Five Financial Decisions Every Farming Business Should Review Each Year

Did you know the average Australian farmer is around 58 years old?

For many farming families, the next generation is already stepping into bigger roles, whether that’s taking over the farm, becoming more involved in business decisions or simply giving Mum and Dad the confidence to take a well earned break. Passing the baton, even temporarily, isn’t always easy, but it’s often the first step towards building a business that can thrive for generations.

This month we got to experience a little of that ourselves.

Some of you may have noticed Deb was able to sneak away for a short holiday at the end of July, one of her first proper breaks since starting Purvis AgriFinance nine years ago! While she was enjoying camper trailers, campfires and chasing some warmer weather near the Queensland and New South Wales border, I was back in the office (with the occasional Starlink phone call!) looking after our clients.

Next week we’ll be heading to Cleve for the Eyre Peninsula Field Days. If you’re in the area, come and find us at Site 417 D Road. Stop in for a chat (it doesn’t have to be about finance!) and enter our competition to win an Oval Climb experience and an overnight stay at Adelaide Oval. We always enjoy catching up with clients and meeting new faces, so we’d love to see you there.

Out and About – What We’ve Been Up To Last Month
Over the past few weeks we’ve been helping clients with overdraft increases to see them through the remainder of the season, completing annual reviews and arranging refinances.

One particular outcome reminded me why long term relationships with our clients are so valuable. A long standing client recently came up for their annual review. Like many farmers, they’ve experienced a few difficult seasons and their recent profits weren’t exceptional. But because we’ve worked with them over many years, we could see they had been making smart decisions, by reducing debt where possible, managing the business well and continuing to strengthen their overall position.

Rather than simply accepting the existing loan terms, I asked the bank to review their customer margin. The banker came back with a lower interest rate and the client saved a couple of grand without any effort from their end.

As we move through the second half of the year, many businesses also start reviewing their machinery needs. To make the process easier, we’ve launched a new Equipment Finance Quote page on our website.

Simply enter the details of the machinery you’re looking at purchasing and I’ll compare options across a range of lenders to find the most suitable finance for your situation. I know everyone is busy, so this means you can submit the information whenever it suits you, and I’ll review it once I’m back in the office.

If a phone call or email is more your style that is fine too!

View our Equipment Finance Quote Tool Here

This Months Blog: Five Financial Decisions Every Farming Business Should Review Each Year

Just like your own health, your business benefits from regular check ups.
In this month’s blog we’ve outlined the five financial health checks we believe every farming business should complete each year.

We cover:

• Finance structure
• Whether you’re still getting a competitive deal
• Borrowing capacity
• Working capital
• Business goals

For each area we explain what a healthy business generally looks like, what warning signs to look out for and when it may be worth seeking a second opinion.

Click Here To Read: Five Financial Decisions Every Farming Business Should Review Each Year

What’s Happening with Interest Rates?

The Reserve Bank is due to meet again later this month. The most recent decision to leave rates unchanged was welcomed by borrowers, and the major banks now generally expect the cash rate to remain steady for the rest of the year.

While there is growing confidence that rates have peaked, some economists remain cautious. Inflation has eased, but not as quickly as hoped, and economists such as Warren Hogan have warned that the Reserve Bank may still face difficult decisions if inflation remains persistent.

• CBA expects rates to remain steady, with the next movement likely to be a rate reduction around May next year.
• Westpac has recently revised its forecast and now expects the cash rate to remain unchanged for the rest of the year, rather than increase.
• 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.

“Success is the sum of small efforts, repeated day in and day out.”
– Robert Collier, Author

Have a great day!!
Deb & Laura

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Latest News

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The Eyre Peninsula Field Days return from 11–13 August and remain one of the region’s premier agricultural events. It’s a great opportunity to catch up on the latest in farming, machinery and technology, while connecting with others from across the industry. We’ll be there throughout the event, so if you’re attending, we’d love you to stop by and say hello.

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It’s More Than Just Interest Rates
Interest rates are only one part of a finance strategy. This article explores the importance of loan structure, lender relationships, succession planning and having finance that supports your long term business goals.

The Bank Manager Revolving Door
Regular changes in bank relationship managers can make it difficult to maintain continuity. This article looks at practical ways to build stronger banking relationships and explains how a broker can provide consistency over the long term.