Posted 1/17/2019 22:21 (#7252748 - in reply to #7251255) Subject: RE: How much working capital per acre does your lender want?
Agr723 - 1/17/2019 10:44 It can be hard to express to crop farmers how fast working capital can erode on a livestock operation.
There's a lot of truth in that. The turnover of the $'s happens a lot faster in a livestock operation than it does in a crop operation.
For the most part guys only raise 1 crop/year off of a farm. But turn a cattle yard twice a year or a hog barn 3x/year. Add multiple yards or barns into the operation and there's always $'s coming and going.
When things are going good its good to be turning money over faster as the snow ball grows faster. But when things get ugly the cash disappears fast.
How much working capital per acre does your lender want?
