5 Financial Tips for Farmers

Growing Your Agricultural Financial Future

Feeding America isn’t the job for everyone, but for the select few, a career in agriculture is the epitome of making a difference in the world. Getting up at dawn, and getting in at dusk, many rural farmers have daily tasks which keep them running 24/7. At Heartland Bank we’d like to help make one of those endless tasks just a little bit easier. We’ll show you how to maximize your operation’s cash flow and build a better financial future – just follow these five steps!

  1. Choose Your Agriculture Strategy

There are three types of agricultural operations, highly efficient, low-cost, and extended value. These types of operations vary drastically, but come down to one single component – what is your agricultural brand? Is your operation synonymous with high quality production, high quantity production, or is it in a unique form of production all its own? Once you determine what you want to be known for, you can begin to shape your operation around the principles of which that drives.

  1. Utilize State and Federal Programs

With programs backed by the USDA and various State organizations, there are endless solutions available to farmers today. From helping you secure a place to all home, to offering various land subsidies to supplement your income, there are a large variety of ways to maximize these programs tailored to help deserving farmers.

  1. Evaluate Your Investments and Profitability

By creating a continual plan with your equipment purchases and other investments you can add some much needed structure to your operation’s money management. Keep track of your loans and your timeline to repay them. By being aware of the revenue needed to continue these repayments, in addition to making profit, you can set attainable goals to help keep your operation on target.

  1. Review Hazard and Fire Insurance Coverage

When examining your current policy you may find you’re paying for coverage that your operation doesn’t need. Work with your agent to determine if a new policy could help you decrease costs, while still maintaining the coverage you need.

  1. Keep Your Operation on Budget

Recording a detailed account for your income and expenditures can help you ensure that you continue a healthy cash flow. By keeping continuous records, and detailed reports, you may find that you have been missing out on previously unused tax benefits. Staying organized and understanding your current financial state can also help you to make more knowledgeable decisions when seeking additional funds for future expenditures.

No matter if you’ve been farming for fifteen years or fifty, there are always new things to learn! Take a fresh look at your operation’s finances today, and let Heartland Bank help get your operation where you want it to be. Stop by this morning and speak with one of our knowledgeable lenders – we’ll get the coffee!