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Entries by Katie Chrisman

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 …

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 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 
  1. 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. 
  2. 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.
  3. 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. 
  4. 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. 
  5. 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.
  6. 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. 

 

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 …

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 margins are already weakened. 

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. 

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 …

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 flow is not monitored closely. 

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. 

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.

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.

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 …

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 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 

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 …

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 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 

Farmland Lease Checklist: 10 Essential Elements Every Agreement Should Include 

A farmland lease is more than a document. It sets the tone for the working relationship between a landowner and a farmer. When expectations are clear from the start, it becomes much easier to avoid misunderstandings later on.  Some leases are built on long-standing relationships and trust. That foundation matters, but even the strongest relationships benefit from …

A farmland lease is more than a document. It sets the tone for the working relationship between a landowner and a farmer. When expectations are clear from the start, it becomes much easier to avoid misunderstandings later on. 

Some leases are built on long-standing relationships and trust. That foundation matters, but even the strongest relationships benefit from clarity. A well-structured lease helps both parties understand their responsibilities and protects the future of the land. 

Whether you are creating a lease for the first time or revisiting one that has been in place for years, there are several core elements worth reviewing.

1. Put the Agreement in Writing

Verbal agreements still exist in agriculture, but they often lead to problems. Many disputes can be traced back to details that were never clearly documented. 

Putting the agreement in writing is not about mistrust. It is about preserving the relationship by making sure everyone is aligned from the beginning.

2. Use the Correct Legal Names and Property Description

A lease should clearly identify who is involved. That means using full legal names for both the landowner and the tenant, especially when entities such as LLCs or corporations are involved. 

It is just as important to describe the land accurately. Including parcel numbers, acreage, and location ensures there is no confusion about what is being leased.

3. Clearly Define the Lease Term

Every lease should outline when it begins and when it ends. It should also explain whether the agreement renews automatically and what notice is required if either party decides not to continue. 

State laws may influence these timelines, so it is important to make sure the lease aligns with those requirements.

4. Be Specific About Rent and Payment Terms

Rent should be clearly defined. Whether the agreement is based on cash rent, crop share, or a hybrid approach, both parties should understand how payments are calculated and when they are due. 

It is also helpful to clarify how government payments are handled and what happens if the land is enrolled in a conservation program.

5. Outline Operator Responsibilities

The lease should explain what is expected from the tenant. This typically includes maintaining the land, following appropriate farming practices, and complying with state and federal regulations. 

It may also address how soil conditions and inputs are managed throughout the lease term.

6. Define Landowner Responsibilities

A strong lease works both ways. Landowners may have responsibilities such as disclosing known issues on the property or supporting improvements like drainage or conservation practices. 

Clear expectations on both sides help prevent future disagreements.

7. Address Fertilizer and Input Costs

Input costs can create confusion if they are not clearly outlined. The lease should explain who is responsible for different types of fertilizer and how those costs are shared. 

Agreeing on this structure in advance helps avoid issues during the growing season.

8. Include Insurance Requirements

Risk is part of farming, and a lease should address how that risk is managed. Both the landowner and the tenant should maintain appropriate liability coverage. 

Clear insurance requirements help protect everyone involved if an accident occurs on the property.

9. Include Hold-Harmless and Indemnity Provisions

Leases often include provisions that limit liability and define how responsibility is handled if something goes wrong. Hold-harmless and indemnity clauses help protect both parties when used appropriately. 

These sections may feel technical, but they play an important role in managing risk.

10. Plan for the End of the Lease

It is just as important to define how a lease ends as it is to define how it begins. The agreement should explain what happens when the lease term expires, including access to the property, harvest rights, and transition to a new tenant if needed. 

It may also address subleasing and how ownership changes could affect the agreement. 

Building a Stronger Foundation 

A well-crafted lease creates clarity, reduces uncertainty, and supports a stronger working relationship. It allows both parties to focus on the operation rather than worrying about what was or was not agreed upon. 

At DBC, we work with agricultural businesses and landowners to bring clarity to these types of agreements. With the right structure in place, you can move forward with greater confidence and fewer surprises. 

To read the full article by Cassidy Walter and Shawn Williamson visit https://www.agriculture.com/farmland-lease-checklist-10-essential-elements-every-lease-agreement-should-include-11746678 

Employee Spotlight: Trinity Kuipers

Since joining De Boer, Baumann & Company in 2026, Trinity Kuipers has brought curiosity, energy, and a thoughtful perspective to her role as a Staff Accountant. She enjoys understanding the story behind the numbers and the way financial insights can reveal challenges, highlight opportunities, and support better business decisions.Trinity earned her Bachelor’s degree in …

Since joining De Boer, Baumann & Company in 2026, Trinity Kuipers has brought curiosity, energy, and a thoughtful perspective to her role as a Staff Accountant. She enjoys understanding the story behind the numbers and the way financial insights can reveal challenges, highlight opportunities, and support better business decisions.

