High input costs and variable seasonal and market conditions have been causing financial stress for farmers who have been reaching out to the Rural Financial Counselling Service NSW (RFCS NSW) for assistance.

"Financial stress is where you don’t have enough funds to cover expenses and debts and your current or future finances are in a precarious situation causing physical, emotional, or mental strain and anxiety," says CEO of RFCS NSW, Craig Hough.

“The causes of financial stress often depend on the area where a farm is located, what commodity the farm is producing and how the farm is managed. For example, in cropping we’ve seen dry conditions in some regions and lower prices from higher global production. For some farmers this has caused financial stress, particularly those with significant debt. For farmers experiencing financial stress in the horticulture, livestock and dairy sectors their causes are different,” says Craig. 

RFCS NSW is urging farmers to understand and analyse their causes of financial stress and identify actions that address those causes. This is best done with assistance from a professional service like RFCS NSW.

“RFCS NSW believes that a successful, financially self-sufficient business requires a balance between four key pillars including the business, the business owner, the family and the business support network. Our Rural Financial Counsellors aim to help farmers define what success is to them and build the necessary skills and relationships to achieve it.” he says.

RFCS NSW provides free, confidential financial counselling services to farmers. Our mission is to support farmers in achieving their personal and financial goals through expert advice and assistance.

“Farmers need to be aware that they don’t need to face financial stress alone, there are numerous resources and support systems available to help them navigate any challenges that they are facing”, says Craig. 

Farmers experiencing financial stress or seeking to create a management plan are encouraged to contact their local Rural Financial Counsellors on 1800 319 458 for personalised assistance and support.

ENDS

RFCS NSW Media Enquires

Stakeholder and Communications Manager: Kate Anderson

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.  Mob: 0487731788

The death of a parent is a tough and sad time, but for Jane, she found herself in an even more challenging situation after the passing of both of her parents. While still grieving their loss, she faced significant financial stress due to the rapid rise in interest rates that impacted the stability of the fourth-generation family’s merino farm in Western NSW.  

Jane’s cousin suggested she contact the Rural Financial Counselling Service. Via the 1800 number she got in touch with her local Rural Financial Counsellor Graeme Witte.   

During their first meeting, Jane shared with Graeme her struggles and the financial pressures she faced. Graeme outlined how he could assist her. “There were many challenges to address, I told her we needed to tackle them one by one,” he says. Graeme was able to use his banking background and experience with clients to calmly pass on knowledge and skills to Jane, helping her to better understand her situation and what options she could take.  

“Graeme laid out various options for how we could achieve financial stability. He offered non-judgmental advice and helped facilitate changes that would improve the farm's financial outlook, he could see what was best suited for our needs” says Jane.  

Graeme and Jane went through the options together and determined what was best for Jane’s situation. While the farm predominately runs grazing merinos, they also have a vineyard with Chardonnay and Shiraz wine grapes as well as a citrus orchard.  

“I was so stressed out. At the time, I couldn’t see a way that I could keep the farm going,” says Jane.  

“However, with Graeme's support I now feel that I am in control and the farm's future is secure.”  

Jane says that one of the critical aspects of Graeme’s support was acting on her behalf in discussions with the banks, accountants and solicitor, which took away some of the pressures Jane was experiencing.  

This case highlights the critical role that Rural Financial Counsellors play in supporting rural families through times of financial hardship. “Because of his experience and knowledge he knew the options available and the lingo that I was not able to express clearly. It was really good to have someone speak on your behalf and represent you. It felt like he really understood what I was thinking and it was reassuring that I didn't have to keep explaining myself." 

“People talk about job satisfaction; I gained a lot of satisfaction helping Jane and her family overcome the stressful challenges they were facing. It is a great feeling when you tell your clients that they no longer need your help because they will be okay from now on and they have the confidence to continue. That is why we do what we do, “says Graeme.  

Jane is now in control and feeling positive about the future of the farm.  

“I feel incredibly lucky to have had RFCS NSW’s support, it is such a valuable service and I encourage anyone who is facing similar challenges to get in touch with them too,” she says.     

In the hustle and bustle of managing day-to-day operations, farming businesses can sometimes forget to set goals for the future. Determining a defined and realistic set of outcomes for the business can provide farmers with direction and a renewed sense of confidence, says the Rural Financial Counselling Service NSW (RFCS NSW).

