Does your business generate enough income to make scheduled debt and lease payments? If necessary, could that income also cover payments on additional debt? In today’s post, we’ll look at a set of financial measures that can help you answer these important questions. [Read more…] about Using Financial Ratios to Manage Debt, part 2
Use Financial Ratios to Manage Debt
Can you borrow to finance new purchases when you need to? Or will borrowing more put your business at risk of bankruptcy? Your ability to answer these questions accurately is an important part of managing your business for long-term success. In today’s blog we’ll look at some information taken from a farm’s business records that can help you make financially responsible borrowing decisions.
Considering the Impact of Loan Structure on Loan Cost
An important part of managing a farm business is managing debt. Producers who utilize debt effectively can increase the profitability of their operation. However, borrowing comes at a cost. Today, we’ll discuss the different types of loans available to producers and their structures. We’ll also look at how different loan structures impact the cost of borrowing.
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To Harvest or Not to Harvest? Cotton Harvest Decisions
Cotton harvest on Oct. 20, 2021. (Courtney Sacco/Texas A&M AgriLife Marketing and Communications)
It’s almost time for producers to begin harvesting cotton in this part of the state. Today, we look at the decision to harvest low-yielding fields and discuss the costs and benefits of doing so. We also present a tool to help producers evaluate the profitability of harvesting cotton from low-yielding fields. [Read more…] about To Harvest or Not to Harvest? Cotton Harvest Decisions
Building a Drought Management Plan
Droughts have had devastating effects on our operation. While 50% of the Southern Plains are not currently in a drought, the CPC-IRI Forecast has increased the likelihood of having a Niña season by the end of this summer until the end of the 2025 winter, which is correlated with lower rainfall in our area. To prepare our business for the future and ensure long-term sustainability, we must have and implement a drought management plan.
What yields do we need to be profitable?
Wheat prices have increased in this last month. Still, Texas farmers are facing challenges due to high price basis and high production costs. To be profitable, above-average yields are needed. Today will discuss which breakeven yields do we need have a profitable wheat crop.
Are you looking to improve production and profits? Join a Peer Group Today!
Peer advisory groups are an invaluable tool for progressive and business-minded ag producers. In this article, you’ll learn how peer advisory groups work, their benefits, and how you can join one. These groups offer a unique opportunity for agricultural producers to generate knowledge, improve their operations, and be more profitable!
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High Plains Ag Week 5/1/2024 – Crop Marketing Strategies
It’s never too late to update your marketing plan for the new growing season. In this post, we will consider some possible marketing strategies for crops, along with some of the risks associated with these strategies.
[Read more…] about High Plains Ag Week 5/1/2024 – Crop Marketing Strategies
High Plains Ag Week 4/17/2024 – Corn and Sorghum Budgets in 2024
Field crops in Burleson County on July 30, 2021. (Laura McKenzie/Texas A&M AgriLife Marketing and Communications)
The 2024 crop and livestock budgets for most districts have been published on the AgriLife Extension Economics website. In this post, we look at the expected costs and returns for corn and sorghum enterprises in the High Plains.
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High Plains Ag Week 4/9/2024 – How do you measure how profitable your ranch is?
Are you looking to measure your ranch’s profitability accurately? In this article, we’ll explore how to use the Beef-Cattle Standard Performance Analysis (SPA) to measure your ranch’s production, financial, and economic performance.
[Read more…] about High Plains Ag Week 4/9/2024 – How do you measure how profitable your ranch is?