4 Financial Priorities for Farmers in March
With so many tasks requiring your constant attention as a farmer running a demanding business, it’s easy to put operational to-dos on the back-burner… but these tasks can often be some of the most important and time-sensitive.
Here are a few financial priorities to consider keeping top of mind this month:
1. Watch for Interest Rate Changes Following the March Fed Meeting
The Federal Reserve holds eight scheduled meetings annually to examine and adjust interest rates; the next meeting will be held on March 21 & 22.
Following the public announcement of each meeting’s outcome, FBN publishes a recap of interest rate adjustments, future expectations, and actionable perspectives from FBN Chief Economist Kevin McNew. Stay tuned for that post soon on the FBN Blog!
[Click here to catch up on FBN’s recap of the most recent January Fed meeting.]
2. Conduct Equipment Maintenance Before Planting Begins
Before you begin planning your planting logistics and getting out into the field this season, it’s important to make sure your equipment is ready. Prioritizing equipment maintenance and making adjustments to get the best planting results — before you plant every field — pays off in the long run.
Does your planter need to be serviced — or even replaced? Should you consider leasing instead of buying farm equipment this season? Equipment purchases can be a sizable investment. Take the time to consider your options now to avoid potential challenges later in the season.
[READ: 10 Things to Keep in Mind at Planting]
3. Finalize Your Insurance Coverage
If you haven’t finalized your crop insurance for this season yet, now is the time to lock in your coverage — there are only a few days remaining before the approaching deadline. The insurance sales closing date for spring planted crops (such as corn, soybeans, cotton, grain sorghum, rice, spring wheat and spring barley) is generally March 15.
When selecting coverage, make sure you’re securing a policy that’s the right fit for your operation. Having the wrong level of insurance coverage can have an immense impact on your bottom line long term — you could be overpaying on premiums year after year or under-compensating for risk, leaving your operation exposed in difficult years.
[WATCH: The FBN Crop Insurance team explains why 2023 is a unique year for crop insurance, how global grain markets are looking for the coming months, and how to select appropriate supplemental coverage for your operation.]
4. Assess the Future Value of Your Farmland
Many things have changed in the farm economy in recent months. Farmland values across the U.S. increased substantially in many regions last year, and even more recently, interest rates increased, inflation seems to be getting under control and farm income reached a record high in 2022.
But what will happen to farmland prices in the next few months? Will farmland values decrease or increase?
By developing a series of data-based models to gather investigative insights, the FBN Data Science team has forecast its expectations for price changes in 2023 in its latest blog post. Click here to read more.
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