This week, James McDonnell gives advice on the steps farmers should take to establish the cash flow situation on their farm and address cash deficits where they arise.

James highlighted the impact of the many weather events this year on farm finances and the great need to take stock of the current situation.

His advice is act early, be realistic with expected income and expenditure, consult with your advisor and/or accountant and decide on a course of action to get you from now until the spring.

James explains the first step is completing the ‘5-minute cash flow’ (link below), taking into account your bank balance today, expected income in the form of milk sales, cull cow sales and the sale of any surplus young stock on farms end expenditure including living expenses, merchant, vet, contractor, loan repayments and tax.

For more information:

https://www.teagasc.ie/media/website/publications/2018/Cash-Flow-and-Financial-Management-on-Dairy-Farms.pdf