Seasonal Guide · July 2025 · 5 min read
A mid-year financial review gives you a clear picture of where your farm operation stands relative to your annual budget. Catching variances now allows you to adjust marketing plans, control expenses, and avoid surprises at year-end.
Compare your actual income and expenses against your January projections line by line. Input costs like fuel, fertilizer, and seed are largely locked in by mid-year, so focus on where you stand versus budget and identify any overruns. Track deferred maintenance and unexpected repair costs that may affect your fall cash flow.
Review your grain marketing position — what percentage of expected production is sold forward, and at what average price? Compare current futures prices to your breakeven cost per bushel and evaluate whether additional sales are warranted. If crop conditions have deteriorated, reassess production estimates before committing additional bushels to forward contracts.
Estimate your projected taxable income based on current commodity prices, yields, and expenses to identify potential tax management opportunities. Pre-paying inputs, accelerating equipment depreciation with Section 179, or deferring grain sales into the next tax year are common strategies. Consult with your tax advisor now rather than waiting until December when options are more limited.
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