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Chris Lewis, Federated Farmers.
Most farmers will be looking at their business in the coming weeks as the year winds down and we look ahead.
Waikato Federated Farmers was involved in a couple of seminars recently: Money Matters, a good presentation by KMPG consultants was attended by sharemilkers.
It's hard keeping an eye on farm finances with all the external distractions and onfarm duties. Often our future plans go on the backburner as we deal with the present. But whether the payout is good or not, stay focused and plan your equity.
Good payout years tend to hide business inefficiencies. Positive cashflow doesn't always translate into great business practice.
Farmers should have an alternative plan of action; the smart way is to document it -- write it down or save it on your computer desktop. Relying on passive thoughts after a few cold beers is not a business plan and you are likely to forget about it the next day. And business plans aren't merely monitoring cashflow or paying bills.
If you get sick or some unexpected event occurs you need a 'plan B' so that the daily business can continue without too much disruption. If you record and document a plan you will always be able to refer to it, to review or develop the original ideas you had.
Above all, you can give this information to your accountant, banker and staff as a point of reference for discussing upcoming obligations or plans. It also provides proof of your intentions.
No one likes doing budgets and there's no point having one sitting in the bottom drawer. You need to work out your turnover, actual gross and understand the significance of both.
Good governance is vital too. Ask the questions and see how the answers relate to your business plan. It won't work if you have a long term strategy but only a short term vision.
If you need help with your plan seek out advisors or experts involved in agribusiness and consider how often you want to see them and what expectations you have of them. Make sure they understand your business goals -- not their goals for your business.
Get in people who can add value to your business by helping you set up good, practical systems. Expect them to add value, and make sure they aren't just telling you what you want to hear. Good, strong advice might not always be to your liking but it is more likely to be relevant.
Your business off-farm is not mutually exclusive of your onfarm business. Well-run farms integrate both and understand the benefits technology brings to both.
You will empower yourself as you take time out, sit down and draft a plan containing goals to achieve.
• Chris Lewis is Federated Farmers Waikato dairy chair.
OPINION: Recent media commentary from Southland Federated Farmers has raised concerns among our rural communities, particularly around Environment Southland’s approach to winter grazing inspections and nitrogen reporting. But let’s be clear, much of what’s been said simply doesn’t reflect reality.
OPINION: Environment Canterbury's (ECan) decision recently to declare a so-called “nitrate emergency” is laughable.
A shameless political stunt is how Federated Farmers is describing the Canterbury Regional Council decision to declare “a nitrate emergency” on the back of its latest annual groundwater quality survey.
Federated Farmers say Environment Canterbury's decision to declare a 'nitrate emergency' is a shameless political stunt that won't help anyone.
Farmers want the Government to scrap controversial freshwater rules that "put river spirits and ideology ahead of practical water use", says Federated Farmers board member Mark Hooper.
Many farmers around the country are taking advantage of the high dairy payout to get maximum production out of their cows.
In 2015, the signing of a joint venture between St Peter's School, Cambridge, and Lincoln University saw the start of an exciting new chapter for Owl Farm as the first demonstration dairy farm in the North Island. Ten years on, the joint venture is still going strong.
Sheep milk processor Maui Milk is on track to record average ewe production of 500 litres by 2030, says outgoing chief executive Greg Hamill.
Parliamentary Commissioner for the Environment Simon Upton is calling for cross-party consensus on the country's overarching environmental goals.
Changes to New Zealand’s postal service has left rural communities disappointed.
Alliance is urging its farmer-shareholders to have their say on the proposed $250 million strategic investment partnership with Dawn Meats Group.
