Farm Ireland

Sunday 18 February 2018

Options available when cash is tight

Fintan Phelan

Where cash is tight on farms, the immediate priority is to minimise non-essential spending until such time as your cash income improves. The main areas to examine to try and bridge the gap between income and spending are outlined below.


1. Prioritise your essential living expenses.

2. Eliminate all non-essential expenditure, both on-farm and in your personal spending.

3. Reduce debt repayment. This can be done in three ways. The first is to restructure or consolidate several loans over a longer term or investigate interest-only options. However, you need to make sure that the interest rate is competitive. Next, you can investigate payment holidays on machinery lease payments. Finally, you can negotiate with merchants to avoid paying excessive interest charges on overdue accounts.

4. Review your policy payments. Look at your pension, life assurance and savings policies. Can the payments on these be reduced to a minimum?

5. Talk to your accountant now about your potential tax bill payable by October 31. Plan now to avoid another shock.

6. Involve all family members in your analysis and solutions where possible.

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1. Sale of trading stock. Target beef cattle, stores for sale or early sale of cull stock, particularly if you are tight for fodder;

2. Cash in policies/savings – but take advice from your broker and/or accountant on this;

3. Look at any potential off-farm income that can be used, from your husband or wife;

4. Sale of assets. This could be an option for farmers in the more extreme cases;

5. Look into availing of Farm Assist. Many farmers are already availing of this payment as a safety net. It may be an option where you have a number of dependant children.

Contact your local Social Welfare office for information.

Irish Independent