In volatile times, control what you can

As an ag lender of more than 35 years, we have grown accustom to the idea of controlling what you can especially in the past 10 years. And once again, volatility has a new meaning to many this past month. In Wisconsin we have been fortunate to be able to manage some of these ups and downs in part due to our dairy industry’s infrastructure.

Your farm’s financial success and future viability is always top of mind. When stressful circumstances arise, it takes a toll on you mentally, emotionally and financially. No matter the type of volatility you may be dealing with this spring, it is important to remember the “basics” of managing your business. Here are a few reminders:

Communicate. While it may seem simple, it’s more important now than ever. Communicate with key people, including your production specialists, family members, employees and lender. No one likes to hear bad news and no one likes to be the last to know the news. Even if you don’t have answers or solutions now, communicating what you do know and your current plan is key.

Be proactive. Don’t be shy about calling a representative of a company or cooperative you do business with on your farm. Ask questions, take notes and look for opportunities.

Know your numbers. Review your records and determine your cost of production. Know your herd’s production, components and reproduction records. 

Update your financial records. If you have not completed your year-end balance sheet or an updated balance sheet for this spring, do so. Most people have their 2016 tax returns completed by now; be sure to forward a copy to your lender.

Meet with your lender. Most of you have met with your lender over the winter months. However, make sure your lender is up to date with your current situation. By having current financial and operational information, it speeds up any future request you may have and helps equip your lender to better assist you if issues arise.

If you are considering an expansion, expect your lender to inquire if your dairy processor will accept the additional milk. We are here to be of assistance; not just for lending money, but to help brainstorm options for the success of your business.

Be involved. Farmer voices need to be heard and there are opportunities for farmers to lead. Be sure to support organizations like DBA and those individuals who are working hard on your behalf. Many fellow farmers are giving up time on their own farm to help the greater good of the dairy community. For that, we need to be grateful and supportive.

With planting season and long days ahead, be sure to stay focused on what you can control and understand the things you cannot control. Your business and financial health will be best if you are personally healthy and connected to the important people in your life and business.