Farmers are being urged to review their cashflow and financial plans now as the impact of this summer's drought-hit harvest begins to feed through into farm businesses over the months ahead.
While the worst of the drought has been felt across southern England, where prolonged hot and dry weather has significantly reduced crop yields, Virgin Money's head of agriculture Brian Richardson said the financial effects will be felt across the industry, with every business facing different challenges.
Scotland has generally escaped the worst conditions, with cooler temperatures and more rainfall than much of England, but many parts of the country have still experienced an unusually dry growing season.
Mr Richardson said the harvest had highlighted the very different conditions experienced across the UK, but warned that many farming businesses were still facing another difficult year.
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He said: "The impact has varied across the UK. Although Scotland and parts of northern England have experienced some rainfall and generally lower temperatures than southern England, conditions have remained unusually dry in many areas.
"There is no doubt that farming businesses across the country are facing another serious challenge."
He said arable businesses had already been under significant pressure following two seasons of lower cereal prices alongside rising input costs.
"Lower cereal prices across the last two seasons, combined with increased fuel and fertiliser costs, have already put enormous pressure on the arable sector," he said.
"This summer's conditions have also created problems with forage availability for some livestock farmers."
Mr Richardson said the financial consequences of a poor harvest were not always immediate, with reduced yields and lower output often taking time to appear in cashflow forecasts.
"That is why it is important to identify any likely gaps in your cashflow now and plan accordingly," he said.
"Tough times like these highlight the benefit of good financial recording and budgeting, and the value of ensuring that a robust cashflow forecast forms part of that overview. This allows everyone involved in the business to understand what may be coming down the line."
He encouraged farmers to speak with advisers and lenders sooner rather than later if they expected pressure on working capital.
"Using this information to sit down with your advisers and bank manager is key," he said.
"It will pay dividends to do that sooner rather than later, so that you can agree a plan for future cash requirements and support wider planning on the farm."
Mr Richardson said this summer's harvest had also reinforced the importance of domestic food production, with food security returning to the political agenda following widespread crop losses in parts of the UK.
He hopes that renewed focus will translate into policies that give farmers the confidence to invest in future production.
"I hope this renewed focus feeds through into policies and prices that allow farmers to achieve realistic returns," he said.
"They need the confidence to invest and sow the crops that will be essential to maintaining our food supply next year and into the future."
He added that specialist agricultural advice would be increasingly important as businesses assess the impact of the season on their finances.
"The farming sector has worked its way through many challenges in the past and will do so again," he said.
"However, understanding your business and having accurate figures available will be more important than ever when planning a successful route through the current situation and into the future."
Virgin Money said its agricultural banking team was working with farming customers to help them assess the impact of the drought on cashflow and longer-term business planning, recognising that every farm will require a different approach.
