Finances

Bankerisms and other wise words

bradley.guse@bmo.com — Mon, 13 Jul 2026 00:00:00 -0400

Good banker sayings endure because banking fundamentals don’t change nearly as fast as markets or technology. While they may sound like short, simple phrases, they offer real insight into how a banker is thinking about risk, relationships and, ultimately, how we’re looking at your operation. Let’s go over a few of them.

Q1 interest rates offer glimpse of bleak ag conditions

jenn@agproud.com — Thu, 25 Jun 2026 07:15:40 -0400

As 2026 got underway, interest rates for American farmers continued to retreat to levels last noticed in 2022 as reported in the major agricultural regions including Chicago, Dallas, Kansas City and Minneapolis Federal Reserve districts.

A road map from basic recordkeeping to advanced financial analysis

stephanie.plaster@wisc.edu — Thu, 28 May 2026 00:00:00 -0400

Recordkeeping is the foundation of good financial management. You can think of it like the soil in your fields. Accurate records allow for strong analysis, decision-making and profits to weather any storm our farms might experience.

Managing capital costs for 2026

steve.schwoerer@compeer.com — Thu, 21 May 2026 00:00:00 -0400

A disciplined approach to capital spending in 2026 will help ensure the operation remains strong not only through this cycle but into the next one as well.

Financial transparency on the farm: Engaging employees with the numbers that matter

gabriellahoudek@agrigrowthsolutions.com — Wed, 29 Apr 2026 00:00:00 -0400

When employees understand what the farm is working toward and how success is measured, they are better equipped to make decisions that support those goals. Transparency builds trust, reduces confusion and creates a shared sense of purpose across the operation.

It’s not how much you can borrow; it’s how much you can repay

bradley.guse@bmo.com — Wed, 22 Apr 2026 00:00:00 -0400

Recently, I’ve had some deep conversations with producers around the concept that it’s not how much you can borrow but rather how much you can repay that matters. At the heart of the conversation is whether collateral or capacity to repay is more important.

Lending conditions weakened in last quarter of 2025

jenn@agproud.com — Thu, 16 Apr 2026 11:35:15 -0400

Interest rates in the fourth quarter of 2025 dipped to rates not seen since 2022 – lower than the peaks of 2023 but remained above the 10-year average – a signal lending conditions were more favorable for farmers despite overall credit conditions deteriorating as the year came to a close.

Interest rates continued falling in 2025

jenn@agproud.com — Mon, 09 Feb 2026 18:03:44 -0500

Continuing from the first half of last year’s trend, interest rates in the third quarter of 2025 fell according to lender surveys from Chicago, Dallas, Kansas City and Minneapolis Federal Reserve districts.

Understanding financial records on the dairy: Tax, lender and management perspectives

gabriellahoudek@agrigrowthsolutions.com — Thu, 05 Feb 2026 00:00:00 -0500

The tax accountant, lender and on-farm management team each compile financial statements with very different goals, and each interpretation serves its unique purpose. Understanding the goals of each stakeholder is critical as you work to make strong business decisions.

[Podcast] Nick Vande Weerd: Pleasant Dutch Dairy

Tue, 27 Jan 2026 00:00:00 -0500

Nick Vande Weerd runs Pleasant Dutch Dairy in South Dakota and serves as vice chair for AgriBank. Progressive Dairy Editor Walt Cooley caught up with him after he spoke at the 2025 Precision Dairy Conference, and he had one message that stopped Cooley: You can't expand your way out of a cost problem.

Leveling up and rising above: Three dairy producers open up about their financial journeys

ebarge@centerfordairyexcellence.org — Fri, 23 Jan 2026 00:00:00 -0500

How can farms rise above financial risks and a volatile market to eventually move toward growth? Three dairy producers opened up about their journeys and offered honest insight during a recent panel discussion.

Asset turnover: The often-overlooked ratio that could be costing you

bradley.guse@bmo.com — Tue, 30 Dec 2025 00:00:00 -0500

Asset turnover may not be the flashiest ratio, but it’s one of the most telling. It’s a window into how well your operation is using its resources. And when paired with the DuPont system, it becomes a powerful tool for diagnosing financial health and guiding smart decisions.

How is your operation’s resilience?

bernhark@uwplatt.edu — Thu, 20 Nov 2025 00:00:00 -0500

Have you prepared yourself, your team and your operation to be resilient of the many risks that may occur and/or prepared to be ready for the many opportunities that may present themselves?

[Podcast] Dave Saunders: Getting ready for the global financial reset

Tue, 04 Nov 2025 00:00:00 -0500

Dave has spent years in business development and ag technology – many might remember his work helping create My Dairy Dashboard, the analytics tool that helps farmers track and improve performance. Now he’s focused on helping producers prepare for a changing financial landscape.

Beyond income over feed cost: How nutrition unlocks reproduction ROI

rsmith@virtusnutrition.com — Tue, 04 Nov 2025 00:00:00 -0500

Here’s the catch. IOFC only tells us the economics of what’s going into the tank, not what’s going into the cow for good health and reproduction, and impacting the farm’s true profitability. It measures how well we are converting feed dollars into milk dollars. IOFC values today’s milk but ignores tomorrow’s pregnancies.

