The Whole Picture: Cash Flow Management and Grain Marketing


Cash flow management is a crucial part of any farm business plan.

Mike Witkowicz is the Vice President of Strategy and Business Development for Saskatoon-based Ag Exchange Group.

Witkowicz says before you have a conversation about marketing your grain you need to take a look at the bigger picture.

“With so much work on the data and growing a crop, we get a good idea on the cost of production, but then you’ve got to pay bills, you’ve got to know your costs so then it comes down to cash flow management,” said Witkowicz.  “So, building a marketing plan or hence a grain marketing plan, it was really greater than that it is about managing the cash on your farm.”

He says cash flow management is vitally important.

“Know your costs, make a marketing plan for your revenues that will give you your profits, but then understand across the spectrum, when you need to pay your bills, if you look across the spectrum you will get a better plan, so then your marketing plan is enabled by your costs to produce that crop, when do you need the cash how can it time for your markets to maximize your revenues at that time.”

That’s where he says Ag Exchange is an enabler and jokes that they are a dating site for your grain with the ability to marry up anyone’s grain.

“Our model kinda took the dating site model, it’s membership-based, so whether a grower has one tonne or 10,000 tonnes, it’s a flat fee.”

Witkowicz says he enjoys being out at the grassroots level speaking with growers and buyers.

Ag Exchange is 5-million acres strong and has over 140 buyer locations and is growing.

For more on the Ag Exchange Group click here.

Witkowicz presented at the recent Rural Roots Canada-Rolling Hills Ag Day.