It's Time to Tighten the Cinch and Grab the Horn!

It's Time to Tighten the Cinch and Grab the Horn!

The saddle horn provides an anchor point of stability so you can stay in control as you guide your horse through rough terrain.

In the same way, financial analysis and knowing your production costs can be anchor points. They provide the perspective and control you need to properly guide your business through tough times.

When the country is gentle you can get by riding with a loose cinch and slack rein. But when the country gets really rough, you had better tighten your cinch, gather your reins and grab the horn. If you don't, who knows where you'll end up. You might not even be on the horse.

It's the same way with your ranch. When the markets are good and the weather favorable you can run things with a little slack and not get hurt. But when times are worse, you had better be paying attention or you are going to get banged up.

The last couple of years have been very forgiving, but times have changed. It looks like we're back to normal. Get ready for some tough times.

Some of your ranches are like well-broke horses. When the going gets tough don't make stupid mistakes, hang on tight and they will get you through.

Other ranches are like green colts. You had better be directing their every move or they will get you both killed.

Financial analysis is how you know the difference.

You may have been able to get by using your records to figure your taxes and satisfy your banker. But now you are going to have to use them to guide your decisions.

It's time to dust off those balance sheets, cash flows, and income statements. How are your liquidity, solvency, and profitability? What are the trends?

You need to know your costs inside and out. Which costs need covered every year? Which can I defer a couple of years but eventually need to catch up? Are there any I can simply forgo?

Need help? Nebraska Extension Financial Literacy, Quicken Record Keeping, and Unit Cost of Production workshops are a great place to start. Watch for information from your local Nebraska Extension Office for workshops in your area.

 

Latest News

Biden Administration Restores Wildlife Protections
Biden Administration Restores Wildlife Protections

The U.S. Fish and Wildlife Service plans to reinstate rules protecting endangered plants and animals, action that would reverse changes made during the Trump Administration that weakened the Endangered Species Act.

Across Breed EPD Adjustment Factors
Across Breed EPD Adjustment Factors

EPDs from multiple breeds can be compared by adding/subtracting the appropriate adjustment factors to the EPDs resulting from the most recent genetic evaluations for each of 18 breeds.

APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies
APHIS Now Thinks Wild Birds Are to Blame for Highly Pathogenic Avian Influenza's Arrival on Four U.S. Dairies

The livestock industry continues to grapple with the first confirmed cases of HPAI in cattle, while federal and state agencies continue to assure consumers there's no concern about the safety of the U.S. milk supply.

Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps
Skills Survey Reveals U.S. Agriculture & Food Industry Workforce Needs and Gaps

U.S. employers report challenges in finding suitable job candidates with work-ready skills to fill open roles in ag. The AgCareers.com U.S. Skills Survey offers insights, data and trends to address skill development.

USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims
USDA Authorizes CRP Graze and Hay Donations to Wildfire Victims

Conservation Reserve Program (CRP) participants can donate emergency grazing authority to ranchers in Nebraska, Oklahoma and Texas impacted by recent wildfires.

New Guide Helps Producers Maximize Values of Cull Cows
New Guide Helps Producers Maximize Values of Cull Cows

A new resource developed by the National Cattlemen’s Beef Association and CattleFax helps cattle producers maximize profitability from their culling decisions.