News

Margins may be tight – but there is opportunity

Farmers are looking at tighter margins heading into 2015.  Dr. Mike Boehlje from Purdue’s Center for Food and Agriculture Business says there are a few things farmers need to remember as they look at their balance sheets.  “Create strong working capital positions by not having too much debt,” he says.  “Focus the attention on cost control and focus the attention on execution and being careful about doing everything right.  By doing that we’ll be able to make it through this time without having too much pain.”

However, he tells Brownfield that it might seem a little more painful for farmers compared to where their profit margins have been in recent years.

But even though those margins are tighter, Boehlje says farmers can’t get into what he calls “hunker down” mentality.  “You have to have a mental attitude that says in difficult times come opportunities,” he says.  “History is very clear on this – it’s in a more difficult time that many well run business have the best opportunities they’ll ever have.”

He says if farmers aren’t searching for those opportunities, they could be missed.