2022 Vol. 106 No. 5

34 SEPTEMBER / OCTOBER 2022 If input prices remain high, however, how much liquidity remains is uncertain looking ahead to the 2023 crop year. We are also seeing commodity prices soften as 2022 progresses. In summary, uncertainty remains at an all-time high as there are several compounding pressures impacting agriculture as a whole. Yet the U.S. agricultural sector appears to be financially well-positioned for what awaits over the next year. Given this data, I am optimistic farmers will be able to continue to create positive margins as we progress through harvest here in Indiana. Lenders need to keep this optimism in sight while being cautious of pending uncertainty. Conducting a sensitivity analysis remains key to analyzing a farm’s cash flow. Continue to analyze how that farm would fare if input prices continue to increase by 10%, or what revenue would be if commodity prices fall back to historical levels. Marginal borrowers are likely to face heightened financial stress if costs increase or if commodity prices continue to ease. HB Michael A. Renninger ”‹ ‹’ƒŽ ;ϯϭϳͿ ϲϵϱͲϳϵϯϵ ŵƌĞŶŶŝŶŐĞƌΛƌĞŶŶŝŶŐĞƌůůĐ͘ ĐŽŵ ‡ —”‹–‹‡• ‘ˆˆ‡”‡† –Š”‘—‰Š —•†ƒŽ ‹ƒ ‹ƒŽ ƒ”–‡”•ǡ  Ǥǡ ͷͳͺ͹ –‹ ƒ ‹†‰‡ ‘ƒ† ƒ˜‡’‘”–ǡ ǡ ͷʹͺͲ͹ ȋͷ͸͵Ȍ͵ʹ͸ǦʹͲ͸Ͷ ‡„‡”ǣ ǡ Ǥ ‡‹‰‡” Ƭ ••‘ ‹ƒ–‡•ǡ ƒ† —•†ƒŽ ‹ƒ ‹ƒŽ ƒ”–‡”•ǡ  Ǥ ƒ”‡ ‹†‡’‡†‡–Ž› ‘™‡† ƒ† ‘’‡”ƒ–‡†͘ ǁǁǁ͘ ƌĞŶŶŝŶŐĞƌůůĐ͘ ĐŽŵ Η&Žƌ ĂŶ ObjecƟve Assessment ŽĨ zŽƵƌ Challenges ĂŶĚ Professional ExecuƟon ŽĨ zŽƵƌ OpportuniƟesΗ x ƵLJͲ^ŝĚĞ ĂŶĚ ^ĞůůͲƐŝĚĞ ZĞƉƌĞƐĞŶƚĂƟŽŶ ŝŶǀŽůǀŝŶŐ ǁŚŽůĞ ďĂŶŬƐ͕ ďƌĂŶĐŚĞƐ͕ ĂŶĚ ŶŽŶͲďĂŶŬ ĂĸůŝĂƚĞƐ x ^ƚŽĐŬ >ŝƋƵŝĚŝƚLJ͕ ĂƉŝƚĂů ĞǀĞůŽƉŵĞŶƚ͕ ĂŶĚ ^ƚƌĂƚĞŐŝĐ WůĂŶŶŝŶŐ x ^ƚŽĐŬ sĂůƵĂƟŽŶƐ ĂŶĚ &ĂŝƌŶĞƐƐ KƉŝŶŝŽŶƐ Ǧ–”ƒ‹‡† ƒ† Ǧ‡š’‡”‹‡ ‡† †‹ƒƒ ’”‘ˆ‡••‹‘ƒŽ• •‡”˜‹‰ †‹ƒƒ „ƒ•Ǥ —” •‡”˜‹ ‡• ‹ Ž—†‡ǣ

Made with FlippingBook

RkJQdWJsaXNoZXIy MTg3NDExNQ==