having enough cash to cover the needs of the farm business
is a common occurrence on many dairy farms. Without
sufficient cash to operate the business, productivity
can suffer, causing a downward spiral that becomes ever
more difficult to pull out of.
the problem exists:
Cash flow shortages can be categorized into two
broad areas: External Factors and Internal Factors.
External factors associated with cash flow problems
include low milk price
cycles or the high cost
of inputs such as energy, commodity feed
stuffs and interest rates. Internal factors include
poor operating efficiency,
low milk production, cow numbers that are not optimal,
or debt payments
that are improperly structured.
Dehm Associates, LLC can help:
Dairy Dashboard provides information and knowledge
to show producers how and where to look for improved
farm cash flow with reports such as Goal Performance,
and tools such as the Dairy
Advisory Team. The experts at Dehm Associates, LLC
can also determine if debt capital is adequate and if
repayment terms are structured properly for your type
of farm business.