Take care of farm finances during COVID-19 pandemic
By Missouri Ruralist
While there is much information surrounding COVID-19 with regard to mental and physical health, one University of Missouri agriculture economist says there is a need to look at the financial health of agriculture operations.
Focus on what you can control, advises Joe Horner, MU ag economist. He offers a few simple tips that may provide direction when analyzing farm finances:
Preserve cash to meet cash flow needs. Apply for unemployment if need be. Know your options if an off-farm worker carrying the family’s health care plan is laid off. Know your credit lines. You may need them.
Related: Complete coronavirus coverage
Add liquidity. Survive to thrive later. Use the Small Business Administration’s Paycheck Protection Program, available through your lender. PPP is open to farmers, and the application is simple. Funding is limited, so do not wait until it is too late.
Anticipate markets chaos. Processing plants may shut down temporarily to sanitize if workers test positive for the virus. Stay flexible on market timing.
Succession planning. Make sure your business can run without you. Do the legal paperwork to make clear who is second in charge to write checks, sign papers and make decisions.