Jessica Parker
Jr Staff Accountant

Jessica Parker


Jessica Parker brings over 15 years of bookkeeping and controller experience to the team. As a certified QuickBooks ProAdvisor, she specializes in lifting the daily accounting burden off the shoulders of business owners, giving them peace of mind and freedom to focus on their true passions.

Born and raised in Laramie, Wyoming, Jessica’s roots in the agricultural community run deep. Outside of the accounting world, livestock has always been a cornerstone of her life—serving as both a rewarding family venture and a welcome break from the numbers. Alongside her husband, Pat, and their children, Jessica’s family owns and operates Parker Show Pigs. Together, they manage over 20 sows across two farrowing seasons, providing competitive show pigs to youth nationwide, while also raising beef for direct-to-consumer sales.

Jessica is thrilled to be a part of the Ranch Right team, where she can seamlessly combine her two lifelong passions: accounting and agriculture.

jr staff accountant at ranch right
Jr Staff Accountant

Megan Freeman


Megan grew up in Coeur d'Alene, Idaho. Although she was not raised in agriculture, she has always had a passion for the industry. She graduated from the University of Idaho with a bachelor's degree in Animal Science, where she also met her husband, Sam.

Throughout her career, Megan has held a variety of positions, from working with JBS Meat Packers to her most recent role with Farm Credit. During her time in agricultural lending, she has worked with a wide range of businesses and gained valuable insight into one of the most important factors in business success: understanding the numbers.

In 2019, Megan and Sam purchased their own property and began raising Red Angus cattle. Through managing the finances of their own operation while also working in agricultural lending, Megan has developed a unique perspective that combines both the producer's and lender's viewpoints. This experience allows her to understand the challenges and opportunities faced by agricultural businesses from multiple angles and helps her provide practical, informed guidance to those she serves.

jentrie jr staff accountant at ranch right
Jr Staff Accountant

Jentrie Kartak

My name is Jentrie Kartak and I live in south central South Dakota on my husband’s family ranch. We run a fairly diverse operation with a commercial cow/calf herd, backgrounding lot, small band of broodmares, and a commercial meat goat herd. In our free time we enjoy wrangling our 2 year old as well!
 
My passion for agriculture started from a young age as I began riding horses before I could walk and helping out wherever I was needed on my family’s ranch. I grew up on a cow/calf operation in the Nebraska Sandhills just south of Bassett. This is where I developed a work ethic, learned responsibility, and grew a respect for the land and the cycle of life. At 15 years old, my family purchased part of the Bassett Livestock Auction, and I began learning about the industry from a different angle: understanding the ever-changing markets, buyer/seller relations, and how to sort and market cattle to keep operations profitable and spark competitive bidding. College led me to the business and numbers side where I received a bachelor’s degree in business administration and a minor in accounting. From there I worked on the program side of the Farm Service Agency, implementing many disaster relief programs through the floods and blizzards that prevailed in the winter of 2018-2019 and working through the pandemic that shut our world down in 2020. In 2021 I was offered the opportunity to work as a lender at a local bank in my hometown. This experience really helped shape my knowledge on the numbers side of agriculture and provided me with many real life examples of what makes an operation successful.
 
I look forward to carrying the knowledge that I have gained from past experiences into this new role where I can continue to work for and give back to an industry that has given so much to me.

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Ranch Right Annual Conference

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Executive Assistant

Kylin Jerslid

Kylin was raised on her family’s ranch north of Springview, NE. Her passion for anything ranching, cattle, and horses began early! Growing up in a family that values learning developed a love for learning and growth in her.

Kylin graduated from Chadron State College in 2021 with a Bachelor’s in Business Administration and a minor in Ag- Business. After graduation, she moved home to ranch full time with her parents, Brian and Jill Munger, helping with their registered seed stock herd, stocker cattle, custom grazing, and bull development, along with the occasional sheep, goat, chicken, game bird, or pig project!

In May of 2024, Kylin married Drew and moved south of Chadron, NE to ranch with her husband and his family. In her free time, you can find her working with her husband on the ranch, riding her horses, hunting, quilting, or reading a book!

