An expert in beginning farmer loan programs says young farmers and ranchers have to become more familiar with farm finances.
Gary Matteson, with the Farm Credit Council, says it’s important for beginning farmers and ranchers to understand, at a basic level, how to be profitable in farming.
He says while the next generation of farmers may fully grasp the production aspect of farming—the financial details are often overlooked.
“What I’ve encouraged the audience here to do is take on some of those skills,” he says. “Take on that ability to look at the part of the operation they understand and turn it into a monthly cash flow analysis so that they can start to do forward looking budgeting and start to offer choices and options.”
Talking about profitability isn’t an easy conversation to have—but it is healthy for operations to take a closer look at the financial health of the farm.
Source: www.brownfieldagnews.com