Benefits of a budget for your farm
A budget helps you gain control of your finances and gives you the tools needed to project future cashflow and helps manage your assets and liabilities. By having a budget you and the bank can plan to make sure your overdraft facility is adequate.
It’s a good idea to have separate feed and fertiliser budgets.
Feed costs increased across the board last year and fertiliser costs went up by 16 per cent. These expenses need managing.
Also make sure your budget allows for your personal drawings. Again it’s a good idea to have a separate budget for your personal spending.