ISHS Acta Horticulturae 276: II International Symposium on Computer Modelling in Fruit Research and Orchard Management
A FINANCIAL MANAGEMENT SYSTEM FOR FRUIT HOLDINGS |
| Author: | J. Goedegebure |
| Abstract:
On many horticultural holdings, especially holdings growing outdoor crops, the liquidity position strongly varies according to the season. Expenditures mostly start early in the season and returns become available several months, or sometimes even more than one year later. For instance on fruit holdings expenditures for the new crop may start in January, while the last part of the production may perhaps be marketed in May or June of the next year. Besides expenditures and returns directly related to the crop, growers also have to deal with other expenditures for private purposes, for outside capital and for new or additional investments. With regard to receipts, other sources of income like returns on own capital, family income, grants, etc. have to be taken into account also. Because of all these different aspects, the liquidity pattern of holdings can be very complex. Periods of high liquidity surpluses may be followed by periods where liquidity resources become very low and additional outside capital is needed. A good tuning of needs and resources is depending on appropriate planning of the developments of the liquidity position of the holding and regular checking of the actual situation. Appropriate action should be taken in situations of liquidity surpluses as well as shortages. The model presented is aiming to provide the grower with a tool for planning his medium-term liquidity position and confronting it regularly with the actual results. Furthermore the comparison of planning and realisation enables the grower to analyse the causes of differences between planning and realisation and enables him to adjust his planning to the actual developments in an ealy stage. Optimizing the liquidity management will also avoid losses because of too high liquidity resources and lead to a better tuning of requirements and sources of outside capital, thus improving the overall farming results. | |
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