Arnett CPA / Arnett Crop Insurance

10/28/2026

THE CROP IS COMING IN. IS YOUR BALANCE SHEET READY?

Kentucky farmers have harvested 91% of their corn and 73% of their soybeans, according to USDA's latest Crop Progress report.

With harvest nearing completion, it's time to start turning production results into a financial plan for 2027.

Before meeting with your lender:

✓ Reconcile actual harvested bushels
✓ Separate sold, contracted, and unpriced grain
✓ Update actual cost per bushel
✓ Forecast remaining grain receipts
✓ Review operating-line and equipment debt
✓ Account for unpaid input expenses
✓ Project December 31 working capital
✓ Prepare a realistic 2027 operating budget

A successful harvest doesn't automatically mean a stronger balance sheet.

The important question is how much liquidity remains after paying operating expenses, servicing debt, and preparing for the next crop.

Your lender needs more than a yield report. They need a financial plan.

Turn harvest results into financial decisions.

Fractional CFO for Farmers.

10/20/2026

**USDA ANNOUNCES $8 BILLION IN HARVEST FUEL RELIEF.**

USDA announced a new $8 billion Harvest Fuel Relief (HFR) Program to provide financial assistance to farmers facing higher input costs and market disruptions during the 2026 crop year.

Here's what we know:

✓ One-time payments will be administered through FSA.

✓ Payments will be calculated using reported planted acres, USDA cost-of-production estimates, and national yield and price data.

✓ Commodity-specific payment rates for major program crops are expected in November.

✓ Crop insurance coverage is NOT required to participate.

✓ USDA encourages producers to establish a Login . gov account linked to USDA ahead of the application period.

**What does this mean for your farm?**

The program could provide additional cash-flow support at a time when high fuel costs and tight operating margins are pressuring working capital.

However, individual payment amounts and application dates have not yet been announced.

From a financial planning standpoint, don't commit funds before you know what your operation will actually receive.

Once payment rates are available, incorporate the estimated proceeds into your cash-flow forecast, operating-line repayment plan, and year-end tax projections.

**Additional assistance creates an opportunity. Financial planning determines how that opportunity is used.**

Fractional CFO for Farmers.

USDA announcement:

https://www.usda.gov/about-usda/news/press-releases/2026/10/19/trump-administration-announces-8-billion-harvest-fuel-relief-program

10/14/2026

HARVEST IS MOVING. IS YOUR CASH?
Kentucky farmers have harvested:
80% of corn
53% of soybeans
That's considerable progress in the field.
But here's an important question:
How much of that production has actually turned into cash?
Harvested grain isn't necessarily sold grain.
Sold grain isn't necessarily collected revenue.
And collected revenue isn't necessarily available working capital.
As harvest advances, update these numbers:
✓ Total bushels harvested
✓ Grain sold, stored, and unpriced
✓ Expected grain receipts
✓ Remaining harvest expenses
✓ Operating-line balance
✓ Supplier and equipment obligations
✓ Projected year-end working capital
Then compare actual results against the original cash-flow forecast.
The objective isn't simply finishing harvest with full bins.
It's finishing the year with a clear understanding of liquidity and the financial resources available for the next crop.
Bushels create revenue. Cash creates options.
Fractional CFO for Farmers.

10/08/2026

Worth knowing for harvest season: Gov. Beshear signed an emergency order allowing Kentucky farmers and truckers to use dyed diesel on public roads starting today, October 8. No road tax on that fuel — which means lower operating costs for every load hauled and every hour of field time between now and year-end.

The order is tied to the ongoing situation in Iran and expires December 31, 2026, or when that situation ends — whichever is sooner.

If you're tracking your cost of production this harvest, this is a line item worth updating. Questions about how in-season developments like this affect your operation's financial picture — that's exactly what Farm CFO is here for.

Step builds on the Governor's efforts since May to provide relief to Kentuckians amid rising costs due to ongoing war and federal policies

10/07/2026

SLOWER HARVEST. HIGHER FUEL. UPDATE THE CASH FLOW.

USDA says harvest is running behind the normal pace:

Corn — 23% harvested vs. 27% average
Soybeans — 25% harvested vs. 33% average

At the same time, diesel remains above $6/gallon.

Those two things affect the farm differently.

A delayed harvest changes timing.

Expensive fuel changes cost.

Your cash-flow forecast should reflect both.

