Securing Farm Finance: What the Banking Royal Commission Means for You

Now is the time to sharpen your farm business tools for securing farm finance as credit may be more difficult to access as a result of the Banking Royal Commission. With the dust beginning to settle on the Banking Royal Commission report, now is the time for farm businesses to be proactive! Just like seasons have their cycles, the finance industry has its cycles and we could be heading into a ‘finance drought’. In other words, credit may be harder to get! To ensure credit is always available to your farm business, we need to understand what banks want, [...]

Your Farm Business Journey: Tracking Your Goals and Progress

This quote by Steven Covey is a great way to start anything – whether it is something short-term like a weekend fishing trip or a long-haul journey around Australia. But it is especially empowering for your farm business journey . What is your goal, or the ‘end’ that you hope to achieve? Even for a short-term goal like the weekend fishing trip, the ‘end’ may be very different for different people. Is it really about catching fish, or is it more a chance to get away and relax? Maybe it is a bit of both. Whatever the goal, and whether this is [...]

Evaluating the Economics of Export Hay in Selected Farming Systems

This farm business analysis was conducted on behalf of the Australian Exporters Company (AEXCO) to assess the financial and risk management benefits of including the Export Hay enterprise in farming systems in Australia. The two farming systems used for this analysis were located in South Australia and Western Australia.  The inclusion of the Export Hay in these farming systems helped manage business and agronomic risk in the following major areas: Improved ‘Net Farm Profits’ and efficiencies, as measured by ‘Return on Assets Managed’. Competitive gross margins when compared to grain production and sheep. Economic balance to grain production as the [...]

By |2019-02-12T22:52:21+00:00June 5th, 2018|Farm Business Decision-Making|0 Comments

Are you in the driver’s seat in your farm business?

Driving any vehicle with confidence toward your goal or destination needs a strong focus on the road ahead, while keeping one eye on what’s behind in your rear-view mirror and another on what your gauges tell you about how well your vehicle is travelling. Is your farm business any different? How well are you planning for the coming season’s journey? In a chat recently with an industry leader who has developed a paddock planning app for farmers, I was surprised to hear that only about 15% of farmers who use these types of [...]

Knowing your Cost of Production: A risk management tool for the farm business

I was recently forwarded this interesting commentary from a trusted source in the US: What is interesting in this quote is that most of the strategies suggested here are for managing and improving production outputs. Of course, without production there will be no income. But as a producer, how do you assess what is providing your business with the best financial return? One of the main drivers to remaining competitive is measuring your cost of production at the end of each season. This information can provide powerful insight into how your business can be improved into the future. [...]

By |2019-02-13T23:31:46+00:00December 18th, 2017|Farm Business Decision-Making, Improving Profitability|0 Comments

Are you making the most of your tax return information?

The completion of the annual business tax return comes as a major relief to us all, often with a heartfelt, ‘Thank goodness I don’t have to do that again for another year!’ However, the discipline of completing the annual tax return does have benefits apart from hopefully saving you tax: The process makes you assess another year’s income and expenses and can, with some editing, measure your business’ financial performance. It becomes even more valuable if you look at this edited income and expense trends over a number of years. In fact, as a tax return is the only legal [...]

‘The Family Farm as a Business’: Mike Krause interview with Neil Tuckwell of Your Business Mentor

‘Farming the Business’ manual and eBooks: Essential farm business management information Click to download Mike Krause, author of ‘Farming the Business’, being interviewed by Neil Tuckwell on Your Business Mentor. Mike Krause of P2PAgri shares why this information, available in both manual and eBook formats, is essential material to support farmers and their advisers in farm business management decision making. ‘Farming the Business’ has been commissioned by the Grains Research and Development Corporation (GRDC), as part of their recognition of the importance of helping the grain farmers of Australia improve their business skills. Some of the essential farm business management skills [...]

By |2019-02-12T01:48:03+00:00September 8th, 2017|Farm Business Decision-Making, Farm Business Management|0 Comments