What if the farming season is a disaster? What if your input costs are more than your output? What if you have an emergency that takes you away from running the farm? Obviously I could "what if" you forever while quizzing you on the possible problems that can arise in any business. The real problem in the farming and producing business is these "ifs" are more important than in any other business.
Farmers and producers realize that disasters will impact their families and workers, not to mention the crops, livestock, machinery, home and a ton of other things. Preparing for economic disasters is as important as your marketing plan.
There is an old saying that "luck is what happens when preparation meets opportunity." Of all the businesses in the world, farming is probably one of the toughest. There are so many factors out of our control and the initial cash layout creates huge debt all on the hope that everything will go well. Life tells us that a perfect season doesn't happen very often and big markets don't happen often enough.
Disasters are always a problem but today they are even bigger. With all of the new banking regulations, borrowing money has become a major challenge. No longer are banks there to help unless you have the assets to back up the loans. Family bankers have become strictly business following the ridiculous regulations bestowed on them. A handshake and your word don't have the same meaning as they once had.
Planning for the unexpected is rule number one. Saving money after good years, building a solid investing strategy and having your money work for you is just as important as a successful year. Life is a series of mathematical equations and putting the odds and probabilities in your favor will keep you off the Prilosec and prepared for rough times.
"What ifs" are regular parts of everyday life. Remember those who are prepared for "what ifs" are those who can survive everything. Prepare yourself for the worst and the best will take care of itself. Those who are ready for disaster very rarely have them and when they do they find a way to benefit
Keep those stops tight!
The views, opinions and positions expressed by the author are theirs alone and do not necessarily reflect the views, opinions or positions of Pro Farmer.