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
Reported results include stronger in-season nitrogen response, average yield gains of more than seven bushels per acre and more than $18 per acre in net return.
Tony Adkins with Specialty Risk Insurance addresses current market challenges for farmers and ranchers and offers strategies to help producers navigate risk.
AFBF Women’s Leadership Committee Chair Isabella Chism joined us to discuss Ag Day planning, community involvement, and supporting the future of agriculture.
Acreage shifts could impact pricing and marketing plans.
During opening remarks, Rollins emphasized the strength and perseverance of the agricultural community, while teasing that a new policy announcement is expected later this week.
As spring migration ramps up, USDA officials warn farmers about rising bird flu risks and urge stronger biosecurity measures. Resources are available through APHIS to help protect livestock.

LATEST STORIES BY THIS AUTHOR:

Today, the Breugmans grow wheat, canola, and hay and raise cattle in their century-old ranching operation in Grangeville, Idaho.
USDA Meteorologist Brad Rippey says a cold front will keep smoke moving east and hopefully clear some smoke sitting over the north-central United States.
Thousands of pork producers from around the globe gathered in Des Moines, Iowa, this week for the World Pork Expo to showcase the latest production innovations and learn about market trends in the industry.
The 45,000 square foot facility inside the Market Center of the Ozarks offers 24/7 scheduling options, making it accessible to all.
Mike Vanmaanen, president of the Livestock Marketing Association, joins us Friday on the Market Day Report for a closer look at the Heritage Act.