Here at Water Street Solutions, we've been working with our clients to project their 2018 crop year for the past several months, and our meetings have continued along with harvest. We have found that farmers often get held up when it comes to forward-looking projections because of the seasonality of farming, or because their current crop year is still unresolved. However, we believe that—especially in the fourth quarter—assembling forward-looking, accrual-based financial projections should be near the top of every farm leader's to-do list.
In this week's interview with Dewey Nelson of KRVN radio, Account Manager Jason Ladman recommends tossing out the mindset which says you have to wait for the 2017 balance sheet before you can start planning for 2018. In fact, the earlier you can have an accrual-based projection in hand, the sooner you can start making well-informed decisions and craft a plan to set up the next crop year. Then down the road, when you have the final numbers from your harvest, you can make adjustments to that plan accordingly.
Listen to a more thorough exploration of these ideas in the interview posted below.