Building a relationship

the ofnag-visorsAdvice from the professionals

A Business Relationship

By Cole Plafcan

The winter months provide farmers and ranchers plenty of time to ponder their next steps. As we approach the 2023 farming year, farmers and ranchers are looking ahead with uncertainty yet again. The political landscape will continue to influence the day-to-day as well as out-comes in 2023; therefore, we all must take that into account as we begin to plan for the upcoming year. In addition, the 2023 Farm Bill debates have been underway but we have yet to see any significant proposals. I suspect this process to pick up some steam after the first of the year. This, too, could have positive or negative effects on operations in 2023 and beyond, depending on the out-come. As of late, interest rates and continued inflationary risks pressure producers and pose margin concerns for the coming year.

In my previous article on Farm Finance in July 2022, I wrote about communicating with your lender. With the uncertain and volatile times ahead, effective communication with your lender just makes good business sense. Keeping lenders aware and involved in what is going on in-side your operation will pay dividends down the road. I recommend at least two intentional visits during the year, either in the office or field, to discuss how the year is shaping up. This is just a minimum. Now that the crop is out, I recommend going over your numbers with your lender to officially see how the year ended and formally discuss plans for the upcoming year. The earlier this process is started, the better off everyone is, as it allows time for options, if necessary.

As the 2022 farm year is now in the books and we look to start another year, the planning process really starts to come together as harvest finishes and the first quarter begins. Farmers and ranchers reflect on what went well, and what didn’t go as well from the previous year, as well as apply the lessons learned from prior years to draw up the perfect plan for the upcoming year. This will hope-fully lead to a successful and profitable year as possible. In every direction you turn for forward-looking data concerning the ag economy, analysts say farmers and ranchers can expect more of the same but with possibly more volatility than in years past. With that kind of outlook or crystal ball, so to speak, it is imperative to take the time and really peel the onion back. This exercise will assist them in evaluating and taking a hard look at their overall management practices of the operation so they can determine how to efficiently reduce overall production costs to be sustainable and profitable in these volatile times. The winter planning process for farmers and ranchers is a critical season to take a good and honest look at their business and make any necessary changes for the upcoming year. One thing many managers forget during this process is to include others within

Cole Plafcan is senior the operation for their input. These need to vice president, director be key members of the team who will provide of Agricultural Lending honest, reasonable, and valuable input that within Simmons Bank’s can be put to work. When including others in Community Banking the decision making, they begin to see ownergroup. The views and ship in those decisions; therefore the efforts opinions expressed in are seen in the output and management abilithis article are those of ties of those individuals. Cole Plafcan and are These changes can involve a variety of not endorsed by, and things, from equipment purchases to labor do not necessarily enhancements to changes in overall sizing of reflect the views of, the operation, just to name a few. It also alSimmons Bank. lows time to put into place some goals for the Simmons Bank does upcoming year that should help directionalnot provide tax, ly challenge management and others within ac-counting or the operation throughout the year. Sharing legal advice. this information with your lender will also be helpful in strengthening that relationship as well as utilizing him or her as a trusted advisor. Your lender can also share in the accountability piece and help you track financial growth, as well as assist with any adjustments that may need to be made with the overall plan. From a lender’s perspective, this can be very rewarding as they become a valuable part of the operation and get to see the operation grow and prosper knowing that they had a hand in that success. Farm Finance is not “rocket science” but it is specialized, and it is based heavily on relationships. Understanding that and the perspective your lender has will be key to weathering those financial storms that have the potential to creep up along the way. Being proactive and communicating effectively with your lender will enhance the relationship as well as assist in bridging the gaps when adversity hits the operation. The earlier a lender knows about a certain situation and the more he or she knows about that situation, the better he or she can help craft a solution for those issues. Looking forward to a successful and bountiful 2023.

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farmproducts What’s new in 2023

Case Vestrum Series Tractors

The Case offers farmers and ranchers power, maneuverability and premium cab comfort in a compact design, the all-new Vestrum® series. With 100 or 130 hp models, the series is powered by a 4-cylinder engine, delivering more low speed torque and engine responsiveness. The powerful engine, paired with the innovative CVXDrive transmission or ActiveDrive 8 transmission guarantees unparalleled power and superior ride quality. The Automatic Productivity Management (APM), ensures the perfect fusion of engine and transmission, giving you a fuel-efficient machine. The 4.5 liter engine has 16 valves for better gas exchange and its 600-hour service interval means the tractor spends less time in the service bay and reduces total cost of ownership. Two transmission styles available.

