Fact sheet helps dairy farmers plan future

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Dairy Australia has a range of new initiatives to help farmers Dairy Australia has a range of new initiatives to help farmers Dairy Australia has a range of new initiatives to help farmers

A fact sheet aimed at helping dairy farmers to assess their situation and plan the way ahead during the current uncertainty around seasonal conditions and milk pricing has been released by Dairy Australia.


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The national dairy services body’s fact sheet ‘Taking Stock of Your Situation’ is the first in a series called ‘Tactics for Tight Times’ and guides dairy farmers through a process that helps them to understand their current position and plan for the 2016/17 season.

"It works as a ready reckoner listing key areas of the farm business to focus on in order to get an understanding of where the business is positioned in the changing environment of lower milk prices and ongoing drier than average conditions in many regions," Dairy Australia says.

"The fact sheet covers annual cash flow, monthly milk income and feed budgeting, detailed cash budgeting for 2016-17, monthly cash flow and looking at your balance sheet and detailing assets and liabilities."

The wider Tactics for Tight Times program includes information, tools and resources for dairy farmers and service providers delivered through the industry’s Regional Development Programs using a range of specialist providers.

Dairy Australia says the program is designed to be flexible to meet the unique needs of each dairy region, and features activities such as workshops, discussion groups and farm walks.

The Taking Stock of Your Situation fact sheet lists these as key points for dairy farmers:

  1. Know your milk price, milk income and all expenses to complete a cash flow for the next three months;
  2. Complete an annual Cash Budget July−June and understand your break-even milk price;
  3. Assess your balance sheet/equity position;
  4. Start pulling together a month-by-month cash flow;
  5. Using your initial annualised Cash Budget, start working with your team to identify opportunities to improve cash flow;
  6. After evaluating all options, develop a month-by-month plan including milk production, feed budget and detailed cash flow position for the next 12 months;
  7. Identify any surplus or non-core assets that can be converted to cash;
  8. Identify any other potential issues that need addressing, such as stock water; and
  9. Don’t forget the ‘people’ side of your business – what can they contribute and what are their needs?

 

Download the Taking Stock of Your Situation fact sheet here.

 

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