Why Every Farm Needs a Cashflow Forecast

Farming is full of uncertainty. From unpredictable weather to fluctuating commodity prices, there are plenty of factors that can impact your bottom line. That’s why a cashflow forecast isn’t just a “nice to have” — it’s a must-have for every rural business.

Here at Rural Chartered Accountants, we’re big believers in planning ahead. We don’t just look at what your books say from last year — we focus on what’s coming next. And when it comes to running a successful farming business, knowing where your cash is coming from (and going to) is one of the smartest things you can do.

What Is a Cashflow Forecast?

A cashflow forecast is a simple tool that projects how much money will flow in and out of your business over a set period — usually monthly or quarterly. It includes income (like milk payouts, crop sales, or livestock income) and expenses (such as wages, feed, repairs, fertiliser, and loan repayments).

When it’s done right, a forecast helps you answer crucial questions like:

  • Will I have enough cash to pay GST next month?

  • Can I afford that new tractor in spring?

  • Do I need to talk to the bank about a seasonal overdraft?

Why It Matters in Farming

Cashflow in a rural business is rarely smooth. Some months you’re flush, and others you’re scraping to cover costs. That’s especially true in seasonal businesses like dairying or horticulture.

A cashflow forecast helps you see those peaks and troughs coming. You can make better decisions about spending, plan for tax, and avoid stress during tight months.

It also helps with:

  • Bank conversations: Lenders love to see clear planning. A good forecast shows you’re in control.

  • Business confidence: You’ll sleep better at night knowing you’ve got a plan.

  • Investment planning: Thinking about expanding? A forecast will show if and when it’s possible.

How to Build One

You don’t need fancy software (although we can help with that). Here’s a simple way to start:

  1. Start with your income: Estimate monthly earnings based on past seasons, milk price forecasts, or confirmed contracts.

  2. List your expenses: Break it down month by month — wages, power, feed, vehicle costs, R&M, lease payments, etc.

  3. Factor in GST and loan repayments: Don’t get caught out by big lumps of cash going out unexpectedly.

  4. Keep it realistic: Overestimate costs, and be conservative with income.

  5. Update it regularly: A forecast should be a living document — not a one-off.

Need a Hand?

We get it — you didn’t get into farming to sit at a desk with spreadsheets. But that’s where we come in. At Rural Chartered Accountants, we work alongside our clients to build practical, seasonal cashflow forecasts that help them plan ahead with confidence.

We’ll tailor it to your farm, your season, and your goals — and we’ll talk it through in plain English.

If you’re ready to take the stress out of your financial planning, get in touch. Let’s forecast a better future together.

Back to News