Arable farmer has more euros in cash than in 2018

Arable farmers have more money in the account than they had at the end of the second quarter last year. On average, there is €36.000 on the current account of arable farms. However, the amount in cash fell rapidly in the second quarter.

This is evident from the liquidity monitor from ABN Amro. The average liquidity of an arable farm decreased faster than last year by an average of €20.000 in the second quarter. According to ABN Amro, this faster decline than last year is partly due to a lower payment for sugar beet. Investments also resulted in a decrease in cash.

Paid more on irrigation
Selling prices were higher for all crops, except for the sugar beet balance. The payment of the various harvests led to a peak in credits around March. In 2019, on the other hand, arable farmers paid more for work for third parties, irrigation and energy.

For this season, ABN Amro expects a weaker grain price due to the good worldwide availability of grains. The bank does state that the current drought could have a major impact on crop prices. The cash position continues to decline in the third quarter due to ongoing costs while there is still little income.

Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.

aj.doorn@boerenbusiness. Nl

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