Farm business management
Australian dairy farms face many challenges to profit though better performing dairy farms from across all regions generate the returns that allows for long-term wealth creation. To improve profitability and manage risk, farmers require a range of farm business management skills. The Farm Business Management program will provide tools and programs which focus on maximising profit and managing risk. The target audience is farmers and service providers with a focus on profitability.
- There is currently significant variation in profitability and ROA across Australia’s dairy farms. The increase in production costs and volatility in income has resulted in many dairy farmers taking a year-to-year perspective on farm financial performance. Under these conditions, many dairy farmers have found it difficult to focus on wealth creation over the longer term. Average debt per farm has increased over the past decade which has resulted in a higher proportion of farm income required to meet interest payments.
- DA will support farmers in addressing these issues by providing decision making support (capability and tools). The farm business management initiatives will be delivered via a number of approaches including; regional expert reference groups, training and development of private providers, resource sharing and development (DairyNZ), use of case study farms, information workshops and web based electronic information.