Virginia Tech Professor Emeritus David Kohl says it takes solid financial knowledge to manage the three-headed dragon of price volatility, higher input costs and rising interest rates. “If it’s not well managed with a good business IQ, it will take liquidity, profits and equity off the balance sheet. The folks with high business IQ will actually put profits, liquidity and equity on the balance sheets. The remainder of this decade, you’ll see the better will get better and the worse will fall behind.” Farmers should learn from history. The 1970s and 80s were gloomy in agriculture, but this time required farmers and lenders to be better farm managers. “Sometimes you need a crisis to make you better. What concerns me right now is agriculture has become complacent. Complacency kills. A real good manager will manage the things they can during these interesting economic times.” Good relationships are also key during tough times. Kohl was a speaker at the North Dakota Ag Credit Conference in Fargo.
News Categories
Latest RRFN Podcasts
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.