Managing cash flow throughout the year is a balancing act. As the 2018 winter cropping season begins, growers may have already spent money on seed, seed treatments, pre-emergent herbicides, back loading fertiliser, and stocking up on mouse bait.
BCG extension officer, Jemma Pearl, recently met with Agfarm’s regional manager for Victoria and South Australia James Ryssenbeek to discuss cash flow tips for the 2018 season and how alternative forms of cash flow can assist farming businesses.
Managing cash flow effectively can allow growers to capitalise on opportunities when they arise.
Mr Ryssenbeek explained that there were efficiencies in effectively managing your cash flow and understanding what alternate forms of finance are available to you.
“You don’t necessarily budget for all events. So, if you have multiple lines of finance you might find that alternative forms of finance offered through a nonbank, might be quicker and actually easier to get organised in a timeframe that allows you to get access to that event.”
Regularly people only talk about and discuss cash flow when things are tight, but this doesn’t have to be the case.
“Cash flow strain affects everything. One is just in a practical sense: you just can’t afford to do it,” Mr Ryssenbeek explained. “The other is the mental strain of managing cash flow, it eats into people’s pride and eats into people’s ability to concentrate on what they are doing when they owe people money,” he added.
The good news is growers and the industry are increasingly seeking changes in how they are accessing finance that may not fit the traditional moulds which were typically accessed through the banks.
The podcast ‘BCG in Focus – cash flow, autumn 2018’ can be listened to on Soundcloud or iTunes and listened to at your leisure.
BCG is proud to present this podcast along with Agfarm as part of our ongoing partnership to provide growers with relevant and informative information.
https://soundcloud.com/bcg-birchip/bcg-in-focus-cash-flow-autumn-2018
