Now is a better time than ever to start budgeting

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Now is a better time than ever to start budgeting
By Dina Veljanovska

As the COVID-19 pandemic spreads throughout the world, we are yet to fully understand what effect that this will have on the agriculture industry. However, one thing we do believe is that there’s no better time to start budgeting than now. 

We expect that over the next few months farmers will be under increased pressure to re-evaluate their immediate financial future while maintaining their current level of productivity, helping to ensure that our largest industry remains the backbone of the economy. With banks regularly requiring budgets, it’s important for farmers to get on top of their numbers, and set some goals for the year ahead. 

The additional uncertainty surrounding future commodity prices and meat processing capabilities are just another couple of additional factors to add the recent upheaval in regards agri lending and wide-spread drought. No matter what we believe the future holds, one thing we can’t argue with is, now, more than ever, is a most critical time to reduce our uncertainty, be proactive and forecast our businesses ability to weather these risks.

With government regulations around farming tightening across the globe, and the pandemic bringing another factor in the mix, this has brought pressure on many businesses and industries. However, people still need to eat. If our farmers run their business in a smart and considered way, they should be able navigate through the times ahead, and lead us through this unprecedented social and economic event.

We’ve seen our farmers face economic challenges before, and we’ve observed that those who did not have enough control over their finances, including plans which factored in shocks, struggled to manage through the volatility. However, we’ve also seen that those farmers who surround themselves with trusted experts are well equipped to manage the volatility. They are quick to respond to difficult situations, and most importantly, they are not alone in managing their businesses. Today’s socioeconomic climate is no different.

At Figured, we advocate for the importance of good financial planning and management. We know it’s important for farmers to have access to real-time accurate financial information, at any time, from any device. It’s also important to reach out to experts, such as accountants and advisors, to make informed decisions together. 

To help you get more on top of your budgets, we’re making our full financial planning platform and multi year scenario tool more accessible, so you can begin planning for the months and years ahead. Now is the time to reach out to your accountant, and ask them to help you create a financial plan which takes into account all eventualities. They have the tools to make it an efficient process, and will give you the confidence to carry on farming, in spite of the uncertainty we are all facing.