As summer begins to wind down, harvest season is not far behind.
For farm families throughout Yale, Guthrie County, and the surrounding area, the weeks leading up to harvest can be a good time to pause and take a closer look at the farm’s finances. Once harvest begins, there may not be much time left for paperwork, planning, or unexpected decisions.
A simple financial check-in now can help you head into the season feeling more prepared.
Review Your Operating Expenses
Start by reviewing the expenses you expect between now and the end of harvest.
These may include:
- Fuel
- Labor
- Equipment repairs
- Parts and maintenance
- Grain storage and drying
- Transportation
- Loan payments
- Family living expenses
Costs can change throughout the year, so compare your original estimates with what you are seeing. This can help you spot areas where expenses are running higher than planned.
Take a Look at Your Cash Flow
Harvest can bring income, but the timing of that income does not always line up perfectly with upcoming expenses.
Review what payments are coming due, what cash is currently available, and when you expect crop income to arrive. If you use an operating line, check its current balance and make sure you understand how much is still available.
This is also a good time to make sure your farm and household expenses are clearly organized. Keeping them separate can make budgeting and record keeping easier.
Check Your Equipment Before the Rush
A breakdown during harvest can quickly become expensive, especially if parts are difficult to find or repairs cause a delay.
Inspect combines, tractors, trucks, grain-handling equipment, and other machinery before the season begins. If you know an equipment purchase or major repair may be necessary, planning for it now gives you more time to compare options and understand how it will affect your budget.
Prepare for the Unexpected
Even the best harvest plan can be affected by weather, equipment problems, changing prices, or other surprises.
While you cannot predict everything, you can prepare by reviewing your available cash reserves, insurance coverage, operating credit, and backup plans. Having those conversations before a problem arises can make difficult decisions a little easier.
Talk with Your Lender Early
If you anticipate needing an operating line, livestock loan, equipment loan, or other agricultural financing, it is helpful to start the conversation early.
You do not need to wait until you have every detail figured out. Talking with your lender ahead of time gives you an opportunity to review your current position, discuss upcoming needs, and understand what information may be required.
At Farmers State Bank of Yale, we understand that every farm and every season is different. If you would like to review your agricultural financing needs before harvest begins, stop by the bank or give us a call. We are always happy to sit down and talk.
