Working Capital and Cash Flow Tools to Improve Farm Business Performance

Working Capital and Cash Flow Tools to Improve Farm Business Performance by Matt Stockton The point of this short essay is to briefly review the need and purpose of both tools, hoping that such a review will help farm managers and operators use them to reach their higher potential and improve their businesses and lives. Working capital represents the businesses’ ability to deal with short-term conditions and its resilience conferred upon it as a result of past performance in accumulating liquid assets. The cash flow document provides the ebb and flow of liquid assets during the normal cycle of doing business, providing recognizable events, plans that can be scrutinized, and identifiable challenges. These tools, when used properly, provide added information and control in making better production, management, and financial choices for any and all operations.