2023 Coose 6x16 Wrangler Bumper Pull Livestock / Stock Combo Trailer

This Coose 6’.8”x16’ Wrangler Bumper Pull Livestock features a 10,000 pounds of GVWR, 36-inch escape door, stacked five-slat sides with ¼-inch space at fender, an all pipe center gate, a fully cleated rubber floor with 1-inche spacing, an all-pipe butterfly rear grate with slam lathes, and LED lights. Would make a great trailer to pull to livestock shows this summer, or for the stockman looking for durable bumper hitch trailer.

John Deere 4 Series 4066M Heavy Duty Compact Utility Tractor

This 65.9 hp tractor features a factory-installed 440R Quick Park™ Loader Mounting System, a turbocharged diesel engine, eHydrostatic transmission, standard mid and rear hydraulics, and a Category 1 and 2 three-point hitch. This open-station tractor has cruise control, and a 73-inch wheelbase. While a powerful, the 4066M can also get into spaces some other tractors can’t, like poultry barns for clean out, and is powerful in the pasture. Offers wrap around lighting to let the operator see where they’re going, and to let others see where the tractor is. All lighting and markings comply with ASAE S279. The John Deere 4 Series also offers more than 50 implements and 100 attachments.

RANGER XP 1000 NorthStar Trail Boss

Trail Boss is engineered with best-in-class capability to help you take on the toughest tasks. Trail Boss raises the bar with a ProStar engine that cranks out 82 HP and class-leading towing, payload and box capacity. The Trail Boss features arched A-Arms and 29-inch Pro Armor X-Terrain tires that provide 14 inches of ground clearance. Drive productivity with the in-dash USB port and 12V cargo box power to run sprayers and other accessories. A new rear facing LED work light delivers enhanced lighting in the cargo box area for low light conditions, while LED headlights provide a bold, refined look for those early morning and late night tasks. Plus, premium seats deliver allday comfort for the longest work days. With a 2,500-pound towing capacity, this 82 hp 4 Rear Work Light and 12V cargo box power 4 RIDE COMMAND Package: 7” Infotainment Screen Powered by

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Front/Rear Cameras 4 Heating & Air Conditioning

HVAC System 4 29” Pro Armor tires and 14” wheels 4 High Clearance Arched A-Arms 4 LED Headlights 4 Active Descent Control 4 Self-leveling Suspension 4 Premium RANGER Pro Shield

Cab System 4 Pro Shield Full Glass Tip-Out

Windshield 4 Power Window Front Poly Doors 4 Polaris HD 4,500-pound Winch with Synthetic Rope & Autostop

New Holland Pull Type Rotary Cutters

Cut thick grass and weeds, or shred stalks and brush with ease. Add a 770 or 780 Series pull-type rotary cutter to your 60 to 210 hp tractor equipped with a 540-rpm PTO, and you’ve got an all-purpose workhorse to take on your toughest jobs. Plus, the flex-wing design provides easy transport between fields and down narrow roads. Updraft blades provide clean, even cutting, and a choice of two models featuring 120-inch rigid or 180-inch flex-wing cutting widths make short work of large areas and tough conditions. Standard features such as protective deck rings and a rear safety chain keep equipment secure, wing-lift hydraulics for easy transport, and jackstand and hitch swivel clevis for easy hookup make the workday easier.

Kubota M6S Utility Tractor

The Kubota M6S Utility Tractor offers 114.0 hp durability and easy of operation. Kubota’s bevel gear front axle has always been a leader in tight turning and excellent clearance under the tractor. This holds true with the bevel gear axle on the M6S-111 4WD models, as well. With 55 degrees of turning angle and almost 17 inches of ground clearance, the M6S-111 is ready to tackle the tight confines of a barnyard or tall windrows in a hay field. With the 16-speed Swing-Shift or 32-speed Swing-Shift Plus transmissions, producers can find the right gear. The Kubota exclusive Swing-Shift transmission offers eight or 16 speeds in both high and low ranges, eliminating the need to change ranges while working in the field or traveling down the road.