Katie Chrisman, Author at De Boer, Baumann & Company, P.L.C.

Entries by Katie Chrisman

By Katie Chrisman / April 16, 2026
612

Understanding Your Biggest Cost Drivers in Hospitality

Running a hospitality business means balancing a long list of moving parts. Revenue can shift daily, while expenses often remain steady or rise without much warning. For owners and operators, understanding where costs are coming from is one of the most important steps toward protecting margins and making informed decisions.Cost control in hospitality is …

Cost control in hospitality is not about cutting corners. It is about gaining clarity, identifying patterns, and managing the areas that have the greatest impact on profitability.

Labor Costs

Labor is typically the largest expense for restaurants, hotels, and event-driven businesses. It is also one of the most complex to manage.

Scheduling needs change based on guest volume, seasonality, and unexpected demand. Overtime, shift premiums, and turnover can all increase costs quickly if not monitored closely.

Common challenges include:

Overstaffing during slower periods
Understaffing that leads to overtime or service issues
High turnover that increases hiring and training costs

A more structured approach to scheduling, along with regular review of labor percentages, helps maintain balance between service quality and cost control.

Cost of Goods Sold

For restaurants and food service operations, cost of goods sold plays a direct role in profitability. Even small fluctuations in food or beverage costs can affect margins.

Price changes from suppliers, waste, spoilage, and portion control all contribute to this category.

Clear inventory tracking and regular review of vendor pricing help keep these costs in line. Many operators benefit from comparing actual costs to expected margins on a consistent basis.

Occupancy and Fixed Costs

Rent, utilities, insurance, and other fixed expenses create a baseline that does not adjust easily with revenue.

In slower periods, these costs take up a larger percentage of income. In stronger periods, they may feel less significant, but they still impact long-term profitability.

Understanding how these costs behave relative to revenue helps owners make better decisions about pricing, expansion, and cost structure.

Technology and Systems

Technology has become an essential part of hospitality operations. Point-of-sale systems, reservation platforms, payroll systems, and inventory tools all play a role in daily operations.

While these tools improve efficiency, they also add recurring costs that can build over time.

Reviewing system usage, eliminating overlap, and ensuring integrations are working properly can help control unnecessary expenses.

Marketing and Guest Acquisition

Marketing costs can vary widely depending on the approach. Digital advertising, loyalty programs, third-party platforms, and promotions all require investment.

The key is understanding which efforts actually drive traffic and revenue.

Tracking return on investment and aligning marketing spend with business goals helps ensure resources are being used effectively.

Bringing It All Together

The most successful hospitality businesses do not focus on a single expense category. They look at how costs interact and how they shift over time.

Regular financial review, clear reporting, and consistent monitoring allow owners to respond quickly and make thoughtful adjustments.

When you understand your biggest cost drivers, you are better positioned to protect margins, improve operations, and plan with confidence.

At DBC, we work with hospitality businesses to identify cost patterns, improve reporting, and build financial clarity into day-to-day operations. If you would like a closer look at your cost structure, our team is here to help.

By Katie Chrisman / April 14, 2026
436

Employee Spotlight: Kipp Harper

Since joining De Boer, Baumann & Company in 2022 as an IT Support Specialist with DB&C NetWerks, Kipp Harper has become an essential part of the firm’s day-to-day operations. His work often happens behind the scenes, but the impact is felt across the entire organization. From troubleshooting issues to supporting new initiatives, Kipp helps …

Kipp’s role spans software, hardware, and network support, along with providing service and consulting for external IT clients. His ability to navigate both internal and client-facing needs brings a practical, solutions-oriented approach to every situation. Whether responding to immediate technical challenges or helping implement long-term improvements, Kipp approaches his work with consistency and a clear focus on keeping systems reliable and efficient.

Kipp was drawn to IT by the rapid growth and opportunity within the field. Recognizing early on that technology would continue to evolve and shape how businesses operate, he pursued a path that allows him to stay engaged in a dynamic, ever-changing environment. That mindset continues to show in the way he approaches his work today.

Outside of the office, Kipp enjoys making the most of warmer weather by spending time outdoors with his dog, often hiking or camping. He also brings a strong sense of service to his community, having served as a part-time Firefighter/EMT over the past several years, an accomplishment he is especially proud of.

Kipp’s steady presence and willingness to step in wherever needed make him a valued member of the team. We’re proud to spotlight Kipp and the role he plays in supporting both our people and our clients every day.

