what you’re doing they can bring you substantial risk protection.[/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) Basis Management
    Basis is all locally based. The more you’re in tune with your local area, the better. Chat with your local co-op as much as possible because they’ll communicate what’s going on with the basis markets.
    Pick a target, and execute the month you can deliver at a good basis. Basis contracts are nice because once you have one, you normally don’t get charged storage.

    6) Use Multiple Strategies
    a1
    You don’t want all your eggs in one basket.
    Selling options is great, but I wouldn’t do it on everything. Break your production down in tenths or quarters and pick a strategy for each of them. Use a futures contract for some, a cash contract for others, and so on.
    Again, your consultants come in handy here.

    7) Avoid Emotion—Keep Calm and Hedge On
    The worst thing is when farmers double their losses by panicking.
    It happens like this: a farmer has grain in the bin, and he’s sold futures for $3. The grain goes up to $3.50; he sees that he’s lost a ton of money on paper, panics, and sells his futures contracts but doesn’t deliver his grain.
    If he would have sold his grain, the whole deal would have ended up a wash. But if he doesn’t sell and the futures comes back down to $3, and then he sells, he ends up with $2.50 for his grain. This is compounding a loss.
    Many farmers have trouble with this because they deal on emotion. If you’re going to sell contracts, match those with cash sales to balance it out—always. Make it a calculated head decision instead of a wavering, emotional one.

    Conclusion
    If you’re interested in this information and having a live Q&A with me, I’d be happy to go over grain-hedging strategies in way more detail. If you could leave a comment or email me, I’ll get back to you and set something up!

    Cash Cow Farmer was created to keep you from leaving a single dollar of profit on the table. Give it a look to learn more about how Cash Cow optimizes your operation!
    To learn more about the Cash Cow Farmer program, including software and consulting, give us a ring![/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 Uncover Hidden Profit on Your Farming Operation

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    listen here
    [smart_track_player url=”http://traffic.libsyn.com/cashcowfarmer/EP_005-_Uncovering_Hidden_Profit.mp3″ social=”true” social_twitter=”true” social_facebook=”true” social_gplus=”true” ]

    It feels like video games back in the day were always hiding something.
    In all those classic 2-D games (e.g., Super Mario and Donkey Kong) there were secret parts of the “level” that led to treasure, goods, or new places—if you knew where to look. The good stuff was all right there, under your nose, but you wouldn’t find it unless you were looking.
    I think there’s a good lesson farmers can learn here. There are nuggets of profit hidden all over your operation, right now, that you can find if you know what to look for. Honestly, a few tweaks here and there can be the difference of tens of thousands of dollars for you annually.
    Let me help you start looking by showing you six areas where your profit is hiding.

    1) Interest rates savings
    This one involves a little paperwork, but the money earned is worth it.
    Farmers have operating lines of credit from which they borrow money during the planting stages. These lines of credit are usually taken with 4-5% interest rates. That means if a farmer borrows $1 million, he’ll pay $50,000 in interest costs.
    Usually, the farmer won’t have all the grain sold at harvest; probably, he’ll sell half a million worth or less. The extra grain will sit in the bin and start incurring costs for next year.
    In this case, the farmer can go to the FSA and take out a commodity loan. The interest rates for commodity loans are at about 1.375%. The farmer can use this loan to pay off his operating line and save 3% or more every month, cutting that $50,000 down to $20,000 annually.
    This is one of the beautiful subsidies farmers get that they don’t always take advantage of.[/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]2) Field-by-field economics

    1a

    This is where Cash Cow Farmer comes into play. It takes all operating expenses and divides them into categories by field, so the farmer can see the profitability of each field.
    Cash Cow reveals those fields that are consistently “losing.” The good news is that you can make almost any field profitable. But first, you have to know each field’s profit and loss.

    3) Planning efficiencies
    Your harvest plan is based on the various maturity dates of the seeds you plant. If you plant and think about harvest at the same time, you can open your harvest window. That way, you won’t have soybeans that are too dry because you had planted all the same variety without regard for timing.
    One thing I do: I plant shorter-day varieties right away and get into longer-day varieties as I get further on in the planting season. The shorter-days will be ready a week or two before the others, so my moisture stays where I want it. If I were to take soybeans out at 8% moisture instead of 12%, I’d be losing a couple of bushels just in the water weight.
    Work with your seed advisor, because bad timing can be the difference in another $10,000. Make sure you’re planning while you’re planting.

