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What is your farm’s strategy for financial resiliency?
A farm management educator says research is finding characteristics of financially resilient farmers can differ by age.
Corey Clark with Michigan State University Extension says agility and absorption capacity are two strategies that can help farms reduce risks.
“Younger farmers, they have a harder time with the absorption capacity, but they’re more likely to be on the agility side,” she shares. “Older farmers are likely to have more absorption capacity.”
Clark says both perspectives are needed to weather market shocks.
“Can your firm absorb some of the stuff that happens in the market,” she asks. “Can it absorb higher prices? Can it absorb lower prices? Can it absorb worse year yield-wise?”
She says solid working capital, a strong balance sheet, and knowing the farm’s business goals will help them shift into the future.
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