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Now is a good time to write your budget (Rural Delivery)

Creating a budget for your farming operation may seem like a daunting task but now farmers have the perfect opportunity to give this some serious thought, by now they have a good  idea of what their income and expenditure had been for the season, plus they have a bit of time before calving begins

Examining your historical data will show you which areas in your farm are generating the most profit and which areas need attention. With this information you can make budget decisions.

Having a budget could make a big difference in the profitability of your farming operation and it increases your confidence with decision making throughout the year ahead, giving you a feeling of being in control of all the expenses.

Separate budgets for feed and fertiliser budgets are a good idea, the two biggest expenses and ones that farmers had an element of control over.

Budgets should be shared with people key to your business such as banks and farm adviser

Creating and following a budget helps with those large purchasing decisions such as buying new equipment, feed, more stock, a new farm, or paying off debt. The budget allows decision to be made on actual business need rather than emotional wants and will take into account every aspect of your farming operation.

 

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