Ag Profitability

April- June 2002

Kelvin Leibold , farm management field specialist

Problem

Due to low prices, poor management, HTA's and/or a variety of other reasons some of our ag producers are finding it difficult to find operating capital to continue farming. Others are trying to decide if they should even stay in farming.

Response

I assisted ten clients this winter. I looked at their debt loads, profitability and efficiency. I was able to help restructure debt, reduce expenses, increase income and find new sources of capital for most. This involved a variety of methods including switching lenders, getting FSA loan guarantees, selling assets and reducing expenses. These ten producers restructured over $5,900,000 of assets!

Impact

Nine of the farm families are still farming. They have a better understanding of financial analysis and what it takes to make them profitable. If they increase their net worth by just two percent because of the debt restructuring, interest assist, or increased management that would equal over $100,000 increase in net worth for just these nine producers.

These families are still supporting their communities. One family used a combination of our mental health grant and my personal support to help them resolve some serious issues in the family. I also worked with a widow whose husband was killed in an accident by helping her work through financial problems and the restructuring of the farm operation.

 

Page last updated: July 11, 2006
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