By Katie Chrisman / April 10, 2026
1303

Best Practices for Board Financial Oversight

In not-for-profit organizations, the board of directors plays a vital role in guiding mission, strategy, and accountability. One of the most important responsibilities a board holds is ensuring sound financial oversight. Strong financial governance not only protects the organization’s assets but also builds trust with donors, grantors, and the community. When board members understand their …

When board members understand their financial duties and actively engage in oversight, they help create an organization that is transparent, compliant, and positioned for long-term sustainability.

Understanding the Board’s Financial Role

Board members serve as stewards of the organization’s resources. Their primary financial responsibilities include approving budgets, monitoring financial performance, and ensuring that appropriate controls are in place to prevent misuse of funds.

Effective financial oversight involves:

Reviewing financial statements regularly and asking clarifying questions

Ensuring compliance with regulatory and donor requirements

Overseeing internal controls and risk management practices

Supporting long-term financial planning and sustainability

While management handles day-to-day financial operations, the board’s role is to provide governance, accountability, and a big-picture perspective.

Key Elements of Strong Financial Oversight

Review Financial Statements Regularly
Board members should receive and review financial reports such as balance sheets, income statements, and budget-to-actual comparisons on a consistent basis. Look for trends, variances, and potential red flags. Clear,timely reporting ensures that the board can make informed decisions and respond proactively to financial challenges.
Maintainan Active Finance Committee
A dedicated finance committee can help the board fulfill its oversight responsibilities more effectively. This committee should work closely with management to review budgets, monitor cash flow, and assess financial policies before presenting recommendations to the full board.
Approve Realistic Budgets
The board shouldparticipate in developing and approving the annual budget to ensure alignment with the organization’s mission and strategic goals. A well-structured budget balances program priorities with operational needs and includes contingency planning for unexpected expenses.
Ensure Proper Internal Controls
Strong internal controls protect the organization from errors, fraud, and mismanagement. The board should confirm that key controls are in place such as segregation of duties, authorization procedures, and financial reviews and that they are tested periodically for effectiveness.
Monitor Cash Flow and Reserves
Cash flow management is essential for financial stability. The board should review cash flow projections and understand how reserves are being managed.Maintaining appropriate reserves provides flexibility and security, especially during periods of funding uncertainty.
Oversee Audits and Reviews
Boardsare responsible for engaging independent auditors and reviewing audit results. This process offers valuable insights into the organization’s financial health and the strength of its internal controls. The board should also ensure that management addresses any recommendations identified in the audit report.
Support Transparency and Accountability
Transparency in financial reporting builds trust among donors, staff, and the community. Boards should ensure that financial information is communicated clearly and accurately in annual reports, IRS Form 990 filings, and other public disclosures.

Encouraging Financial Literacy Among Board Members

Not every board member will have a financial background, but every member should understand the basics of not-for-profit finance. Providing regular training on reading financial statements, interpreting budgets, and understanding compliance requirements equips the board to fulfill its oversight duties confidently.

Encourage open dialogue during board meetings, creating a space where members feel comfortable asking questions and seeking clarification. A board that is engaged and informed contributes meaningfully to the organization’s financial integrity.

Building a Culture of Financial Stewardship

Financial oversight is more than a procedural duty. It is a reflection of organizational values. When the board prioritizes fiscal responsibility and transparency, it sets the tone for the entire organization. This culture of stewardship strengthens credibility, fosters donor confidence, and supports mission-driven growth.

Proactive oversight ensures that financial challenges are identified early and addressed strategically, allowing the organization to remain resilient and focused on its goals.

How DBC Can Help

At DBC, we understand the vital role boards play in not-for-profit financial stewardship. Our team provides training, consulting, and audit services designed to help board members understand their financial responsibilities and strengthen oversight practices.

Whether your organization is refining its internal controls, developing governance policies, or reviewing financial reports, we can help your board make informed, confident decisions that safeguard your mission and ensure sustainability by fostering a culture of transparency, accountability, and financial strength.

By Katie Chrisman / April 10, 2026
602

Succession Planning for Not-for-Profit Leadership and Financial Roles

For not-for-profit organizations, leadership transitions are inevitable, but they do not have to be disruptive. Whether it is the retirement of a long-serving executive director, the departure of a finance manager, or the transition of a key board member, effective succession planning ensures that your organization’s mission continues seamlessly. By planning ahead, not-for-profits can preserve institutional …

By planning ahead, not-for-profits can preserve institutional knowledge, maintain financial stability, and protect stakeholder confidence during times of change.

