Cashflow December 17, 2012 12:00 am A number of farm businesses may face cashflow issues in the New Year. As always, the best approach is to be aware that a problem exists (do a budget) and then farmers should talk to their lenders well in advance. If they go to banks with a well-prepared plan setting out why they need to increase facilities and by how much lenders are likely to be more sympathetic than if they receive a panic ‘phone call at the eleventh hour. The reasons for the possible cash crunch are numerous. Tax bills will become due in January which will often relate to more profitable years. The Single Payment which should have been received by many in December will be 8% lower than last year. For livestock producers it will be a very expensive winter in terms of feed costs. For arable producers the full effects of the 2012 harvest may finally become apparent as the ‘back-of-the-barn’ is reached.
