Multi-generational family standing in front of their John Deere tractorFamily living expenses may not be one of the first line-items you think of when considering your farm’s budget, but it’s an important component that lenders look at closely when you’re securing operating financing, especially as it relates to your overall loan repayment capacity. One economist recommends breaking out your family living expenses and tracking them on a monthly basis, paying close attention to anything that could be considered either a family living or farm-related expenses. Also consider things like retirement contributions, medical expenses and insurance in getting a feel for your family living expenses and ways you could potentially streamline them. Keeping things separate can help you not just get a feel for ways you can keep expenses down, but also create a clear picture of the financial health of your farm business. See more.