Investing and financing on the farm - working capital considerations

Abstract

The modern farm faces many challenges in the current economy where finance and commodity markets have had a number of protective and restrictive regulations removed. More than ever modern farmers need to have effective financial management policies in place to ensure that their investing and financing practices enable them to deal with uncertainty and, at the same time, to position their operations to maximise the market value of their farming business. The following discussion on working capital management provides a number of basic observations from financial management on investing and financing practices. These can assist in dealing with the volatilities of markets and can contribute to the prof it seeking goals of the farm enterprise.