The Dairy industry is currently burdened with numerous government and local policies and negative connotations from some sectors with little knowledge of how much farmers care for their land and livestock to the point that they become sleep deprived due to dedication and lack of suitable staffing allocations.
The primary sector should be proud of its dedication to deliver quality food products.
Currently with all-time low interest rates and the potential for progressively increased rates, now and yet always is the time to maximize debt repayment particularly for most levels of farm management unless the return on investment substantially exceeds the cost of funds.
Progression pathways are numerous for people with positivity, a savings history, and great attitudes. Train all your staff to upskill themselves, I think we owe it to them, your farm owner, and the collective great of the entire Industry. The industry requires continuous improvement in knowledge base and financial skillsets
Explain to people why they are asked to do what and when, with a justified reason of time efficiency, best practice, most economic and/ or environmentally required for whatever reason.
Banks may analyse a farm business with the 5 C’s
Cashflow- profit, leverage, and debt.
Capital- Equity, the ability for tough years.
Collateral- How much could a bank use as security.
Conditions- Ebit, performance versus budgets.
Character- Know your business, are you an optimistic problem solver, or a negative procrastinatinator?.
Align yourselves with good skills and /or seek mentorship or attend industry courses. But most simply understand save, and never spend most of what you earn to align yourself for progression pathways