Farming is uncertain and often the best made plans can be impacted by unfavourable weather conditions, disease outbreaks, or even volatile Agri commodity markets. These can have major implications on profitability and the availability of cash. In good price years, it is important that cashflow is managed to build a cash reserve and to undertake necessary on-farm improvements.
In poor price years, cashflow must be managed to ensure that all essential bills are paid (including living expenses) and that no long term damage is done to the business due to a cash shortage.
Follow the attached 5 step plan to help manage cashflow on your farm.