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2018 provided many challenges to the dairy industry. The late turnout of cows caused by the beast from the east followed by a cold spring resulted in slow grass growth which would have been vital to survive what was the hottest and driest May – July period on record.

The industry experienced poor silage yields and subsequently a reduction in milk production, leading to cows being dried off early and winter rations being fed prematurely.  As a result feed stock prices rose as the demand increased.

These challenges proved the importance of forward planning when faced with rising input costs and lower production/income which may have not been budgeted for.  We have worked closely with a number of our clients and their bank managers, ensuring farming practices can continue during difficult situations. By providing up to date budget to actual monitoring and cash flows, it enables businesses to monitor these increased costs, providing information to banks in some cases to provide temporary extended overdrafts.  It is vital to maintain a relationship with your bank in case further funding is required.  Professional quality support can certainly help with this.

At Brown&Co, our agricultural business consultants specialise in a bespoke budgeting and cash flow service working closely with both our farming clients and their professional contacts.