Looking ahead at 2018, producers should plan to make changes in marketing and expenses according to Chris Barron, a farmer and financial consultant for Ag View Solutions.
"Producers have done a pretty good job of cutting costs along the way incrementally by line item," says Barron. "But having said that, I'd say there's still room yet in the budget."
Here are four tips Barron shares for healthy finances this year:
1. Pay attention to overhead costs not directly related to production.
2. Make a plan and stick to it. This means actually putting the budget in writing this year.
3. Take advantage of future price opportunities in grain ahead of time.
4. Have targets to make sales at predetermined levels.
As margins remain tough in 2018, Barron says farmers may have to be less optimistic this year.
"We may have to start making some sales at below the cost of production and then just work our way up," says Barron, "hopefully as the price opportunity comes to us."