“We have seen farmers face challenges due to neglecting the importance of goal setting,” says Craig Hough, CEO of RFCS NSW.

“We aim to help farmers steer away from this by equipping them with the correct tools and guidance to set clear goals and pave the way to a sustainable future,” he says.

Goal setting is the process of identifying a future desired state that is broken down to a series of targets for the business. These are backed up with an action plan setting out how those goals will be achieved.  

RFCS NSW is a not-for-profit organisation with a mission to strengthen communities by helping farmers be prepared, responsive and sustainable and provides free and professional financial counselling specifically for farmers and related businesses. Local rural financial counsellors can assist farmers navigate their businesses with tools like goal setting and business plans to guide them to a more prosperous future.  l

Craig says the RFCS NSW understands when farmers feel uncertain about their financial future, it can add to their stress and impact their emotional, and physical health. Engaging in goal setting offers a constructive approach to establishing clear objectives that farmers aspire to achieve, along with necessary actionable steps.

“It is crucial we base goals on evidence. Farm performance, economic and,  seasonal conditions, policy settings and market forecasts are all important considerations. Speak to your local Rural Financial Counsellor to gather and analyse this information and construct goals and plans for your farm business.”

The contact number for RFCS NSW is 1800 319 458.

ENDS 

RFCS NSW Media Enquires 

Stakeholder and Communications Manager: Kate Anderson 

This email address is being protected from spambots. You need JavaScript enabled to view it.

0487 731 788

Incorporating benchmarking into your farming enterprise is a highly valuable skill for continuous improvement and success. Understanding what benchmarking is and how it can improve your farming practices is fundamental for your business.  

Understanding benchmarking

Benchmarking is a tool used in agriculture to compare costs, product quality and customer satisfaction. Benchmarking is about comparison and, is the process of comparing your business’s performance, processes, products or operations against other parts of your business, competitors or best practices in the industry. By utlising benchmarking you are able to uncover insights into where your farming business is excelling and where there are performance gaps and room for improvement. 

Unlocking the benefits

There are significant benefits that can be gained by using benchmarking practices to improve efficiency, productivity, and profitability. Benchmarking is important within farming to identify opportunities for growth, provide insights, make better decisions and drive continuous improvement. Some key benefits include:

1. Making informed business decisions: benchmarking provides you with important facts and figures that give you a better understanding of your farming business performance, allowing you to make informed business decisions based on this knowledge.
2. Long term success: Understanding your business in depth and benchmarking your performance are fundamental tools for long-term success.
3. Identifying opportunities: Benchmarking helps farmers identify opportunities for improvement within their business. By identifying performance gaps, farmers can priortise areas for further investment and innovation.
4. Risk Mitigation: Benchmarking against industry standards and best practices allows farmers to identify potential risks and take action to mitigate these risks to ensure business stability and resilience.

How to get started

Gather financial statements

Begin your benchmarking journey by collating your farm’s business annual financial statements, including your profit and loss statements and balance sheet. These documents provide a great summary of your business’ financial health, outlining liabilities, assets and performance over the past financial years. You can adjust the asset values to reflect current market conditions, especially if there has been significant changes since the end of the financial year. Once you have the assets, the liabilities and the business performance data available you can start working on benchmarking.

Internal benchmarking

Before comparing your farm’s performance with industry benchmarks it is important to conduct internal benchmarking.  Assess your businesses performance against its past performance to identify areas of improvement or decline.

For many businesses a focus on measuring their level of debt is a good place to start. An effective level of debt is important for long-term viability. This can be measured by equity, debt to income ratio, finance costs as a % of farm income, return on equity calculations – all information can be obtained from the financial statements.

Analysis over a reasonable period of time is important because incomes can be highly variable, particularly in the cropping industry.  Spreading analysis over a number of years can also indicate any trends.

Avoid relying on one single indicator, instead assess a range of indicators to gain a comprehensive understanding of your farm's business performance. Success often depends on achieving the appropriate balance of capital efficiency, economic operation scale and debt to equity ratios.

What's Next?

To begin your benchmarking journey and enhance your efficiency, productivity and profitability, get in contact with the Rural Financial Counselling Service. Our Rural Financial Counsellors will help you consider your individual situation and circumstances. RFCS NSW offers support and tools to help farmers understand benchmarking and unlock sustainable success. Contact your local Rural Financial Counsellor at RFCS NSW on 1800 319 458.