Declines in Farm Working Capital Keep Focus on Efficiency at the Field and in the Service Channel

By Joanna King Posted on September 04, 2018

Farming isn't an occupation people choose for the large margins and simplicity. It's a complex feat to turn a profit in times when working capital is at its lowest level in ten years and commodity prices are struggling.

Working capital, calculated by current assets minus current liabilities, gives us a snapshot of the liquidity of the US farming sector. In years like 2012 where working capital was at its peak ($165 billion), farmers had a financial cushion that let them reinvest in their operation. Compared to today's low levels of working capital ($56 billion), farmers are forced to rely on lenders more to replace equipment or invest in capital.

These declines in working capital are indicative of the larger picture of financial stress farmers are experiencing, thus causing farmers to take a microscopic look at their financials and look for efficiencies in every aspect of the business: equipment, inputs, people, decision-making, and time. 

Of each of these aspects, time can be the most unpredictable variable, most due to the unpredictability of mother nature. Farmers have short windows of time to plant a crop, to apply needed inputs, to harvest a crop.

Each of the pieces of the puzzle needs to fall precisely into place for the operation to run at maximum efficiency and stretch scarce working capital. Equipment needs to function properly; decisions need to be made with effective advice from experts; and service and support must be accessible when and where needed, with minimal slowdowns and hard costs.

AgriSync delivers its highest value in these tight times by helping farmers and the experts they rely on collaborate effectively from anywhere, maximizing efficiency when it matters most.

Take a closer look at how AgriSync adds value to service plans and drives the best collaboration between farmers and expert advisors on the frontlines of agriculture. 

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