Managing cash flow to manage the bank
Are you farming for a profit? Do you know your per acre costs? Farms must do so in order to determine if you farm can generate enough cash flow to service debt. What is your bank looking at? Do you have enough cash flow to service the current portion of your long term debt? What is a current ratio and why is it important to you and your bank? Is your operating line always at the max? Can you afford the next piece of equipment or land that comes up and how long should you finance it over? These issues can be addressed by working with quality advisors to help manage the bank.