Farmers at last week’s Farm Futures Business Summit heard a familiar message from a leading team of power presenters: Focus on margins and financial solvency so you are ready to capitalize on future opportunities.

“Working capital is your first line of defense against financial stress,” said Purdue ag economist Mike Boehlje. Farmers should have at least 30% of gross revenues set aside to manage tight margins or other financial stress points.

Ag bankers told Farm Futures earlier this year that 2017 could be a pivotal year for about 15% of farmers who are highly leveraged and vulnerable due to aggressive growth that depended too much on high cash rent. Some farmers are seeing cash shortages and are have been forced to deplete cash reserves.

Highly successful farmers focus on managing margins, said keynote speaker Danny Klinefelter, Texas A&M extension economist and founder of The Executive Program for Agricultural Producers

“Highly successful farmers focus on accrual adjusted accounting for both revenues and expenses,” he told the audience.

The summit was preceded by a one-day workshop on ag finance, with a 30% increase in attendance from last year’s ag finance boot camp.

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