The Farm Finance Podcast: What you need to know about budgets and cashflow

In this episode of Agriland’s new Farm Finance Podcast limited series Francess McDonnell sits down with Tom McWey, head of marketing and business development at St. Canice’s Credit Union, to chat about why planning is the key to keeping cash flowing on your farm.

St. Canice’s Credit Union is one of the participating credit unions that offer Cultivate loans to its farming members.

This podcast digs into why it is vital that farm families grasp how important budgeting is when it comes to the day to day running of the farm.

Tom explains what farmers need to do to create the budget that works for them, from one week to the next and on a monthly, quarterly and yearly basis.

He believes the starting point -regardless of the size of your farm or your farm system – is to work out “what is going out the door and what is coming in”.

We chat about how farmers have to wait for income to flow in at different times of the year and how to balance the demands on that income at different times of the year and how you can have a good profit situation but a poor cashflow situation – and how farmers can help that.

Tom’s key advice is to “write it all down” – whether it is on the phone, on a sheet of paper, or on the laptop – start with the big ticket stuff and then work your way down, that way he says, as a farmer you know exactly where you are at all times.

In the podcast we also talk about why it is important to keep farm and personal outgoings separate and what should you be doing about the overdraft.

The information in the podcast is intended as a general guide only. While every care is taken to ensure accuracy of information provided, Agriland will not accept responsibility for errors or omission howsoever arising. You should seek professional advice in relation to your particular circumstances at the earliest possible time.