Farmers urged to keep close eye on cashflow over coming months
As farmers head into a busy period on farms across Ireland, Teagasc is encouraging them to keep a close eye on cashflow over the coming months.
Klara McGriskin, farm management specialist at Teagasc, said that with silage season, input costs, and loan repayments all putting pressure on finances, a "few simple checks now can help avoid stress later in the year".
McGriskin told Agriland there are five financial areas farmers should focus on right now.
Heavy spending period
Firstly, farmers must know where their cashflow stands.
"This can be a heavy spending period on many farms, with costs around fertiliser, contractors, diesel, and general running expenses," McGriskin explained.
"Looking at what money is due in and what bills are coming can help avoid surprises later in the summer."
Secondly, farmers should watch input spending.
"Feed, fertiliser, and diesel costs are still high," McGriskin continued.
"Shopping around, avoiding unnecessary purchases, and buying only what is needed can help protect margins."
Second-cut silage
Thirdly, farmers should budget for second-cut silage, McGriskin advised.
"Once first-cut is finished, farmers should start looking at the costs around second-cut, if it’s needed," she said.
"Fertiliser, contractor charges, and possible weather delays can quickly put pressure on cashflow.
"If unsure, completing a winter feed budget can help determine whether a second cut is necessary or if existing fodder stocks will be enough."
Fourthly, farmers should keep an eye on overdrafts and bills.
"This time of year can mean more money going out than coming in," McGriskin said.
"Monitoring overdrafts, merchant credit, and repayments is important to keep cashflow under control."
Cashflow check
Additionally, Teagasc is encouraging farmers to do a simple cashflow check - looking at expected income, upcoming bills, and whether there could be a shortfall.
"Spotting pressure early gives time to speak with an adviser, accountant, or bank before problems build," McGriskin said.
"Tracking your cash in and out can help you prioritise how to use your available cash or credit facilities to tackle the priority areas and manage your operating cash requirements.
"It will give you peace of mind that you can cover a bill when it arises."
