CURRENT buoyant livestock prices are providing a much needed boost to the bottom lines of a number of farm businesses and offer opportunities in a number of areas.
It is good to receive higher prices this year as compared to previous years; more cash than usual has become available.
The recent federal budget offered a tax benefit to small businesses when purchasing business items up to $20,000.
This has reportedly resulted in an increase in sales of, for example, utes.
This sounds positive for small businesses and those providing the goods.
On the other hand, the likelihood of El Nino potentially resulting in lower seasonal rainfall reducing overall pasture (and crop) production has been signalled by the Bureau of Meteorology.
The impact of El Nino cannot be predicted accurately and will vary across the state, depending on location and farming system.
For the farmer and farm business it is important that attractions of ’tax breaks’ don’t override consideration of a sound financial budget for the next financial year.
Similarly for the production system at risk from the impacts of an El Nino event, sound livestock feed budgets reflecting outlooks of good, average and bad seasonal conditions will be required through the coming season.
The need for good farm business management skills is an important element for farmers to maintain business sustainability while taking opportunities that occur in agriculture as well as for managing through potential impacts of tight seasonal conditions.
Producers should speak to their accountant, farm business advisor or rural financial counsellor about budgeting to provide a basis for taking opportunities while also being prepared for tight seasonal conditions.
For a livestock feed budget, speak with a farm advisor or BetterBeef contact.
