Top five tips to perk up your short term finances

Published October 11th, 2016

With profits across most agricultural sectors looking rather thin, farmers need to plan ahead to avoid major cash flow problems in the coming months. Charlotte Rogerson at Berrys offers some tips to help keep your finances in order during the challenging times ahead.

1. Preparation

It is imperative to understand anticipated profitability and cashflow so draw up a financial forecast and highlight when budgets are negative so that you can take steps t extend overdraft or short term financing during the tricky times.

2. Cut back expenditure

Cut back on routine maintenance and repair costs where you can but not so far as to harm the business. Look at your farming methods and switch to lower cost systems, for example making better use of grass and forage to reduce bought-in feed usage. Can you reduce the amount of labour used on the farm?

3. Debt structure

Many existing debts on farms, taken out for investments in recent years of greater profitability, are perhaps structured over too short a term for the cashflow to stand. These need restructuring or reducing by releasing capital used in the business that does not deliver a return greater than the debt cost. You could also ask your loan provider to suspend repayments for while or for an interest free period.


4. Capital requirements

Keep unnecessary expenditure to a minimum but where capital is needed, perhaps for buying replacement stock or vital building projects, source it from the savings you have made from restructuring not from your overdraft. Shop around and get the best deals.

5. Rationalisation

Examine all costs carefully. Efficient farmers have streamlined their systems to improve the chance of future profitability. If an enterprise isn’t showing profit, consider getting rid of it until prices improve.

Charlotte Rogerson is based at the Shrewsbury office of Berrys on telephone 01743 290642 or contact Vicky Price at Hereford on 01544 598084 email

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More about Charlotte Rogerson

Chartered Surveyor
Tel: 01743 290642
Mobile: 07741 311587

Charlotte joined the Shrewsbury office in September 2014. From a farming background, Charlotte completed a BSc (Hons) degree in Rural Enterprise and Land Management at Harper Adams University College and qualified as a Rural Chartered Surveyor after obtaining relevant experience at Buccleuch Estates, Queensberry.

 Charlotte specialises in freehold property agency and acquisition (residential development land and farmland), valuations (for secured lending, inheritance tax, capital gains tax and for private clients), estate and property management, landlord and tenant matters under Housing Act 1988, Agricultural Holdings Act 1986 and Agricultural Tenancies Act 1995, Basic Payment Scheme and compensation work.