The importance of cash flow planning as a vital business tool, that all farmers should engage in, has been highlighted by Teagasc.
The state agency advises farmers to follow the A, B, C of cash flow management:
- A – Act early – talk to your financial institution;
- B – Be realistic when completing your cash flow and;
- C – Consult – your Teagasc advisor, accountant, can help.
Minister for Agriculture, Food and the Marine, Michael Creed TD, said: “Covid has placed many businesses under financial pressure. In the farming sector, this is equally the case, therefore, management of cash flow is critical for farmers.”
“Teagasc have developed snapshot tools to help you manage cash flow and I would advise you to contact your Teagasc advisor to help you in this matter.”
Take control of your business
Fintan Phelan, head of farm management and rural development at Teagasc, said: “Being able to complete a cash flow plan for your farm is a good management practice that will enable you to take control of your business.”
On Teagasc website’ there are individual documents available to download depending on your farm enterprise, titled cash flow & financial management of dairy, drystock and tillage farms that incorporate the 5-minute cash flow document and guidance for when cash is tight – see here.
The Teagasc ‘Let’s Talk Dairy’ webinar, which will take place at 10.30 am tomorrow, (Thursday, June 18th) will focus on financial management on dairy farms.
The dairy farm financial outlook and management advice for 2020 webinar will feature Tadgh Buckley from AIB and dairy farmer, Mike Bermingham, with Stuart Childs and Fintan Phelan, Teagasc.
Over the coming months, Teagasc will have webinars, videos, and articles to help farmers manage this year.
Fintan Phelan is encouraging farmers to use resources available on Teagasc’s website, and to contact their Teagasc advisor to talk through options for their own business.