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| You may be worried for nothing or you may have reason to be worried. I wouldn't focus on the emotion but rather the numbers themselves. Many of the land grant universities have websites that contain considerable help deciphering financial ratios etc. For some operations, $50K in debt is too much. For others, $5M is not a problem. It really depends on how the debt compares to equity and how your payments compare to income etc.
Many lenders will share their guidelines for loan to value, repayment capacity etc.
Get an handle on your financial ratios and then address any areas that need immediate attention. Worrying about the unknown is not productive. Be proactive and deal with the facts. You are the manager of your operation. It is easy to become so focused on the everything that needs to be done on the farm that you fail to devote the time to managing your finances. This is just as important as cutting wheat or spraying beans but it is easy to put off until "you're not busy". | |
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Farming in 2017. Young family. I'm surely not the only one stressed.
