A Seeding Cash Plan for Grain Farms Near Regina

Start with the payments already committed

List the opening bank balance and each expected receipt by date. Separate a confirmed settlement from a grain sale still under discussion. Then list input invoices, land-related payments, equipment commitments, payroll and debt payments in the periods when they actually require cash. Include taxes and owner withdrawals where relevant.

Use the cash amounts expected to move through the account, including applicable taxes. A forecast based partly on pre-tax expenses and partly on tax-inclusive invoices can understate the funding requirement. Do not count an anticipated tax refund as available money without making its amount and timing explicit assumptions.

Worked example: the receipt misses the busy month

Illustrative example: a regional grain farm begins April with $48,000. It expects a $34,500 grain settlement and schedules $39,000 for inputs, $18,500 for other operating payments and $12,000 for equipment debt. Expected payments total $69,500, producing closing cash of $13,000.

If the settlement moves into May, April closing cash becomes negative $21,500. The difference is timing, even though the same grain revenue remains expected. If the owner also wants a $10,000 minimum operating buffer, the delayed-receipt case requires $31,500 of additional cash or rescheduled payments. A credit limit should appear separately, subject to the lender confirming availability.

Choose actions tied to the actual gap

The owner can confirm the settlement date, review purchase delivery timing and approach the lender with a defined period and amount. Each action needs a person responsible and a date for an answer. Simply reducing every expense by an arbitrary percentage may conceal a payment that cannot move.

After the first period, replace forecasts with actual cash movements and explain the differences. A revised supplier invoice or weather-related delay can be incorporated while the next decision is still open.

Bring a useful record package

The seasonal cash tool on this site can help test the arithmetic. Keep its assumptions with the underlying records; it does not decide a farm’s income-tax reporting method or the separate timing of GST obligations.

• Current bank and financing statements, with confirmed available facilities.
• Grain contracts, delivery and settlement information, with expected payment dates.
• Supplier commitments and equipment schedules grouped by payment period.
• A delayed-receipt case and a chosen minimum cash buffer.

Put this into practice

• Seasonal cash-flow bookkeeping →
• Read the settlement records →
• Regional grain-farm bookkeeping →