Farmers are small businessmen – though some are not that small. And the operation can often involve going to a lender annually. BASF and Farm Credit promoted results of an ag lenders' survey during the Farm Progress Show in Decatur.
“Howard G. Buffett wrote in his book Forty Chances, a grower has forty chances to make a crop,” says Brady Spangenberg, market intelligence and research manager for BASF. “That kind of approach each year – don't get sidetracked by the movement in the market. Develop a plan. Work that plan. At the end of the season, if something went wrong, you can tweak it for next season, and that's when the partners will really come in to help you.”
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Spangenberg says 88 percent of the lenders surveyed indicate they would be much more likely to say Yes to a grower who has a carefully written business plan.
His four tips: increase yield potential, reduce costs, mitigate risks, and take advantage of low interest rates.