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Dairy Business Farm Planning

Stage 3.3: stage3_3 (53KB, Word)

Look at the extra money to be generated and the extra expenses to be incurred. What do you think? Are your planned changes worthwhile?

In addition to the net position identified you need to take into account:

  • taxation;
  • labour and workload;
  • changes in stock numbers;
  • net worth changes; and
  • when loan repayments will finish.

While a partial budget can give you an indication of the financial viability of your proposal, it is strongly recommended that you complete a full financial plan for your proposal. This will take into account such items as taxation, inventory changes, net worth changes and loan repayment schedules and more fully evaluate your proposal as well as showing the peaks and troughs of cash flow over a six-year period.

You should contact your Teagasc Adviser/ private consultant to get a full financial plan (annual cash flow, Profit and Loss and Balance Sheet for six years) prepared to fully examine the financial viability of your proposed plan. Alternatively you could purchase financial planning software yourself and complete your own financial plan. It is likely that your bank/ financial institution will request such a document if you are seeking finance for your plans.

>> Go to Stage 3.4