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  • Subject Name : Agriculture

Cash Forecast and Cashflow Budget

Executive Summary of Cash Forecast and Cashflow Budget

In the following report, it has been discussed how the Orchard farming business can affect the revenue of the company and provide a hike to the expansion of the business. This report contains the property discussion and calendar operation of the orchard harvesting which also described the principle resource and policy of the business. It defines the harvesting schedule and their cultivation of crops which lead from the primary product to marketable product This report shows the cash forecast of monthly revenue and sensitive analysis with the cash flow statement of the company. In this report, it has been analyzed how the business of the agriculture work in the market and how the business establishment can develop a huge business to serve vegetables and fruits through which they can earn the profit in the market from the national and international markets.


Executive Summary


Property Description.

Calendar of Operations.

Orchard Harvesting Schedule.

Cash Forecast Budget & Sensitivity Analysis.

Cash Flow Forecast Budget.

Liquidity management.



1. Introduction to Cash Forecast and Cashflow Budget

With the global change in the economy, it has left the people to approach the alternative income source rather than to depend on just employment. In the urban area, people are left with the choice to do the job or get their business online however many people have begun to realize the power of doing agriculture business and start making huge money in harvesting and cultivation under agriculture business. Choosing the most profitable agriculture business is not the tough part, it requires the research in the agriculture market, determining the need, source of fund, appropriate land for agriculture, relevant labor and registering the business. This report contains the analysis and deep evaluation of the agriculture business. It defines the policy, purpose, and goal of the business owner with the relevant business forecast and cash budget of the year. It also defines the calendar operation of the business which help to understand the seasonal inflow from the business and level of effort at the different season which requires to put in the agriculture business (Campos, Fidrmuc, & Korhonen, 2019).

2. Property Description

This company is having an agriculture business with the intention of providing nutritional and high-quality favorable vegetables and fruits to the public. Following are the details description of the business scenario of the company (Anbar, & Eker, 2010).



Policy and enterprises

The Agro enterprises have developed the business of agriculture in the fruit and vegetable harvesting and cultivation to serve humanity and make the profit for survival in the tough business environment (Olagunju, & Ajiboye, 2010). The company has a policy to deal with the local and national level domestic market. it also defines the international trade scenario and consumer of the company. It defines the specific outcome of the agriculture business at the seasonal level of cultivation and how much effort is required to improve the agriculture business in the country (Andjelic, & Vesic, 2017).

Owners, purpose, and goal

Owner of the Agro Enterprise wants to develop the agriculture business at a huge scale so the revenue of the company can be high and provide the hire to the brand image of the company. The purpose of the company is to serve at a high level and make the country independent of the domestic food production and increase the expert of the agriculture to earn the foreign currency and represent at the international level and make the country proud.

Principle resource

Principle resource of the company is a farm building, equipment, manure, employee( Farmers), Manger, marketing agent, Land, Crop machine, Agro machinery, acres of vegetables and fruits plant, all of this become the millions of $ investment of the company and provide the core for the business. It all combines to provide the principle resource and collective strength to produce the core product and supply in the market to earn revenue.

 Previous performance measurement

Agro enterprises have conducted their business very well in past years. They have earned the profit of $ 23 million in the recent year and has established the business at a higher level. They have skilled managers at their management to provide the measurement at each stage and find the variance by comparing the result with a benchmark to improve promptly.

Market Environment

The agriculture business market is tough due to its dependent factors such as weather forecast and water and land measurement. It all affects the business market at a huge level because in the agriculture business it all plays an essential role to produce the core product through cultivation and harvesting on land. The farming ecosystem is essential to the agriculture market (Valaskova, Kliestik, & Kovacova, 2018).

