Farm bud­get the way to go

Matamata Chronicle - - Rural Deliver -

DairyNZ wants farm­ers to know it’s not too late to get started on next sea­son’s farm bud­get and have launched sev­eral on­line tools to make the farm bud­get­ing process eas­ier.

DairyNZ de­vel­op­ment team leader – peo­ple and busi­ness, Geoff Tay­lor, said many dairy farm­ers had used the new tools over the past few months and had found them very use­ful.

‘‘We have de­vel­oped some great tem­plates that take a farmer through the step-bystep process of de­vel­op­ing an an­nual cash bud­get, monthly cash­flow bud­get, per­sonal bud­get and more. Plus, we’ve put to­gether guides that teach farm­ers how to de­velop these bud­gets.

‘‘ We’ve used these new tem­plates dur­ing our re­cent se­ries of cash­flow bud­get­ing work­shops. Hun­dreds of dairy farm­ers have found these tools ex­tremely help­ful and they are now avail­able on our web­site,’’ said Mr Tay­lor.

Dairy farm­ers can down­load the new bud­get­ing tem­plates and guides for free at: http://www.dairyn- z.co.nz/bud­gets. DairyBase man­ager Dr Adam Barker said he had seen the power of the bud­get­ing process mul­ti­plied for those farm­ers who were also us­ing DairyBase.

‘‘Bud­get­ing is a crit­i­cal process for any suc­cess­ful busi­ness. Putting to­gether a bud­get al­lows you to take con­trol of all your de­ci­sions.

‘‘ How­ever, where we’re see­ing dairy farm­ers gain even bet­ter re­sults is when they use their bud­get and their DairyBase re­ports hand-in-hand to make busi­ness de­ci­sions on farm.

‘‘ For in­stance, farm­ers are us­ing DairyBase to bench­mark farm work­ing ex­penses. They can de­ter­mine if their ex­penses are above or be­low the av­er­age on other farms and then make de­ci­sions to change based on their in­di­vid­ual farm busi­ness goals.’’

DairyBase is a tool that helps farm­ers an­a­lyse the re­sources they have, the way they’re us­ing them and, by way of bench­mark­ing, com­pares their use of re­sources with other farm busi­nesses. Farm­ers can reg­is­ter for DairyBase for free at www.dairybase.co.nz or by phon­ing the DairyBase bu­reau on 07 858 3890.

DairyNZ top 10 bud­get­ing tips:

Take charge – make sure you own the bud­get.

Look for trends in your his­tor­i­cal records.

Use DairyBase to com­pare your ex­penses to other farms.

Start from zero for ex­penses that concern you to de­ter­mine re­quired ex­pen­di­ture.

De­ter­mine which fig­ures are cer­tain vs es­ti­mates.

Al­low a con­tin­gency for un­ex­pected cap­i­tal re­pairs/ re­place­ments.

Use a long-term pay­out fore­cast in your bud­get to en­sure your farm is ro­bust over time, then pre­pare a bud­get based on next year’s fore­cast.

Test sce­nar­ios: lower than ex­pected pro­duc­tion, drop in pay­out; higher ex­penses.

Use a trusted out­side per­son as a sound­ing board.

Give your ac­coun­tant and banker a copy of your bud­get.

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