Why Succession Planning Matters

Leadership and financial roles in not-for-profits carry significant responsibility. These positions are often tied directly to the organization’s mission, relationships, and financial health. Without a plan in place, sudden departures can lead to confusion, gaps in oversight, and even risk to funding or compliance.

Succession planning helps your organization:

Prepare for both expected and unexpected leadership changes

Maintain continuity in governance and financial management

Strengthen long-term sustainability and resilience

Demonstrate stability to donors, employees, and the community

When managed proactively, leadership transitions can become opportunities for renewal and growth rather than sources of uncertainty.

Identifying Key Roles and Responsibilities

Effective succession planning starts by identifying which roles are critical to your organization’s success. For most not-for-profits, this includes:

Executive leadership: Executive directors or CEOs who oversee mission, strategy, and community relationships

Financial management: CFOs, finance directors, or accountants who ensure compliance, transparency, and fiscal health

Board leadership: Officers who provide oversight, governance, and strategic direction

Documenting key responsibilities, processes, and decision-making authority for these roles helps ensure continuity when transitions occur.

Steps to Develop a Strong Succession Plan

Assess Current and Future Needs
Evaluate your organization’s strategic goals anddetermine the leadership and financial skills required to achieve them. Consider how your needs might evolve over the next three to five years and identify any gaps in current capabilities.
Document Essential Knowledge and Procedures
Capture key processes, contacts, and institutional knowledge before a transition occurs. Maintaining up-to-date job descriptions, financial procedures, and access controls ensures smoother handoffs and minimizes disruption.
Develop Internal Talent
Encourage professional development for current staff andidentify potential future leaders within your organization. Cross-training team members on financial and administrative tasks not only prepares them for advancement but also enhances organizational resilience.
Establishan Emergency Transition Plan
Unplanned departures can occur without warning. Create an interim leadership strategy that designates who will assume temporary responsibility for key functions until a permanent replacement is found.
Involve the Board Early
The board of directors plays a crucial role in leadership continuity. Engage them in planning discussions and ensure they understand their responsibilities in overseeing transitions for both executive and financial roles.
Review and Update Regularly
Succession plans should be living documents. Revisit them annually to reflect organizational changes, updated job roles, and emerging priorities.

Maintaining Financial Continuity During Transitions

Leadership changes often impact financial operations, making careful planning essential. To maintain stability:

Ensure dual authorization for financial transactions and system access to prevent gaps in oversight

Review internal controls to confirm that duties are properly segregated, even during temporary transitions

Keep funder relationships informed to maintain trust and transparency throughout leadership changes

Engage external advisors to provide continuity in accounting, audits, and reporting when internal transitions occur

A proactive approach to financial continuity reinforces confidence among stakeholders and prevents interruptions in day-to-day operations.

Building a Culture of Preparedness

Succession planning is not just about filling positions. It is about building a culture of preparedness. When organizations view leadership continuity as part of long-term strategy, they empower employees, reassure donors, and strengthen community trust.

Investing in leadership development today ensures that tomorrow’s transitions are handled with professionalism and stability, keeping your organization focused on its mission even during a time of change.

How DBC Can Help

At DBC, we understand that leadership and financial transitions can be complex. Our team works with not-for-profits to strengthen internal controls, establish clear succession processes, and ensure financial continuity through periods of change.

Whether you are developing your first succession plan or refining an existing one, we provide the guidance and support to help your organization maintain stability, accountability, and confidence by building systems that sustain your mission over time.

By Katie Chrisman / April 10, 2026
395

Forecasting Project Profitability: Tips for Contractors

Profitability is one of the clearest indicators of a project’s success, yet it can be difficult to measure accurately while work is still underway. Material prices shift, labor needs evolve, schedules change, and unexpected conditions can influence costs long before a project is complete. Without a reliable forecasting process, contractors may not recognize developing problems until …

Strong profitability forecasting helps contractors understand where a project stands today and where it is likely headed. When supported by accurate data and practical financial tools, forecasting becomes an essential resource for guiding decisions throughout the life of the job.

Start With Accurate Job Costing

Profitability forecasts are only as strong as the data behind them. Job costing must reflect what is actually happening on site, not just what was planned. This includes labor hours, material usage, subcontractor costs, and equipment time.

Accurate job costing helps contractors:

Compare real costs to estimates

Identify cost categories that are trending higher than expected

Understand how field decisions affect financial outcomes

This information provides the foundation for reliable forecasts.

