Cash Flow and Enterprise Analysis

​​​The Farm Center's financial analyst can perform a variety of cash flow and enterprise analyses. The analysis can be done as part of a feasibility study, expansion plan, or restructuring plan. The financial analyst can assist farmers in making difficult financial decisions using data provided by the farmer, his lenders, or gathered by Farm Center volunteers. Much of the analysis is based on 3 to 5 years of actual historical and current financial data.

The cash flow analysis can include help in preparing plans for mediation with FSA and other lenders. The Financial Analyst can also help with applications for new FSA and conventional farm loans.

Cash Flow Projections

The cash flow projection is often done after the cash flow and debt analysis, and as with these analysis, is done for a variety of reasons. The projection is usually done for a 3 to 5 year period in an attempt to provide a look into the future of the business. It also helps to make certain that any changes made to the operation during an expansion or restructuring will have positive results in the future. In most cases, several projections are done based on various price and production scenarios to be certain the plan is sound and all options are considered.

Cash flow projections include how debts will be paid in the future. It is critical to the long-range viability of the farm enterprise that enough cash is generated to service all debts, pr​ovide for capital replacement, and cover family living expenses.

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