Plan finance around a farming season
Plan finance around a farming season
Match production spending, expected sales and repayment discussions to the farming calendar. Allow for the possibility that income arrives later or is lower.
Draw the calendar first
List preparation, inputs, labour, water or energy, harvesting, storage, transport and selling periods. Record when each cost must be paid and when buyers are likely to pay. Include household commitments that the same seasonal income must support.
Build the budget from realistic quantities
Use quotations and records for inputs, yields, losses, selling prices and transport. Separate confirmed orders from hoped-for sales. Note the assumptions you cannot yet support. Do not treat the best previous season as the only possible outcome.
Test delay and loss
Move the expected collection date later and reduce the sale value to reflect a plausible adverse case for your activity. Check the cash balance again. Consider water reliability, weather, pests, storage losses and buyer concentration. Ask an appropriate agricultural adviser about production risks.
Discuss the repayment structure before borrowing
Show the lender your calendar and forecast. Ask whether a suitable product and payment schedule are available; do not assume a grace period, harvest-linked payment or insurance cover. Check any collateral, insurance exclusions and what happens if a crop or buyer fails.
Put it into practice
Write the main spending date, earliest realistic collection date and one downside case. Take the calendar and quotations to the finance discussion.
Explore the next step
Take the next step with clarity
Lending is subject to eligibility, assessment and agreed terms. An enquiry is not a loan approval.