As harvest wraps up across Iowa, November is a good time to review where the operation stands. Before the holidays and December deadlines arrive, look at this year’s income, expenses, and production results so you’re better prepared for tax conversations, financing decisions, and the next production year.
At American State Bank, we work closely with Iowa farm families and understand that every operation is different. Here are seven areas worth reviewing before the new year begins.
Quick Navigation
Jump to the area you want to review before the new year.
What Should Farmers Do Financially Before Year-End?
Before the new year, farmers should review cash flow and working capital, meet with their tax professionals, evaluate equipment needs, assess operating lines of credit, update financial records, analyze farm performance, and set goals for the coming season.
These steps provide a clearer picture of where the operation stands and can help farmers prepare for upcoming expenses, financing needs, and business decisions.
2026 Iowa Farm Program Reminder
As you review the operation’s finances, don’t overlook upcoming farm program deadlines. The 2026 Agriculture Risk Coverage and Price Loss Coverage election and enrollment period ends December 11, 2026. Enrollment for the 2027 program year opened November 2, 2026, and continues through March 15, 2027. Review the current deadlines and program details with your local USDA Farm Service Agency office before making a decision.
Helpful Resource
1. Review Cash Flow and Working Capital
One of the first steps in financial planning for farmers is understanding your operation's current cash position. Commodity prices, weather, input costs, and the timing of crop or livestock income can all affect how much cash is available before the next production cycle.
Review these areas before building next year’s operating plan:
| Review | Questions to Ask |
|---|---|
| Cash reserves and working capital | Do we have enough accessible funds to cover expected expenses? |
| Operating debt and accounts payable | When are payments due, and how do those dates compare with expected income? |
| Crop and livestock income | Are our projected income amounts and payment dates still realistic? |
| Input expenses | Have seed, fertilizer, fuel, feed, labor, or rent estimates changed? |
| Major purchases | Are equipment, land, livestock, or facility expenses expected within the next 12 months? |
| Existing debt | Would discussing the structure or timing of payments with our lender improve flexibility? |
Reviewing these numbers now can help uncover a cash shortfall before spring expenses begin.
Iowa State University’s Ag Decision Maker provides Iowa-specific guidance on cash flow, financial statements, profitability, costs and returns, and farm financial performance.
Related Reading
2. Schedule a Tax Planning Conversation
Don’t wait until tax documents are due to begin talking with your accountant. Some decisions involving income, expenses, equipment, depreciation, and asset sales may need to be made before December 31.
Bring your latest financial records and be ready to discuss:
- Estimated farm income and expenses
- Equipment or other asset purchases and sales
- Depreciation and expensing questions
- The timing of crop, livestock, or other farm income
- Changes to the operation or its ownership structure
- Conservation, disaster, or insurance payments that may affect your return
Every farm is different, so these decisions should be based on guidance from a qualified tax professional. A decision that lowers this year’s tax obligation could still affect working capital, debt, and future plans.
American State Bank doesn’t provide tax advice, but our ag lenders can help you evaluate how a planned purchase or financing decision may affect the operation’s cash flow.
Iowa State University’s Center for Agricultural Law and Taxation maintains farmer resources addressing Schedule F, depreciation and expensing, Iowa tax law, business asset sales, conservation payments, and disaster or insurance payments.
Helpful Resource
3. Evaluate Equipment Purchases Carefully
Equipment purchases often become part of tax and financial planning discussions as the calendar year comes to a close. However, buying equipment solely for a possible tax benefit may not be the right business decision.
Before committing to a purchase, ask:
- Does the operation need the equipment now?
- What will it save or improve?
- How do expected repair costs compare with replacement costs?
- How would the purchase and financing affect cash flow?
- Does it fit the farm’s longer-term equipment plan?
Avoid rushing into a decision simply because December 31 is approaching. Tractors, combines, grain-handling systems, and livestock equipment are major purchases. Focus on what the equipment will do for the operation, how often it'll be used, and whether the projected benefit justifies the purchase and financing cost.
American State Bank offers ag loans for new or used equipment and machinery. Our ag lending options also include farm real estate loans, farm improvement loans, livestock loans, and operating lines of credit.
Related Reading
4. Review Your Farm Operating Line of Credit
A farm operating line of credit can provide access to funds as seasonal expenses arise. American State Bank offers operating lines for needs such as seed, fertilizer, fuel, feed, and other costs tied to running the operation.
Before the next production cycle, review:
- How much of the line is currently being used
- The remaining credit available
- Interest costs and payment dates
- Expected seed, fertilizer, fuel, feed, rent, and labor expenses
- When crop or livestock income is expected
- Whether acreage, livestock numbers, or other parts of the operation have changed
Input costs and financing needs can change from one year to the next. Reviewing your operating line before spring gives you time to discuss possible adjustments rather than waiting until expenses begin adding up.
Our lending decisions are made locally, so farmers can work directly with lenders who understand agriculture around Osceola, Lamoni, and Winterset. If your operation has changed over the past year, November is a good time to discuss whether your current financing still fits your plans.