Sales

mimi Argyle

Mimi Argyle grew up in Idaho immersed in agriculture, specifically cow/calf enterprises. Mimi and her husband Tyson run a cow/calf operation in Wyoming and are partners in Mimi’s family’s operation in Idaho. This gives her a diverse understanding of ranching.
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Mimi graduated college with a Master’s in Education from Montana State University and continues to use her gift by teaching High School Science and Ag Business management in Idaho. She has a knack for numbers and is a lifelong learner always trying to improve management practices through facts not feelings.

​In her spare time, Mimi enjoys spending time with Tyson and their 2 daughters, Macki and Ruby, and training barrel horses.

Founder

John Haskell

John Haskell founded Ranch Right, and he came to ranching from the outside. He didn't grow up on one. He hired on at a ranch that was making good money, saw how it ran, and never looked at the business the same way again. Over the next twenty years he worked for profitable ranches, including Deseret Land and Livestock, built ranch businesses from the ground up, and turned failing ones around.

His background is an unusual one for an accountant. He studied Range Science and Management at Utah State University, doing graduate research alongside Mark Ritchie and Fred Provenza, and earned a degree in Biology and Math, summa cum laude, from the University of New Mexico. His ecological research has been published in Nature and The American Naturalist. That mix of hard science and hands-on ranch work is how he learned to see a ranch as one system, where the land and the books either work together or fail together.

Today John runs Ranch Right's advisory side with Travis Krause, helping ranchers make the operational calls that close the gap between where they are and where they want to be. He hosts Ranchonomics, a podcast on the business of ranching, and is a founding member of Ranching.fyi.

He believes great ranches focus on the business and use its power to get the outcomes they're after.

jaynee, CPA at Ranch Right
Tax Prep & Planning Advisor

Jaynee Hanson, CPA

Professional Expertise
Jaynee is a Certified Public Accountant specializing in taxation for agricultural producers and small businesses. She advises clients on federal and state tax matters, including entity selection, depreciation strategies, tax deferrals, succession planning, and proactive tax optimization. Jaynee began her career in Casper, Wyoming, where she built a strong foundation working with ranching operations and businesses in the oil and gas industry. She later moved to Laramie where she truly became a “small business generalist,” gaining experience in payroll, retirement compliance and software implementation. Most recently, she has worked for a nationwide boutique firm specializing in entity structure and tax-saving strategies. She helps clients make informed decisions that minimize tax exposure and support long-term, multi-generational success.

Agricultural Perspective
Jaynee brings practical, firsthand experience to her work. She and her family own and operate a Wyoming ranch, giving her a deep understanding of the financial and operational challenges producers face every day. She graduated from Ranching for Profit in 2014, further strengthening her knowledge of business management and strategic decision-making in agriculture. She is especially passionate about helping families preserve and strengthen multi-generational agricultural operations through strategic planning, clear communication, and client education that empowers confident decision-making. She believes agriculture offers tremendous opportunities for thoughtful tax planning and business strategy, and she enjoys helping producers take advantage of them. There’s no better industry to be in!

Education & Life Outside the Office
Jaynee graduated from the University of Wyoming in 2015 and earned her CPA license in 2020. Outside the office, she and her husband are raising their two young sons. She also enjoys caring for her chickens, tending her garden, and continually improving her canning skills.

Micayla Giffin, Ranch Right Farm & Ranch Financial Advisor
Financial Literacy Advisor

micayla giffin

Micayla Giffin is Ranch Right's financial literacy advisor. She grew up on a small farm in southeast Missouri and earned a degree in agriculture from the University of Tennessee at Martin.

Before joining the team, she spent nine years with the USDA Farm Service Agency as a loan officer, loan analyst, and support specialist, working with farms and ranches of every kind. She watched some fail, plenty just get by, and a few build something that lasts.

That last group is the work she does here. Micayla helps ranchers set goals, build a budget, and do the math on the gap between the profit they're making now and the profit they're after. She defines the target and the number, and the team handles the moves to get there.

