Agribuzz with David Leyonhjelm
This blokes sole purpose in life is to seemingly annoy the crap out of the rural communities & incite them to the keyboard in an attempt to initiate action from the rural silent minority. Well maybe he's got a point. Just so long as the rest of the community/economy share the same load of inequity & distortions to markets as primary producers do. Car industry for one! I would be more supportive of giving ABARES a good boot out the door - no redundancy payment on the way out either.
Yeah, true in essence Sam. However, as someone who is directly involved in a couple of advocacy organisations & has been for many decades, the "gaining members" or "just join" because it benefits you, is not that simple.
Why do they want to join? What are my benefits? What am I buying?
Advocacy groups are selling a product of lobbying. It's not something you can kick, bite & chew. It's a long term constant struggle to achieve any benefits. Sure they're needed but how do you sell the benefits? I'm all ears.
There should be immediate reform limiting the rebate to Cellar door sales only to a limit of $50K per annum effective immediately.
There should be no rebate for bulk & unlabelled wine.
NZ & any other imported wine of any form should not be able to access the rebate.
The rebate should only be claimable at the last point of sale (cellar door only) where the tax is paid first & the rebate can be claimed later.
Legislation to this effect comes into force prior to the end of the calender year.
What about the growers "voluntarily" contribute to Jamie jumping the fence & land in the IGA paddock?
How about it IGA?
“It’s also important to factor in owner drawings, people need something to live on during the year, but in too many budgets it is not in there.” So True.
So many GM's that departments & advisors also put out in the public domain, don't include drawings, finance etc etc - all of these basic omissions end up distorting the real picture of total costs of production.
But what would I know - I'm just a grower that runs a couple of businesses that has survived through the toughest of times!
Who'd like to offer Allan Mitchell an equity position in their farm? How about something like letting Allan operate/purchase/manage 3,500ha around Condo-Nyngan-Coonamble etc. Give him reality of 60% equity in the farm. He's got to front up his own money (or borrowed) to get a good taste of the modern farming business.
Tractor(s)/airseede r/header payments at 40% equity. He just sunk 100's of thousands in last years crop - at best he span the wheels.
Give him 5 years & let's ask about the uncapitalised & inefficient farmer.
Hope he does well.
You're dead right, ROA is definitely not the best option to compare business costs. Presume 50% equity in machine i.e. $175k debt P&I repayments 5yrs = $43.2k/yr. Add EBIT as quoted $55.4k = $98.6k. ROA would then be 28.1%
To make the total costs more realistic 2400ha / $98.6k/yr = $24.34/ha, then you're much more realistic to what it actually costs.
For too long, published gross margins always leave out the real finance costs etc & are often misquoted & used against growers.