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
Brian Earnest, an animal protein economist with CoBank, shares insights into current demand trends and the challenges facing broiler production.
Moderate oil prices may ease fuel costs, but continued caution in the energy sector could limit rural economic growth.
Decoupled base acres may amplify income inequality and distort planting decisions as farm program payments increase.
Oil-led rallies can move soybean prices quickly, but sustained gains will require continued strength in soybean oil and broader biofuel demand signals.
CLAAS Senior Vice President for the Americas Region Eric Raby joined us to preview the new docuseries “CLAAS: Made for More,” premiering tonight at 9 PM ET only on RFD-TV.
The Farm Bureau is making an urgent call to Congress for more farm support. Colton Lacina with Farmers National Company joined us to discuss farmland values and how market dynamics for the year ahead reflect stabilization rather than collapse.

LATEST STORIES BY THIS AUTHOR:

Experts say flooding the zone with more money could have unintented consequences without opening new markets for planted crops and inputs under significant pressure.
Julie Callahan was nominated earlier this summer by President Donald Trump, and U.S. Trade Representative Jamieson Greer told lawmakers she is ready to hit the ground running.
Ag Secretary Brooke Rollins signed six MAHA waivers for SNAP in Hawaii, Missouri, North Dakota, South Carolina, Virginia and Tennessee.
Dr. Jeffrey Gold, President of the University of Nebraska, joined Rural Health Matters to outline a few key reminders for parents about keeping kids healthy during the holiday season.