A farmer with a big income tax problem usually has the means to pay an expert financial adviser, who typically guides the farmer on how to spend excess earnings on new equipment, infrastructure, or more high-potential land.
Many farmers, however, have far more difficult money woes, such as slow turnover, a cash flow deficit, or insufficient income. These farmers frequently lack access to experienced advisers, and end up making their own plans, sometimes getting into serious debt as a result.
There are no easy solutions. Farming is expensive, with input and living costs rising faster than inflation, and producer prices, with few exceptions, usually remaining flat for long periods. Prolonged drought, hailstorms, floods, disease and market slumps, all of which can make sudden, unexpected demands on funds, don’t help either.…