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Winning is surviving in 2019

An ag consultant says better managed relationships with lenders can help dairy farmers stay in business.

“Winning in 2019 means surviving.  If you get through 2019 with your finances intact, your relationship solid with your banker, and your family together, I think you’ve done as good of a job as anybody is going to be able to do this year.”  

John Blanchfield with Agriculture Banking Advisory Services tells Brownfield it’s surprising how many ways farmers can be overcome credit problems by having a solid relationship with their lender. 

He recommends preparing accurate financial statements, welcoming lenders on the farm for a visit, and looking for ways to conserve cash.

“I’m willing to bet everyone of them is carrying $10,000 to $50,000 worth of stuff on their balance sheet that probably they don’t need.”   

Another option is to turn to Farm Service Agency loans which provide a credit guarantee. “I don’t think a lot of producers know about that and the cool thing is that the banks make the loan and then they go and deal with FSA, the farmers never have to deal with FSA.”        

Blanchfield spoke with Brownfield during the recent Great Lakes Regional Dairy Conference in Frankenmuth, Michigan.

AUDIO: Brownfield interview with John Blanchfield