With harvest complete and another crop year is in the books, it is time to reflect and analyze your operation’s performance. While farmers have experienced record net income levels over recent years, you may already be seeing some challenges as you head into the 2025 crop year. Some of these challenges include lower commodity prices, reduced yields due to unfavorable weather conditions, and increased operating expenses such as crop inputs, insurance premiums, land rent and interest rates. Now is the time to reflect on your financial gaps for 2025.
Understanding Your Financial Gaps for 2025
As you analyze your operation’s performance for the 2024 crop year, understanding your financial position is imperative to managing your risk and profitability as you head into 2025. A good gauge of performance is analyzing your financial statement on an annual basis. Working capital (Current Assets – Current Liabilities) and owner’s equity (Net Worth/Total Assets) are two key performance indicators (KPIs) that can be used to measure your operation’s current financial position. In addition, term debt repayment capacity and earned net worth are two more in-depth KPIs that can accurately show how much profit or loss an operation had over the prior crop year.
AgQuest Can Help Fill Your Financial Gaps
As you plan for 2025, AgQuest would be happy to advise and assist you with any potential financing opportunities. In a rising operating expense environment, we understand margins may be challenged into 2025 and every dollar saved adds up. That’s where AgQuest can help. Our diversified financing options can help alleviate unneeded stress by giving you access to additional capital at a time when you need it most. Please reach out to one of our Relationship Managers if you have any questions or would like to schedule a meeting to discuss your operation’s financing needs.