The fall in the pay-out has been and gone and now we await the results of dairy trade auctions to see what direction Fonterra take.
We need to be looking at the things we can control but at times we all seem to focus on things we can’t control. If you are struggling to meet costs or commitments then you need to be having discussions with your bank or with us before it gets to this stage.
During these tighter times, the banks often comment on the number of farmers who don’t have a budget in place when a client comes to them to request a bank overdraft extension or change in lending structure. It is important that we are always planning and keeping track of what cashflow will be available.
If you struggle in this area it is perfectly fine to ask us or the bank for help. A lot of people know how many solids they produce but don’t know what income this will generate. Others won’t think about feed profitability in a low pay-out until their neighbour mentions it. Everybody has different knowledge. The more you learn along the journey the more you’ll be prepared for similar situations in the future. Share, make mistakes, encourage, learn and ask for help.
