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Managing Cash Flow Before the 2025 Year End

As 2025 draws to a close, many UK farmers are reviewing their accounts, assessing how the year has gone, and preparing for the months ahead. It’s been another challenging year for the agricultural sector — with fluctuating input costs, rising energy prices, and unpredictable weather impacting yields and margins.

At Farmer Finance, we know that even the most successful farms can experience cash flow challenges. Whether it’s stocking up on feed, investing in machinery, or preparing for next season’s planting, keeping your finances balanced through winter is key to a strong start in 2026.

Why Cash Flow Tightens at Year End

Cash flow often becomes strained in late autumn and early winter because:

  • Income drops after harvest while regular expenses continue.
  • Fertiliser and feed costs rise before the new season.
  • Repairs and maintenance costs build up over winter downtime.
  • Loan or lease payments still need to be met, even when revenue slows.

Without careful planning, these pressures can lead to short-term borrowing or delayed supplier payments — both of which can add financial stress.

Five Ways to Strengthen Your Farm’s Cash Flow

1. Review your outgoings
Look at your major costs for the next six months — fuel, feed, maintenance, and equipment. Identify what can be delayed, negotiated, or financed.

2. Take advantage of end of year equipment offers
Many suppliers offer discounted machinery deals in late autumn. Financing a purchase now can help you secure better terms while spreading the cost into 2026.

3. Refinance existing assets
If you already own vehicles or equipment outright, refinancing them can release working capital to reinvest in your business or ease cash flow over the quieter months.

4. Match repayments to your farm’s income cycle
Flexible finance agreements allow for seasonal payments, aligning with harvest income rather than fixed monthly instalments.

5. Plan for early 2026
Use quieter winter months to prepare budgets and funding applications for the next growing season — getting ahead means fewer surprises later.

Finance Solutions That Can Help

Farmer Finance offers a range of options to keep your business running smoothly through winter:

  • Feed & Fertiliser Finance – spread essential input costs.
  • Farm Vehicle & Equipment Finance – upgrade before next season.
  • Livestock Finance – manage herd growth affordably.
  • Short-term Working Capital Loans – cover operating expenses until spring income arrives.

All finance is subject to status and approval. We act as an independent broker, helping UK farmers find the most suitable finance from a panel of trusted lenders.

Preparing for a Strong 2026

Farmers who plan their finances now will start the new year in a stronger position — ready to invest, expand, or adapt as the market evolves.

If you missed our October post on managing farm cash flow before winter, you can read it here

If you’d like help reviewing your options, our team of agricultural finance specialists is always happy to talk.

📞 Call us: 01554 562563
📧 Email: info@farmerfinance.co.uk
🌐 Learn more: www.farmerfinance.co.uk/contact-farmer-finance

Disclaimer

Disclaimer: The information in this article is for general guidance only and does not constitute financial advice. Farmer Finance is a trading name of Business Finance Direct Ltd, an independent finance broker, not a lender. All finance is subject to status and approval. Always seek professional advice before making financial decisions.

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