Understand your financials
A lack of financial knowledge can lead to bad business decisions. If you’re unsure about your farm’s financial position, undertaking a business review can help you gain a clearer understanding, especially if your business has an increased financial risk.
How we can help
RFCS NSW can conduct a thorough review of your business to help you better understand your current financial situation and the challenges and opportunities that lie ahead.
We can help you:
- Develop a better understanding of your business’s finances
- Begin to formulate options which may improve your financial position
- Help you come to terms with your situation and feel more in control of your future.
Build a business plan
A business plan offers a road map for your business. It can help you see the bigger picture, make better decisions and farm investment, and improve your overall chances of success.
Despite the many benefits a business plan, some businesses choose to go without one because of the time and effort they seem to take. The reality is, to succeed in farming you need to have a business plan in place.
How we can help
RFCS NSW can help you create a ailored business plan and put steps in place to ensure it is utilised in future business planning.
We can:
- Assist you in developing your business plan
- Connect you with broader professional help such as an accountant or lawyer to provide other expert perspectives.
Farms with structured business plans are better equipped to manage challenges posed by seasonal or environmental conditions and changes in the market. Proactive business planning can help you set clear goals, mitigate your risk, and make better investments. This can help move you from financial distress to a successful, financially self-sufficient business and feel back in control of your future.
Identify areas of risk
In the business of farming, risk is a constant. Whether you know it or not, you’re making risk calculations and employing risk management strategies all the time on your farm. Some risks, like the weather, are more front of mind than others, but there are many different types of risks that are also worth considering.
How we can help
RFCS NSW can aid you in completing an honest assessment of your farm and business processes, to uncover any weak points. Our rural financial counsellors will help you develop your risk management plan and create realistic strategies to combat risk.
We’ll help you:
- Challenge default or traditional thinking (i.e., looking beyond doing things simply because that’s the way it’s always been done)
- Neutralise risk (i.e., stop thinking of risk as negative, or avoiding it altogether)
- Find the right information to develop the right strategies for your farm.
While you won’t be able to eliminate all risks in your business, it’s important that you spend time assessing them and developing strategies to manage those with the potential for greatest impact on your business. By working with us, you’ll gain the confidence to face risk head-on.
Bank reviews and loan applications
Annual business reviews can be a stressful part of owning an agriculture business. If you’re not sure about the information you need to provide, haven’t kept things up-to-date, or you’re worried that things don’t look great, it can make bank reviews even more nerve-wracking.
How we can help
RFCS NSW will give you access to a qualified team of rural financial counsellors with knowledge across banking, agribusiness, and a broad range of other industries. We can guide you through annual reviews or farm loan applications by effectively preparing for them and working through any concerns.
We will:
- Spend time with you before your review or loan application to get to know the details of how your business has been performing
- Prepare explanations for any issues or variances in actuals versus budgets or predications
- Support you to consider and document your business goals, plans and contingencies for dealing with unforeseen changes in circumstance.
When approached with confidence, an annual review is a great opportunity to look forward with your bank or lender and ensure you’ve got the right financial supports in place to achieve your goals. With a bit of preparation, you’ll be sure to get on your bank’s good side – and gain some useful insights for your business along the way.
Cashflow forecasting and budgeting
Cash flow budgeting can help you understand the financial impact of your on-farm decisions. Some farmers believe that seasonal conditions are too variable to rely on cash flow budgeting, but this is exactly why your farm should have a cash flow budget.
How we can help
Our rural financial counsellors are skilled and experienced in agriculture cash flow budgeting and can assist with regular budget updates. We’ll support you to create an accurate budget and better understand your farm’s cash position.
Effective cash flow budgeting will help you improve your decision-making on both a day-to-day and season-to-season basis. With the right tools and assistance, cashflow forecasting and budgeting can be a quick and easy process, giving you real insight into your financial future.
We will help you to:
- Create an accurate cashflow budget
- Better understand your farm’s cash position
- Understand what your best, worst and ‘average’ cash outcomes might be
Farm debt mediation
Farm Debt Mediation (prescribed under the Farm Debt Mediation Act 1994) is a structured negotiation process in which the mediator, as a neutral and independent person, assists the farmer and the creditor to communicate effectively, to resolve matters relating to farm debts, and to formalise that resolution in an agreement.
Mediation is a simple, voluntary and confidential process that is quick, accessible and affordable.
How we can help
RFCS NSW has a comprehensive support network of experienced counsellors to provide support through this complex and often emotional time.
We can:
- Explain the Farm Debt Mediation forms and process
- Help to prepare for mediation including finding the right mediator
- Support you and other business partners to consider options realistically
- Provide you with support and assistance throughout the mediation process including mediation
- Help you with meeting agreed outcomes
The NSW Rural Assistance Authority administers the Farm Debt Mediation Act and will provide information about the Act on request.
Accessing Government support
Accessing rural loans and government assistance can sometimes feel overwhelming. There are a variety of rural finance grants and farm loans available, each with different eligibility requirements. But support is available to help you understand the differences.
How we can help
RFCS NSW supports primary producers to access government farm loans and other assistance for farmers, such as a disaster recovery grant or flood relief payments.
We can:
- Advise what government assistance, rural finance grants or loans you may be eligible for in the short and long term
- Help you understand farm loan interest rates in Australia
- Tell you what documents you need to provide to secure a rural loan or grant
- Help you consider long-term business changes to improve your financial position.
Succession planning
We’ve all heard the horror stories about farm succession planning gone wrong – farms being sold, family members who refuse to speak, heartbreak on all sides. But it can be avoided.
How we can help
As a trained and independent listener, one of our rural financial counsellors can have those all-important initial discussions with you and your family about succession planning.
We can:
- Help you understand what is involved and how best to navigate the process
- Advise which professionals to engage to help you with your succession plan
- Review the past performance of the enterprise
- Build financial skill sets within the family and road-test options through cash flows and enterprise budgets.
If you haven’t already started planning for succession, then today is the day to start. It’s not too late and it never gets any easier. In fact, it often gets more difficult the longer you wait.
By starting early, you have time to grow your assets not just through capital appreciation but through opportunities, investments and possible acquisitions that give you and your family more choices in the future.
Benchmarking
Benchmarking is a useful business tool when implemented properly. It can help you calculate gross margins or be the starting point for developing cash flow budgets and understanding your farm’s profitability.
How we can help
We can help you:
- Compare the sensitivity of profit of enterprises to a change in production and price
- Compare major cropping and livestock input costs
- Assist in assessing business opportunities
- Assess where you are currently, where you want to be and/or what you want to do.
Referrals
Sometimes, it can be hard to know who to ask for help. Our vast professional network can help you tap into the right expertise for the specific challenges you face.
How we can help
If your rural financial counsellor can’t help you directly, they will refer you to the professional who can. Having a referral from one of our counsellors will help you get the support you need in a timely manner.
We can help you seek broader professional advice and support in areas including:
- Specialist marketing
- Taxation and accounting
- Legal advice.
