"The accounts for the year ending 31 March 2026 were strong for many clients, but this was built on a year of two halves. The second half was much more difficult, and fertility and yield issues this summer have meant many are now possibly experiencing a more challenging time," he said. 

"This time of year is often when dairy farmers can build up cash reserves. However, considering the last six months cash could be tight, so that might not happen this winter. That could be a reason to look carefully at your financial situation and in particular be mindful that a big tax bill could be due in January 2027."

Farmers should be conscious of financial warning signs and act before these become bigger issues that are more difficult to resolve. "If you are moving towards overdraft limits, using up cash reserves, eating into forage reserves and struggling to meet any loan agreement or hire purchase payments, then it is crucial to take action," warned Mr Causey. "Volatile trading conditions can quickly tighten cash flow, so taking financial advice ahead of these times could be beneficial."

Many pressures on farm businesses cannot be considered in isolation. Feed shortages, labour, cash flow, environmental compliance and milk price pressure all shape business decisions. And each can be better managed through practical action, including robust budgeting and improved communication.

Understanding the detail of milk contracts is an important part of this approach. Farmers should regularly review their contract terms and ensure they understand the opportunities and obligations involved – and address areas of concern early, Mr Causey explained.

An important part of running a sustainable dairy business is awareness of the wider market and how it influences profitability, including commodity prices and input costs. "It is so important that farmers take the time to understand their finances; it's easy to put it off but it could be an essential job for future success," he added.

"While dairy businesses may face a challenging period, taking action early can help producers remain in control of their finances and make informed decisions about the future."

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