Wednesday 11th June 2025

An ag consultant recommends farmers increase their percentage of working capital when figuring crop budgets.

Dr. Steve Johnson, retired Iowa State University Extension Farm Management Specialist, says the old rule of thumb was at least 25% of normal expenditures are held back as working capital, but with inflationary pressure he suggests moving it to at least 50%.

“It’s giving you that flexibility in the summer, especially for energy prices we tend to get an August lull.

   

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