    4) Water under the bridge
    I know it’s hard, but try to let logistical decisions win out over emotional grudges.
    Every farmer knows a neighbor who has a grudge against a local co-op. They were cheated, or felt they were, and the co-op never made it right. Maybe you are that neighbor.
    I know plenty of farmers who will pass one or two buyers and drive up to 70 miles away in a semi-truck to sell grain. That’s tremendously expensive. Their pride keeps them from burying the hatchet, at their own expense.
    I don’t know about you, but there aren’t a lot of buyers in my area. By refusing to use even one, I may double my transportation costs. So yes, I may have had a spat where I thought something unfair happened, but we talk it out and then—water under the bridge.

    1a[/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) Neighborly love
    Every farmer has a different setup. Some have a lot of machinery; some have a lot of storage.
    You can work with your neighbors, possibly renting grain storage for half or two thirds what it would cost at the elevator. As an example, I marketed a lot of my crop this year and I’ve got about 300,000 bushels worth of storage. I’m going to use about 100,000, but I’ve got plenty of extra storage left.
    So I called my neighbors and said, “The elevator’s charging five cents a bushel. I’ve got storage I’m not going to use; what do you think is a reasonable charge?” We came up with three cents, giving them a 40% discount.
    I also offered to let them use my air fans that can dry their grain down. At the elevator, the process would cost 5 cents on every bushel for each percentage point of drying. I offered to do it for four cents.
    That’s another $5,000-10,000 you can save, depending on your volume.

    6) Negotiate, negotiate, negotiate
    This is extremely important. If you can save 10 dollars a ton on fertilizer and a couple of dollars on chemical costs per gallon, that’s going to add up.
    There’s always more competition when it comes to buying inputs, so talk to everybody and give them all a chance at your business. Find the lowest price, go back to your favorite input suppliers, and ask if they can match or beat that price. I save at least $50,000 a year by doing this.
    For more on negotiating, I highly recommend reading Stuart Diamond’s Getting More.

    Conclusion

    1a

    There’s hidden profit nearly everywhere: I promise you that.
    Another quick example is that right now corn prices on the futures exchange are having a hard time getting back to $4. But at the moment, next year’s corn prices are at $4.13.
    It’s distant, but you’ve got an opportunity to sell for over $4 next year. You can start to lock in stuff for next year, now.
    That’s just one of the many ways you can greatly raise your profit by making simple, smart choices. If you don’t always take what the “level” gives you, you’ll find more—all over your operation.

    Cash Cow Farmer was created to keep you from leaving a single dollar of profit on the table.
    Give it a look to learn more about how Cash Cow optimizes your operation!
    To learn more about the Cash Cow Farmer program, including software and consulting, give us a ring![/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 Pieces of Data You Should Be Tracking

    [vc_row][vc_column][vc_column_text]1a

    listen here

    [smart_track_player url=”http://traffic.libsyn.com/cashcowfarmer/EP_006-_5_Peices_of_Data_Every_Farmer_Should_be_Organizing.wav” social=”true” social_twitter=”true” social_facebook=”true” social_gplus=”true” ]

    Data organization: The ability to organize and structure data to locate strengths, weaknesses, and opportunities in the farming operation.
    On every operation, big or small, there are a lot of data points. Those data points have to be organized into a structure in order to locate efficiencies and inefficiencies.
    Otherwise, you might go into a negotiating meeting not unprepared. A lot of farmers go to the negotiating table simply saying “that’s too expensive.” But if you bring specific, organized data from last year’s purchases, you’ll give yourself bargaining power and protection.
    Data is useless unless it’s organized into a usable format. That’s really the point of the Cash Cow Farmer program: to manage your expenses and revenue so you can find the best investments in your operation.
    Whether you use Cash Cow or some other means of recording, there are main types of farm data you should be tracking.

    1) Inputs
    Inputs are field-specific. This is because inputs are based on your goals for production and the productive capacity of each field.
    Some fields might grow 200 bushels of corn; some might grow 120. Just because you’re growing 120 bushels doesn’t mean you’re not going to make money. You just have to vary your inputs accordingly.
    The inputs section of your records includes all the applications on the farming operation: pounds of fertilizer applied, etc. They all have to be tracked, whether in a spreadsheet or something like Cash Cow Farmer.[/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]2) Purchasing
    1a
    You also have to track your purchasing of “raw materials.” If you had a manufacturing company, you’d be tracking all the purchases of angle iron, other steel and bolts. In farming, you’re tracking purchases such as your seed, fertilizer, chemical, and insurance.
    The main goal with purchasing is to know the price you’re paying for everything. That way when you negotiate in the fall, you have a reference point for bargaining.

