By Ann Johanns
As farmers review their farm financial situation this winter, a handy resource is available from Iowa State University Extension and Outreach.
The Farm Financial Planning Program offers in-person experts who can offer one-on-one financial counseling, a computerized analysis of the farm business and referral to other extension programs or outside services.
Farm Financial Planning is for anyone who wants to understand a complete picture of their farm financial situation. It helps take the guesswork out of whether a change would increase profitability and improve cash flow. Using FINPACK software, the analysis may provide a more in-depth evaluation of the farm business, which many lenders are requiring before they will extend further credit.
Eight associates make up the Farm Financial Program team with ISU Extension and Outreach.
Leslie Miller became an associate in 2021, after retiring from a career in the ag lending industry that dates back to the 1980s.
She relies on her experience in the industry to help farmers analyze their situation and pursue their goals.
“What I enjoy most is helping people reach goals that they want to reach so they can have a successful farming operation,” she said. “I like helping them to accomplish their goals and work through their problems.”
The service is free for the client, and the financial associate can become as involved as the client wishes.
The associate offers a big picture look at the farm, and it’s up to the farmer to make specific changes and to contact the specialists who can help. While working with financial associates is important, it’s equally important to follow up with the specialists the associate recommends.
Miller said farm profitability is an ongoing concern, as crop prices continue to drop and land prices continue to increase. She is also helping farmers with the tough times in the swine industry.
She helps producers look closely at their cash flow projections and scrutinize the different options for going forward. Sometimes it’s transitioning to another owner or operator, or identifying an opportunity to expand.
“We run multiple alternatives and compare them side-by-side,” she said. “A borrower can look at those numbers and see what the impact of different decisions might be. Our goal is to consider the ‘what ifs’ for each decision.”
Farmers can locate a Farm Financial Planning Program associate in their area by contacting their ISU Extension and Outreach county office or by visiting the Farm Financial Planning Program associate site.
Source : iastate.edu