KEEP a close eye on everything you do this year to maximise the opportunities for 2018.
That is the message from Planfarm farm management consultant Rob Grima who spoke at the Yuna Farm Improvement Group post seeding walk last week.
He said while growers still had a long way to go until the following season, it was a good idea to start thinking about the implications for 2018.
“If you don’t have working capital you don’t have a business so that will be the most important thing working into 2018,” he said.
“Liquidity next year will be paramount and tax implications from the previous year are going to be an important thing to manage if you haven’t already done so.
“You are going to have to set yourself up with the ability to rebound if a more favourable season comes along.”
Mr Grima said growers should quantify their position and map out the “worst-case scenario” in order to start planning for next season.
This would also help identify any cost saving measures they could do this season, he said.
“In some cases it might be ugly but once you know the problem you can start to pick through the budget and look at the costs and start looking at what you can do,” Mr Grima said.
“There are some natural cost savings in situations like this such as freight, receival fees, diesel, repairs and maintenance – they all tend to naturally come down in a year like this.
Herbicide and nitrogen application should also be considered as growers target the better performing crops.
“Everyone had pretty much moved to a double spray strategy with handsome dividends and on the crops that are growing and the weeds along with them you have to decide what you are going to do with them in terms of herbicide choice – it is a decision only you can make but you might have to allow for a few survivors to come back to do a more expensive spray next year,” he said.
Those who were carrying a hefty tax burden following a strong finish last year were cutting it close but there were still options in regards to bringing forward purchases into this financial year.
“There is still the option of bringing forward some purchases into this year, or “farm management deposits are still an option to try and minimise the tax burden and hopefully rebound into a positive 2018,” he said.
“If you haven’t figured out what to do you still have time – not a lot but you still have time.”
