You can just hear when a machine is working. It's the sound and the feeling that you're firing on all cylinders.
Conversely, you know when the sound is not right. You may have needed to cut corners because occasionally that's what the season dictates – and you're concerned that something could go very wrong before it's all over.
It's that way financially as well.
While your working capital isn't going to warn you with a big, loud clunk that it's not working correctly, there are other signs to indicate that it is not at a healthy level. Some of these are:
You don't have to feel lost. We are living in unprecedented times in agriculture. There are opportunities to build a nice nest egg, helping you weather the tougher challenges that may lie ahead. Your working capital shouldn't be making bad noises now.
The truth is that we don't always know what we should be doing or the right way to get started on that path. The look and feel of agriculture has changed tremendously and we simply can't follow the strategies of the past and expect success. We have to adapt. Here are some keys to getting on the right track if any of the previously mentioned symptoms sound too familiar.
Farming is always about production, in addition to the complex management of the total operation. Listen to your operation. What is it telling you? Getting your farm firing on all cylinders just takes a plan, some financial tools and a little 'mental' elbow grease.
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