    3) Overhead
    Overheads are similar to purchasing, but a little bit different. They are the expenses to run your business: machinery purchases, fuel, labor, auto and farm liability insurance, and land acquisitions. These help you run a complete operation, and they too need to be tracked.
    Let’s say you’re farming 10,000 acres, and you’ve got $1 million in annual overhead expenses: that’s $100 dollars an acre. If you’re losing land for whatever reason, your overhead will go up per acre if you don’t decrease it.
    Fuel expense changes based on the price of oil. Machinery purchases are probably going to be down this year. You’ve got to keep track of all overhead expenses so you can locate weaknesses and put a plan in place to offset them (e.g., finding a different liability policy).

    4) Inventory
    It’s essential to keep tabs on old crop, new crop, and even next year’s crop.
    How much unsold old crop do you have? How much marketed new crop? What do you expect to plant next year?

    1a

    You want to be thinking at least a year ahead. For example, next year’s corn (based on the futures market) is over $4. For this year’s corn, we’re looking at $3.80.
    If you’re like most farmers, you’d sell this year’s crop if you could hit $4; well, you’ve got that opportunity, so it’s not a bad idea to think a year ahead and make some marketing contracts.[/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) Financial Data
    Balance sheet, cash flow, tax management . . . It’s actually not as complicated as it sounds.
    Once you’ve built a balance sheet, you only have to maintain it afterwards. You’ve got your assets and liabilities, which change periodically, and as you buy and sell old machinery you add and remove them from the balance sheet.
    They say “businesses don’t go out of business because they’re not profitable: they go out of business because they run out of cash”. Cash flow management is what every banker wants to see.
    This is challenging for farmers, because for most of the year we’re spending; we only have a couple of months of harvesting and monetizing our assets. During certain months, we have huge expenses; in others, huge revenues. Maintaining adequate capital is crucial.
    This came up recently with a Cash Cow customer. For some reason the train at his local buyer wasn’t running right, so he couldn’t bring his corn to market. All this corn was going to turn to cash, but the train schedule kept him from monetizing. He had to take out an emergency loan.

    1a

    You don’t want to be put into those positions. That’s why we have a consulting branch at the Cash Cow Farmer program in which we help farmers with financial statements.
    Every month on a call, we advise where the strengths, opportunities, and weaknesses are in their operation, as well as update their cash flow and balance sheets—all to make sure they’re in a good position.
    We offer two levels:

    1. Data management – We do all the data entry for the farmer.
    2. Full-on consulting – We essentially act as a financial analyst on behalf of the farmer.

    Cash Cow consulting is extremely cheap: if you hired people yourself, such as a bookkeeper to do the data and an accountant, it would be about 10 times what we charge.

    Conclusion
    If you don’t use Cash Cow Farmer, make sure you’ve got a good spreadsheet, accountant, or bookkeeper tracking everything for you. Do this on a regular basis—monthly, if you can.
    Harvest and planting months are extremely hectic for data management, so make sure you’re using something. You’re never going to go out of business if you’ve got a plan and you’re focused on the financial side of farming.

    To learn more about the Cash Cow Farmer program, including software and consulting, give us a ring![/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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  • The Art Of Negotiating Farm Land Rent

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    1a
    listen here
    [smart_track_player url=”http://traffic.libsyn.com/cashcowfarmer/EP_004-_Negotiating_Land_Rent.mp3″ social=”true” social_twitter=”true” social_facebook=”true” social_gplus=”true” ]

    If you’ve ever been married—or in any relationship, with anyone, ever—you know the importance of negotiation.
    Two people who disagree will never find common ground without some amount of back and forth. Sometimes that means one person gives in to what the other person wants; sometimes it doesn’t.
    The same principle applies in farming. While negotiating with a landlord may not look at all similar to negotiating with a spouse, I think the two require a lot of the same things. As with a spouse, farmers should try to jump into the landlord’s shoes, negotiating as if he were a best friend.
    That’s loosely what Stuart Diamond’s recent book Getting More is about. Diamond, one of the most famous professors at Wharton Business School, wrote this book not about how to get everything, but how to get more out of life by valuing the other party’s perceptions. It covers everything from getting your kids to do their homework to working billion dollar deals; I highly recommend listening to the audiobook while you’re running around in your combine.
    I’ve adapted three “rules” or principles from Diamond’s book. I believe they’re key to mastering the art of negotiating land rent.