Use Work-in-Progress Reports to Track Progress

Work-in-progress reports help contractors understand how costs and revenue align with project completion. WIP reporting highlights overbilling, underbilling, and the percentage of work completed, all of which influence profitability.

When reviewed regularly, WIP reports help contractors adjust staffing, reschedule activities, or revise budgets before problems grow.

Evaluate Project Assumptions Throughout the Job

Forecasting requires revisiting the assumptions that guided the original bid. Market prices, labor availability, and project conditions rarely remain static from start to finish. Contractors should periodically evaluate whether the assumptions behind their estimates still hold true.

Questions that support this review include:

Has labor been more or less efficient than expected?

Are material prices higher than when the estimate was created?

Have any subcontractors adjusted their pricing or availability?

Are there scheduling delays that could increase costs?

This type of evaluation helps contractors update forecasts with real-time information.

Monitor Change Orders and Their Financial Impact

Change orders often shift a project’s financial outlook. Even small adjustments can affect labor needs, material requirements, and job sequencing. To maintain accurate profitability forecasts, contractors should track the financial impact of change orders as soon as they occur.

When captured early, these changes can be incorporated into revised budgets and forecasts, helping contractors avoid surprises later in the project.

Compare Estimated Profit to Earned Profit

Estimated profit reflects what contractors expect to earn when the project is complete. Earned profit reflects what has been achieved to date based on progress and actual costs. Comparing these two helps contractors determine whether they are on track or drifting from their projections.

A significant variance between estimated and earned profit may signal the need for schedule adjustments, budget revisions, or resource changes.

Use Historical Data to Improve Future Forecasts

Completed projects offer valuable insight. By reviewing past performance, contractors can identify trends such as recurring cost overruns, underestimated labor categories, or consistent delays in certain phases of work.

Historical data strengthens future forecasting by helping contractors:

Build more accurate estimates

Anticipate common problem areas

Improve staffing and scheduling decisions

Refine procurement strategies

This continuous improvement strengthens profitability over time.

Strengthen Communication Between Accounting and the Field

Forecasting is most accurate when financial information and field activity stay connected. Regular communication between project managers, accounting staff, and field supervisors ensures that both teams work with the same understanding of project status. This helps contractors adjust forecasts quickly and maintain a clear view of the project’s trajectory.

Building Confidence in Project Performance

Profitability forecasting gives contractors the visibility they need to manage projects with confidence. When supported by accurate job costing, clear reporting, and open communication, forecasting becomes a powerful tool for guiding decisions and protecting margins.

At DBC, we work with construction companies to build forecasting processes that support stronger financial outcomes and long-term growth. If you would like to strengthen your approach to project profitability, our team is here to help.

By Katie Chrisman / April 10, 2026
783

Managing Cash Flow in Work-In-Progress Construction Projects

Cash flow is one of the most critical elements of any construction project, and long-term projects place even greater pressure on a contractor’s financial structure. These projects often span multiple seasons, require large upfront investments, and fluctuate in cost as labor and material needs evolve. Even profitable projects can become difficult to manage if cash …

Strong cash flow management helps contractors maintain steady operations, keep projects moving, and avoid unnecessary financial strain. With the right planning and oversight, long-term work becomes more predictable and far easier to manage.

Understanding Why Long-Term Projects Strain Cash Flow

Long-term construction projects introduce unique challenges that shorter jobs rarely experience. Contractors may face:

Extended payment cycles tied to specific milestones

Rising material or equipment costs over time

Delays that affect both scheduling and billing

Changes in scope that alter the financial structure of the job

Because these projects evolve continuously, cash flow must be monitored just as consistently.

Build a Cash Flow Forecast That Follows the Project

A detailed cash flow forecast should mirror the life cycle of the project. Forecasting helps contractors anticipate when expenses will occur, when payments are expected, and where cash shortages may develop.

A strong forecast typically includes:

Planned labor and subcontractor costs by phase

Expected material purchases

Billing schedules tied to milestones or monthly progress

Contingency amounts for unexpected changes

Updating the forecast as the project progresses helps contractors make decisions early rather than reacting after a problem appears.

Strengthen Billing Practices

Billing practices significantly influence cash flow in long-term projects. Delayed billings, underbillings, or unclear documentation can slow payments and create difficulties in meeting upcoming costs.

Contractors benefit from reviewing whether their billing practices:

Align with contract terms

Reflect work completed to date

Include change orders promptly

Follow a consistent monthly or milestone schedule

Accurate and timely billing helps keep cash coming into the business at the pace needed to support the work.

