Ag Finance: 3 money management tips

So you’ve developed a business plan, established a solid relationship with an ag lending company, and successfully acquired a farm loan. Great news! But now what? What comes next in terms of financing your agricultural operation?

Once you’ve secured your agriculture loan, it’s important to stay on top of your finances. Here are three simple, yet significant tips you can implement to ensure you play it cash smart.

  1. If you have the money, pay your bills. Sure, your money may seem best spent elsewhere in the moment as attractive bargains tempt you and your check book. And yes, bargains are great, but remember: your top priority should be paying back your lender. Purchase those bargains when you have extra cash.
  2. Assess your operating expenses— seed, fertilizer, and/or fuel— with a fine-toothed comb. You have the most control over these costs, so you want to have a firm grasp on how much you’re spending. Perhaps you can cut back to save money or maybe you can shuffle around costs or resources. You won’t know unless you monitor all of this strategically. For the same reason, be sure to track assets such as land, equipment, irrigation systems, etc.
  3. Be strategic in how you pay off your agriculture loans. Start with the big ag loans (if this applies) and then address the smaller ones. It’s also wise to set financial goals. Determine your top priorities, such as paying off a big operating loan (unless it’s AgAmerica’s interest-only Line of Credit that’s good for ten years!) or all of your farm’s equipment. Hit those marks first before you get to work on financing new projects.

For more information regarding farm loans and financing, contact AgAmerica, the ag lending division of Bankers South. We’ll help you determine the best loan to support your operation’s financial and business needs. Plus, we’ll set you up with a payment schedule that works best for you, whether it be annual, semi-annual, or monthly payments.

This column is sponsored by Bankers South Lending & Finance.


column by LEIGH ANN WYNN

BIO: Leigh Ann Wynn is the Sr. VP of business development for Bankers South. Adding mortgage loan originator to her title, Leigh Ann is actively working with the AgAmerica Lending Program by Bankers South, offering low interest ag loans. As an active member of the ag community and a seventh generation Floridian, Leigh Ann understands your ag needs and is here to answer your questions. She can be reached at or (863) 607-9500.

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