3. Calendar of Operations

An orchid considers being international plating trees for food purposes. It covers the fruits and nut-producing plants that also provide a commercial hike to the business. This orchid planning concern with the large garden and cove the hectors of land to produce the needful in the seasonal demand. In the four seasons of farming fall, summer, spring, and winter require to do the different events of the task for agriculture. Farming season r the orchard depend on the fruits and its whether dependence such as apple grow in June to September and require to farm in January to march. The main event includes preparing the orchard for winter waves and fertilization applier on them, panting of a new tree for the production of the orchard (Valaskova, Kliestik, Svabova, & Adamko, 2018).

4. Orchard Harvesting Schedule

Orchard has the various harvesting schedule to follow and provide the production to supply. The following are the harvesting schedule of the orchard.

Fruits name

Harvesting season

Payment by Month

Pack out %

Market Channel


June - July

 $ 9,500.00


Domestic and Export

Red Tart Cherries

July - August

 $ 2,300.00



Summer Apple

July - September

 $ 5,640.00




June - July

 $ 5,000.00


Domestic and Export


July – August

 $ 6,489.00



Sweet Corn


 $ 4,000.00




July - September

 $ 4,500.00


Domestic and Export


October -November

 $ 5,800.00


Domestic and Export


September- November

 $ 8,500.00



Source: (Please refer to the excel sheet for details)

From the above, it can understand that the main season of the harvesting schedule for the orchard is June to November in which the company can plan its revenue by doing the local and international business of fruits and vegetables (Steiner-Khamsi, Appleton, & Vellani, 2018).

5. Cash Forecast Budget & Sensitivity Analysis

For the forecasting budgets, it is required to understand the required capital item to operate the activity concerning to farm. For instance, work shed cold storage, air blast spray, quad bike mower and admin building, irrigation. Following are the cash budget has been provided below:-

Cash Forecast Budget


Cash Required


 $ 12,500.00

Live Stock

 $ 10,000.00

 Agro Machinery

 $ 9,500.00

Live stock

 $ 1,200.00

farmer wages

 $ 4,500.00


 $ 20,000.00

Water consuming

 $ 2,500.00


 $ 3,500.00


 $ 63,700.00

Source: (Please refer to the excel sheet for details)

From the above analysis of the cash budget, Agro enterprises required the $ 63700 per season of the crop and to operate the business of the company.

Sensitivity Analysis


Exiting situation

If inflation higher by 2%

If inflation decrease by 2%


 $ 63,700.00

 $ 64,974.00

 $ 62,426.00

Source: (Please refer to the excel sheet for details)

Sensitive analysis has shown the various factor that can affect the budget t various stage of the agriculture business. Such factors include micro and macroeconomic factors that have an adverse or affirmative impact on the business (Goldmann, 2017).

6. Cash Flow Forecast Budget

Cash flow budget help to understand the cash inflow and outflow of the company. This budget helps to understand the cash receipt and expenses of the organization which can be trace with the help of the cash budget. It discloses the inflow and outflow of cash during the specific period of the financial year of the company. Following are the cash flow forecast of the Agro Enterprises (Segre, 2017).

Cash Flow Forecast Budget





Opening cash balance

 $ 3,000.00

 $ 500.00

 $ (4,375.00)

Sale revenue including GST

 $ 50,000.00

 $ 45,000.00

 $ 52,000.00




 $ 4,500.00

 $ 4,275.00

 $ 4,061.25


 $ 2,500.00

 $ 2,375.00

 $ 2,256.25


 $ 3,500.00

 $ 3,325.00

 $ 3,158.75


 $ 9,500.00

 $ 9,025.00

 $ 8,573.75

land rent

 $ 20,000.00

 $ 19,000.00

 $ 18,050.00

GST Paid

 $ 12,500.00

 $ 11,875.00

 $ 11,281.25

Overdraft Interest

 $ -

 $ -

 $ 131.25

Closing Cash Balance

 $ 500.00

 $ (4,375.00)

 $ 243.75

Source: (Please refer to the excel sheet for details)

From the above analysis it can be seen that cash flow of the company positive in the June month which has become negative at the end of the July month. This show that management of the company is facing the liquidity issue in the July and require to be improves from the cash shortage (McNeil, 2012). Cash expenditure has the higher outflow in form of land rent which require to be paid every month. Top management of require to control such huge amount of outflow and try to make conversation with land lord to reduce the land rent at reasonable amount. Closing balance of the July month has been negative and company has to take overdraft from the bank for which interest is require to be paid in august month (Valaskova, Kliestik, Svabova, & Adamko, 2018).

