If you’ve ever had to phone your banker from the auction mart about an un-planned capital purchase, you probably could use a capital budget plan.
Another component of financial risk is understanding your capital budget(i.e. what items in an ideal world do you think you need in the next 12 months?). This information is helpful for your banker, as it helps him/her plan for your farm’s future.
You need to have and understand your capital budget plan. Not only will it help you make good with your banker but it will also help to take the emotions of decision making in relation to the market place.
Watch Reg Shandro explain why you need a capital budget plan.
This workshop was funded in part by the Agriculture & Food Council of Alberta
Why you need a capital budget plan for your farm business