Whether you are new to farming or you have been on your farm for generations, there are a few things that you need to know about the predictions for the 2022 farming market. Making sure your farming business succeeds has a lot to do with financial matters, but there is more that you need to be doing. Learn more about what you can do to protect your finances this year by following the guidelines below for 2022.
Obtain Crop Insurance
Many farmers, especially those that are new to the agricultural world, do not obtain crop insurance. The fact is, this type of insurance can cover over 120 different crops. Crop insurance is a must to protect your finance investment. It is available for farms of all shapes and sizes and is available for every single state in the United States.
Crop insurance is a good way to protect your investment and keep your farm afloat should your crops fail. Crop insurance is a must-have for times of uncertainty, and 2022 may be a year full of uncertainty. Protecting your finances must be a priority.
Plan and Plan Again
For any farm season you should have a plan in place. Your farm is a business and, like any business, you need to have a plan in place for everything including how you will finance your crop needs this year. Treat your farm like the business that it is and write a business plan for your farm.
Having goals in mind and writing them down in your business plan will ensure that you have a road map for success. Plan what type of finance=ial support you need, where it will come from, and how it will be managed. Plan your crops and projected yields. Successful farms plan for everything.
There are so many factors out of your control when it comes to farm and crop management, making it even more important to control the factors that you can. Putting effort into planning and making adjustments to the plans when you need to is an easy way to take control of an otherwise hard-to-control situation.
Adhere to EPA Guidelines
The EPA is really stepping up monitoring and regulatory surveillance for 2022. Keep in mind that there are 140 chemicals on the EPA list (some of which are common agricultural chemicals) that require special planning when stored in large quantities. Check to make sure you do not need to prepare a risk management plan and file it with the EPA for any of your chemicals.
It is important that you follow all the guidelines to avoid issues and costly fines. Educate yourself on any rule changes and take the steps to ensure that you are in compliance with those rules.
Consider Separating Farm Income From Personal Income
If you want to protect your personal finances, you should keep your personal finances and your farm finances separate. Invest in a bookkeeping service to do this for you.
Understand Global Trade Trends
Global trade trends affect overall crop prices. Even if you are a small local farmer, you will still feel the effects of the global trade market. For example, in 2020, sales volume in the global market decreased by 9.5%. That was a 16% decrease overall from the prior year.
Watching the market and planning around that market can help to protect your farming operation from failure. It is important that you look beyond your own region to be able to predict market trends and adjust your plans accordingly. We live in a global economy, and what is happening in the rest of the world will affect what happens to your business.
Following these simple guidelines for 2022 will help you to reduce risk and improve success. Remember that you cannot control everything, but there are things you can absolutely do your best to control.