She lives in Union City, Tennessee with her husband Derek and their two sons, where they grow corn, soybeans, and cover crops and graze cattle on perennial pasture. She has been a guest on the podcast on financial literacy and on navigating FSA programs.

listen to Micayla on the Ranchonomics Podcast
Walter Lynn Jr CPA
Succession & Restructuring Advisor

Walter Lynn Jr., CPA

Walter Lynn Jr. is a CPA and Ranch Right's succession and restructuring advisor. He grew up on a diversified family farm in central Illinois with a land ethic that has shaped his whole career. He went on to own a CPA firm serving agricultural clients across the country, and he has long been a conservation leader and an advocate for regenerative agriculture.
He served as the initial chief operating officer of Understanding Ag and later as CFO for both Understanding Ag and the Soil Health Academy. When ranchers need to restructure debt, plan a handoff to the next generation, or rebuild working capital, Walter is who they sit down with.
He was an early influence on John's own thinking about ranch accounting, and he joined the podcast to talk through how ranchers build working capital.

listen to walter on the Ranchonomics Podcast
Julie Davidson
Insurance Policy Advisor

Julie Davidson

Julie Davidson is Ranch Right's insurance advisor and runs High Country Coverage Consulting out of Sheridan, Wyoming. She grew up on a small hay farm in southwest Iowa raising and showing Quarter Horses, and has spent most of her adult life in Wyoming at the foot of the Bighorn Mountains. Early in her marriage, her husband worked as farm crew foreman on one of the state's largest ranches, so she has seen ranch risk up close from the start.

She is a licensed insurance producer in several states, specializes in farm and ranch coverage, and has more than twenty years in the industry, including claims adjusting. She holds an Associate in Claims designation from the Insurance Institute of America and studied business administration at Sheridan College and Regis University. On top of that, she manages the books for a large cow/calf operation and helps run its direct-to-consumer grass-fed, grain-finished beef program.

When a rancher needs to know what they're covered for and what they're not, Julie is who answers it. She is a regular on the podcast, covering everything from insurance pitfalls to health coverage to trucking risk in a high-price market.

listen to julie on the Ranchonomics Podcast
Emilie Hopson, Fractional Farm HR Advisor
HR Advisor & Founder of Agri-Culture

Emilie Hopson

Emilie Hopson is Ranch Right's HR advisor and the founder of Agri-Culture, a business built around the people side of ranching. She has more than twelve years of human resources experience in the medical and manufacturing fields, holds a degree in business administration and marketing from the University of Arkansas at Monticello, and earned an MBA from Texas A&M University-Commerce.

Ranching is not a side interest for her. She and her husband Zach run a 400-head cow-calf operation in Nacogdoches, Texas, while raising three children, and she is a graduate of Ranching for Profit. That combination is rare: someone who understands payroll, hiring, and team systems and has also built a crew on a working ranch.

Emilie helps ranchers build stronger teams, set up better systems, and work through the how-do-we-fix-this moments that come with managing people. She joined the podcast to talk about the work she does through Agri-Culture.

listen to Emilie on the Ranchonomics Podcast
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Account Manager

Mandy Wiltse

Mandy Wiltse started out a city girl in Topeka, Kansas. She earned a BBA in accounting from Kansas State University in 1997, where she also met her husband Kevin. After they married she moved to his family's fifth-generation ranch and farm near Timken, Kansas, and that is where the two of them raised three children.

She brings more than twenty-five years of accounting experience to Ranch Right, spanning work at a CPA firm, teaching at a community college, and running virtual accounting services. As an account manager, that range lets her meet clients wherever they are with their books.

Mandy and Kevin are both graduates of Ranching for Profit and are serious about regenerative agriculture and soil health. They run a cow/calf herd and a direct-to-consumer grass-finished beef program, and farm wheat, soybeans, and milo. So when a client talks through the operation side of things, she has lived a good deal of it.

Onboarding / Staff Accountant

Chelsey Waters


Chelsey Waters grew up on a cow/calf and backgrounding operation in southern Alberta. She earned a Bachelor of Business Administration with an accounting major from Mount Royal University, then earned her Chartered Professional Accountant designation while working with agriculture clients.

In 2020 she and her husband Jordie moved to Texas to put their stockmanship and livestock marketing experience to work, and she joined Ranch Right in 2021. She handles onboarding and staff accounting, so for a lot of clients she is one of the first people on the team they work with as they get set up.

