In this article, we provide a list of 10 things farmers need to consider when setting financial goals and how stepping off the farm and into the office might be exactly whats needed to achieve them.
Setting goals for revenue, profitability, and ultimately, your financial future, is one of the most important things you can do to achieve farm business growth.
With so much happening on the farm, it can be difficult to find the time to take a step back from the busyness of your day-to-day and look at your operations. And let’s face it, the only real reason we look at the closing balance on our loan is to see whether it’s reduced.
Recently, input costs have gone up significantly, impacting farmers’ terms of trade.
The rising price of fuel, fertiliser, chemical and seed makes this one of the most important times to look at your revenue goals.
Having goals (or a vision, as we call it) is key to staying on track and having clarity on what you’re trying to achieve with your farm and why. When setting financial goals, it’s important to consider where you’d like to be in the future. Maybe you’re looking 5 or 10 years ahead, perhaps even further depending on what you want to achieve.
When talking to my clients, I recommend starting from a production perspective because this is where we can generate your cashflow projections, then move onto your longer-term goals for succession planning and estate planning, etc.
Maybe you wind it back from the current high cattle prices just to see how it would impact your profitability and most importantly, your cash flow.
It might seem premature, but what would it look like if you projected out for the rest of the financial year and into the following?
This way you can investigate how things might look from a tax perspective, then you can make plans around what you could potentially do to minimise your tax position.
As always, the first step to getting a handle on your revenue goals, cashflow projections and your vision for the future of your farm, is to set aside the time to do it.
With so much changing all the time, it’s important to keep coming back to that vision to help you with your clarity, to reassess your goals when you need to adjust and to help you with your decision making.
If, like many farmers, the last thing you want to do at the end of the day is step into the office, you’re not alone.
I often tell my clients it might be worthwhile considering stepping off the farm to do your planning. Getting away from the farm and dedicating time to map out your vision and do anything that requires planning for the future is the best way to set your goals without the distraction of what’s happening outside.
If you want to partner with an advisor who can help you through the process and provide you with a level of accountability to make this happen, you can schedule an appointment with me and we can discuss the best path forward for your family and your farm.
We are pleased to advise that Lifesolver has merged with Advisory Partner and Practical Systems. Through this new group, we are able to strengthen our focus on rural people and businesses, with excellent local service (and offices).
From conducting market research to setting goals and projecting your finances, creating a profitable farm business plan might be just the thing you’re missing when trying to stay on track and plan for the future of your farm.
Whether you’re interested in cropping, livestock, or any other farming venture, this guide is designed to provide you with the knowledge and skills you’ll need to create a clear business plan for your farm. Let’s get started!
As the age-old adage goes, “Those who fail to plan, plan to fail.” This rings especially true in the realm of farming. Without a clear roadmap, achieving success can feel like you’re aiming at a moving target, but you what should you include in your farm business plan? That’s where we come into play with our guide to the 8 things to include in your farm business plan.
Who will own your farm in 10 years?
Designed to make you stop and think, this question instantly conjures images of the future and the possibilities that lie ahead. But what if we told you the only way to get as close as possible to your desired outcome is to get proactive about your succession plan?
An Introduction to Farm Succession Planning | In this guide, we’ll introduce you to the essentials of farm succession planning, helping you chart a course that preserves your legacy, focuses on family harmony, and ensures a smooth transition of farm ownership and management from one generation to the next.
