With harvest over, it is time to start collecting all those financial records. Bill Lankswert, Director of Business Strategies with AgriFinancial, says this is the best time of year to put together a financial picture.
”It is very important for farmers to gather that information and get a picture of how they performed for the year.”
That financial picture begins with an up-to-date balance sheet.
“It is very important that the balance sheet be complete.”
Lankswert says this includes the value of any stored crops you may have as well as any loans, short term or long term, that you have.
Lankswert is the featured guest in the feature Money Minute, during November on Hoosier Ag Today stations.
“Once you compile your balance sheet, it is important to compare your borrowing to your assets,” he states, “A lot of time farmers use short term loans for land and equipment, but long term loans are better used for these kinds of purchases.”
He adds, with interest rates at low levels, locking in some term loans or re-financing long term debt is a good idea to consider.
More information is available at cgb-agfi.com.