Managing capital purchases: When to repair or replace

matt.lange@intagralfinancial.com — Wed, 24 Sep 2025 00:00:00 -0400

In some cases it is better to repair farm equipment and other times it is better to replace. Knowing when to take action on one versus the other is also part of a bigger strategy for managing your dairy operation.

Investing in technology: Setting the stage for success

stephanie.plaster@wisc.edu — Fri, 19 Sep 2025 00:00:00 -0400

Whether you are currently planning to invest in a piece of technology on the farm or are considering it in the next five years, advanced preparation is the key to a positive implementation process and impact to the bottom line. How do you know where to start?

The word of the day: Volatility

bradley.guse@bmo.com — Thu, 18 Sep 2025 00:00:00 -0400

Yes, volatility is here, and it’s likely here to stay. But there are steps you can take to manage through it. Dust off your risk management plan to preserve working capital and discounted core equity, building a resilient business model for the future.

Weaker ag economy causes interest rates to slip in Q2

jenn@agproud.com — Mon, 25 Aug 2025 15:17:38 -0400

Lender surveys from Chicago, Dallas and Kansas City Federal Reserve districts demonstrated another weak quarter as interest rates on agricultural loans declined in the second quarter of 2025.

Deadweight debt and welded hitch pins: The importance of the balance sheet

bradley.guse@bmo.com — Fri, 27 Jun 2025 00:00:00 -0400

When looking at your balance sheet, one of the big questions to ask is: How hard is your debt working for you? That is, are you making money on what you have borrowed from others? We often look to the numerator first to see what is happening there. Revenue is a great place to start, but we also need to look at the debt schedule.

Coordinated planning for a successful dairy expansion

jim.moriarty@compeer.com — Sat, 07 Jun 2025 00:00:00 -0400

A well-conceived and coordinated plan is essential for a successful expansion that achieves the dairy family's objectives. Here are key areas to address and implement.

Subdued ag economy pressures interest rates in Q1

jenn@agproud.com — Thu, 29 May 2025 11:52:35 -0400

Lender surveys from Chicago, Dallas, Kansas City and Minneapolis Federal Reserve districts reflected the pressures of a subdued agricultural economy as interest rates on agricultural loans declined for another straight quarter in the first three months of 2025.

Nexus awards: New digital lending platform funds farmers’ projects in days, not weeks

walt.cooley@agproud.com — Mon, 05 May 2025 06:01:37 -0400

A new digital platform to access capital aims to quickly finance dairy farm projects up to $2.5 million in value and do so in days, not weeks.

Affordable automation: Preowned automated milking systems offer cost-effective entry

bguelker@lely.com — Mon, 28 Apr 2025 00:00:00 -0400

Whether dairy producers are making the switch to automation for the first time or adding to existing equipment, preowned systems offer access to the benefits of automation at significant savings from new pricing.

Negotiating your farm lease with ease

kelly.wilfert@wisc.edu — Thu, 27 Mar 2025 00:00:00 -0400

If renting the land on better terms is the goal and farmers want the best alternative to continue at regular terms, then maintaining the landlord relationship is key. An adversarial negotiation may not be the way, but there is another way – a friendly negotiation, or better yet, a friendly conversation. After all, by definition, a negotiation is simply a conversation aimed at reaching an agreement.

Fourth-quarter interest rates reflect stressed ag economy in 2024

jenn@agproud.com — Thu, 06 Mar 2025 10:03:17 -0500

Here’s an update on interest rates from the fourth quarter of 2024 as reported by Federal Reserve districts that share data impacting dairy finances.

Milk production costs: Actionable strategies that don't negatively impact the cows

alvaro@dellait.com — Thu, 20 Feb 2025 00:00:00 -0500

In recent years, dairy farming costs have risen across several categories, posing challenges to farm profitability. However, not all costs are beyond a farmer’s control. By focusing on specific actionable items, farmers can manage expenses effectively without negatively impacting cow health or milk production.

Practical strategies to stay financially organized on your farm

elaine@elainefroese.com — Thu, 20 Feb 2025 00:00:00 -0500

Making sure the farm is financially organized could be a key to running a successful and sustainable operation. Unlike many other industries, farmers are faced with unique challenges such as fluctuating market prices, unpredictable weather and potentially volatile cash flows. Ensuring you are aware of the current financial position of the farm by creating accurate and timely reports can allow you to make quick decisions when necessary.

Redhead Creamery: A place for cows, curds and cocktails

jenn@agproud.com — Sun, 19 Jan 2025 00:00:00 -0500

At Jer-Lindy Farms, crops are grown, cows are cared for and milk is produced, much like many dairy farms across the nation. In addition to the conventional way of dairying, the Jennissen and Sjostrom families also turn their milk into cheese at the on-farm Redhead Creamery and make whey-based spirits, all while telling their story through public and private on-farm gatherings.

Make 2025 the year of cash flow budgeting and projected earnings

bradley.guse@bmo.com — Thu, 16 Jan 2025 00:00:00 -0500

During the farm crisis of the 1980s, the term “cash flow is king” drove home the importance of using cash flow to pay debt. That’s still important as we continue to ride the cycles of the industry, but a projection of earnings is equally important. As the calendar transitions to 2025, dive into the question of why both are valuable.