Subscribing to Savings

Mad March is here. For us, that means bank reviews galore. We are checking in with our clients to make sure they have enough funds in place for the new season. We are reviewing what went well last year, what could have gone better, and making sure structures are still fit for purpose.

For our clients the season was a real mixed bag of results. For those who have had a tougher season again, we are thinking of you and are here to chat through any questions or thoughts you have.

If you have been wondering whether Purvis AgriFinance could support your business, now is a great time to reach out. March is the perfect time to ensure your finances are set up to work for you for the year ahead, and with potential interest rate rises on the horizon, it is a smart time to have your rate reviewed.

If you get the chance to step away from the farm and you are in SA, the Fringe is on in Adelaide. We usually love to visit. It is great for families, or just as good for catching a show without the kids.

Out and About – What We’ve Been Up To This Month
We have well and truly been out and about over the past month. From Wudinna to Naracoorte, we have spent time on both the Eyre Peninsula and the South East, with visits in between to clients closer to home in the Mid North and Yorke Peninsula. If we haven’t been able to visit in person, we have also jumped on video calls for our interstate clients.

A big focus has been preparing budgets, ensuring lending is structured well, rates remain competitive, and that there is enough funding in place for the season ahead.

Another well received part of our reviews has been detailed financial analysis. We have presented clients with graphs and tables showing historical and current spending in key areas, compared to income. It is always encouraging to see improvements over time, or to clearly identify areas that need attention for the year ahead.

We have also been very busy assisting with equipment finance. Once cash flows are mapped out, clients have a clearer idea of what machinery purchases are reasonable for the season. If you are looking to purchase equipment, make sure you ask us to quote as well. We offer the same ongoing support with equipment finance loans and can often match dealer quotes. We can also assist with financing older or unusual equipment. Recently we helped finance 17 year old machinery. If you are purchasing in the second hand market and need help finding the right lender, we can definitely assist.

Subscribing to savings

We are sure you have noticed that just about everything seems to require a subscription these days, including in farming.

Over the past five years, we have seen subscription expenses increase quite dramatically in many of our clients’ businesses. Individually they often look small, but together they can become a meaningful overhead.

This month’s newsletter shares some practical tips to make sure your subscription costs are not quietly getting out of hand, and that you are truly subscribing to savings, not just more fixed expenses.

Click Here: Subscribing to Savings

What’s Happening with Interest Rates?

With banks passing on the previous rate rise, here is what they are currently predicting will happen to rates.

• ANZ currently predicts the cash rate will increase by 0.25% in May
• CBA currently predicts the rate will increase by 0.25% in May
• NAB currently predicts a rise of another 0.25% in May
• Westpac currently predicts the cash rate will increase by 0.25% in May

“Beware of little expenses. A small leak will sink a great ship.” — Benjamin Franklin

Have a great day!!
Deb & Laura

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Latest News

Hart Getting the Crop In Seminar – Clare March 11
The Hart “Getting the Crop In” Seminar will bring together growers and industry specialists to discuss key considerations ahead of the seeding season. The event will cover current agronomy research, seasonal outlooks, grain markets and farm business insights to support decision making for the year ahead. It is a timely opportunity for growers to hear practical updates and research findings as planning for the upcoming cropping season gets underway.

NYLB Soil Salinity Workshops – Southern YP 26 March, Eudunda 27 March These NYLB workshops with soil specialist Chris McDonough will focus on understanding and managing soil salinity in cropping systems. The sessions will explore how salinity develops, how it affects crop performance and practical management strategies growers can use to improve productivity on affected soils. With salinity remaining a challenge across many farming districts, the workshops provide a practical opportunity for growers to learn more about identifying issues and improving soil management.

Episode 3- Iran Conflict Creates Opportunity and Risk for Australian Grain Escalating conflict involving Iran has pushed oil prices higher and reintroduced geopolitical risk into global grain and input markets. Higher energy prices can support grain markets through increased biofuel demand, potentially lifting crop prices, but they also raise input costs such as fertiliser and fuel. For Australian growers, this creates a risk that seeding costs rise while many have limited old crop grain available to benefit from short term price rises. The longer the conflict continues, the greater the potential for sustained changes to global grain and input markets.

From the PurvisAgriFinance Archives

On the fence about whether we can provide the help you need?
Have a read of some of our past blogs that explain a bit more about what we do and how we support our clients.

Agribusiness Finance Options
A reminder that reviewing your finance doesn’t always mean moving lenders. Often the best outcomes come from better structure, clearer communication with the bank, and making sure the lending actually fits how your business operates.

Comprehensive Agribusiness Broker Support
This article looks at the broader role an agribusiness broker can play, from helping compare lenders and negotiate rates to supporting bank reviews and ensuring lending structures remain fit for purpose as your business evolves.