News

Farm data a valuable tool for managing finances

A farm financial official says the value of ag data goes beyond the production information it provides.

Glenn Wachtler with Compeer Financial tells Brownfield lenders can use data to help farmers make equipment purchases, investment decisions, and more.

“Things like what to do with excess funds from profits.  Should you pay down debt versus build working capital?  Or if there are losses to take care of, will they be paid from working capital or can they get financed by your lender?  Or will you need to sell assets?”

Wachtler says ag data also delivers insight on break-evens and operating costs.

“We need to look at those things.  And the more information you provide your lender, the more you should be getting back from them.  After all, we should be a feedback loop where you get equal the information back from your financial professional as you have given to them.”

He encourages producers to sit down with their ag lender, evaluate the farm data, and determine benchmarks and cost-ratios.