She has a real appetite for learning, and lately that has meant digging into how different kinds of people think and work. That comes in handy in a job that is part numbers and part getting to know the operation behind them.

daniel strong, CPA
Senior Accountant

Daniel Strong, CPA

Daniel Strong was born and raised in Mitchell, in southeast South Dakota. He grew up wishing he had been raised on a farm. His grandparents had sold the family place during the farm crisis of the 1980s, so agriculture was close but not underfoot. He earned an economics degree from the University of South Dakota and went on to finish a Master's in Accounting.

After college he taught English abroad and spent time living outside the country, which left him with a deep appreciation for the American form of government and the rule of law. He came back, went to work at a rural CPA firm that dealt heavily with local farmers and ranchers, and earned his CPA in South Dakota.

As a senior accountant at Ranch Right, Daniel likes the part of the work where he sits down with clients and hands them information they can use while it still matters. Timely and useful is the goal.

Staff Accountant

Jori Steele

Jori Steele grew up in Laramie, Wyoming, with ranching on both sides of her family. Her family ran cow-calf and custom grazing yearling operations in high-elevation country, so she grew up understanding what that kind of terrain asks of an operation. She earned an Animal Science degree from the University of Wyoming.

From there she and her husband Jordan moved to northwest Kansas and spent time in academia. For five years she was the Beef Program Director at Colby Community College, where she taught beef management, looked after the college cow herd, and ran the performance bull test and sale. Working with students, she kept noticing the same gap: they needed financial awareness and organizational skills more than almost anything. That pushed her toward the accounting side, and she finished a Master's in Agricultural Education in the summer of 2023.

She now works as a staff accountant at Ranch Right and lives in Wheatland, Wyoming, with Jordan and their son Roan. When she is not at the desk, she is roping, hunting, or doing day work for local ranches.

Staff Accountant

Josie Hammond

Josie Hammond is a fifth-generation rancher from a cow/calf ranch near Hardin, Montana. She graduated from Montana State University in May 2022 with a degree in Agricultural Business and a minor in accounting.

As a staff accountant at Ranch Right, she works with the kind of operations she was raised on. Home is still a big part of her life, and she spends as much time as she can helping on the ranch alongside her dad, mom, brother, and grandpa.

Away from work and the ranch, Josie bakes, quilts, plays with her nephews, and keeps her dog Paisley company.

Staff Accountant

Kohl Carter

Kohl Carter grew up hiking and exploring the mountains and canyons of Utah. His path into ranching ran through the soil. He got interested while studying soil science in college, and an internship with Missouri grazier Greg Judy gave him his first hands-on introduction to cattle, sheep, and grazing management.

From there he worked on ranches across the country and saw a lot of different production models. He has also completed training through the Savory Institute, the Soil Food Web School, and Ranching for Profit School. As a staff accountant at Ranch Right, that grounding in how ranches run shows up in the way he reads an operation's numbers.

Kohl lives in central Louisiana, where he manages a small cattle operation with his family. He is happiest when he is learning something new.

Jr. Staff Accountant

Kailee Butterfield

Kailee Butterfield grew up in an eastern Nebraska farming community, in corn and soybean country. She fell for ranching during summers on her grandparents' place in the Sandhills, and it stuck. She graduated from Chadron State College with a BBA in Rangeland Management, Livestock option, and a minor in agribusiness.

Before joining Ranch Right as a junior staff accountant, she spent four years as a program analyst at the Farm Service Agency. That FSA background gives her a working knowledge of the federal programs a lot of ranchers are trying to make sense of.

Kailee lives south of Chadron, Nebraska, with her husband Buck, where they run a few cows and are building a ranching operation of their own. She rides and shows horses, follows western art, does ranch work, and keeps a flock of chickens. She joined Micayla Giffin on the podcast to walk through FSA programs and how ranchers can use them.

listen to Kailee on the Ranchonomics Podcast
Brianna Lopez, Farm Payroll Specialist at Ranch Right
Payroll Specialist

Brianna Lopez

Brianna Lopez was raised on her family's ranch in New Mexico and has deep roots in agriculture. Since 2013 she and her husband, a full-time cowboy, have raised three daughters in that same lifestyle. Today they live in northern Nevada on the historic T S Ranch.

