Managing and forecasting cash flow is essential for any business. For farmers it’s particularly important given the highly variable income that comes with seasonal conditions, market fluctuations and unforeseen circumstances such as fire or floods.
Agriculture Victoria Livestock Extension Officer Greg Ferrier said being prepared, both on the farm and on the books, will assist farmers when it comes to managing challenging situations.
“For individual farm businesses, financial forecasting is equally important as seasonal forecasting in terms of being prepared as best a producer can be to manage changing markets, seasonal conditions or the impact of floods or fires,” Mr Ferrier said.
“Having good cash flow management will also allow farmers to take advantage of the opportunities, good seasons and good markets provide when they arrive.”
Now all farmers can improve their cash flow management skills with Agriculture Victoria and AgBiz Assist’s Farm Cash Flow 101, a free two-session course designed in conjunction with farm business specialists to help farmers understand cash flow budgets, and develop confidence using spreadsheets for cash flow management.
Using case study figures from a farming operation, farm business specialist Jim Moll, from AgBiz Assist, will illustrate how to develop a simple cash flow budget to manage income and expenditure over the next 12 months.
Once mastered, these simple Excel® spreadsheets can be adapted to a number of farm businesses and become an integral part of financial planning and management, revised regularly to reflect current circumstances.
“This course will provide farmers with a straightforward approach to cash flow budgeting on a spreadsheet that can be adapted to a range of farm businesses depending on the individual’s needs,” Mr Ferrier said. “The aim is to start to build confidence to use spread sheets to manage projected and actual farm cash flows so it as an ongoing process, not just as a one-off exercise.”
The course will run on Monday 26 October 2020 and Wednesday 28 October 2020, from 11am to noon.
- Monday, 26 October 2020 11am-noon: Introduction to cash flow budgeting, spreadsheet basics, and why cash flow budgets are important and how they assist farm business
- Wednesday, 28 October 2020 11am-noon: Refining the spreadsheet, and adapting cash flow budgets to different production systems
To register visit farm-cash-flow-budgets.eventbrite.com.au
Source: Agriculture Victoria