CAP urges careful use of operating loans at year end

By Ron Burtz on Wednesday, December 4, 2024

Debt should be used for expenses not as a substitute for income

As the cash poor winter months are coming on UNL’s Center for Agricultural Profitability is urging producers to use caution when using operating loans and lines of credit.
As the cash poor winter months are coming on UNL’s Center for Agricultural Profitability is urging producers to use caution when using operating loans and lines of credit.

As 2024 draws to a close, many ag producers rely on operating loans, or lines of credit, to finance essential expenses when cash flow is tight. While these loans are a handy tool for managing business cash flow, Jessica Groskopf, Extension educator and agricultural economist with UNL’s Center for Agricultural Profitability (CAP), says they must be used wisely to avoid potential pitfalls.  “Th…