Use Full Budgets To Assess Grain Changes On Cashflow

This article is for grain growers who want to assess the impact of changing planned crop on their long term cash flow and budget.

1. Copy and rename the existing cropping worksheet set in your current full budget. e.g. copy “Grain 20-21" and name the copy “Grain 20-21 Increase Canola”. 

2. Open the copied worksheet set (i.e. Grain 20-21 Increase Canola). 

3. Change the area planted to Canola and adjust the other grains Ha planted accordingly 

4. Update your marketing options to reflect the change in tonnes grown and selling strategy 

   A. How you sell your Canola – e.g. pool, non-pool, hedging (cash, contract). 
   B. When to sell your Canola – e.g. forward sell, cash at harvest, store and sell later.
   
   C. Update your Sales Worksheets to reflect the changes in Selling strategy and Price 
   

   Pools have pool cost 

   Storage has infrastructure, handling, and interest cost
   
   6. Review all your updated quantity changes for Seed, Fertiliser & Chemicals (Note: If you already have canola in the worksheet, these quantities will update automatically for you. If you are adding Canola into the worksheets for the first time you will need to add the cost for seed, fertiliser & chemicals. 
   7. Run a NEW Input Schedule report so that you can update the quantities of inputs ordered with your suppliers 
   
   
   8. Run a NEW Gross margin report to analyse the changes in grain margins 

   Remember that the cost of each selling option will have a different cost structure, so ensure these costs are added to your new worksheets. e.g. 

5.  

Assess the impact on your budget

9. Once the worksheets are complete, you will want to know how this affects your budget. In the Change Budget Setup area, de-select your existing Grain 20-21 worksheet and select one of your new CANOLA INCREASE worksheets. 

10. Open the budget and review your cashflow and peak debt  

• How did the changes affect the main trading account in the Account Balances for each month's cashflow? 
• Have you gone over your working capital limit? 
• Are there other budget changes that may need to be made? 
• Will you need to contact the Bank to discuss a possible option?

• How did the changes affect the total sum for all accounts in the Total of Balances for each month's cashflow? 
• Have you gone over your working capital limit? 
• Are there other budget changes that may need to be made? 
• Will you need to contact the Bank to discuss a possible option? 

11. Do this as many times as you need to evaluate the best outcome for your business.