The problem
Banks ask farms for a budget and cash flow forecast before renewing an overdraft or lending for a shed or a tractor. Building one in a spreadsheet from last year's accounts takes a small farm about 2 days, 16 hours, each year, and it's out of date by harvest because nobody updates it. Refreshing it for the bank each quarter adds 4 hours each time, another 16 hours a year.
What the AI does
Figured is farm financial planning software. Its UK site says you can create farm budgets in minutes, and its reports show forecast cash flow, profitability and equity, with farmers, accountants and bankers in the same system. The UK pricing page lists Farm Manager at $53£40€48A$77C$75 a month for a single farm business, with a planning grid, reporting, trackers, data integration and scenarios, and refers to farms held in a Xero file. Figured's Xero app listing says it pulls your chart of accounts and bank movements from Xero, so the forecast can be compared with what actually happened. Scenarios let you plan different outcomes, such as a lower lamb or grain price, across several years. Your accountant or adviser checks the budget before it goes to the bank.
A worked example
A 200-hectare mixed farm in Devon with 300 ewes and spring barley needs to show the bank a budget to renew its overdraft. The owner's partner keeps the books in Xero Grow, already paid for, and the farm's accountant offers to review the first budget.
Before
2 days (16 hours) building a spreadsheet budget each year, plus 4 hours a quarter updating it: 32 hours a year, about 2.7 hours a month
After
About 8 hours setting the budget up in the first year, then 1 hour a quarter comparing it with actual figures: 12 hours a year, 1 hour a month
What it's worth
About $68£51€61A$98C$96 a month in time saved, against $53£40€48A$77C$75 for Figured. That is 1.7 hours a month (2.7 down to 1) at an assumed $40£30€36A$58C$56 an hour. Farm Manager is $53£40€48A$77C$75 a month excluding tax for a single farm business, and Xero is assumed already paid. Having an up-to-date forecast when the bank asks is the bigger gain, but isn't valued here.
How to set it up
- Check your Xero file is up to date and your accountant is happy with the account codes, since Figured builds on it.
- Start the free trial on Farm Manager and connect it to your Xero file.
- Enter this year's plan: lambing and stock sales, crop areas and expected yields, feed, fertilizer, rent and loan repayments.
- Build a second scenario with a lower lamb or grain price to see how low the bank balance gets.
- Ask your accountant or adviser to review the budget before it goes to the bank, then share it.
- Each quarter, compare the forecast with actual figures from Xero and update the rest of the year.
What goes wrong
- The forecast is only as good as the Xero file. If bills and bank transactions are months behind, the comparison with actual figures is wrong.
- Multi Farm is $53£40€48A$77C$75 plus $53£40€48A$77C$75 for each additional farm business, so a farm split across several businesses pays more.
- A budget isn't financial advice. Borrowing decisions stay with you, your accountant and the bank.
- The UK pricing page doesn't say how long the free trial lasts, so set the budget up early in the trial and decide before it ends.