Off-Season Cash Runway

It answers how many months you can survive the slow season before the next crop payment or livestock sale.

Formal definition

Off-season cash runway equals cash on hand divided by combined monthly living costs and fixed farm costs during the non-revenue period.

Why it matters

Farm income is lumpy; runway prevents forced sales or high-interest operating loans in winter.

Where you see it

• Farm credit loan reviews
• USDA extension budgeting workshops
• Family farm succession planning
• Operating line covenant talks
• Agribusiness finance courses

Worked example

1. Cash on hand:
2. Monthly living + fixed farm costs: $6,000.
3. Runway =
4. Interpretation: Three months before cash runs out if no income arrives.

How Business metrics calculates it

Cash ÷ Off-season monthly burn as entered.

Where people fool themselves

Off-season runway that assumes you will sell equipment if needed is not runway. Runway is cash and facilities you will actually use without a fire sale.

Run it on your own numbers: the Agriculture & Farming calculator.