Take your farm business to the next level with these 5 tips

Published on June 15th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.
Farm business to the next level

At Savvy, our mission is to empower you to make informed financial choices. While we maintain stringent editorial standards, this article may include mentions of products offered by our partners. Here’s how we generate income.

Know when to tighten your belt

With 65% of Australia's farming produce going to overseas markets, it's clear to see that the market place plays a vital role in most farmers revenue. It helps to have an emergency buffer in place for when the market takes a slump or when you don’t hit the target. This can be done by tracking every dollar and checking where you can possibly cut back to add to the emergency fund. This may seem tedious at first, but it will come in handy when stuck to consistently.

Estimating your expenses

Having a budget in place is one of the key components to managing your farm. You may not be able to budget for every expense, which is why the first point is vital. Knowing the expenses that come with producing your product can ensure that you take out a commercial loan or any financing that can adequately cover your expenses. When estimating expenses keep in mind to account for depreciation, maintenance, repairs, marketing, variable and fixed costs that are applicable to your business.

Make financial decisions that align with your cash flow

Whether you are planning on taking out farm finance or using your own capital, it is vital to make financial decisions that help you maximise your cash flow. This can prevent your business from falling into a debt trap. According to the Royal Commission, Australian farms owed a total of $71.7 billion in rural debt. Broadacre farm debt stood at an average of $616,900 per farm which was an increase from previous years. If you are planning on taking out a loan it is important to check that you will be able to comfortably meet its repayments and that it works with your budget.

Call in the professionals

There are many moving components that come with running a farm. This can make things difficult to manage, especially when it comes to the financial aspect of your farm. Hiring an account can be a good investment when it comes to tracking your farms' finances if you do not already have one. Not only will they be able to tell you about the potential tax benefits that your business can get, but they can also highlight expenses that you may have overlooked.

Make smart investments

Whether you are choosing the right equipment or financing that comes with flexible features that allows you to run your business efficiently at an affordable, it pays to compare. After all, this is an investment and you would want to get the most out of it. Speaking to a financial advisor or a broker can help find a tailor-made solution that will work for you and your farm.

Did you find this page helpful?

Thanks for your feedback!

This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for commercial loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

In this article

Share this article

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on pinterest

Looking for a commercial loan quote?

Compare with Savvy and save on your next commercial loan.

* Terms and conditions and lending criteria apply.

Smart money saving tips

Subscribe to our newsletter.

By subscribing you agree to our privacy policy

Related articles

Looking for a commercial loan?

All equipment, aircraft, technology, agriculture, plant & machinery and truck finance. See how you can compare and save with us.

Farm business to the next level

We'd love to chat, how can we help?

By clicking "Submit", you agree to be contacted by a Savvy broker and to receive communications from Savvy which you can unsubscribe from at any time. Read our Privacy Policy.