Possibly my best periscope broadcast, I’m posting as a farm podcast.
Tell me what you think.
Farm finances are down right ugly. Unless you had above average yields you could be hurting financially.
I was doing my end of the year pre tax and accrual accounting. I use Farm Business Farm Management service for my books and taxes. My numbers were bad, and I have known for awhile they would be bad. We fell into that no man’s land of raising 85% of a crop. Not enough to come out ahead, but too much to get paid for bushels at the higher spring price. Crop was also worth more in October than it is now. On the accrual side we had lower yields so lower inventory at a lower price for the grains. I also put a lower value on the cattle. Just not pretty to look at.
15% of a $500,000 gross is $75,000. Every time before when we have had a short crop, prices have rallied. First time we had a short crop and lower prices. We farm some of the best dirt in the world, but too much water did us in on some of it this year. Way too much.
I was pretty down and out when I went to the appointment, but felt better when I left. Lots of people in the same boat as me and lots worse off. Expenses too high income too low. Probably won’t be much better in 2016.
My FBFM field man is one of the best. Really knows his stuff. Said I was OK, going to be a setback but not a career ending hit. I just don’t like to go backwards.
I discuss my numbers and what is also happening to others. In later posts I will say what I am doing to change things and hope to come out better off next year.
My goal is to have much better numbers next year. I sure am glad 2015 is over. Sure glad it is over.
(Join us on periscope every morning 7:30 cst periscope.tv/billgraff )