Farmers may have to close cheque books

Dairy farmers that have targeted spending restrictions, prepared a cash flow budget for the year ahead, and are committed to on-going cash flow monitoring during 2015, are taking the right steps towards insulating themselves against the worst that 2015 can bring, say Teagasc advisers.

“Where cash flow comes under pressure, review and prioritise spending. Current spending should be focused on those expenses that provide an immediate rather than a long-term return.

“Be careful on how you fund capital investments, capital investments should not be funded from the current account,” said Teagasc Financial Management Specialist Kevin Connolly.