    1) Understand the landlord’s perspective
    I don’t need to tell you that rent prices affect your own wallet. But it’s easy to overlook a simple factor in negotiating: you are that landlord’s source of income.

    1a
    Think of it this way: nobody wants to take a pay cut. Even if the company they work for is going under, people will generally quit before taking a pay cut. They feel alienated by the people who pay them.
    Why would landlords feel any different? When you come to the table offering to pay less money for a new lease term, it’s like asking them to take a paycut. They might not be able to afford a pay cut, and even if they can, let me reiterate:nobody wants to take a pay cut.
    To understand that perspective is to approach negotiation with a high level of respect. You’ll have a much better footing that way.

    [/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]

    2) Meet their needs
    Landlords have certain needs, just like the rest of us.
    Landlords are often older in age, and they may have assisted living or health care expenses. They generally don’t have a regular job, and just like everyone else, their lifestyle changes as their income changes.
    You can step into a few of those needs by negotiating accordingly. Bring an offer to the table that factors in the many expenses the landlord lives with.
    If the price ends up to high for you, you can even offer to introduce them to someone who might be interested in renting their land. A few words can add a whole new level of empathy to the equation, soften any further negotiations, and build your reputation as someone people will want to work with.

    3) Understand yourself beforehand
    Before you ever approach a negotiation, you have to understand your own economics.

    1a

    This is where Cash Cow Farmer really helps: you can see exactly what you’re making or losing on every field you farm. You can use that data to determine exactly how much you can afford to pay a landlord, which will be a hard ceiling in your negotiations.[/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]

    When to give in
    Knowing when to give in is simple, at least when it comes to land rent—if you know what you can afford, you simply don’t go above that number.
    Be prepared: there are other farmers interested in the same ground you now rent. If the landlord does open it to the market, you might lose the soil. This is sometimes the best scenario; I’ve let land go that my family has farmed for 25 years, but financially it’s served me well.
    Be respectful, but don’t go above your ceiling. Ask them to let you know if they open it up for bid down the road. And don’t burn the bridge: opportunities may arise later for you or your kids if you hold their respect.

    When to not give in
    If the landlord’s offer doesn’t line up with accurate economics, keep negotiating. The best thing you can do is bring hard numbers to them. Then you’ll be negotiating based on evidence.

    1a
    For example, the highest price for corn in this last crop was $4.54 on the futures exchange. Deduct your basis, which we’ll say is $0.65. So if you had about a $3.90 cash price, could you make money on that rented soil or not?
    If you could have made money but you marketed poorly, you won’t have a lot of bargaining power going into the negotiation. But if you sold all your crop at the best price of the year and still lost money on it, the landlord can’t expect any more from you.
    If the landlord is still stubborn, never be disrespectful but share the economics with them. No one’s going to rent land that costs more than it can possibly produce. You can, and should, use that as a negotiating piece.

    Master the Art
    Whether it’s your wife or your landlord, go into negotiation with empathy and respect. At the same time, go into it with preparation. There’s no reason you should ever come out on the bad side of a deal if you approach it with those three things.
    My best parting advice is to read Getting More. You can also find lots of interviews with Stuart Diamond online. I’ll throw another book your way, too: Check out Stephen Covey’s The 3rd Alternative. It gives lot more great advice about negotiation.

    [/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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  • Top 3 Government Loan Programs for Farmers

    [vc_row][vc_column][vc_column_text]1a
    listen here

    [smart_track_player url=”http://traffic.libsyn.com/cashcowfarmer/EP_003-_Top_3_Government_Loan_Programs_for_Farmers.mp3″ social=”true” social_twitter=”true” social_facebook=”true” social_gplus=”true” ]

    During a recent antique tractor show in my hometown, I got an earful of complaints.
    A number of farmers told me they were still sitting on last year’s crop and didn’t know what in the world to do with it. They were selling last year’s crop to slowly pay for this year’s crop.I asked a simple question: Why didn’t they try a commodity loan?
    When I was met with blank faces, I realized that a lot of farmers are missing out on one of the best resources available to them: government loans.
    Farm Service Agency (FSA) loans are insanely cheap; taking one out is almost like borrowing directly from the federal reserve. They’re great ways to finance purchases and bridge your gaps between selling commodities. If you need to boost your cash position look into FSA loans, starting with these three.

