FarmCash: a cash flow management tool to reduce financial pressures during difficult circumstances
Uncontrollable factors are a natural part of operating a farming business. These factors can have significant implications to the bottom line of a farming operation. No matter how much effort, skill and commitment producers invest into the growing season, all kinds of uncontrollable factors such as bad weather conditions, input costs, market instability and more may steal revenue and destabilize a farm business.
When the major source of farm revenue is unexpectedly hit by severe weather conditions it turns into major production risk. This risk leads to financial hardship for producers when they have to continue to pay operating costs despite their cash flow position being negatively impacted by extreme weather. Furthermore, this uncertainty leads to the adjustment of farming expenses that could cost farmers more. However, the right cash flow management tools can help producers tolerate risks more effectively while protecting their farm assets in the longer run.
Unfortunately, this year many crop producers experienced a significant drought resulting in lower yields and less revenue for the farm. That means producers need access to cash flow tools and solutions to support them, reduce their financial pressure and help them to navigate through this difficult time. It is critical that farmers choose the right cash flow tool that provides some protection against big production losses and helps them manage risks that threaten the viability of their operation.
FarmCash is a low-cost business risk and cash flow management tool available exclusively to agriculture producers, allowing them to manage cash flow and weather unexpected financial storms.
Producers of over 50 agriculture commodities can access up to $1 million with the first $100,000 interest free and the remainder at a low interest rate of TD prime minus 0.75 per cent. With this, producers have the ability to borrow $1 million at a blended interest rate of 1.53 per cent annually.
FarmCash provides flexibility to leverage cash when farm operations experience cash flow challenges during harvest season and operating costs continue to add up. There are no restrictions or limitations on the usage of FarmCash and while it can’t take away all of farming’s risk, it can help share the burden.
Using FarmCash to provide relief during tight cash flow periods can help producers better manage their production costs. It is a direct factor that sustains cash flow in real time yielding cost savings for farm operations due to its low interest rate benefit.
Producers can apply for FarmCash online at FarmCashAdvance.com and receive their advance in as little as three to five business days or call 1-855-376-2274 to speak with a FarmCash representative today.
The Advance Payments Program is a federal loan program administered by the Alberta Wheat Commission. It offers Canadian farmers marketing flexibility through interest-free and low interest cash advances.