The Hidden Cost of Delaying Financial Decisions
It’s hard to believe we’re already halfway through the year. Many of our clients have finally received some much needed rain, which has been a welcome change. While there’s still a long season ahead, it’s encouraging to see some moisture in the ground and crops off to a positive start.
With seeding now complete, our clients have a little more time to focus on the rest of the year. This is typically when we work together to review cash flow, assess borrowing capacity for potential spring land purchases, and organise equipment finance for machinery needed ahead of harvest.
While it might seem early to start having these conversations, planning ahead gives you more options and allows us to put the right strategies in place before any pressure builds.
We explore this in more detail in this month’s blog, The Hidden Cost of Delaying Financial Decisions. If you’re someone who tends to put off financial decisions, it’s worth a read.
Out and About – What We’ve Been Up To Last Month
We’ve been back on the road this month, travelling through the Riverland and across the Mid North. It was especially encouraging to see so much green in the Riverland after the challenging seasons the region has experienced.
During our travels we’ve been meeting with new and existing clients, catching up with bank managers, and reviewing finance options. Whenever conditions allow, we love spending time with clients face to face. Coming up, we will be attending the Eyre Peninsula Field Days from 11 to 13 August. We’d love to catch up while we’re there.
This month Deb spoke at a Farm Financial Literacy Workshop in Redhill. She spoke about creating realistic budgets and how to present your financials to banks.
Key take aways from her talk was:
- Keeping your broker and banker updated with any major changes to your income or expenses.
- Knowing how to explain all of your numbers presented in your budget.
- Using realistic numbers in your budgets.
As more farming families look to diversify their wealth beyond the farm, Laura has expanded into writing home loans alongside our agribusiness finance services. Our goal is to better support farming clients whose unique income structures can sometimes make the home-buying process more complex. She’s also been working with younger clients, both farmers and non-farmers, to navigate today’s challenging housing market. Being part of the same generation, Laura understands the hurdles first home buyers face and has found it incredibly rewarding to help clients take that exciting first step into home ownership.
This Months Blog: The Hidden Cost of Delaying Financial Decisions
Most farmers understand the cost of making a poor financial decision. What is often overlooked, however, is the cost of making no decision at all.
In this month’s blog, we explore how delaying financial decisions can reduce your options, increase stress, and potentially cause you to miss valuable opportunities.
Whether you’re considering purchasing neighbouring land, planning for succession, reviewing your lending arrangements, or preparing for future growth, waiting until a decision becomes urgent often makes the process more difficult than it needs to be.
We also discuss the importance of staying prepared by keeping your financial information up to date, maintaining strong relationships with your advisers and lenders, and understanding your finance options before opportunities arise.
What’s Happening with Interest Rates?
In June the cash rate remained unchanged despite the RBA meeting. Previous attitudes for more rate rises has shifted.
- CBA expects rates to remain steady for the rest of the year. They also predict rate cuts will begin in May 2027,
- Westpac is forecasting two further rate rises in August and September, which would take the cash rate to 4.85%.
- NAB does not currently expect further rate rises this year, but expect cuts to start June 2027.
- ANZ is also forecasting no further increases, with cuts beginning September 2027.
“The best way to predict the future is to create it” – Peter Drucker
Have a great day!!
Deb & Laura
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Latest News
Hart Winter Walk Tuesday 21 July 2026 | 9:00 am to 12:00 pm | Hart Field Site
The annual Hart Winter Walk gives growers their first opportunity to inspect this year’s crop trials following seeding. The guided walk takes participants through the trial site, where Hart’s researchers, agronomists and guest speakers discuss early crop establishment, seasonal conditions, disease and pest observations, nutrition strategies and the latest research findings. Attendees can ask questions directly of industry experts while comparing different crop varieties and management practices under local conditions.
Grain Markets Still Waiting for a Catalyst – Episode 3
Global grain markets remain relatively subdued, with strong global supplies and cautious demand keeping prices within a narrow range. Market analysts suggest it will likely take a significant weather event or major shift in global trade to drive stronger price movements. Growers are encouraged to remain disciplined with their marketing strategies and take advantage of pricing opportunities as they arise.
Tax Reform Discussion Continues
A recent ABC News article explores the ongoing discussion around proposed tax reforms and their potential implications for Australian agriculture. The article covers topics including family trusts, capital gains tax, succession planning and the response from industry groups.
From the Purvis AgriFinance Archives
Successful Succession
We are working through a lot of succession scenarios with farming families at the moment, and no two situations are ever the same. While succession can be a difficult conversation, with the right structure, planning, and communication it can become a positive and well managed transition that supports both generations and the long term success of the farm.
Getting Interested in Rates
With interest rates remaining a major pressure point for many farm businesses, more clients are starting to take a closer look at what they are paying and whether their current structure still suits their needs. Rising rates have had a real impact on cash flow and working capital, which is why reviewing your position and understanding your options can make a significant difference over time.
Top 4 Reasons Farmers Avoid Reviewing Interest Rates
Interest costs continue to be one of the biggest expenses for many farming businesses, especially after the rate increases of recent months. Even so, reviewing interest rates is often pushed aside because people assume it is too hard, too time consuming, or that staying loyal to their bank means they are already getting the best deal. In the current rate environment, even small improvements in structure or pricing can create better outcomes and stronger cash flow.