    1) Commodity Loans
    Commodity loans are exactly what they sound like: money borrowed against your commodities.
    The process for taking out a commodity loan is straightforward;
    Step 1 is to go to your local FSA agency and state your interest in a loan. Of course there’s always paperwork to be filled out when you borrow money, but the FSA doesn’t require anything difficult to track down. They usually want to know your cash position and current assets, so you should always be updating your personal balance sheet.
    Your personal balance sheet includes what you have in short-term assets (cash, stocks), long-term assets (land, machinery), and any liabilities (land payment, other debts). The FSA will review that information to ensure there’s enough collateral to secure the loan.

    1a
    Step two
    is to report the crop you have in storage; the FSA will base the amount of your loan on that quantity.
    For example, let’s say you have 100,000 bushels of corn. It varies by county, but I got a 1.25% interest rate last year so we’ll go with that number. The FSA gives you $1.83 per bushel of corn. That’s way below the market value, but they want to make sure they’ll get their money back.
    Multiply $1.83 times 100,000 bushels and you now have $183,000. You can use that money to cover expenses and the rest to pay down your operating line of credit.
    If you use a bank, your rate will probably be somewhere between 4-5.5%. If the commodity loan is around 1.25%, you’re saving about 3.5% just by taking advantage of an FSA loan.

    [/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]

    2) Equipment Loans
    An equipment loan is simply a loan to buy machinery. The simplest route for the loan is through a bank, but I recommend also looking into an FSA loan. The FSA usually does fixed loans; I did one and got a 2.25% rate.

    1a
    Although FSA interest rates are usually much lower, equipment loans do have their limits. They max out at $300,000, which doesn’t go very far these days.
    The FSA can even guarantee a bank loan for a fee, stepping in to pay it back if you don’t. This is an important farmer subsidy program, because in farming one or two bad decisions could lead to you losing your whole farm. One year you might see record profits, but it doesn’t guarantee that you’ll even be “in the black” the next year. Farming is one of the riskiest businesses in the world.
    The process is the same as a commodity loan. Actually, any FSA loan requires the same kinds of paperwork:
    1) Tax information from the past couple of years. (Most accountants have this on file; you can just attach it to an email and send it to the FSA.)
    2) Your personal, or your farm’s, balance sheet
    3) Projections (Cash Cow Farmer really helps with these. You know exactly what you’ll make or lose on every field, the cost per acre on seed, fertilizer, how many bushels each field will grow, etc. I just take a snapshot of my “Fields” page on Cash Cow Farmer and send that as my projection documentation.)

    [/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]

    3) Land Purchase Loans
    I’m in the process of applying for one of these right now. The limits, again, are kind of archaic. $300,000 is not going to get you much land with current prices, but the FSA rates are incredible.
    You have two options:

    1. Purchase the land for $300,000, a 40-year loan at 3.75% interest—a really good rate. Your bank’s interest rate would probably be closer to 4.5% on a 20-year ARM, adjusting every 5 years.

    2. Take advantage of a part-FSA, part-lending institution loan.

    1a
    The second is the best option. Let’s say you need to borrow $500,000. Since the FSA’s max is $300,000, you can do $250,000 through them and $250,000 through a private lender.
    Since FSA rates can be as low as 2.5%, spread out over 40 years instead of 20, you’ll basically pay your bank twice what you pay the FSA during that time. Much improved payments make up for the inconvenience of working with two institutions.
    Interest rates are probably the most important factor when farmers are considering loans. The next most important is fixed vs. variable rates. Also, don’t forget about cash flow, you want to be able to make the payment every year.
    Banks don’t like to fix long-term loans, because they might have to borrow money themselves if interest rates go back up like they did in the ‘80s. At one point, there was a 17-20% rate for an operating line of credit—can you imagine that?
    Still, you can probably get a fixed loan at a higher rate. Your banker will run numbers for you and lay out your options should you go that route.