She came to bookkeeping early, first doing the books for her own small businesses and later managing the office and accounting for a local feed store. She is QuickBooks-certified, and as Ranch Right's payroll specialist she handles transaction cleanup, account reconciliation, payroll processing, and the day-to-day bookkeeping. Her focus is helping ranchers, farmers, and small business owners get a handle on their finances without feeling buried by them.

Off the clock, Brianna reads and rides horses.

Staff Accountant

Andrew Mainini

Andrew Mainini is from the Texas Hill Country. He graduated from Oklahoma State University with a BBA in Rangeland Management and Agribusiness.

He and his wife Tori have worked on ranches across the country, from the Texas Panhandle to northern Wyoming, and that road has taken him through seedstock operations, large-scale corporate ranches, and feedlots. What he cares about most is the place where modern regenerative management meets a more traditional style of ranching. As a junior staff accountant at Ranch Right, he brings that on-the-ground perspective to the books.

Andrew lives in Bighorn, Wyoming, with Tori and their son Walt. When he is off the clock you might find him golfing, fly fishing in the Bighorn Mountains, or working with cow horses.

Staff Accountant

Kecia Roseman

Kecia Roseman lives in western North Carolina, in the Blue Ridge Mountains, with her husband. She raised five daughters and a son, and these days she has three grandchildren.

She brings thirty years of accounting experience to Ranch Right. Over that time she has done CPA services, non-profit auditing and bookkeeping, personal tax prep, and controller work for family-owned small businesses. As a staff accountant, what drives her is helping clients understand their own financials, because that is what lets them make sound decisions and hold on to a reasonable work-life balance.

Jr. Staff Accountant

Concey Storer

Concey Storer is from central Nebraska, where her family runs a feedlot, cow/calf, and farming operation in Palmer. She grew up around many sectors of the cattle industry, from birth to butcher. She attended Chadron State College and earned a BBA in Ag-Business with a minor in art.

Her interest in cattle took her a long way from home for a while. She traveled to Australia to learn about the industry there, attending conferences and workshops while working on commercial cow/calf operations. As a junior staff accountant at Ranch Right, that broad view of how cattle outfits operate helps her make sense of the numbers behind them.

In November 2025 she married Colten Storer and moved to his family's ranch in Arthur, Nebraska. You will usually catch her working with colts, helping her husband on the ranch, or running a farm stand.

Jr. Staff Accountant

Caitie Hefner

Caitie Hefner comes from a southern New Mexico cattle ranching family. After high school she managed the office at her father's dental practice, where she built a solid foundation in business management, and she also helped with operations and bookkeeping in his cattle ranching business. She holds a bachelor's degree in general business.

For a while she pursued music, working as a singer/songwriter in the Texas country scene in Austin. In 2013 she came back to her ag roots, taking a job at a high-end guest and working cattle ranch in southern Wyoming. There she ran a large equestrian program and handled bookkeeping, accounting, and horse health and behavior. She also met her husband there, and the two of them are rooted in rural Wyoming.

As a junior staff accountant at Ranch Right, Caitie draws on both the books side and the ranch side of that experience. When she is not working, she plays music, barrel races, hunts, and works with her horses.

ranch right farm consulting lead Travis Krause
Advisory Team Lead

Travis Krause

Travis Krause leads Ranch Right's advisory team. He grew up near D'Hanis, Texas, on land his family has ranched since 1846, and studied Wildlife and Fisheries Sciences at Texas A&M. His work has taken him from India to Central Africa and back home to the Texas Hill Country.

He co-founded Parker Creek Ranch, a direct-to-consumer meat business, with his wife Mandy. He served as CEO of GrazingLands, managing ranch assets for SoilWorks Natural Capital, and later as VP of Highland Beef, running supply chain logistics. He has also worked as a venture partner helping build new companies.

