We were so close!
The frost last weekend seems to have caused widespread damage across southern Victoria. The full extent of the damage is not yet known and probably won’t be completely understood until the header is in the paddock.
We have been doing the numbers on hay for a few clients and reassessing budgets to determine the full impact from a financial point of view.
Although yield, quality and price is unknown, re-forecasting helps to clearly understand the financial impact and allow informed decisions to be made.
We can then be on the front foot to deal with lenders and negotiate loan and equipment finance repayments if required.
Farming is a long term game and part of the thinking now needs to be preparing for next year and determining the working capital needed to give yourself the best opportunity to grow the best crop next year.
The important thing to understand is you are not in this alone and there are financial management tools, such as Xero and Figured, that can help work through and clarify what needs to be done.
Bronte Gorringe is an agribusiness consultant at Mulcahy & Co Agri Solutions and can be contacted on 0401 882 374 or firstname.lastname@example.org