45 billion reasons for farmers to get smarter about their finances

With changes to income and expense streams, cash flow is critical to the agricultural sector, which is carrying some $45 billion dollars in debt. This lies behind Federated Farmers teaming up with Westpac New Zealand, to offer a series of free nationwide seminars on practical farm debt management.

“Given the financial year for many farmers finishes on June 30, the timing of these practical farm finance seminars is spot on,” says Federated Farmers Chief Executive, Conor English.

“In the two years to April 2009, farm debt has grown by about 30 percent to some $45 billion dollars. When combined with some radical changes to farm income and expense streams, cash flow is now critical.

“Many farmers, right now, are focused upon boosting on-farm productivity to overcome constrained margins. Yet on-farm productivity must be matched by an equal focus on farm cash flow, profit and loss accounts and balance sheets.

“Some farmers will face a difficult time ahead but we know successful farmers are the ones who are focussed on long term survival of their farm business.

“Successful farmers are the sort of people who are receptive to good information and advice. They recognise when they need expert assistance and have the gumption to ask for it. For them it starts Monday by dialling 0800 327 646 (0800 FARMING) in order to find out where and when these seminars are taking place.

“They’re completely free and open to members and non-members of Federated Farmers, just as its open to customers and non-customers of Westpac,” Mr English added.

The two hour Federated Farmers/Westpac New Zealand seminars will provide farmers and rural businesses with practical financial information and tools. These will include:

· Westpac’s agribusiness economic analysis – commodity, currency and global crisis implications for farmers
· preparing farm businesses for a changed agribusiness climate
· working under the recent Fonterra forecast dairy payout for 2009/10 (and similar forecasts issued by other cooperatives/companies)
· practical cash-flow planning
· the role banks can offer in assisting farm businesses
· how farm businesses can benefit from drought assistance where applicable.

“Farmers are generally very good managers, but at times like these, external information and perspective is invaluable. Remember successful farmers are the ones who seek out and take sound advice,” Mr English continued.

“Federated Farmers is pleased that Westpac New Zealand has partnered with us to deliver these seminars. While we have areas of disagreement with the big banks, the one thing we all share is a commitment to the future of agriculture.

“That’s exactly why Federated Farmers is focused on farm viability.

“We’re doing a lot to manage and mitigate extensive off farm risks and issues that farmers couldn’t possibly manage alone. Whether it’s domestic or international we’re looking to assist farmers where it really counts – with their bottom line.

“While Federated Farmers is currently mitigating farm costs in the policy and advocacy space, these seminars give farmers and their families some practical tools to remain a successful business.

“Irrespective of whether you are a dairy, beef, sheep or grain and seeds farmer, this will be two hours well spent,” Mr English concluded.

Initial seminars location and dates:

Timaru
22 June
11 - 1 pm
Sacred Heart Parish Centre
18 Bank Street
Kaiapoi
22 June
11 - 1 pm
Working Men's Club
113 Raven Quay
Palmerston Nth
23 June
11 - 1 pm
RSA
200 Broadway Ave
Hawera
25 June
10 - 1 pm
Community Centre - Theatre Lounge
Albion Street
Morrinsville
25 June
11 - 1 pm
RSA
Studholme Street

Farmers are invited to register by calling 0800 327 646 from Monday.