Agriculture

Agriculture is one of Ian's specialist areas, in particular livestock, cropping, and stock and station agents. Farm income arrives in a few large payments a year, while costs run every month. Planning cash around the season, and planning the next generation's future, both need attention years in advance.

Our quarterly plans suit many farm businesses, because they match the rhythm of the season.

We prepare farm reporting and forecasts in Figured, farm software that connects to Xero, MYOB, QuickBooks Online and AgriWebb, and to many other farm management apps. Your dashboard focuses on farm measures. Debtor days and creditor days matter less when most sales settle through agents and processors, so we calculate them separately only where your business needs them.

What we track

• Gross margin by enterprise, such as cattle, sheep or wheat
• Gross profit percentage
• EBITDA per hectare, so you can compare your farm's earnings with similar farms
• Operating expenses ratio: your running costs as a share of income
• Break-even production: the yield or turn-off you need to cover your costs
• Break-even milk payout, for dairy farms
• Cost of production, such as cost per kilogram
• Stocking rate, in dry sheep equivalents (DSE) per hectare
• Equity percentage: the share of your farm assets you own outright
• Interest cover: how many times your earnings cover your interest bill
• Seasonal overdraft peak
• For stock and station agents: commission income, debtor exposure and margin by division

Common cash problems

• Overdraft peaks before harvest or sales
• Input costs paid well ahead of income
• Seasons that don't follow the budget