7. Liquidity Management

Liquidity management is essential for any business and requires to be a plan as per the need of business and smooth process of the operating system of the production. From the cash flow of the company, it can be observed that the company is having the negative cash flow in the July month due to which they have to take an overdraft facility and require to pay the bank interest. This finance cost will lead to a reduction in profit and increase the burden of achieving a higher profit. This has to be controlled to increase the profitability of the company. For the seasonal crop produce by the company from June to November they have to predetermine the cash requirement by forecasting all the expenditure and receipt during the business period. This will help to increase the cash availability with the company for easy operating of the business from the lower level to the top level of the organizational structure (Jorion, 2010).

8. Conclusion on Cash Forecast and Cashflow Budget

After doing all the discussion about the agriculture business and its affected factors, it can observe that agriculture business is the growing industry and can provide the profitability of the organization. From the above, Agro enterprises have the orchard business and having the business season from June to august and selling the verity of the fruits and vegetables. After assessing the cash flow of the company it can be suggested that the company should improve its cash flow by issuing the new business policy and cover the credit management policy which leads to the high profitability and easy operating of the business. The company should improve the agriculture business by cropping the other verity of fruits and vegetables of different seasons to utilize the entire year as a business opportunity.

References for Cash Forecast and Cashflow Budget

Anbar, A., & Eker, M. (2010). An empirical investigation for determining of the relation between personal financial risk tolerance and demographic characteristic. Ege Academic Review, 10(2), 503-523.

Andjelic, S., & Vesic, T. (2017). The importance of financial analysis for business decision making. In Book of proceedings from Sixth International Scientific Conference Employment, Education and Entrepreneurship (pp. 9-25).

Campos, N. F., Fidrmuc, J., & Korhonen, I. (2019). Business cycle synchronisation and currency unions: A review of the econometric evidence using meta-analysis. International Review of Financial Analysis, 61, 274-283.

Goldmann, K. (2017). Financial liquidity and profitability management in practice of polish business. In Financial Environment and Business Development (pp. 103-112). Springer, Cham.

Jorion, P. (2010). Financial Risk Manager Handbook: FRM Part I (Vol. 625). John Wiley & Sons.

McNeil, K. (1978). Understanding organizational power: Building on the Weberian legacy. Administrative Science Quarterly, 65-90.

Olagunju, F. I., & Ajiboye, A. (2010). Agricultural lending decision: a tobit regression analysis. African journal of food, agriculture, nutrition and development, 10(5).

Segre, S. (2017). Business Groups and Financial Markets: A Weberian Analysis. Routledge.

Steiner-Khamsi, G., Appleton, M., & Vellani, S. (2018). Understanding business interests in international large-scale student assessments: a media analysis of The Economist, Financial Times, and Wall Street Journal. Oxford Review of Education, 44(2), 190-203.

Valaskova, K., Kliestik, T., & Kovacova, M. (2018). Management of financial risks in Slovak enterprises using regression analysis. Oeconomia Copernicana, 9(1), 105-121.

Valaskova, K., Kliestik, T., Svabova, L., & Adamko, P. (2018). Financial risk measurement and prediction modelling for sustainable development of business entities using regression analysis. Sustainability, 10(7), 2144.

Valaskova, K., Kliestik, T., Svabova, L., & Adamko, P. (2018). Financial risk measurement and prediction modelling for sustainable development of business entities using regression analysis. Sustainability, 10(7), 2144.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Agriculture Business Management Assignment Help

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