5. Update Financial Statements and Records
Current records create a clearer picture of the farm’s financial position and make conversations with accountants and lenders more productive.
| Record | What It Helps Show |
|---|---|
| Balance sheet | Assets, liabilities, and net worth at a specific point in time |
| Income statement | Revenue, expenses, and financial results for the period |
| Cash flow report | When cash entered and left the operation |
| Debt schedule | Balances, rates, payments, and maturity dates |
| Production records | Yields, livestock results, and output by enterprise |
| Equipment and real estate records | Major assets, ownership, values, and planned replacements |
| Tax documents | Information needed for discussions with your accountant |
Lenders may rely on current financial information when discussing loan renewals, operating lines, equipment financing, land purchases, or future expansion.
If recordkeeping fell behind during planting or harvest, November is a practical time to update it before tax meetings, loan renewals, and spring purchasing begin.
Iowa State University’s Ag Decision Maker includes resources on balance sheets, income statements, cash flow analysis, profitability, net worth, and financial performance measures for farms.
6. Analyze This Year’s Farm Performance
The close of the year is a chance to compare actual results with the assumptions used in the farm’s operating plan.
Instead of reviewing every number separately, begin with four questions:
- Which crop or livestock enterprises performed best?
- Which expenses were higher than budgeted?
- How did cost per acre or cost per head compare with last year?
- What assumptions need to change in next year’s budget?
Look at crop yields, livestock performance, input expenses, marketing results, debt, and net farm income alongside these questions. Comparing results from multiple years may reveal patterns that aren’t obvious from reviewing one month or season.
Iowa livestock producers can also use Iowa State University’s current livestock enterprise budgets to compare estimated production costs for common livestock operations.
Helpful Resource
If your review points to a need for equipment, facility improvements, additional operating capital, or land financing, talk with one of our local ag lenders.
7. Set Financial Goals for the Coming Year
Once you’ve reviewed the current year’s performance, turn your attention to the next production cycle.
Depending on the operation, a measurable financial goal might include:
- Maintaining a specific amount of working capital
- Reducing an operating balance by a set amount or date
- Budgeting for a particular equipment or facility project
- Creating a timeline for land acquisition, expansion, or transferring the farm to the next owner or generation
Avoid broad goals such as “improve cash flow” or “reduce expenses.” Identify the result you want, the number you’ll use to measure it, and the date by which you want to reach it.
Many producers find it helpful to discuss goals with both an accountant and an ag lender. These conversations can clarify how the plan may affect taxes, borrowing, and cash flow.
Beginning farmers can also find information on loan programs, loan participation, tax credits, and related assistance through the Iowa Economic Development Authority’s beginning-farmer resources.
Beginning Farmer Resource
Year-End Financial Checklist for Farmers
Use this farm financial checklist before the end of the year:
- Review cash flow, working capital, and outstanding debt.
- Update financial statements, production records, and equipment inventories.
- Meet with your tax professional about decisions needed before December 31.
- Evaluate equipment and facility needs before committing to a purchase.
- Review your operating line and projected input expenses.
- Compare crop, livestock, and financial results with your budget.
- Discuss upcoming financing needs with your ag lender.
- Set measurable goals and prepare a preliminary budget for the next production year.
Completing these tasks can provide greater clarity, reduce surprises, and help your operation prepare for the next production cycle.
Frequently Asked Questions
Why is financial planning before the new year important for farmers?
Financial planning gives farmers time to evaluate profitability, review cash flow, prepare for conversations with tax professionals, and identify upcoming financing needs.
When should farmers review their operating line of credit?
Farmers should review an operating line before making significant purchases for the next season. An earlier conversation gives the producer and lender time to evaluate projected input costs, borrowing needs, payment timing, and changes to the operation.
Should farmers buy equipment before year-end for tax purposes?
Equipment purchases should be based primarily on operational needs, cash flow, and long-term plans. Potential tax treatment may be one factor, but a deduction alone doesn’t necessarily make a purchase the right business decision. Discuss the tax impact with a qualified tax professional and the financing impact with your lender.
What financial records should farmers organize before year-end?
Farmers should organize balance sheets, income statements, cash flow reports, debt schedules, equipment and real estate records, production records, and tax documents.
How can farmers improve cash flow planning?
Start by maintaining accurate records and projecting when income and expenses are expected. Monitor working capital, compare actual results with the operating budget, and update projections when input costs, commodity prices, yields, or production plans change.
When should I speak with an ag lender?
Talk with an ag lender before major equipment purchases, operating line renewals, expansion projects, land purchases, facility improvements, or significant changes to the operation. You don’t need to wait until every detail is finalized. An earlier conversation can help you understand available financing options and what information you may need to provide.
Start Planning for the Year Ahead
A good financial review should leave you with more than organized paperwork. It should help you understand where the operation stands, which decisions require attention, and what you want to accomplish during the next production year.
American State Bank offers farm real estate loans, farm improvement loans, equipment loans, livestock loans, and operating lines of credit for farmers in and around around Osceola, Lamoni, and Winterset. Our loan decisions are made by local staff, so you can work with people who understand agriculture in the communities we serve.
Ready to discuss the year ahead? Connect with our agricultural lending team to review your operation’s upcoming needs.
Ag Loans Farm Loan Financial Planning
November 3, 2026 by American State Bank
