Restructuring Farm Finances to Boost Cash Flow Margins

Farmers have been refocusing their cost structure over the past few years. Leading up to 2013 farms had been adding excess cost – and getting those costs back to reasonable levels has proven elusive for some. Unfortunately, there are many producers who don’t understand their cost structure, at least from a holistic standpoint – that is, what does it cost to produce a bushel of corn, including family living and land costs. Luckily, there is still time to restructure debt and make fixed cost changes to lower overall cost per bushel, and there are a lot of ways to re-tool farm finances to boost cash flow and margins.

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