Prepare For Your Financial Winter in Times of Plenty

good advice

I was recently on a lengthy cross-state drive with a few family members that took us through miles and miles of farmland. Along the way, my brother in law asked “What do farmers do in winter?” Now, I’m no farming expert, but I always like to share my ideas as possible answers when a question is asked. I told him my guess would be that they live off of what they made in the summer and harvest season and perhaps relax a little. That question made me think about the summers and winters in our financial lives.

During the summer and harvest seasons is when farmers make most, if not all, of their money. (Again, I’m no farming expert – I’m just taking a g

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4 Responses to Prepare For Your Financial Winter in Times of Plenty

  1. Minimum Wage says:

    What if you never have good years? I earn minimum wage or something close to it, year in and year out.

  2. pilotasco says:

    I am a farmer and yes you are correct in that farmers do relax some in the winter, in northern areas, but many individuals are on boards and committees and attend meetings. The winter can be consumed by attending update meetings on production,marketing, tax planning, year end reviews of finances, considerations for the upcoming year for crops and inputs and areas best served with the money available. Farming is a business and like any business there is a profit potential if proper planning is done and that plan, ie. cash flow projection and budget and marketing plan, is closely monitored throughout the year and disaster doesn’t strike, hopefully that is covered by crop insurance, farmers will turn a profit and be able to payoff debt and make some capital improvements as well as provide a decent living for a family. The grain markets are high but that is a problem for livestock producers for feed costs. Fuel and fertilizer and most other inputs are all higher than in the past so the next few years will need to be handled with caution to retain income for the lean years that tend to show up.

  3. Pingback: Monroe on a budget » Blog Archive » Prepare for Your Financial Winter in Times of Plenty

  4. Thanks for your comment on my blog about this post. I’m going to link to your post in that day’s bible verse discussion. thanks!

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