Working capital remains one of the most valuable risk management tools available to a farm business. It helps operations weather poor yields, take advantage of marketing opportunities, manage unexpected repairs, and navigate periods of lower profitability.

These philosophical shifts need to be incorporated into the management game plan as agriculture moves beyond the quarter-century mark.

Corn and soybean prices have moved lower from recent highs, while many input costs remain elevated. In an environment where profitability is under pressure, borrowing decisions matter more than they have in several years.

Dr. Kohl discusses essential business and financial pillars to chart a strategic course for your farm operation in today’s volatile agriculture economy. 

In the current environment, grain is struggling while livestock, especially beef and diversified farms, are financially strong. Securing success in this split economy requires essential financial disciplines. 

It is essential to avoid recency bias, or prioritizing importance of recent events over historical events. Ensure long-term decisions aren’t based on short-term conditions. Make certain your farm business does not rely on lower interest rates to be successful.

Dr. Kohl emphasizes that a high-level management mindset should be top priority this year regardless of operation size, enterprise, or business cycle stage. Place your energy on controllable variables and manage around the uncontrollable like geopolitics, weather, or unexpected ‘black swan’ events.

FCI’s first ever women's conference exemplifies their investment in the future through education. The event gathered a diverse group of women varying in age and agricultural involvement. Attendees were curious about the pulse of the agriculture economy, land values, movement from fossil fuels to green energy, and business financial advice.

Learn about the Federal Reserve’s most recent vote on the Fed Fund rate and what to expect of interest rates in the coming months.

Reflecting on a two-day learning program this summer for young and beginning farmers, Dr. Kohl shares what the next generation is focused on. From running scenarios to understanding their cost of production and prioritizing development to expanding their network, read about the priorities set at the end of the event.

The Federal Open Market Committee (FOMC) of the Federal Reserve (Fed) met May 2-3 and voted to increase the Fed Funds rate by 0.25%, bringing the overnight rate to 5.00-5.25%.