Use this week to update:

Actual yield + acres remaining
Fuel, drying and freight
Cost per bushel
Timing of harvest receipts
Operating-line payoff
Year-end working capital

Then take the updated forecast into the lender conversation.

Instead of saying:

“Harvest is running a little late.”

Be able to say:

“Here is what the delay and higher costs do to October and November cash flow, our operating-line balance and year-end working capital.”

That's a much better financial conversation.

Actual numbers. Updated forecast. Better decisions.

Fractional CFO for Farmers.

09/02/2026

CROP RATINGS ARE BECOMING BUSHELS.

USDA says 62% of the corn crop is dented and 13% is mature. Soybeans are 95% setting pods, with leaf drop already underway.

We’re reaching the point where the farm’s financial plan should start replacing spring budget assumptions with actual field evidence.

Before harvest, update:

Realistic yield expectations
Cost of production per bushel
Priced and unpriced bushels
Expected harvest receipts
Drying and storage costs
Operating-line payoff
Fall debt payments
Year-end working capital

A 10-bushel change in yield doesn’t just change production.

It changes cost per bushel, available inventory, cash flow, debt repayment capacity and the number of bushels available to market.

The closer we get to harvest, the less valuable the original budget becomes—and the more valuable an updated forecast becomes.

Fractional CFO for Farmers.

08/31/2026

THE MARKET RALLIED. DID YOUR MARGIN?

Corn, soybeans and wheat have all given grain farmers something they haven't had enough of lately:

Better pricing opportunities.

But a higher futures price doesn't automatically mean a profitable sale.

Before deciding what to do with the rally, update:

Current cash bids and basis
Expected yield
Cost of production per bushel
Bushels already priced
Bushels remaining exposed
Harvest cash-flow requirements
Operating-line payoff target
Year-end working capital

Then calculate the actual margin available today.

If the market has improved your expected return by $30, $50 or $75 per acre, decide how much of that improvement you're willing to put back at risk waiting for another rally.

Prices move daily. Margins are what matter.

Stay informed. Make confident decisions.

08/28/2026

SEPTEMBER 30 IS CLOSER THAN IT FEELS.

For Illinois grain farmers, the upcoming crop-insurance discussion should include two separate decisions:

Winter wheat MPCI coverage
MCO for eligible corn and soybean acres

These are not just insurance decisions. They are financial-risk decisions.

Before the September 30 deadline, review:

Wheat acres intended for fall planting
APH and coverage level options
Enterprise/unit structure
Revenue protection needs
Cost of production
Working capital exposure
Operating debt
Whether MCO fits eligible corn and soybean acres
How coverage coordinates with the grain marketing plan

MCO is designed to provide area-based protection against a decline in operating margin, and it is available for corn and soybeans in select Illinois counties.

The question is not simply, “What does coverage cost?”

The better question is:

How much loss can the farm’s balance sheet afford to absorb?

Arnett CPA looks at that question from the financial side. When crop insurance fits the conversation, Arnett Crop Insurance can help evaluate the coverage side.

Plan Smarter. Protect More. Harvest Peace of Mind.

08/27/2026

YIELD ISN’T CASH FLOW.

By late August, yield expectations are getting clearer. Now those estimates need to make their way into the financial plan.

Before harvest, update:

Realistic yield by field and crop
Cost of production per bushel
Expected harvest receipts
Grain already priced vs. unpriced
Operating-line balance
Fall principal and interest payments
Cash rent and input commitments
Projected year-end working capital

Then run the numbers at more than one yield and price scenario.

A good yield can lower cost per bushel and improve cash flow. But if additional revenue is immediately absorbed by the operating line, debt service, rent and next year’s inputs, the farm may have less financial flexibility than the income statement suggests.

Turn the crop estimate into a cash plan before the combines roll.

08/24/2026

THE MARKET MOVED. DID YOUR MARGIN?

Grain prices moved last week, and USDA’s Crop Progress report is due out this afternoon.

That makes today a good day to step back and update the numbers before making another sale.

Review:

Expected production
Cost of production per bushel
Current cash bid and basis
Percentage of crop already priced
Harvest cash-flow needs
Operating-line balance
Working capital after harvest

The question is not just, “Will the market go higher?”

The better question is:

Does today’s price produce a margin that improves my farm’s financial position?

Prices move daily. Margins are what matter.

Stay informed. Make confident decisions.