Cash flow plan most important job for farmers right now

By Stephen Cadogan

Thursday, December 10, 2009

EVEN efficient farmers face temporary 2009 cash flow problems and need help to overcome these difficulties, according to Teagasc financial specialist Dr Tom Kelly.

A second category needing assistance has also emerged from the Teagasc financial health check launched in March.

They are more heavily borrowed, with low profit and inadequate repayment capacity.

Dr Kelly said: "In both situations, the cash flow budget is critical, and will help to minimise the cost of financing the business, and avoid the risk of extending credit beyond agreed limits."

He said planning their 2010 cash flow is the most important job farmers should do in December.

"Farmers need to prepare a budget for the next 12 months detailing the main flows of cash into and out of the farm business. All costs must be controlled, including family living expenses and debt repayments.

The Teagasc Authority has reiterated its support for the organisation’s campaign to assist farmers who are experiencing income and financial difficulties.

This story appeared in the printed version of the Irish Examiner Thursday, December 10, 2009