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Dougherty, IA | Working capital isn't just cash, it's current assets - current liabilities. Its great to put a lot of cash down on a new farm or buy equipment with cash, but working capital is key in a time when margins are negative. It allows you to whether the storm and take advantage of opportunities that come up in the future. With interest rates so low it might make sense to term out equipment and not put extra down on land, so you have working capital to feed the negative margins. Everyone's situation is different though.
I would agree with you on general, there isn't as much cash out there as the pundits make it seem. | |
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Working capital again
