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Iowa | Ain't no way to do it other than to make money and not spend it. That was nearly impossible for me for decades as there wasn't much money to be made for a long, long time.
You don't need fuel storage to buy fuel- just prepay. More storage than needed has the opposite effect- the (extra) facilities cost eats at working capital.
Working capital takes PROFIT, pure and simple. Can't build it w/o.
I wouldn't worry about it much, just live well within your means and it will work out. I never even thought about "working capital"-it was just banker-speak to me. I just worried about making money and spending it for the highest possible ROI available for the amt of risk I was willing to take.
I wouldn't worry about the 40 you just bought-you said you had rental land surrounding it-had to buy it when it was for sale, and only a 40. Plus you got a competitive advantage over your neighbors by using the govt's money to do it. But the fact that you are pondering all of this leads me to believe that you'll be just fine. The guys who aren't worrying a bit will be the ones who end up in trouble. | |
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What are some ways a young farmer can build "working capital"
