1. Everything has become urgent, and you feel like your back is up against the wall.
2. Bank negotiations and refinancing discussions are vital.
3. Your team can’t help, because they’re in crisis mode too.
4. The stress is overwhelming and spilling into your personal life.
5. Everything is a reaction: cutting costs, laying off employees, tightening profit margins, and saving cash.
6. Decisions all feel risky as you’re struggling to pay bills and accumulating large debts, and eroding working capital.
K·Coe Isom’s finance and growth consultant for food and agriculture businesses, Peter Martin, recently published an article in Turnaround Management Association’s Journal of Corporate Renewal regarding the current plight of production agriculture. In the article, he provides insight regarding areas for cost-cutting and raising working capital.
While there’s not much farmers and ranchers can do about the downturn in commodity prices, he advises safeguarding their businesses and having real conversations with advisors about the fiscal health of the business before it’s too late.