Stresses to your operation can be difficult to deal with, especially those that fall out of your control. Whether it be floods, hail, or drought; carefully planning your next steps is crucial for your operational health.
As the historic drought continues to worsen through the western half of the United States, tough choices are being made. It might be culling a herd or fallowing portions of land, but measures need to be taken to protect your farm or ranch.
With extended droughts in many areas of the U.S., farmers and ranchers will have to adapt to this way of life. Understanding the patterns and knowing how to mitigate risk in times of drought is becoming more relevant than ever.
Producers and lenders will both need to become adaptable to these weather patterns as extremes become more prevalent. During times of drought or extreme weather, it is important to communicate with your lender and stay on the same page as to what you both need to get through the year.
In most cases, if farmers have crop insurance, a portion of expense will be offset. When floods or drought can occur at any time, having a significant percentage of expenses into that crop can create a difficult year.
In the case of cattle, ranchers will be challenged to buy hay and other supplements and will start feeding earlier than normal. Keeping good nutrition in front of livestock during breeding season and before weaning is critical for the future of your herd.
Having an ag lender that understands these times of stress and is willing to work with you to get through it is most important for your financial health. Both operations and lenders will face tough decisions, but open communication is the key to overcoming the financial impact of weather-related losses.
If you’re experiencing difficulties in your operation, due to drought or other impacts, start a conversation with Conterra Ag. Our lending products are designed with the cycles in agriculture in mind.
Joe Erickson, AVP Relationship Manager, works with borrowers in the Midwest. Contact Joe or find your regional contact, and let’s talk ag today. Conterraag.com
