January 10, 2019


We all know that lack of cash is a major cause of businesses struggling or ultimately business failure so we have come up with some ideas which could generate cash for a farming business.

1. Sell stock

Selling surplus livestock earlier than normal generates cash. Watch out that you are not selling the future business profits though.

2. Sell surplus plant and machinery

There are few farms that we visit that do not have some surplus plant and machinery in sheds or the corner of the yard. Why not take the opportunity to clear out old, and little used machinery.

3. Refinance plant and machinery

It is possible to refinance plant and machinery to generate cash. Make sure that the loan repayments are affordable.

4. Pensions

Once you reach 55 years old, it is possible to take up to one-quarter of a private pension as a cash lump sum. Be

warned though, this requires careful planning and advice from a financial adviser to avoid the many pitfalls.

5. Sell land or buildings

Selling land or buildings can generate significant cash. This can take a long time to sort out and often the bank will take a major share of the cash generated to reduce overall debt as they may have a charge over the asset. Watch out for capital gains tax on the sale of land and buildings too.

Clearly the sale of land and/or buildings requires careful planning. Cash is king, and businesses that manage their cash well will prosper. Making sure that you don’t run out of cash is not always easy, particularly with a seasonal business, but it is critical.


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