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Keep your lender in the know this summer
Set aside some time to bring your lender up to speed.
3 Min Read
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The growing season is a busy, demanding time on the farm. It’s a critical time since the crop is in the field – production time is truly game mode “on”.
It’s certainly a busy time for everyone on the farm who has a role to play – and the busiest person of all is likely the farm’s leader. In addition to all the aspects of tending to a growing crop, there’s still the business side of the farm that requires their time and attention.
Market movers
The volatility of the ag markets is making for a wild ride this growing season. The farmers who have an agile marketing plan that’s responsive to the markets will be best prepared to navigate the volatility. Working with a market advisor can help you keep on top of what’s happening in the markets and adjust your plans accordingly.
There’s another person who needs to know your marketing and business plans – and how you’re adjusting to the volatile markets this summer. That’s your lender. It will be very important to help them understand how you’re responding to the market as it fluctuates.
To-do list
Here are three things to do this summer to help keep your lender in the know:
Make sure you’re staying on top of your farm’s marketing and financial plans. The first step is making sure you as the leader are continuing to tend regularly to the business side of your operation – while making sure your crop is tended to, as well. Review your plans, make any needed adjustments, and stay in touch with your market and financial advisors for ideas and help.
Schedule some time to meet with your lender. Though what typically comes to mind for lender meetings is a winter timeframe, it can be very beneficial to also schedule a mid-year summertime meeting. Why? Meeting with your lender to bring them up to speed about what’s happening on your farm, what’s happening in the broader ag economic environment, how that’s impacting your operation and your plans for how to deal with that is key to maintaining a good relationship with your lender. Regular communication is the way to keep an open line. It lets them ask any questions they have – before any anxiety might start to crop up.
Prepare to meet with your lender. Ahead of meeting with your lender, get really clear on your farm’s numbers, marketing plan and targets, and anything else you think they may have questions about. Do a practice run with your market advisor – have them ask you questions that the lender may have. This gives you a chance to think through and anticipate the lender’s questions and how you will answer and explain the plans you have in place. If you’d like some help with this, you can talk with our market advisors.
What are your marketing goals?
Many farmers say that grain marketing isn’t their favorite thing to spend time on. Yet marketing is one of the top business drivers impacting the level of success that the farm operation can achieve.
Farmers have found that working with our market advisors has helped ease their minds. The advisors help farmer clients with planning and execution around marketing decisions and help keep them up to speed on the current rapidly-changing grain market situation – and how it impacts their operation.
Get a free week-long trial of our marketing information service (MarketView Basic). Your free trial includes regular audio and video updates, technical analysis, recommendations and more. Learn more about our market advisor programs and offerings at www.waterstreetconsulting.com.
The opinions of the author are not necessarily those of Farm Futures or Farm Progress.
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