Monitor Work-in-Progress and Overbilling

Work-in-progress reporting is an important tool for tracking cash flow. Overbilling and underbilling both influence the financial health of a project.

Overbilling may improve short-term cash flow, but if costs later exceed expectations, it can reduce billing available in later phases.

Underbilling restricts cash flow because work is completed without a corresponding payment.

Monitoring WIP results helps ensure billing and work progression remain in balance.

Manage Material Purchases Strategically

Material pricing can shift significantly over long project cycles. Contractors may need to analyze whether materials should be purchased early, in phases, or through negotiated agreements with suppliers.

Strategic purchasing decisions help avoid unexpected cost spikes and support better cash flow planning.

Maintain Strong Communication With Subcontractors

Subcontractor performance and timing affect both project progress and cash flow. Clear communication about scheduling, payment expectations, and documentation requirements helps prevent delays that can slow down billing.

When subcontractors submit their paperwork consistently, contractors can bill earlier and more accurately.

Protect Cash Flow During Change Orders

Change orders are common in long-term work, but they can strain cash flow when not handled promptly. Costs related to changes should be documented and submitted quickly so that billing reflects the actual work being performed.

A consistent change order process helps contractors:

Maintain accurate budgets

Prevent unapproved work from accumulating

Ensure payment keeps pace with job progression

Review Contract Terms Before the Project Begins

Contract terms shape how cash flows throughout the project. Reviewing key components before work starts helps contractors avoid issues later. Important elements include billing frequency, retainage, milestone definitions, and payment turnaround times.

Understanding these terms allows contractors to plan ahead and build a realistic cash strategy.

Bringing Stability to Long-Term Projects

Managing cash flow in long-term construction projects requires a combination of careful planning, consistent oversight, and clear communication. When contractors maintain strong forecasting, monitor job progress closely, and follow disciplined billing practices, they create a financial structure that supports long-term success.

At DBC, we help construction companies strengthen their cash flow strategies, build reliable forecasting models, and create financial processes that support confident decision making. If you would like guidance on improving cash flow management for your long-term projects, our team is ready to help.

By Katie Chrisman / March 27, 2026
660

Understanding Debt Structure: Matching Farm Loans to Cash Cycles

Debt is a normal part of most farming operations. Land, equipment, livestock, and infrastructure require significant capital. The question is not whether to use debt, but how to structure it wisely.One of the most common financial pressures we see in agriculture is not excessive borrowing, but mismatched borrowing. When loan terms do not align …

Debt is a normal part of most farming operations. Land, equipment, livestock, and infrastructure require significant capital. The question is not whether to use debt, but how to structure it wisely.

One of the most common financial pressures we see in agriculture is not excessive borrowing, but mismatched borrowing. When loan terms do not align with the farm’s cash cycle, even a profitable operation can feel unnecessary strain.

The solution begins with a clear understanding of when cash comes in and when it goes out during the year. Once that timing is defined, debt payments can be structured around the realities of your operation rather than working against them.

Know Your Cash Cycle

Unlike many businesses, farms often experience uneven income patterns. Expenses occur steadily or even upfront, while revenue may arrive once or twice a year.

Seed, feed, fertilizer, labor, fuel, and repairs are paid long before crops are harvested or livestock is sold. That timing gap must be financed thoughtfully.

A clear cash flow projection, updated annually, helps identify when cash is tight and when it is available. Without this visibility, loan payments may come due at the worst possible time.

Match Short-Term Needs with Short-Term Debt

Operating expenses tied to a single production cycle are best financed with short-term operating lines or seasonal notes.

These loans are designed to expand during planting or feeding periods and contract once revenue is received. The goal is to avoid using long-term debt for short-term needs, or vice versa.

When structured properly, operating lines provide flexibility without creating unnecessary long-term obligations.

Finance Long-Term Assets with Long-Term Debt

Land purchases, major equipment, building construction, and facility upgrades should generally be financed over a period that reflects their useful life.

Stretching short-term loans to cover long-lived assets creates cash pressure. Conversely, paying for long-term assets too quickly can strain working capital.

A well-structured term loan spreads repayment in a way that aligns with the asset’s productivity and preserves liquidity.

Protect Working Capital

Working capital acts as a buffer against volatility in commodity prices, weather events, and input cost increases.

If debt payments consistently erode working capital, it may signal a structural issue rather than a temporary challenge. Refinancing or restructuring debt can sometimes restore balance and provide breathing room.

Regularly reviewing current ratios and liquidity trends helps identify concerns before they become urgent.

