Each winter gives producers a rare opportunity — time to step back, evaluate their financial position, and prepare for the season ahead. Before the tractors roll, the most successful farm operators do one important thing: they meet with their ag banker to ensure their financial plan is as ready as their planter.
Your relationship with your banker isn’t just about borrowing money — it’s about having a trusted partner who knows your operation, understands your cycles, and helps you make confident financial decisions year after year.
Here are five ways to strengthen your financial position before planting — and how your banker can help every step of the way.
1. Review Last Year’s Performance — and Your Risk Position
Start by taking an honest look at how last year went — not just yield or revenue, but how those numbers translated into overall profitability.
Your banker can help you compare year-over-year trends, evaluate how your expenses lined up with projections, and identify areas that could impact your borrowing needs or cash flow this season.
As part of that review, consider how your marketing plan, crop insurance coverage, and interest rate exposure fit into your broader risk strategy. Small adjustments now can prevent bigger financial stress later — and your banker can help you evaluate where those exposures might exist.
A short winter meeting with your banker can uncover insights that spreadsheets alone might miss — like whether it’s time to adjust your loan structure, or if a small change in timing could improve your liquidity through the growing season.
2. Refresh and Refine Your Cash Flow Plan
Your cash flow plan is your financial road map — and winter is the ideal time to update it.
Review cash inflows from grain sales or government payments against planned outflows for seed, fertilizer, and rent. A well-timed line draw can reduce interest expense and improve working capital margins through spring.
Your banker can walk through the numbers with you — timing your input purchases, land payments, and operating draws to make sure you have adequate working capital when you need it most.
A good cash flow plan isn’t about predicting the future — it’s about preparing for it. And having a banker who knows your operation helps you plan with clarity and confidence.
3. Renew Your Operating Line Early — and Bring Updated Financials
Don’t wait until the last minute to renew your operating line. Getting it done early means fewer springtime delays, smoother access to funds, and more time to focus on your fields when the season begins.
Gather your updated balance sheet, tax return, and year-end inventory early. That preparation helps your banker move quickly and secure the best structure for your line — whether that means adjusting your limit, term, or collateral to match your operation’s growth.
When your line is in place early, you have one less thing to worry about — and one more sign that your financial foundation is solid.
4. Discuss Equipment and Capital Plans
Thinking about updating equipment, investing in new technology, or replacing a high-maintenance piece of machinery? Bring those ideas to your banker before planting begins.
They can help you evaluate purchase versus lease options, explore tax benefits, and decide on the best timing for financing. A banker who understands ag cycles knows that every equipment purchase affects your cash flow, liquidity, and long-term leverage — and they’ll help you make decisions that strengthen your operation, not strain it.
5. Plan for Flexibility — and Build Liquidity
Markets, weather, and costs can change fast. The best way to stay financially strong is to stay flexible.
Work toward maintaining one to two months of operating expenses in liquid reserves or available through your line of credit. That cushion lets you move quickly when input prices drop or marketing opportunities arise — and helps protect your operation from short-term disruptions.
Strong financial roots — built on open communication and trust — give you the resilience to adapt and the confidence to grow, season after season.
A Strong Relationship Builds a Strong Operation
No financial tool is more valuable than the relationship you have with your banker.
At First Bank of Berne, our ag bankers don’t just review numbers — they know your operation, walk your ground, and help you build a financial plan that fits your goals.
The 2026 season starts with the decisions you make this winter. Partner early with your ag banker to ensure your finances are as resilient as your crops — and that your farm is positioned for a profitable year ahead.
Strong roots lead to strong yields.
Talk with your local ag banker today about planning for a profitable 2026 season.