The longest day has passed for another year, though the memory of last Winter still lingers especially in farming families. The financial ramifications have focused many minds on their roles and responsibilities on the family farm and business. The lack of disposable income is evident in rural towns and on farm investment is under serious review. Dairy farms are somewhat protected by the monthly milk cheque but this is peak season which must support the dry months.
Financially constrained or strapped for cash it’s not a nice feeling. The external image may look as normal and the overdraft may be adjusted upwards to maintain lifestyle Autumn will come slowly followed by Winter.
It’s time to stop and reassess.
Look at the financial statements. What bills are outstanding, co-op, vets, contractors, merchants, the accountant and last years TAX bill must be paid this year. If there is family labour helping are they living on a promise?
Is income adequate to meet the demands and expenditure of the family home and farm? Prioritise take a few moments and stop. Look at the financial statement and take corrective action.
What must be paid, what reinvestment must be made to maintain the system as a going concern short term, medium and long-term. What can be deferred or what must be deferred.
Don’t ignore the financial position. It’s best to review the budget in the summer when the weather is warm, stock is thriving and feed is plentiful. Overall there are many positives.
Do you need to discuss the financial position with someone confidentially? If you feel isolated, ashamed or embarrassed. Asset rich and cash poor. Take action, review and reassess.
You won’t be the first nor the last. We can listen and explore all possible options.
Contact Succession Ireland today.
