Turning insights into practical farm support

Running a dairy farm today means constantly adapting – managing rising input costs, navigating seasonal changes and making daily decisions that impact the future of your business. In the middle of all of that, one thing remains true: the more visibility you have over your numbers, the more confident and in control you’ll be. 

It’s also helpful to understand how other farmers approach their business – what’s working, where they’re adjusting and how they’re using data to make better decisions and drive even better outcomes.

At Dairy Australia, my team leads initiatives and economic research into farm productivity and profitability. The work we do provides dairy farmers with data-driven analysis, tools and resources to help make the best possible farm business decisions.

A key source of insight is Dairy Australia’s Farm Business Management report – a national survey conducted every three years, capturing data from 400 dairy farmers across Australia. The report explores areas such as financial data use and planning for risk and uncertainty, helping to shape practical programs and tools. These insights ensure Dairy Australia’s resources remain closely aligned with real farm business needs and support more resilient, profitable dairy businesses.

Key trends

It’s encouraging to see that the report reflects a steady increase in how often farmers are tracking their financial data. More than half (56 per cent) update key financial information – like feed costs and milk income – at least monthly. That’s up from 47 per cent from 2022 – a positive sign that even given the current challenges being faced, many farmers value and continue to regularly monitor their financial performance.

While cash flow remains the most commonly used measure of performance, more farmers are now tracking profitability and wealth indicators. 62 per cent of farmers are using Earnings Before Interest and Tax (EBIT) and 49 per cent are using Return on Total Assets (RoTA).

Tracking EBIT per kilogram of milk solids and RoTA provides valuable insights into how effectively farm assets are being used to generate returns for both the owner and any invested capital – an important goal for the dairy industry.

When it comes to business planning, the data shows that around four in five farms now have some form of a business plan – a plan considering both the current position and future goals, for the farm and personally.

This shift reflects a growing awareness of the value in taking a strategic approach – one that moves beyond daily decision-making – to ask: Where is the business heading? What are its key goals? And how can risks be managed along the way?

However, only about one in five farmers have taken the step of documenting their business plan, and the same applies for succession or transition planning.

While writing a plan down may seem like a formality, having it documented provides real, practical benefits. It helps clarify priorities and responsibilities, and supports communication with advisers, lenders, family and the broader farm team.

In times of uncertainty or pressure, a written plan becomes especially valuable – guiding decisions and helping manage risk with greater confidence.

Practical support

Dairy Australia’s farm business programs provide support to farmers in tracking both the physical data – such as cow numbers, stocking rates and homegrown feed production – and the financial data of a farm business, helping create a connected picture of the business. The goal isn’t just about good record keeping but the value is in using that data to support clear, more confident business decisions.

Dairy Australia provides a range of options for dairy farmers to track income and costs, manage cash flow and look for opportunities for improvement. Tools such as the Dairy Standard Chart of Accounts, Farm Business Snapshot and Dairy Cash Budgeting Tool provide farmers with a clearer picture of their current position. Dairy Australia staff are available to support farmers in using these tools and building confidence in applying them in their business.

As farmers start to take advantage of all the support available for their farm businesses, programs such as Our Farm Our Plan, are helping them take a more strategic approach to planning. This also supports farmers to balance personal and business priorities, while building practical plans to manage risk and respond to change.

In today’s operating environment – with high costs, increased debt levels and higher interest rates – now is the time to look for ways to better understand your farm’s financial position. Whether it’s putting pen to paper on a plan, running a budget or benchmarking your performance, it all counts.

To find out more about how Dairy Australia supports farmers to enhance their farm business management, reach out to your local team or visit Farm Business.