Support is on the way for farmers seeking a helping hand in dealing with the challenges of running a business.
The Agri-Women’s Development Trust (AWDT), with backing from the Ministry for Primary Industries, is launching “Our Resilient Farming Business”, an online programme aimed at helping farmers adapt and prepare for change.
Rural business consultant and AWDT facilitator Geordie McCallum said the programme, aimed at couples, business partners or family members, focuses on financial and personal resilience and business planning.
“In the current environment, you can’t beat the inflation on costs so my starting point is Don’t Do It!
“All decisions need to be made based on individual circumstances so whether it’s a farm development programme or maintenance fertiliser, start with ‘Don’t do it’ and work through the implications to finalise your decision. This ensures all spending can justify itself.”
With supply chain disruptions, access to labour, and costs including interest, McCallum said most capital projects should be deferred leaving only mission-critical maintenance.
“Fertiliser is a good example to use for operating costs – do you have a fertility buffer? Can you reduce or remove maintenance fertiliser for one year without reducing production? If so then ‘Don’t do it!’ In practice I am seeing most people use less rather than no fertiliser and using good information to establish how it is rationed.”
McCallum said the changing economic outlook requires a business response and key factors to consider are:
• Restraint. Costs will likely need to be removed to balance the budget.
• Strategic and tactical decisions. Hopefully you have a long-term strategy and now is not the time to throw it out – keep it front and centre.
• Know your numbers. Making good decisions requires good information.
• Outside of all of this you will need to look after yourself and your family.
The business programme starts on May 3. Register here.
