Midlands NAMA came together for an informative session on Farm Financials 101 this month in Lincoln, Nebraska.  Industry experts, Jason Ladman, Director, and Tim Brhel, Ag Finance Specialist, both of Water Street Solutions, discussed the financial environment farmers are facing today.

The group learned how farmers leverage their production with insurance, marketing and financial tools to maintain a healthy working capital and equity.  They heard case studies of several operations that are successfully using an integrated strategy to manage their farm.

What’s driving this need for better financial management?  Extremely volatile commodity prices, skyrocketing land values and an unstable global economy are some of the leading factors that cause farmers to hone their financial management skills.  According to Brhel, “The key concern is really evaluating the risk bearing ability of each farmer’s unique operation as a whole and then making a decision based on the long-term impact.”  When decisions are well planned, farmers are able to do what is right for their operation, improve communication with lenders, suppliers and investors and overall build better business practices.