Please wait...

How do you manage cash flow without anything resembling a steady paycheck?

Many people make the transition to farming from jobs where they received a steady paycheck. In operations such as vegetable farms, there are high expenses in spring but no income until mid-summer or fall. This can make it difficult to pay the bills!

Strategies:

  • Learn sound financial management. Training in financial management can help you plan ahead and use your money wisely. See the business planning and training resources above.
  • Obtain operating loans. Many farmers rely on loans to provide operating capital to make it through the season.
  • Consider starting a Community Supported Agriculture strategy. This marketing strategy addresses seasonal cash flow difficulties. Customers pay ahead and buy a "share" of produce in winter or early spring, and then pick up their food weekly throughout the growing season. Some innovative farmers are adapting this strategy for meats and other farm products.

Resources:

  • First Pioneer Farm Credit Offer operating capital, asset, and real estate loans for Massachusetts farmers. https://www.firstpioneer.com
  • Farm Service Agency FSA provides government loans for farmers who are unable to obtain credit from commercial lenders. FSA has targeted funds for loans to beginning farmers.  http://www.fsa.usda.gov/

 

Back to Questions.