Fall 2026: Keep Some Financial Flexibility in Your Back Pocket
By Brenik Iverson, CPA
If you farm dryland wheat or irrigated row crops in the Northwest, you already know how valuable cash can be. Having solid working capital gives you room to move when a good lease comes up, a piece of ground becomes available, seasonal bills pile up, or weather and markets throw you a curveball. It can also keep you from having to borrow every time something unexpected happens.
Government agricultural program payments may have put some extra cash in the bank this year, and a few crops that have struggled lately are starting to look a little better. That creates an important question: What should you do with the money? Paying down term debt or buying equipment may make sense, but either choice can leave you with less cash heading into the next crop year.
Before you commit those dollars, think about keeping a reasonable “war chest” for the tougher years and the opportunities you cannot always see coming. Dryland wheat growers have to live with swings in yields and prices, while irrigated row-crop farms carry significant costs for inputs, labor, power, and water. A little more cash on hand can mean better negotiating power, fewer rushed financing decisions, and more freedom to stick with your long-term plan.
This is also a good time to talk with your accountant about 2026 tax planning instead of waiting until the end of the year. Depending on your situation, income averaging, timing crop sales, prepaying eligible inputs, and planning depreciation may help manage taxable income and avoid an unexpected jump in your tax bracket. If your 2025 return is finished, bring those numbers into the conversation. At Leffel, Otis & Warwick, P.S., we work alongside agricultural producers as proactive advisors, and we would be glad to visit about whether our approach is a good fit for your farm.