As the combines roll and bins begin to fill, farmers across the region are entering one of the busiest — and most financially demanding — times of the year. While harvest brings in revenue, it also brings a wave of expenses that can put serious pressure on working capital. That’s why now is the time to evaluate your operating line of credit and implement a smart payment plan to manage your farm’s cash flow through Q4.

Why Harvest Season Strains Farm Cash Flow

Even in a strong yield year, harvest season can tighten cash flow. Expenses stack up fast; from fuel and equipment maintenance to labor, grain storage, drying costs, and final input bills. In many cases, income from grain sales may not hit your account until weeks or even months after the work is done.

Without a buffer, these expenses can limit your ability to operate efficiently or take advantage of year-end opportunities. That’s where a well-structured operating line of credit can be a valuable tool.

Is It Time to Increase Your Operating Line of Credit?

Your operating line of credit should grow with your operation. If input costs, acreage, or overall expenses have increased since you last reviewed your credit line, you could be underfinanced for this season’s demands.

Consider talking to your ag banker about:

• Increasing your line of credit to cover this year’s higher costs
• Revisiting your repayment schedule to match your crop marketing timeline
• Consolidating short-term debt to improve cash flow flexibility

Proactive planning now can help you avoid disruptions during harvest and maintain financial stability into the off-season.

Strategic Payment Planning in Q4

As the year winds down, it’s essential to plan your payments with intention. A solid Q4 payment strategy helps you:

• Prioritize bills and avoid late fees
• Maximize early payment discounts from suppliers
• Time income and expenses for tax efficiency
• Strengthen your financial position going into 2026

A well-timed equipment payment or input prepay, when balanced with your line of credit, can also help reduce your taxable income while setting you up for success in the new year.

Tips for Managing Farm Cash Flow Through Year-End

1. Meet With an Ag or Mobile Lender Now
   Schedule a fall financial review with your ag banker to assess your cash position, credit needs, and upcoming obligations.
2. Update Your Budget Post-Harvest
   Adjust your cash flow plan based on actual yields, crop prices, and expenses. This helps you make informed decisions about debt repayment, input purchases, or equipment upgrades.
3. Use Your Operating Line Strategically
   Draw on your line when needed, but aim to repay quickly as income becomes available. Keeping balances low helps reduce interest costs.
4. Prioritize Debt and Payments
   Focus on clearing high-interest debt first and consider consolidating where it makes sense. Your banker can help you model different scenarios.
5. Plan Ahead for the 2026 Growing Season
   It’s never too early to start discussing next year’s input financing or equipment needs, especially with rates and costs still fluctuating.

How Midwest Heritage Supports Farm & Ag Businesses

At Midwest Heritage, we understand that agriculture doesn’t run on a 9–5 schedule and neither do your financial needs. Our Ag and Mobile Lending Teams specialize in helping producers like you stay ahead with:

• Flexible Operating Lines of Credit
• Custom Cash Flow Planning
• Seasonal Financing Adjustments
• Ag-Specific Financial Expertise

We work with you to understand your operation, your goals, and your unique seasonal cycles, so you can make confident decisions, even in a high-pressure season like harvest.

Let’s Talk About Your Credit Line and Cash Flow Plan

Our ag and mobile lenders are here to help you assess your current financial tools and make sure you have the flexibility you need. Click here to meet our lenders!