Why Are Some Farmers Succeeding While Others Struggle?

It’s a common story line nationally and across the Northwest.  Some producers are succeeding while other are struggling, with some declaring bankruptcy.

So, what's the difference?

Ag lender Tony Hotchkiss says for him it’s not so much geographical location or commodity, but those that understand operating a farm, while it may be a passion, it’s a business.

“They’re making business decisions, not emotional decisions, and they’re working with the next generation from a succession perspective, planning, thinking ahead.  When they make decisions to buy the next tractor or combine, or to buy the next piece of land, they’re asking their partners whether it be their tax preparers, CPA or even their bank partner, ‘If I do this, what’s it going to do to my operation from a cash flow perspective from a balance sheet perspective.”

He noted farmers that focus on that typically enjoy success.  Hotchkiss added farmers who address their business concerns also enjoy a positive relationship with their farm lender.

“They’ve adopted the technology on the production side, and they’re really good at the production side of their farm operation, they leverage everything that the agronomist has been throwing at them, in terms of yield monitors and ways they can apply seed in a really efficient way or their chemicals and fertilizers in a really efficient way, and this is just the next evolution of that.”

As farms grow in size, Hotchkiss said it becomes even more important that farmers have someone in their operation that really good at the business side of their operation.

If you have a story idea for the Washington Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekradio.com