My Winter Days – Part 2

It has been a whirlwind of a week in the farm office and we accomplished so much. January on the farm equals a very busy time. Now you might think that is an inaccurate statement because we have no crops growing in the field. Many people ask me if I even go to work in the winter. I answer with a big smile and say yes. Winter is when all of the planning for the next crop is done.

Planning for a new crop is similar to making new year resolutions – lots of review of the old crop to see what worked and what did not and then setting goals and dreams for the new crop. Long days sitting together with my Dad and husband reviewing and discussing. We keep extremely detailed crop budgets. Each winter we make adjustments to those budgets based on the current conditions. We always learn things from taking a deep dive into our numbers. It gives us ideas and insight into what we might do to save money or do a better job of each crop.

UA Budgets are a great place to learn

The University of Arkansas provides detailed crop budgets for many different crops and growing systems. These can be a good place to start if you need a guideline for your own budgets. Every farm operation is so very different. Between crop mix, soil types, number of employees and the list goes on and on -no two operations will have the exact same budget. I don’t believe there is a perfect way to plan it all out even so far ahead of planting. The weather is a factor that we depend on above all else. The perfectly laid plans can be interrupted and completely destroyed in a matter of days or even hours of heavy rain or low temperatures for example. We have to be ready to change plans and adjust budgets at any time especially during planting season. But I do believe that the best plans can only be made from the history in your own records and operation. The advantage a farmer has is that you know your operation better than anyone else.

Accrual balance sheets also help tremendously in reviewing the strengths and weaknesses of our operation from year to year. Many times my gut feeling about the answers I will find in the preparation of the balance sheets are confirmed. However there are times when they reveal clear pictures of management decisions that must be made. This is probably true of any business and not just farming. If you run a business this is a great way to learn more. I prepare all of this internally but good accountants are always there to give you guidance. I think it is best to find an accountant that is willing to teach as well as do the work. If you don’t understand the numbers you cannot highlight your business’s strengths and improve the weaknesses.

I love numbers and these tasks are some of my favorite to do- well until the field work begins. Isn’t that why every farmer farms? The love of the outdoors. The smell of freshly turned soil. The ability to watch God’s hand in the renewal of food for the world. The warm sunshine on your back as you count the seeds in the row checking planting rates. The 2018 harvest season was a difficult one for row crop farmers across our country. Rains prolonged harvest for weeks and months. The rain is continuing into January which is keeping the tractors from rolling to prepare soil for 2019. Everyone is a little nervous about how this next year will go. Prices are low, the trade war with China continues and the field preparations are far behind schedule, but we have hope. The cycle will continue -that is one thing we know for certain.

Let’s chat: What are your winter farm activities? Do you love them or hate them? What did you learn from 2018 crop year that will change your operation for the better in 2019?

-Jennifer