We'd Like To Mention

Talking about financing the farm isn't an easy topic, whether within a family, with possible lenders or even with other farmers or landowners.

However, it is necessary to communicate within families about transition between generations; to develop relationships within the community that can lead to mutually beneficial land rent or purchase agreements; and to get financial support when needed.

It is also important for lawmakers to hear how their present priorities and policies may benefit or harm farmers and ranchers -- and influence what can be done to support the 1.88 million U.S. farmers so they can be more productive and profitable. Farmers and ranchers are independent and are looking for supportive financing tools, options and programs to help them when commodity prices drop and production costs rise.

The latest American Bankers Association-Farmer Mac Agricultural Lender Survey results aren't in yet. But last year's survey, done in August 2024, showed "Lenders' Top Concerns for Producers" were liquidity (working capital) at No. 1 followed by farm income.

If farmers want to deal with these concerns head-on, tough decisions will need to be made on how to manage costs, find new revenue opportunities and evaluate lending options.

We appreciate the agricultural producers, lenders and others who took the time to talk to our DTN/Progressive Farmer staff about the sensitive but important issue of farm finances for our Progressive Farmer October 2025 magazine issue. They shared their past experiences, present situations and future expectations and needs. Through October 2025, check out extended coverage on this topic, including Q&As and longer profiles at https://dtnpf.com/…

Some of the advice we heard:

LEARN FROM THE PAST. Whether relatives lost farmland in the past, or a banker's first job was during the 1980s farm crisis, this experience created goals to regain family land, avoid past mistakes and help protect farms from future economic challenges.

START YOUNG. Many farmers say their first experiences to manage farmland or livestock, or getting lines of credit or loans, were when they were teenagers or in their early 20s.

IMPORTANCE OF RELATIONSHIPS. Work to have positive relationships. Help out, show you're dependable, keep in touch, build trust and be honest. People may be more willing to offer you an opportunity to rent or buy their land, develop partnerships or lend money.

CREATE NEW REVENUE SOURCES. Do custom fieldwork (spraying, harvesting), custom hauling, off-farm jobs, etc.

REDUCE COSTS. If you decide to cut back on inputs, first evaluate the impact of your decisions. For example, do soil tests before reducing fertilizers. Consider using livestock or poultry manure to replace synthetic fertilizers. Decide if it's better to hire out for certain fieldwork or do it yourself.

EVALUATE MACHINERY NEEDS. Properly maintain and keep your machinery longer; buy used machinery instead of new (if you buy new, take advantage of special finance options offered); and manage capital purchases with only necessary equipment replacements.

INVEST IN WAYS TO BE MORE EFFICIENT. These could include precision technology or even drones to seed, fertilize or spray. Some farmers have bought bagging equipment to bag harvested grain instead of erecting new bins.

INVEST IN INSURANCE. Insurance for crops, livestock, etc., can help to mitigate your risk, but evaluate if the premiums are worth it.

SEEK PREAPPROVAL FINANCING. This will help you to act quickly if an opportunity to buy land or equipment arises.

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-- You may email Elaine at elaine.shein@dtn.com, reach her on X @elaineshein or call 402-214-8531.

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