    Conclusion
    Anytime you’re going to spend a significant amount of money—and “significant” is different for everyone—go to your FSA office. You can save yourself a chunk of change by looking at what kind of loans and guarantees they have.
    Take advantage of these government programs in case something goes awry and they’re not available anymore. A dollar saved is a dollar earned. The frugal farmer always comes out on top.
    “CSP” and “Equip” are two other government programs that can help you. To read more about them, and other ways to make any field profitable, read this.

    [/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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  • Cash Cow Streamlines Profits By Field

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    1a

    Alan Strom, left, and his son Nick, started using Cash Cow Farmer in the 2015 season and say reviewing budgets and inputs on their fields is crucial to determining the health of their operation in Brown County, S.D.
    Scott Anderson brought a Wall Street education back to the farm and used his experience with corporate finance and money management to create the Cash Cow Farmer program designed for simplicity and utility. Cash Cow Farmer is a user-friendly financial program that calculates field by field production costs and manages inventory and grain marketing strategies.
    During college, Anderson heard Warren Buffett and Bill Gates speak at the University of Nebraska-Lincoln. He didn’t identify with the world of Gates, but was inspired by Buffett’s common sense approach to business. “If a guy like Buffett, who came from Omaha, could make it on Wall Street, maybe I had a chance.”
    Leaving his family farm behind in Andover, S.D., Anderson seized opportunity and spent two years in corporate finance on Wall Street after college. There were other traders from small towns, but Anderson was the only farm boy on Wall Street. He soaked in the marketing knowledge, and following his father’s retirement, returned to his family’s 7,500-acre corn and soybean operation. “When I came back to the farm, my goal was to get the financial side of the farm under control. If you’re an executive making decisions, then you must know the ins and outs of your operation,” Anderson says.

    [/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]He brought home the nascent pieces of a spreadsheet accounting for everything in a farming operation. Every row was a separated field and included all economic factors: overhead, labor, insurance, repairs, purchases, tillage passes, inputs from seed to chemicals, and much more. At a startup weekend event for technology entrepreneurs, he didn’t think anyone would care about financial software by a farmer from a town of 99 people. He was wrong and Cash Cow Farmer was born.
    Cash Cow calculates the costs to produce a bushel of grain by field, and allows a grower to manage each field as a separate business. The results are streamlined toward the bare truth – which fields are making profit, which are mired in loss — and why.
    Growers punch in what they pay for inputs and get access 24-7 via smartphone, tablet, or computer. According to Anderson, tight margins have gained Cash Cow attention for one primary reason: Growers want landlords to see raw numbers to bolster rent negotiations. Backed by hard data, they want to show landlords past rental rates aren’t necessarily affordable. “Rent can really get a farmer, especially if he’s paying $300 per acre and losing $50 to $200 per acre,” Anderson says. “He can put his economics into the Cash Cow program and show the landlord that ‘First, this is what I’m making on land I own. Second, this is what I’m losing on land that I rent.’ Rent negotiations have been a significant reason for some producers to use Cash Cow.”[/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]1a

    Alan and Nick Strom grow corn and soybeans in Brown County, S.D., and rely on Cash Cow to track inputs for individual fields. “We’re making better decisions and gaining extra profit with accurate numbers as a guide,” Nick says. “Reviewing budgets and inputs on all of our fields is crucial to knowing the strengths and weakness of our entire operation. We’re using the spreadsheet to change how we apply fertilizer to specific fields to get the maximum out of them.”
    Anderson has tremendous confidence in his program and offers a 30-day free trial. Cash Cow launched in December 2014 and is available at two purchase levels. Basic costs $750 per year and includes 25 fields; Pro Plus costs $1,500 per year and includes an unlimited number of fields. Crops currently available for the program include corn, cotton, rice, canola, edible beans, flax seed, lentils, oats, peanuts, peas, potatoes, sorghum, sugar beets, confectionery sunflowers, oil sunflowers, winter wheat, spring wheat and soybeans.
    “When I help a farmer get started, they often show me a bunch of papers with scribbled notes. Any look backwards requires digging through paperwork.” With Cash Cow, the risk of reliance on a pile of papers is over, according to Anderson. “Once you’ve used Cash Cow even one time, you can show someone else how to use it,” he says. “It’s made by a farmer for farmers.”

    See the original article by Chris Bennett 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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