Hay and forage supply is improved over the 2011-2013 time frame, when regional droughts and Upper Midwest winter survival affected forage supplies. With current increased forage supplies, the price of hay has declined somewhat from the highs of the past few years, but not as much as one might expect given the decline in the commodity groups of grain and grain byproducts.

Two things every farmer should know about his or her farm business are cash flow and profitability, says Paul Dietmann, emerging markets specialist for Badgerland Financial. He defines cash flow as, “The ability of the farm to generate enough cash to cover all expenses and loan payments, pay for family living costs and income taxes, and have enough cash left for re-investment in the farm and to put some in savings.”