Posted November 30, 2022 | By: Hollie Rudy

The end of the year is a busy time for all of us, especially farmers. I grew up on an 1,800 acre farm in Iowa and now operate my own small family farm, so I know how critical it is to take a little time now to get everything in order for the end of year. Here are some tips to keep in mind to help establish a successful and profitable new year.

Identify Your Needs and Lock in Your Rate

When thinking about your 2023 purchasing needs, the time to act is now. As rates continue to increase and market volatility persists, it’s best to lock in current rates. In fact, a recent McKinsey survey shows more and more farmers are changing purchasing behavior to buy their inputs earlier in the year. At Nutrien Financial, we offer many programs with fixed rates that aren’t tied to prime, giving you flexibility that can be carried into the next year. Now is the time to get your orders in so you can take advantage of the best terms, rates and incentives on next year’s inputs.

Growers who work with Nutrien Financial can access extended and customized payment terms. Think about the payment options that would match best with your capital management plan, and ask if those terms are available. You may be surprised at how much flexibility is available.

Keep Taxes in Mind

As the year comes to a close, one of the main reasons growers tend to pre-plan is so we are clear on any tax implications or benefits we can receive. Make sure you know how this year’s finances can impact your taxes for both this year and next year. If you finance your seed inputs for 2023 right now, will that put you ahead on your taxes for either or both years? I would always rather invest in my operation in some form than pay more on taxes, and I’m guessing a lot of farmers feel the same way.

With the help of a tax planner, you can get a clear picture of where you stand and what financial levers you may need to pull to minimize your tax burden. Now is the perfect time to get your plans organized and talk to your tax expert to give you peace of mind, and to take advantage of investment opportunities that you might not otherwise consider.

Get Clear on Your Cash Reserves

Many farmers, especially younger farmers, need to conserve cash for growth opportunities. Financing your input purchases is one way to keep cash on hand for the future. Be sure you know what your cash flow situation is so you can leverage your cash for investments, operational growth or a financial cushion to fall back on in the event of an emergency or unexpected loss.

It's important to know that there are many ways to pay for all the things you need on the farm. Understanding the nuances between each option is worth your full attention. You may find credit cards aren’t the best option for payment methods, and you can get better rates through financing. If you’re using cash from a line of credit or an operating loan, make sure you know if the loan rate is variable. If you look at the pros and cons of each payment option, you’ll be able to make a clear assessment of what will work best for your operation.

Have a Team of Trusted Partners

Relationships are so important in the agriculture industry. As a farm and business owner, you need a team of professionals at the ready who can help you make the best decisions for your operation. The end of the year is the perfect time to assess your team and add to it if necessary. Lenders, tax professionals, equipment dealers, crop consultants and agronomists - these folks all play a crucial role in your success.

At Nutrien Financial, we have our own team of experts who are available to you. We can help you match your capital management plan to your agronomic plan. We can help you research and decide between the various input options so you’re getting the most out of your purchase. And we’re always a trusted, friendly face to answer any questions you may have about Nutrien products and financing options. When you’re successful, we’re all successful.

You can learn more about Nutrien Financial and use our easy and secure online application at www.nutrienfinancial.com.

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Posted September 20, 2021

Brent Smith of Nutrien Ag Solutions sits down to discuss his passion for FFA