How to Prepare for a Year-End Conversation with Your Lender

As another production year comes to a close, many farmers are evaluating their operation’s performance and making plans for the year ahead. While some producers may be looking back on a strong year, others have faced challenges from fluctuating commodity prices, input costs, weather conditions and other factors beyond their control.

No matter how the year unfolded, one of the most valuable steps producers can take is scheduling a year-end conversation with their lender.

A year-end review provides an opportunity to evaluate your operation’s financial position, discuss future goals and develop strategies for the upcoming season. Being prepared for that conversation can help make it more productive and ensure you’re positioned to make informed decisions moving forward.

Start with an honest discussion

A difficult year can make financial conversations feel uncomfortable, but avoiding the discussion rarely improves the situation. In many cases, open and honest communication with your lender is most important when challenges arise. Your lender’s role extends beyond simply providing financing. They can serve as a resource for evaluating financial options, identifying opportunities and helping you navigate changing conditions within the agricultural economy.

Know your numbers

Before the meeting, gather updated financial information about your operation, including a current balance sheet, year-end financial statements, current production information and recent income and expense records. Having an accurate picture of your operation’s financial health allows for a more meaningful conversation and creates a stronger foundation for future planning.

Understand your cash flow position

Your lender will likely want to discuss how this year’s results impacted working capital, liquidity and upcoming operating expenses. Understanding your current cash flow position can help you identify potential challenges before they become urgent and better prepare for financing needs in the coming year.

Focus on what’s next

While reviewing past performance is important, year-end meetings should also focus on future goals. Whether you’re preserving working capital, considering equipment purchases, expanding your operation or preparing for next season, sharing your plans helps your lender understand your priorities and evaluate financing options that align with your objectives.

Provide context around the numbers

Financial statements tell part of the story, but they do not always tell the whole story. Market conditions, weather events, input costs and production challenges affect every operation differently. Explaining the factors that influenced your results provides valuable context and helps your lender better understand your operation’s unique circumstances.

Review your debt structure

Year-end is also an ideal time to evaluate whether your current financing structure continues to support your operation. Changes in assets, cash flow or business goals may create opportunities to adjust financing strategies and improve flexibility.

Use the meeting as a planning tool

A productive year-end conversation should be more than a review of financial statements. Come prepared with questions about your financial position, areas of strength and opportunities for improvement. Working with your lender before decisions become urgent can help create greater confidence and clarity as you prepare for another production year.

About Farm Credit Mid-America

Farm Credit Mid-America is a financial services cooperative committed to supporting rural communities and agriculture. With specialized expertise in farm lending, crop insurance and rural financing, Farm Credit Mid-America helps customers achieve their goals and prepare for what’s next.

To learn more, visit fcma.com.

New and beginning farmers
My first recommendation in your journey is to start out with a local farming friend or mentor along with joining an organization like Ohio Farm Bureau.
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Greg McGlinch

Darke County Farm Bureau

Growing Tomorrow Grant
We’re just so thankful for the Farm Bureau and the foundation for helping put this together. And of course, the Boyert family for the vision they had with this grant. It’s jumping us forward 10 years. It’s unbelievable.
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Nathan and Jill Parriman

Clermont County Farm Bureau

Bringing the farm back to life
I could not have done it without the resources I have found through Farm Bureau.
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Gretchan Francis

Trumbull County Farm Bureau

Youth pathways in Farm Bureau
It wasn’t until I joined the Wilmington College Collegiate Farm Bureau that I truly saw how my passion could translate into leadership, advocacy and a career.
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Wyatt Morrow

Clinton County Farm Bureau

Giving farmers a voice
The issue of property taxation remains as one of the biggest challenges our members face today. Ensuring agricultural property is valued for its agricultural potential and not development is critical to the continued success of Ohio agriculture.
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Matt Aultman

Darke County Farm Bureau

Select Partner Program
Through the Select Partner program, we became educated in farm insurance and weren't just selling policies. It became more and more clear why farmers need an advocate like Ohio Farm Bureau.
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Chad Ruhl

Farm manager, CSI Insurance

Advocacy
So many of the issues that OFBF and its members are advocating for are important to all Ohioans. I look at OFBF as an agricultural watchdog advocating for farmers and rural communities across Ohio.
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Mary Smallsreed

Trumbull County Farm Bureau

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