Plan for Growth Carefully

Expansion often requires additional borrowing. Before taking on new debt, it is important to model how repayment fits within existing cash flow.

Will projected revenue comfortably cover principal and interest, even in a lower-yield year? How will new debt affect leverage ratios and lender covenants?

Growth should strengthen the operation, not expose it to unnecessary risk.

Ongoing Review Is Essential

Debt structure should not be set once and forgotten. An annual review of loan terms, repayment schedules, and overall leverage ensures that your financing continues to match your operation’s reality.

At DBC, we work with agricultural clients to evaluate debt structure in the context of cash flow, profitability, and long-term goals. Clear reporting and thoughtful planning can reduce financial stress and support steady growth.

If you would like to review whether your current loan structure aligns with your farm’s cash cycle, DBC is here to help.

By Katie Chrisman / March 27, 2026
543

Using Benchmarking to Measure Farm Performance Year Over Year

Farming has always required good instincts. Today, it also requires good data.Commodity prices shift, input costs rise and fall, and weather often remains unpredictable. In that environment, it can be difficult to tell whether a farm’s performance is truly improving or simply reflecting external conditions. That is where benchmarking becomes valuable.Benchmarking allows you to …

Farming has always required good instincts. Today, it also requires good data.

Commodity prices shift, input costs rise and fall, and weather often remains unpredictable. In that environment, it can be difficult to tell whether a farm’s performance is truly improving or simply reflecting external conditions. That is where benchmarking becomes valuable.

Benchmarking allows you to measure your farm’s financial and operational results against prior years and against comparable operations. When used consistently, it provides a clearer picture of progress and areas that need attention.

What Benchmarking Really Means

At its core, benchmarking is the process of comparing key performance indicators over time. For farms, those indicators often include:

· Gross revenue per acre or per head

· Cost of production by crop or livestock category

· Operating expense ratios

· Labor efficiency

· Debt-to-asset and working capital ratios

· Net farm income trends

Looking at these metrics consistently helps separate normal seasonal swings from meaningful change. It also reduces the risk of making decisions based on one unusually strong or weak year.

Why Year-Over-Year Comparisons Matter

A single year rarely tells the full story. Strong yields may mask rising input costs. Higher revenue may hide tightening margins.

By reviewing multiple years side by side, patterns begin to emerge. You may see that machinery costs are steadily climbing faster than revenue. Or that feed efficiency has improved after a change in process. Those insights lead to better decisions.

Year-over-year benchmarking also strengthens conversations with lenders. Clear trends and documented performance improvements build credibility and support financing discussions.

Internal Benchmarks vs. Industry Benchmarks

There are two valuable ways to benchmark.

Internal benchmarking compares your farm to its own historical performance. This is often the most meaningful starting point because it reflects your land, your management style, and your cost structure.

Industry benchmarking compares your results to regional or national averages. This can highlight areas where you are outperforming peers or where there may be room for improvement.

Used together, these comparisons provide context. If margins are tightening across the industry, that signals one type of challenge. If your margins are tightening while others remain stable, that signals another.

Turning Data into Decisions

Benchmarking is not about producing more reports. It is about making better operational and financial decisions.

For example:

· If cost of production per bushel is rising, it may be time to renegotiate input contracts or evaluate equipment efficiency.

· If labor costs are increasing faster than revenue, staffing models may need review.

· If working capital is trending downward, cash flow planning may require adjustment before it becomes a constraint.

These are strategic decisions, not just accounting exercises.

The Importance of Clean, Consistent Records

Benchmarking only works when the underlying data is accurate and consistent. Changes in accounting methods, inconsistent expense categorization, or incomplete records can distort comparisons.

Maintaining disciplined year-end reporting and consistent classifications ensures that you are comparing like with like. Even small inconsistencies can lead to misleading conclusions.

This is where thoughtful financial oversight adds real value.

How DBC Supports Agricultural Clients

At DBC, we work with agricultural producers who want more than year-end financial statements. We help clients identify the right metrics, structure reports consistently, and interpret trends in a practical way.

Our goal is to provide clarity. Clear data leads to informed decisions. Informed decisions support long-term stability.

If you would like to explore how benchmarking can strengthen your farm’s financial performance, the team at DBC is here to help.

By Katie Chrisman / March 19, 2026
523

When a Trust Complicates Farm Succession Planning

Keeping a farm in the family is rarely simple. It is not just about land or assets, but about legacy, relationships, and the responsibility of passing something meaningful to the next generation. Even with thoughtful planning, older estate documents can create challenges that were never anticipated, especially as circumstances change over time. One situation that …

One situation that comes up more often than many families expect involves testamentary trusts. These trusts are often created to protect assets and provide structure, but years later they can limit flexibility when plans need to evolve.

