Know where you are financially. Most producers have a good idea where they stand, sometimes they neglect to know for sure because the news might be not what is desired. It is critical to know your financial position – favorable or unfavorable.  If a producer has gone backward this year, the sooner that is determined the quicker alternatives can be analyzed to determine the direction of the farm operation. If a producer has had a good year, then knowing your financial position may open up doors of opportunity.

Are changes needed?  After knowing where you are financially, determine whether there needs to be any major changes in the operation for 2018. Start sketching out a farm financial and production plan, revisions can occur later as needed. If you are planting wheat then your plan has started.  If financially feasible, start exploring input deals or arrangements. Generally the best seed deals for prices and or financial terms happen when they are secured early. Producers will continue to have to monitor production costs or increase yields or both to be sustainable. Visit with your suppliers on what they estimate inputs will cost in 2018 and how they can be reduced. Evaluate seed varieties from University Research & Extension trials as well seed company data.

Evaluate your production system. Is it working? If it is not working, what will make it work? Are you as efficient as you can be – equipment, labor, and input management? Did problems either weed, insect, disease, or fertility develop in 2017 that will make you change systems in 2018. Know your fertility needs and start pricing their costs.

Crop insurance. Get your yield data to your crop insurance agent as soon as realistically possible. Did your current crop insurance program give you adequate risk management protection? Before the 2018 deadline (March 15 in Tennessee), review your farms and protection with your crop insurance agent. Make changes if necessary.

Tax planning. Visit with your accountant/tax preparer for any tax planning as the crop year winds down. Keep in mind any carryover sales from 2016 that occurred in 2017 and if any inputs were prepaid in 2016 for 2017. Any equipment purchases must be made for economic reasons not just to reduce income taxes. Should any crop be carried over to 2018 to sell and should any inputs be prepaid now for 2018? A special note – producers considering retirement within the next 3-5 years should set up a meeting with their tax professional to just discuss how to best wind down or transition their operation. Retiring without considering tax planning can make for some unwelcome financial and tax surprises.