Running a farm both on the field and in the office are two separate businesses

Running a successful farm takes a lot of hard work both in the fields and in the office.

Leaders at Hebert Grain Ventures tell aginfo.net that farmers should view their operations as separate businesses.

“You run two [businesses],” said Kristjan Hebert. “You run a farm operation, and you run a real estate business. Understand the numbers on both of those. It’s no different than, you know, Walmart sells stuff and they have a building. If you have a hotel, you need it to be full. So, is your farm profitable? Is your real estate operation profitable? Yes, they’re at different rates. Then, how much cash flow does your farm operation have, and how much equity does your real estate operation have? You need to know both of those numbers because your real estate equity allows you to buy land, and your cash flow from your farm allows you to pay for it.”

Hebert says knowing that information will make lending requests a lot smoother.

Related Stories
CattleCon 2026 kicks off February 3 in Nashville. Kristin Torres with the National Cattlemen’s Beef Association joined RFD-TV to share more about what’s ahead at this year’s event.
Farmland values remain stable, but weakened credit conditions and lower expected farm income signal tighter financial margins heading into 2026.
Bangladesh recently pledged to purchase 700,000 tons of U.S. wheat and has also become a new buyer of American soybeans.
Ethanol exports are expanding on strong demand from Canada and Europe, while DDGS shipments remain broad-based and supportive for feed markets.
Jerry Cosgrove with American Farmland Trust explains why farmers and ranchers should start their estate planning now.
Elizabeth Strom of the American Society of Farm Managers & Rural Appraisers joined RFD-TV to provide the latest perspective on post-harvest business planning and cropland markets in the Midwest.

LATEST STORIES BY THIS AUTHOR:

RFD-TV tax expert Roger McEowen discusses the renewed tax provision and how cattle producers can take advantage of it to recover investments in heifer retention and herd expansion more quickly.
U.S. Senator Roger Marshall (R-KS) shares his perspective on the U.S.-China trade developments and their potential impact on American producers, farmers, and ranchers.
Rich Nelson, a commodity broker for Allendale Inc., joins us to break down what the U.S.-China trade agreement means for the ag economy.
Rollins will also tour a small soybean operation in Iowa before her appearance at Lucas Oil Stadium.
Tara Vander Dussen, fifth-generation dairy farmer, environmental scientist, and co-host of Discover Ag, joined RFD-TV to talk about her work in agriculture and her passion for sharing the story of dairy.