Successful farmers have regular budgets

Like every business, cash flow is critical to the agricultural sector, which is why Federated Farmers has teamed up with Westpac to host a series of free, nationwide seminars in October on cash flow management.

“For farmers, one of the most useful management tools is a timely cash flow forecast,” says Don Nicolson, Federated Farmers President.

“Although many farmers are currently focused on boosting on-farm productivity to overcome constrained margins, they must also place added emphasis on managing expenditure.

“Most farmers face high input costs over spring, when there’s little or no cash flowing into their business. In fact, many will have no significant income until October, when they are paid for the milk produced prior to September.

“The reality is that some farmers may struggle through these awkward times, but successful farmers plan ahead to ensure the long-term viability of their farming business.

“In order to flourish, farmers need to analyse financial information and learn how to apply that information to their business strategy. Considering farm debt has grown to about $45 billion dollars, practical debt management is also a key step towards securing the future of farming.

“That’s exactly why Federated Farmers has joined with Westpac and CRS Software to offer these free, two-hour seminars with a focus on financial management. They will provide farmers with the opportunity to learn how to use software developed specifically for cash flow management processes.

"Successful farmers recognise financial management and planning is the key to a prosperous business. To find out where an upcoming seminar is scheduled to take place in your area, please call 0800 327 646 (0800 FARMING) today.

"The seminars are completely free and open to both members and non-members of Federated Farmers," Mr Nicolson concluded.

The seminars aim to provide farmers and rural businesses with practical financial information that is both informative and stimulating. They cover key issues including:

· What our economists have to say about the current climate

· What can be done about this from a financial perspective

· Short-term cash flow planning and long-term financial sustainability

· Debt structuring and financial management

· How your bank can help you

· Software available to mange the cash flow process

Farmers are invited to register by calling 0800 327 646. For seminar locations and dates, please click here.

For further information, please contact:

Federated Farmers President, Don Nicolson, 03 216 7405, 027 226 6331