As a result of the pandemic, bankers are thinking about new lending risks Good riddance, 2020. Everybody, including bankers, had to learn how to do things differently last year.

Change is hard. Most of us are hardwired to maintain relationships as long as possible. But there are times when we have to make a change. The reasons may vary, but when it is time to go, it is time to go.

Breaking up is hard to do but, as the risk manager for your farm, you should be prepared for the day when you and your lender may have to go your separate ways.

With all the challenges going on in the dairy industry right now, most are finding themselves in crisis mode 24-7. This leaves little time to sit back and think about what got us here, how it can be solved and what we can do so future generations don’t have to go through the same thing.

What is your number one challenge in the next five years? Is it commodity prices, trade wars or low yields? Or is it how you manage your operation, the resources available to you and your use of technology?

There are many factors that go into running a profitable farming operation. In an industry that faces several influencing factors such as new technology, government regulations, climate change, commodity pricing and tariffs, the potential impact on your operation’s bottom line is high.

Even with milk prices trending up and 2020 looking to be even better, there is lots of uncertainty still in the marketplace. Continuing weather issues, trade and tariff issues, plus forage quality and availability all weigh heavy on producers’ minds as they struggle to finish the 2019 season.

Preserving the relationship with your banker is important during good times, and it is essential to your survival in times like these.