This implies that the operating note should not be used in making land and tractor payments. The operating loan should be paid off first and then installment payments should come out of the leftover money. What has happened in the past is that the operating note was used as a shock absorber against cash flow variations. People would take an operating note advance to help pay installment payments. Growth dollars' is the term for what is left over after all bills and all loan payments are made, and it provides a reserve, an excess capacity to repay debt.
Some tough choices have to be made.
The farmer must decide which installment lenders to pay and which to negotiate with. An unhappy installment lender may place one tractor or parcel of land in jeopardy, but an unhappy operating lender can shut down the entire operation. A brief update from North East PA lab. No shortage of rainfall in Oct., as we registered 1.64 inches in the first week of the month. Dry conditions through Wednesday, with rain returning on Thursday.