This is the seventh and final installment of our series on sustainable farming practices, where we take a closer look at how each practice can bring long-term economic and environmental benefits.&n... Continue reading

This is the fifth installment of our series on sustainable farming practices, where we take a closer look at how each practice can bring long-term economic and environmental benefits.

If you purchased fertilizer this spring, you probably experienced sticker shock.

Fertilizer prices jumped significantly from last fall. According to the University of Illinois’ farmdoc daily, the price of anhydrous ammonia was 2 per ton in September 2020. By April 2... Continue reading

This is the sixth installment of our series on sustainable farming practices, where we take a closer look at how each practice can bring long-term economic and environmental benefits.

When we think of agriculture, we often picture large fields of row crops or green pastures stretching into the horizon. For urban farmers, it’s a very different reality.

Urban farmers face unique challenges in being profitable and productive... Continue reading

As farmers and agribusinesses owners across the country seek certainty in the post-pandemic economic outlook, a .5 trillion investment proposal by the White House casts a huge shadow over the economy.

At this point, the uncertainty is so widespread that, no matter where you sit on the political spectrum, it is impossible to predict the outcome of President Joe Biden’s proposed stimulus investment package. There are those who question whether the package ever will get through Congress. H... Continue reading

July Federal Reserve Beige Book Released

Coming out of a pandemic, the ag financial landscape looks pretty good, according to Federal Reserve Beige Book report which is issued by the banks that make up the Federal Reserve System. However, there are more wild cards out there than up a riverboat gambler’s sleeve. “Labor, especially in the segment that affects agriculture, is problematic,” says Tom Stenson, executive vice president at Conterra Ag Capital. In addition, prod... Continue reading

Stresses to your operation can be difficult to deal with, especially those that fall out of your control. Whether it be floods, hail, or drought; carefully planning your next steps is crucial for your operational health. 

As the historic drought continues to worsen through the western half of the United States, tough choices are being made. It might be culling a he... Continue reading

Land values in California are becoming more unpredictable as the Sustainable Groundwater Management Act (SGMA) is threatening groundwater pumping in the coming years.  As we are embracing another year of exceptional drought in most areas of California and there will be little to no allocation of surface water in many areas, farmers and ranchers are reminded just how important water is. 

As noted in a previous article, surface water supply will often vary depending on climate an... Continue reading

Family living is exactly that, items that are included in the basic family budget: housing, food, childcare, transportation, health care, other necessities, and taxes. From a financial standpoint, why are these items tracked?  It all comes down to cash fl... Continue reading

The term Succession Planning is not new to those in the business of agriculture.  While an important part of any operation, many farmers and ranchers fail to pay close attention to the process.  Succession planning requires considerable upfront preparation and plan maintenance to keep moving in a productive direction.  Many resources are available, as this issue is important to any type of business, especially when adult children are brought into the business.

It’s no... Continue reading

This is the fourth installment of our series on sustainable farming practices, where we take a closer look at how each practice can bring long-term economic and environmental benefits.

Pests are an unfortunate reality of farming. While pesticides are a common way of dealing with them, they may not always be the best solution.

To start, they’re an additional expense. According to a recent article of the University of Illinois’ farmdoc daily, pesticides acc... Continue reading

Livestock owners: What if you could make more money with fewer animals? It may seem counterintuitive, but with rotational grazing, it’s possible.  

Rotational grazing is just as it sounds. Instead of letting livestock continuously graze across a pasture, the pasture is split into smaller paddocks, which the animals are rotated through.

This change in grazing can have big payoffs. In Virginia, livestock owners saw net profits increase 0 per head. Beef Ma... Continue reading

This is the second installment of our series on sustainable farming practices, where we take a closer look at how each practice can bring long-term economic and environmental benefits.

Farmers who are interested in pursuing organics have good reason. The USDA says consumer demand for organically produced goods shows double-digit growth, while the Organic Trade Association’s most recent industry survey found organic sales in the food and non-food markets reached a record .1 billion.

A rising tide lifts all boats, and corn prices that have doubled in the last 18 months are doing the same for other ag market sectors, including farmland values.

Land prices didn’t exactly track the downturn in grain prices in the last eight to nine years. However, now that grain prices are bullish, so is the farmland market. This is fueling some eye-popping five-figure sale prices in places like the Midwest where farmland is a bellwe... Continue reading

Interest rates are low, and it's enticing many farmers and ranchers to refinance ag debt to capture savings the marketplace is offering.

Low interest rates don't automatically mean refinancing farm debt will save you money in the long run. It depends on how current financing is structured and how much interest you're actually paying right now. Sure, you may lower payments, but it's important to consider variables like repayment capaci... Continue reading

One potential solution? Sustainable farming.

While there is no set definition for sustainable ag, UC Davis says its goal is to “meet society’s food and textile needs in the present without compromising the ability of future generations to meet their own needs.”

The Sustainable Agriculture Research & Education specifies furt... Continue reading

“Paralysis by Analysis” may be affecting the productivity of you or some of your colleagues.  Are important deadlines being missed?  In the ag lending business, we have many of these.  It may be rushing to get a loan funded prior to maturity to avoid the dreaded ‘extension’, which leaves nobody happy.  An escrow may be closing.  It may be putting your loan package together for loan committee for approval or a portfolio update to senior management might be the fire drill of the day.  Whatever th... Continue reading

As we celebrate Beef Month in May, it is still easy to see that BEEF is the protein of choice for the American consumer. It just does not sit on the grocery store shelves. It is surely in full demand! From its leanness, convenience, taste & health benefits - and who wouldn’t agree with it cooking up on the grill better than any other option.

As we head into the summer months and onward to fall markets, ranchers and feedlot owners will be faced with several challenges, which is not uncommon to the American be... Continue reading

As growers many of you have likely gone to your bank or other financial institution and found many new, young faces.  The account officers or relationship managers that you or your parents have done business within the past are no longer there.  This can be very unsettling, as for most of us it is human nature to be comfortable with consistency and familiarity.  The problem is the “Baby Boomer” generation is retiring at a very rapid rate and thus leaving you in the hands of younger, less experienced pers... Continue reading

Editor’s note: This is the first of two articles discussing farm stress-testing. Read part two on how to stress test here.

Ask farmers a historical question about the last major storm to hit their farm and wipe out their crop and they will likely respond with an exact date, weather details and what they did to recover. The same goes for grain marketing — memories of when they sold at peak prices and when they scraped the floor of the market are vivid in many farmers' minds. The same isn't always true when it... Continue reading

Editor’s note: This is the second of two articles discussing farm stress testing. Read part one on why to stress test here.

Stress testing is an exercise in “breaking your farm,” a valuable tool in identifying budget and operational vulnerabilities, how they influence your farm’s working capital and what changes should be implemented to make your farm more resilient. While thereare a lot... Continue reading