When you’ve got money, the next question is what to do with it.
Do you buy more land and expand your farm? Do you put it into fertiliser? Do you put it into farm infrastructure?
Right now, producers are riding the wave of a good few years, says Matt Lieschke, Senior Agriculture Advisor with South East Local Land Services.
It’s thanks largely to high commodity prices across the board, from beef, to sheep meat, to wool, he says.
This means producers face a rare dilemma: what to do with their extra cash?
Farm income can be so “lumpy” from year to year, it’s critical producers take advantage of the good years to see them through harder times.
For this reason, South East Local Land Services will be running a Farming Investment Seminar in Goulburn this week.
“Despite concerns around current dry conditions, the latest report from Australian Bureau of Agricultural Resource Economics and Sciences shows that returns for both sheep and beef producers are predicted to be very strong,” Mr Lieschke said. “The whole premise was how do we try and take advantage of the good times, to help put us in a stronger position going ahead.
“It’s really quite important that we take advantage of the good seasons and make good decisions with the money.”
The seminar will explore ways for land managers to maximise both their potential for the future, and sustainability.
Attendees will hear from experts in the field of investments, commodity analysis and finance.
This will include a commodity outlook for the next 12 months, and a session on investing capital.
The seminar has been designed to tease out producers’ options for using the extra income from recent years, and insulate their farm from the variability of future seasons, says Mr Lieschke.
Local producers will also have a say, providing a picture of how they have managed investment and sustainability on their farms.
- From 8:45am, May 3, at the Mercure, Goulburn, $22 per head, bookings essential, via bit.ly/2HYbcIY, for more information contact 4824 1900