A Clear Head When Feed Prices Rise!
Profit margins are thin. Lenders are getting anxious. The trap is set for poor decision-making that easily occurs when a farm’s priorities are not clearly defined. Decision-making is improved when the business objectives of the farm are clearly defined, and the focus is placed on those priorities that most impact lifestyle and farm profitability goals.
Many farms only have understood goals or [possibly] none at all. Developing and recording goals and management priorities takes the emotion out of tough decisions, when times are challenging and the ability to think clearly becomes more difficult. Also, having these priorities recorded means they are available for reference.
In difficult times, common distractions may be cost saving deals or declining rates on operating loans. Using these tools may not be harmful and may actually be necessary to the farming operation. But, their use should be evaluated in the context of how they help to achieve farm goals and to avoid being “caught” in the trap of making an ill-advised decision.