On the advisory team, Travis works with John on the how: grazing, gross margin, marketing, and the operational moves that turn a plan into profit. He joined John on the podcast to break down the link between grazing management and gross product.

listen to Travis on the Ranchonomics Podcast

Working Capital for Farmers: The Real Number

John Haskell
In This Guide:
  1. Lessons From The Ranchonomics Podcast Episode 10 With Walter Lynn

Working Capital for Farmers: Why the Dollar Number Beats the Ratio

Working capital for farmers is a real dollar figure, not just a ratio on a loan application. Here is the target to aim for and where the cash comes from Banner Image

Lessons From The Ranchonomics Podcast Episode 10 With Walter Lynn

Every operation has a number that decides whether a bad month turns into a bad year. That number is working capital, and most producers only ever hear about it as a ratio their banker mentions once a year.

A ratio hides more than it reveals. Working capital for farmers has to be measured in real dollars, compared against what it costs to run the operation month to month. Get that comparison wrong and a balance sheet that looks fine on paper can leave you a single slow season away from trouble.

This is where a lot of otherwise profitable operations get caught. Not because the business isn’t working, but because nobody ever asked how many months of expenses that cushion would cover.

Key Takeaways

  • Working capital is a dollar amount (current assets minus current liabilities), not just a ratio. Two operations can share the same 2:1 current ratio and have wildly different cash cushions.
  • A reasonable starting target is about 90 days (three months) of operating expenses, or 25% to 40% of gross product, with 40% as a stronger long-term goal.
  • Your age and track record with a lender shape how much risk they’ll accept. A young producer needs more margin for error. A very senior producer still borrowing heavily on operating debt deserves a second look at what’s really going on.
  • Working capital changes based on net income (after family living) plus non-cash expenses like depreciation, minus term debt principal payments.
  • Paying cash for a fixed asset, a tractor or a boat, quietly drains working capital even in a year that looked profitable on the income statement.

What Working Capital for Farmers Really Means

Working capital comes straight off the balance sheet. Everything on that sheet gets classified by how fast it turns over: current (inside of a year), intermediate (roughly seven to ten years), and long term (land, real estate). Working capital only deals with the current bucket.

On the asset side, current usually includes cash, any accounts receivable, market livestock like calves or stockers, feed and hay on hand, and an investment in a growing crop. On the liability side, current includes the operating loan due within the year, any unpaid interest on it, accounts payable to the feed store or co-op, and the current portion of long-term debt. That last one trips people up. It’s just the principal you owe on long-term debt in the next twelve months, not the whole balance.

Subtract current liabilities from current assets and you get working capital. That’s different from the current ratio, which just divides one by the other. Here’s why the distinction matters: $200,000 in current assets against $100,000 in current liabilities is a 2:1 ratio. So is $2,000 against $1,000. Same ratio, completely different reality.

If your annual budget runs $480,000 in expenses, that’s $40,000 a month. A $1,000 cushion against that burn rate is razor thin, even though the ratio looks identical to an operation sitting on $100,000 of breathing room. The dollar figure is what tells you whether you can survive a rough stretch. The ratio alone can’t.

This is worth saying plainly: if a lender only wants to talk current ratio and never brings up the actual dollar amount of working capital against your expenses, that’s a conversation you should push further, or find a lender who will have it with you.

How Much Working Capital Should Farmers Target

A workable starting benchmark is three months of operating expenses, about 90 days. If your operation runs $40,000 a month, that puts your target around $120,000. Some lenders, farm credit systems included, calculate it as a percentage of gross product instead. Three months out of twelve works out to 25%. Over time, pushing that number toward 40% is a stronger goal to build toward.

Where you land on that range depends heavily on context. Age and life stage matter. A younger producer with less history is naturally going to face tighter scrutiny and less tolerance for risk, simply because there’s no track record yet to lean on. A producer who has consistently paid back the operating line year after year earns more room from a lender, because that consistency is its own kind of collateral.

The flip side is a flag worth noticing in your own operation too. A 75-year-old still carrying heavy operating debt in a row-crop situation raises a real question. It isn’t automatically a problem, but it deserves context: what are the family living costs, what’s the family dynamic, is there a plan behind the borrowing or is it just momentum. The same logic applies whether you’re the one asking the question about your own numbers or a lender is asking it about yours.

