TEKAMAH - It’s important to have your farm financial situation figured out, especially when agricultural commodity prices are low.
Extension Educator for Burt County, John Wilson says local Ag lenders he’s talked to say that in general, the financial situation for their Ag borrowers is better than it was last year, but there are still operations struggling.
Wilson says retired extension Ag economist William Edwards has some suggestions to improve your financial situation.
"Cancel or renegotiate loans that are unprofitable. Use financial reserves, they may include savings or liquid financial assets such as stocks or bonds. You can also sell current assets like stored grain and market livestock, however don't sell off market livestock if it's not yet finished as the sale discount may be too steep."
Wilson says other options include utilizing FSA guarantee loans, decreasing non-farm and living expenditures, selling assets that aren’t earning their keep, and considering joint machinery ownership.
For more information visit Extension.UNL.EDU.