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Positive Cash Flow Doesn't Equal Beef Production Profits

  Cash flow is just one part of the profit puzzle for beef producers.  

The idea that positive cash flow somehow implies profitability is plainly wrong. Cash flow gets a lot of prattle and positive press in agriculture. Most often it is considered a measure of liquidity. Perhaps more important it is a watermark for bankers because it shows, generally, that you will have the money to pay them what you owe when the payments are due.

However, a positive cash flow for your banker doesn't mean there will be anything left over for you.

"Bankers ultimately just want their money repaid. That's the world you live in," says Stan Bevers, Texas AgriLife economist.

To read the entire article, click here.


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