Farm Financial Planning program offers personalized insight

AMES — With tightening margins and rising debt levels, ag professionals can play a critical role in recognizing producers' needs for financial planning and refinancing decisions.

The Farm Financial Planning Program from Iowa State University Extension and Outreach provides in-person experts who can offer one-on-one financial counseling, a computerized analysis of the farm business and referral to other extension programs or outside services.

Farm Financial Planning is for anyone who wants to gain a comprehensive understanding of their farm’s financial situation. The program helps take the guesswork out of whether a change would increase profitability and improve cash flow.

Using FINPACK software, associates can generate an in-depth evaluation of the farm business, which many lenders require before extending further credit.

According to Ann Johanns, program specialist for Ag Decision Maker with ISU Extension and Outreach, the current outlook continues to show tight margins for producers. “Finding ways to stretch cash flow is another important consideration, along with working closely with your finance and tax professional,” she said.

The Ag Decision Maker file “Farm Financial Management: 16 Ways to Stretch Cash Flow” is another valuable resource that provides tips and resources to help producers manage margins.

Seven associates comprise the Farm Financial Program team. Leslie Miller, who joined the team in 2021 after retiring from a career in the agricultural lending industry that dates back to the 1980s, draws on her experience to help farmers analyze their situation and pursue their goals.

“I enjoy helping farmers reach their goals so they can have a successful farming operation,” she said. “I like working with them to solve their problems and find answers to their questions.”

The service is offered at no cost for the client, and associates can become as involved as the client wishes. They offer a big-picture look at the farm, while farmers make the final decisions and follow up with recommended specialists.

Miller said farm profitability is an ongoing concern, as input prices continue to rise and crop prices hover below the break-even point. She helps producers fine-tune their cash flow projections by examining different options for the future.

“We run multiple alternatives and compare them side by side,” Miller said. “A borrower can look at those numbers and see what the impact of different decisions might be. Our goal is to consider the ‘what ifs’ for each decision.”

Farmers can locate a Farm Financial Planning Program associate in their area by contacting their ISU Extension and Outreach county office or by visiting the Farm Financial Planning Program website.