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SW MN and Gold Canyon AZ | big crop with big prices sure makes working capital rise. Oposite is true this year. banker says working capital really took a hit this year with farmers just because of crn and bean price.
Paying crop inputs ahead and getting max discounts lowers taxes thus increasing working capital.
Not having machinary debt also keeps working capital from going into medium term debts.
Putting money into IRAS lowers working capital but raises long term assets.
Same goes for land payments ,lowers working capital but raises long term assets.
Theres a balancing act, having too much working capital can lower return to assets such as not buying land and the prices inflate. | |
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What are some ways a young farmer can build "working capital"