Good communication compounds here. Know who is underwriting your loan behind the scenes, not just the loan officer’s name on the file. When your working capital changes from one year-end to the next, know exactly why before you walk into that meeting. If the increase came from earnings, say so. If it came from a gift or an inheritance rather than the business itself, say that too. Walking in already able to explain the change is one of the fastest ways to build real trust with a lender.

Where Working Capital Comes From (And How to Protect It)

Working capital changes with a fairly simple formula: net income (after family living expenses are accounted for) plus non-cash expenses like depreciation, minus principal payments on term debt.

Say an operation nets $100,000 after family living, with $50,000 of depreciation added back. Before any debt payments, that’s a $150,000 increase in working capital. Now subtract $40,000 in term debt principal payments, and the real increase is $110,000, assuming those payments stay flat year over year.

Here’s where producers get tripped up. Take that $110,000 and spend it in cash on a tractor, and the improvement mostly disappears. You’ve converted a current asset (cash) into a long-term or intermediate asset (equipment). If the tractor cost $100,000, your net working capital change for the year drops from $110,000 to $10,000, even though the operation had a genuinely good year. Financing that same tractor instead of paying cash keeps the working capital gain intact. How you pay for a fixed asset is a working capital decision, not just an interest rate decision.

The same logic applies to how you deploy cash into inventory. Not all livestock behaves the same way on a balance sheet. A stocker converts to cash faster than a bred cow. Buying breeding stock is a perfectly good long-term investment, but it should happen after your short-term position is already covered, not instead of covering it. Bud Williams used to describe this as an inventory triangle: always keep enough cash to pay the light bill, the cell phone bill, and put fuel in the tank next month, before chasing the opportunity that pays off eighteen months from now. A cow bought today might be the most profitable decision you make, but only if you’re still in business when that value shows up.

This is also the honest explanation behind most business failures, on a ranch or anywhere else. It’s rarely a lack of profitability. It’s running out of cash, often during a period of rapid growth, when more and more capital gets tied up in inventory purchased ahead of the sale. A profitable year on the income statement doesn’t protect you if the cash isn’t there when the bill comes due.

One gut check worth borrowing from Ranching for Profit circles before any major cash decision: would you invest that same amount of money in this opportunity if you were starting from zero today, with no sunk cost attached? If the honest answer is no, that’s information worth sitting with before the money moves.

Frequently Asked Questions

What is working capital for farmers and ranchers? Working capital is current assets minus current liabilities on the balance sheet. Current assets include things like cash, receivables, market livestock, and feed on hand. Current liabilities include the operating loan, unpaid interest, accounts payable, and the portion of long-term debt principal due within the next year.

How much working capital should a farm or ranch have? A common starting benchmark is about 90 days, or three months, of operating expenses. In percentage terms, that’s roughly 25% of gross product, with 40% as a stronger goal to build toward over time. The right number for your operation also depends on your age, track record with lenders, and overall risk tolerance.

Why does paying cash for equipment hurt working capital? Because it converts a current asset, cash, into a long-term or intermediate asset, like a tractor. Even after a genuinely profitable year, an unfinanced equipment purchase can erase most of the working capital gain that year’s earnings and depreciation would have otherwise produced. Financing the purchase instead helps protect that cushion.

The Bottom Line

Working capital for farmers isn’t a line item to glance at once a year. It’s the number that decides how many rough months your operation can absorb before something breaks. A ratio can look fine while the actual dollar cushion is dangerously thin, so measure it in real dollars against your real expenses, aim for that three-month benchmark, and pay attention to how every cash decision, from a tractor purchase to a stocker versus a bred cow, moves that number up or down.

More From the Ranch Finance & Metrics Series

This article draws on Episode 10 of the Ranchonomics Podcast with Walter Lynn.

John Haskell is the founder of Ranch Right, LLC, host of the Ranchonomics podcast, and a founding member of Ranching.fyi. For more than 20 years he has built, bought, and turned around profitable ranches across the U.S. and Canada. His focus is the business side of ranching - cattle trading, sell/buy marketing strategy, and the financial decisions that separate ranches that struggle from ranches that build wealth.

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