National Ag News
Plan to make working capital work properly
An ag lender says knowing how much working capital to have on hand depends on the farm operation.
David Coggins from Investors Community Bank says having the appropriate amount of working capital can help farmers take advantage of cash discounts, bargain purchases, or just getting through tough times… but says there is no standard amount or percentage. “It’s an individualized metric that they need to look at for their farm, depending on their debt levels, the volatility of their prices, some of those kinds of things, so it really does boil down to an individual question.”
Coggins says it’s important for the farm’s financial officer to sit down with lenders and tax consultants at least once a year to review the working capital plan… and maybe much more often.
Continue reading Plan to make working capital work properly at Brownfield Ag News.