When the Plan No Longer Fits the Reality

Consider a situation we often see in farm succession planning. A farmer lost his wife more than a decade ago, and as part of her estate plan, her share of the farmland was placed into a trust. The trust specifies that, after his passing, her portion of the property will be divided equally among their four children.

Since then, one of those children has stepped fully into the operation and built his future around farming. The father made a promise that he would find a way to keep the farm intact so his son could continue. The challenge is that the trust no longer reflects that goal, and it cannot be changed.

This is where many families find themselves. The plan made sense at the time, but life moved forward in ways no one fully anticipated.

Working With What You Can Control

Even when part of the plan is fixed, there is often still room to adjust other pieces. In this situation, the father still controls his share of the property, which gives him the ability to influence how things unfold.

He could choose to leave his portion of the home farm directly to the farming son. While that does not solve everything, it reduces the amount the son would need to purchase from his siblings. Another option is to balance things by allocating additional land from another parcel, helping create a more workable outcome for everyone involved.

These adjustments may not be perfect, but they can move the family closer to the original intention.

Looking at the Numbers Differently

In some cases, the solution is not about changing the structure, but about adjusting how value is shared.

If the trust requires full market value for its portion, the father may be able to offset that by offering more favorable terms on the assets he controls. A deeper discount on his share can help create a similar overall outcome to what the family originally envisioned.

This approach requires careful planning, but it can help balance fairness across the family while still supporting the goal of keeping the farm intact.

Having the Conversation Now, Not Later

In many situations, the most important step is simply having an open conversation.

If the goal is to keep the farm operating, it helps to bring the family together and talk through what that means in practical terms. Would the other children be open to allowing their sibling to purchase the land over time? Do they share the same long-term vision for the farm?

These discussions are not always easy, but they are far easier to have now than during a time of loss. When expectations are clear, families are better positioned to move forward together.

Setting Expectations With Care

One of the more difficult moments for any family is when a will is read and something feels unexpected. Without context, decisions can feel unfair, even when they were made with good intentions.

Taking the time to explain the reasoning behind the plan can make a meaningful difference. When family members understand the limitations created by the trust and the goal of preserving the farm, they are more likely to see the full picture.

Planning With the Future in Mind

Situations like this are a reminder that estate plans should not remain static. Over time, land values change, tax rules shift, and family roles evolve. What worked years ago may not support the same outcome today.

Revisiting these plans periodically gives families the opportunity to adjust while options are still available. It also creates space to think through both the financial and personal aspects of succession.

At its core, farm succession is about more than transferring property. It is about creating a path forward for the next generation while maintaining fairness across the family. With thoughtful planning and clear communication, it is possible to move closer to both.

At DBC, we work with agricultural businesses and families to bring structure and clarity to these conversations. By focusing on long-term goals and practical realities, we help guide decisions that support both the operation and the people behind it.

To read the full article by Mark McLaughlin visit https://www.agriculture.com/how-to-keep-the-farm-in-the-family-when-a-trust-gets-in-the-way-11825875

By Katie Chrisman / March 19, 2026
1476

U.S. Farm Income Expected to Decline in 2026 Despite Increase in Government Payments

The financial outlook for U.S. agriculture is showing signs of strain. According to the U.S. Department of Agriculture, net farm income is projected to decline in 2026, even as government support reaches levels not seen in several years. At first glance, the change appears modest. Net farm income is expected to fall ~0.7% to $153 billion. After …

At first glance, the change appears modest. Net farm income is expected to fall ~0.7% to $153 billion. After adjusting for inflation, the decline is more pronounced, dropping $4 billion, or ~2.6% from the prior year. What stands out is how much of that income is being supported by government programs.

A Larger Share of Income Coming From Government Payments

Government payments are expected to account for nearly 29% of total farm income in 2026. Without that support, the picture changes significantly. USDA data shows net farm income would fall nearly 12% to $109 billion.

That shift highlights a growing reliance on federal programs to stabilize farm operations. As one agricultural advisor noted, government payments are doing much of the work in supporting crop producers right now.

Support Levels Not Seen Since Recent Disruptions

USDA projects direct government payments will reach $30.5 billion in 2025 and increase to $44.3 billion in 2026, not including crop insurance indemnities. These levels have not been seen since 2020 and 2021, when pandemic disruptions and trade challenges led to similar support.