Trinity earned her Bachelor’s degree in Accounting from Davenport University. Her interest in accounting grew from firsthand experience running her own small business, where she saw how critical accurate financial information is to the daily operations and long-term success of a company. That experience continues to shape how she approaches her work today, giving her a practical perspective on the value that clear financial insight can provide to business owners.

Trinity grew up in Zeeland with her parents and two sisters and now lives on the north side of Holland with her husband. Being close to family is something she values deeply, and she enjoys the strong sense of community that comes with living and working in West Michigan.

Outside of her role at the firm, Trinity has a strong entrepreneurial spirit. During the summer months, she runs an ice cream shop with her sisters, a business she has proudly owned for eight years. Managing the shop has given her valuable experience working directly with customers, leading a team, and navigating the day-to-day realities of running a business.

Travel is another passion of Trinity’s. She enjoys exploring new places and cultures and has traveled throughout Europe, Africa, and Central America. These experiences have given her a broader perspective and a deeper appreciation for the people and communities she encounters along the way.

Trinity’s curiosity, work ethic, and entrepreneurial mindset make her a great addition to the team. We are excited to have her at DBC and look forward to seeing the impact she will continue to make.

Grant Management and Financial Reporting Best Practices 

Grants are an important funding source for many not-for-profit organizations. They allow organizations to expand programs, serve more people, and strengthen their community impact. Managing grant funds, however, requires careful oversight. It calls for transparency, accountability, and accurate financial reporting. Clear grant-management processes help ensure funds are used appropriately, compliance requirements are met, and funder trust is maintained. Why Strong Grant …

Grants are an important funding source for many not-for-profit organizations. They allow organizations to expand programs, serve more people, and strengthen their community impact. Managing grant funds, however, requires careful oversight. It calls for transparency, accountability, and accurate financial reporting. 

Clear grant-management processes help ensure funds are used appropriately, compliance requirements are met, and funder trust is maintained. 

Why Strong Grant Management Matters 

Every grant includes specific expectations. These may involve spending guidelines, reporting deadlines, or performance outcomes. A structured approach helps your organization meet those expectations while maintaining financial control and audit-readiness. 

Effective grant-management practices help organizations: 

  • Maximize the impact of awarded funds 
  • Reduce compliance risk 
  • Improve communication with funders and auditors 
  • Strengthen future funding opportunities 

Well-organized systems make it easier to demonstrate responsible stewardship. 

Core Elements of Effective Grant Management 

Develop clear policies and procedures 
Document how grants are applied for, approved, tracked, and reported. Written policies support consistency and year-end reporting accuracy. 

Assign clear responsibility 
Designate a grant manager or defined team. Clear ownership improves coordination between program staff and finance staff. 

Track each grant separately 
Maintain distinct budgets within your accounting system. Use classes, projects, or cost-centers to prevent overlap and improve reporting clarity. 

Monitor spending regularly 
Compare actual expenses to approved budgets throughout the grant period. Early review reduces last-minute adjustments and reporting issues. 

Maintain thorough documentation 
Keep organized records of invoices, payroll allocations, and supporting documentation. Clear records simplify audit preparation and strengthen internal controls. 

Financial Reporting Considerations 

Accurate reporting supports compliance and reinforces credibility. 

Reconcile consistently 
Financial reports should align with your accounting records and approved grant budgets. Regular reconciliations reduce errors. 

Distinguish restricted and unrestricted funds 
Clear classification ensures compliance with donor intent and improves financial transparency. 

Align program results with financial data 
Spending should directly support the funded initiative. Ongoing communication between departments supports accurate reporting. 

Conduct internal reviews 
A structured pre-submission review helps identify inconsistencies and ensures clarity before reports are submitted. 

Supporting Long-Term Stability 

Strong grant-management practices do more than satisfy compliance requirements. They support long-term sustainability. When financial processes are clear and well-documented, organizations are better positioned for future funding and continued mission growth. 

How DBC Can Help 

DBC serves as a trusted advisor to not-for-profit organizations seeking stronger grant-management systems, clearer financial reporting, and greater audit-readiness. If your organization is preparing for growth, new funding, or increased oversight, this is a good time to evaluate your current processes.  

Reach out to the DBC team to discuss how your current systems are supporting compliance, reporting, and long-term stability. A thoughtful review today can help strengthen the financial foundation that sustains your mission tomorrow. 

About us

De Boer, Baumann & Company provides professional accounting, tax, and business advisory services to individuals and businesses in West Michigan and the surrounding areas. With expertise in a variety of industries, DBC specializes in comprehensive and innovative solutions to help clients achieve their financial goals.