Go over the most current balance sheet available, and add any assets that might not appear there. Trained extension associates meet with farm operators to discuss the results of the analysis as well as the impacts of possible changes. Start by gathering all debt information – both for the farm as well as personal debt (vehicles, credit cards, personal spending). Tactic Seven: Communicate with bankers, lenders, creditors. Here are some suggestions. Next, estimate available expected income during the next twelve-month period. Reasons for financial distress on farms can be as varied as harvest issues, crop failures, decreased market prices, cash-flow challenges or excessive debt loads. Farm debt, at $416 billion, is at an all-time high. * PERMISSION TO CONTACT YOU BY EMAIL By providing your e-mail address, you confirm that you are providing consent to Glacier Farm Media LP, on its own behalf and on behalf of its affiliates, and carrying on business through its divisions, to receive emails containing news, updates and promotions, including third party promotions, as well as product and/or service information, including that of third parties, that may be of interest to you, and that you understand you may unsubscribe at any time. Part of this information gathering should include collecting any written communication or notices that may have been received from lenders. Guessing about whether you are making the right decision for your farm can lead to financial disaster. There may be other respected people with good judgment and a set of clear eyes who could give a fresh perspective on the operation. Balance sheet The balance sheet is a statement of financial position at a specific point in time or a financial snapshot of the business. Consider both farm business and personal or family-living expenses. Tactic Ten:  Contemplate retirement or liquidation. Being unaware of what is profitable. This option can relieve a lot of mental stress and thus be advantageous in the long term for the farm operators and their families. In 2009, net farm income declined 35 percent as softer commodity prices, coupled with elevated input costs, trimmed agricultural profits. Information is available about agricultural mediation services at the CALT website, including a video about how mediation works. The Service provides a consultant and mediator to try to help the creditor(s) and farmer come to a mutually acceptable agreement regarding the debt(s) in question, at no cost to the farmer. There is the possibility some aspects of the farm operations have become unprofitable and should be eliminated. Project billing, month-end closings, and reports for lenders can place burdens on your existing finance and accounting staff. Protecting Texans for over 50 years, Texas Farm Bureau Insurance makes insurance effortless so you can focus on the moments truly worth covering. Ideas on how to stretch cash flow can be found on the Ag Decision Maker website. This is usually only used when a farmer’s total liabilities (debts) exceed his assets (amounts they own free and clear). If your existing creditor(s) are not willing to work with you, “shopping” your recovery plan to other lenders may be an alternative. Medical insurance is a significant expense which may be decreased via off-farm employment. The important thing is that you present your creditors with a plan that will get you through the problem and onto a solid financial footing — a recovery business plan. In one sense it is ironic that farm financial stress and farm program expenditures are simultaneously at record levels. 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