The increase is tied to Farm Bill programs responding to lower crop prices, along with continued supplemental and disaster assistance.

At the same time, many producers are carrying higher levels of debt while depending more heavily on these payments to cover operating costs.

What Is Driving the Pressure

Several factors are contributing to the current environment:

Lower crop prices influenced by global supply levels

A surplus in grain markets

Lost export demand tied to past trade policies

Ongoing pressure from operating costs, even as some inputs begin to stabilize

While fuel and pesticide costs are expected to decline, overall financial pressure remains.

A Mixed Outlook Across Commodities

Income expectations vary across the agricultural sector:

Corn receipts are expected to increase

Soybean receipts are projected to remain relatively steady

Wheat receipts are expected to decline

Livestock receipts may fall due to lower egg and milk prices

Cattle receipts are expected to continue rising

This uneven performance adds another layer of complexity for farm operators managing multiple revenue streams.

A Broader Concern Across the Industry

Lawmakers and industry leaders are raising concerns about the direction of the farm economy. Some have pointed to growing financial stress among producers, while others have warned of the potential for broader instability if conditions do not improve.

The USDA’s February report, which incorporated delayed data due to a prior government shutdown, has made it more difficult for economists to fully assess the pace and depth of these challenges.

What This Means for Farm Operations

For many farm owners, the concern is not just this year’s numbers. It is what those numbers suggest about long-term stability.

When a larger share of income comes from external support rather than core operations, it becomes harder to plan with confidence. Cash flow, debt management, and future investment decisions all become more sensitive to factors outside of day-to-day operations.

This is where financial clarity becomes especially important. Understanding how your operation performs both with and without government support can provide a more complete view of risk.

Moving Forward With a Clearer View

Agriculture has always faced cycles, but the current environment is a reminder that strong production alone does not guarantee strong financial results. A record harvest can still lead to tighter margins when prices are under pressure.

At DBC, we work with agricultural businesses to help bring clarity to these situations. By focusing on cash flow, cost structure, and long-term planning, we help you make informed decisions in an environment that continues to shift.

To read the full article by P.J. Huffstutter visit US farm income set to fall in 2026 despite surge in government payments | Reuters

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kchrisman

Entries by Katie Chrisman

Labor Costs

Cost of Goods Sold

Occupancy and Fixed Costs

Technology and Systems

Marketing and Guest Acquisition

Bringing It All Together

Understanding the Board’s Financial Role

Key Elements of Strong Financial Oversight

Encouraging Financial Literacy Among Board Members

Building a Culture of Financial Stewardship

How DBC Can Help

Why Succession Planning Matters

Identifying Key Roles and Responsibilities

Steps to Develop a Strong Succession Plan

Maintaining Financial Continuity During Transitions

Building a Culture of Preparedness

How DBC Can Help

Start With Accurate Job Costing

Use Work-in-Progress Reports to Track Progress

Evaluate Project Assumptions Throughout the Job

Monitor Change Orders and Their Financial Impact

Compare Estimated Profit to Earned Profit

Use Historical Data to Improve Future Forecasts

Strengthen Communication Between Accounting and the Field

Building Confidence in Project Performance

Understanding Why Long-Term Projects Strain Cash Flow

Build a Cash Flow Forecast That Follows the Project

Strengthen Billing Practices

Monitor Work-in-Progress and Overbilling

Manage Material Purchases Strategically

Maintain Strong Communication With Subcontractors

Protect Cash Flow During Change Orders

Review Contract Terms Before the Project Begins

Bringing Stability to Long-Term Projects

Know Your Cash Cycle

Match Short-Term Needs with Short-Term Debt

Finance Long-Term Assets with Long-Term Debt

Protect Working Capital

Plan for Growth Carefully

Ongoing Review Is Essential

What Benchmarking Really Means

Why Year-Over-Year Comparisons Matter

Internal Benchmarks vs. Industry Benchmarks

Turning Data into Decisions

The Importance of Clean, Consistent Records

How DBC Supports Agricultural Clients

When the Plan No Longer Fits the Reality

Working With What You Can Control

Looking at the Numbers Differently

Having the Conversation Now, Not Later

Setting Expectations With Care

Planning With the Future in Mind

A Larger Share of Income Coming From Government Payments

Support Levels Not Seen Since Recent Disruptions

What Is Driving the Pressure

A Mixed Outlook Across Commodities

A Broader Concern Across the Industry

What This Means for Farm Operations

Moving Forward With a Clearer View

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