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I remember the pride and excitement when Jeremy and I first took over his family's farm. What I didn't know then – what I wish someone had told me – was that love for farming isn't enough. Four years after taking over, we lost everything to a perfect storm of high debt, storms, and equipment failures. We had no reserves, no clear understanding of our costs, and no real business plan.
Today, I help young farm families avoid our mistakes by conducting thorough business analysis before taking over. Here's why each part matters:
Financial Health Analysis
You need to know more than just the total income. Examine each enterprise separately – your custom haying operation might be masking losses in your grain business, or vice versa.
Understanding profitability by enterprise lets you make informed decisions about where to invest your limited resources. Don’t be afraid to cut an enterprise that is draining your resources.
Working Capital Needs
Farming isn't just about annual profits. You need significant cash reserves to handle unexpected equipment repairs, take advantage of input sales, or survive when Mother Nature doesn't cooperate. Without understanding your true working capital needs, you're one bad season away from disaster.
Equipment Evaluation
That "still good" combine might run, but what's the true cost of maintaining it? Sometimes taking on payments for new equipment actually costs less than constant repairs. A proper analysis helps you plan equipment replacements before they become emergencies.
Written Agreements
Those handshake deals with neighbors might have worked for the previous generation, but they leave you vulnerable. Proper lease agreements, clear partnership terms, and written contracts protect everyone and help you plan accurately.
Marketing Strategy
"Sell when we need money" isn't a strategy – it's a recipe for selling at the wrong time. Understanding your break-even costs and having a proper marketing plan can mean the difference between profit and loss in volatile markets.
Remember, asking for this analysis isn't about distrusting the older generation. It's about protecting the legacy they built. Don't let romance cloud your business judgment like I did.
With hope for your success,
Cassandra
P.S. If you ever need someone to talk to who's been there, my inbox is always open.
As I've grown as an entrepreneur, mom, gardener, and livestock owner, I struggled to find a planner that met my needs and kept me organized. So, I MADE MY OWN. You can look at it on the link below and buy it on Amazon.
Don't want the whole calendar part? I got you! I pulled the gardening and animal care pages out and put them in a book all their own.
Wanting a community to lean into? Join the FREE Thriving Through Farm Life: Wife’s Support Network! In our community, we embrace the challenges of farm life and provide a supportive space for wives facing the complexities of managing a family farm. Whether you're navigating financial pressures, day-to-day operations, or seeking ways to create a thriving home, we're here for you. Explore garden and preservation tips for cultivating your oasis, share insights on animal care, and discover practical family budgeting strategies. Together, let's grow through challenges, flourish authentically, and sow the seeds for a resilient and thriving farm life. Join us on this journey of resilience and abundance!
Starting a garden doesn't have to be hard! I gathered all the tips I've learned over my gardening seasons and made them into a simple course to jump-start your gardening life.
I've had 3 very different pregnancies. After the first traumatic birth, I learned how to care for my body naturally preventing common pregnancy and birth problems before they arise. This quick course will give you the tools you need to have a natural healthy pregnancy, labor, and delivery. My first pregnancy I had a normal western medicine pregnancy. My second? I flipped to completely natural, no medicine. Bonus: Preventing Preeclampsia Without Aspirin & Healing from Birth Trauma
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