Farm working capital
Cash cycle: costs → harvest → sale → financing need
Parameters
Arable farming year: spend in spring, harvest in autumn, cash — after sale + receivables. Working capital = season costs × time to cash + buffer. If the cycle is 9 months and costs 15k/ha — 100 ha needs 1.5M 'frozen'. Financing: own funds, overdraft, trade credit (agri-dealer gives seeds/fertilizer until harvest). Missing the cycle = collapse — budget a 10–15% buffer.
Working capital need
- Season costs
- 1 500 000 грн
- Cycle to cash
- 10 міс
- Avg spend/mo
- 150 000 грн
- Working capital (with buffer)
- 1 680 000 грн