pellcreek - 4/26/2017 10:46

In my opinion, there is to much emphasis on working capital. If you are making land payments, machinery payments, re tax payments, etc, all count against working capital.......... But land rent, machinery leases, etc don't count against working capital.........Even crop insurance or crop production income doesn't get included as potential income until the crop is planted but yet the full year of expenses counts against you.......I've heard of situations where a Farmer making payments on 480 acres & renting 320 acres could show a positive cash flow but his working capital ratio is out of whack & the "friendly" banker says no & yet will think the guy paying BIIGGG rent & leases machinery gets the bucks because he is a "good" manager.................Maybe this will change now that some of the high flyers are going Kaput.............Final point, " DON"T EVER LIE TO YOUR BANKER UNTIL IT'S NECESSARY!!!!!!!!