The 1980s eliminated many of the poor production managers. In today’s current economy, the average and below average business managers are at risk. Virginia Tech professor emeritus Dr. David Kohl made that point at a Bell Bank event in Fergus Falls and Moorhead. Kohl said farmers must know their numbers, monitor finances and execute a marketing and risk management plan. “You’re not going to make a profit every time, but if you focus on fundamentals and manage around the things that you can control, the odds will be in your favor.” According to Kohl, 83 percent of the U.S. farm balance sheet assets are in farmland. “As long as land values hold, it gives the farmer and ranchers options; they can do a refi and restructure operating losses down into term debt. As long as the lender is willing to do the refinancing and as long as the regulators allow that to happen, we’re going to be okay.”
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