GFM Network News


Calculating your farm’s rate of return

Knowing your farm’s rate or return on equity and assets is helpful in determining when to re-invest in the farm

A year ago, for this same Farm Finance issue of Grainews, I wrote an article encouraging grain farmers to update their net worth statement as soon as possible after harvest with current grain inventory, payables, receivables and so on. The idea is to get a clear snapshot of your financial position early and do a […] Read more

Calculating Your Farm’s Rate Of Return

A year ago, for this same Farm Finance issue of Grainews,I wrote an article encouraging grain farmers to update their net worth statement as soon as possible after harvest with current grain inventory, payables, receivables and so on. The idea is to get a clear snapshot of your financial position early and do a few […] Read more


How To Use Partial Budgets

As you work on final revisions to yield and input cost projections and tweak cropping plans, I hope you also have your total farm operating budget prepared for the year and your operating credit needs identified and secured. These are typically annual and sometimes tedious tasks, but as a farm manager your financial decision making […] Read more

Joint Ventures — A Business Structure To Consider

Joint ventures are pretty common in some sectors, like oil and gas exploration, but they have never been used much in farming. A joint venture is an agreement or business structure where two or more individuals or business entities (partnerships or companies) agree to contribute assets, services and/or capital to a common commercial enterprise. In […] Read more


Should You Restructure Your Debt?

It is stating the obvious to say 2010 has been a tough year for many grain farmers. Unseeded and drowned-out acres, poor grades and reduced yields have all had an impact on production and potential income from the 2010 crop. If you farm in the Peace region, it was nasty drought causing problems instead. Your […] Read more

So Who Owns That Tractor?

My title for this article evokes the image in my mind of an ag lender scratching out a line in an equipment list as she goes through it with a farmer client. Lenders sometimes have a real challenge getting a clear understanding of the business structure of farms and the ownership of farm assets. The […] Read more


The Ins And Outs Of Cash Flow Projections

Once you have the cash flow projection worksheet completed, scan across the bottom and look for the largest number — that will be how much operating loan you need In my last article (March 22 issue) I talked about some of the sources of credit for operating expenses and how to manage them properly. In […] Read more

Tips For Using Someone Else’s Money

Anyone managing the finances on a farm these days knows it takes a lot of cash to put in a crop. Grain farms are unique businesses: they produce one crop per year and often hold a significant inventory of that production waiting for opportunities to deliver and/or sell at an acceptable price. That means you […] Read more


Why Did Your Interest Rate Rise?

Imagine a situation where your bank or credit union wants to raise the interest rate on your operating line this year. For some it won’t take much imagining because it already happened recently or in years past. If your interest rate has been the same “Prime plus 1” or something similar for the past several […] Read more

Credit Concepts You Should Know

Spring is on the way and you may soon be working through the annual credit review process with your bank or perhaps applying for a new equipment loan. A good understanding of some basic credit concepts can help reduce the time, stress and uncertainty involved in arranging the credit you need for your farm. When […] Read more