Rains or lack thereof, interest rates, the Australian dollar and other factors continue to provide both opportunity and challenge to our farming community in Australia; however times are still tough for many.
The message that comes from those doing well is a common theme – and it can be summarised by a single word: CHANGE.
We hear catchphrases such as “early adoption”, “improving the balance sheet”, “corporate agriculture“, “global agribusiness”, “organics” and the “changing face of farming”. Bookkeeping is “in the cloud” and information is more timely and easier to access than ever before.
The successful will adapt, adopt and take advantage of it - farming and agriculture is no different from any other business.
For most, this means focusing on what you already do well, then doing it better.
You cannot live off a budget but you can plan ahead. Many good businesses have a plan including budgets or forecasts that incorporate profit, cash flow and balance sheet. Importantly, this enables you to review your results and better understand your performance.
Plans help you manage change. What worked? What didn’t? Which costs blew out? Where will you be in 3, 5 or 10 years and beyond?
Whether it is taking advantage of farm management deposits (FMDs), managing forced sale of stock or simply planning for the future, a business must be ready for opportunities as they arise.
For more information on this article contact:
Associate, Moore Stephens Adelaide