Be prepared for the decision to acquire new land

As farmers across the Corn Belt wrap up their field work for the harvest season, we have been hearing word that many land opportunities could be presenting themselves soon, for both purchase and rental. You might find yourself interested in the prospect of expanding your operation, but it's prudent to properly prepare yourself for such an acquisition before jumping into it blindly.

It's vital that you're on top of your farm's numbers, knowing your financials, cost structure and break-evens forward and back. A strong handle on your financials is the first key to taking the emotion out of the prospect of adding land. If you have extensive, up-to-date knowledge of your current and projected financials, it will allow you to move more quickly when land opportunities are presented--and swiftness is paramount when it comes to taking advantage of new opportunities.

Water Street's Dean Heffta talks with Dewey Nelson about what else you should keep in mind to prepare your farm for the prospect of taking on additional land.