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Cattle producers urged to understand working capital position
A financial officer for Farm Credit Services of America says cattle producers need to know what their working capital is.
Cody Griffin tells Brownfield, “In times like these, we’ve got a lot of dollars at stake in agriculture especially in livestock whether you have three-to-five thousand dollar bred females, two thousand-plus dollar feeder cattle on up to yearlings. Know your numbers, your cost of production, and understand your position.”
He suggests working with a lender to help formulate a balance sheet.
“A balance sheet is a snapshot in time today,” he said. “What you look like today and not necessarily tomorrow. What kind of position does that put you in for future success, or what things do you need to change to maybe correct the balance sheet?”
Griffin says capital is one of the biggest barriers for young cattle producers.
“What it takes to buy a cow herd, land or livestock,” he said. “How to come up with that capital, how to generate the cash flow to repay that capital expenditure.”
He spoke to Brownfield the recent Iowa Cattle Industry Convention.
Cody Griffin Audio Interview:
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