How do we pay for Australian agriculture?

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Money is not just money though. Lots of considerations involved. Technology and digital advancements will also influence capital markets, including how banks might adapt to meet market demands.

In “Financing Our Future”, we tried not only to highlight the investment gap, but also to suggest practical ways for our farmers to prepare to invest and find paths to future success and growth.

Some of the immediate and next steps to be taken are those designed to generate greater production volumes and income for our farmers.

BEST TRAINING

Best practice models – including adopting innovative and new structures for owning and operating farms – can improve business performance and production. The move towards best practices also helps attract investment and increase agricultural productivity. The health and performance of companies is a logical attraction for any form of capital.

Australian agriculture is characterized as a family farm, passed down from generation to generation. It is therefore not surprising to learn that nine out of ten farms are owned by families. And generally speaking, there is the notion that the farm should be owned only by that family.

However, in reality a number of models exist for agriculture and could be incorporated into the mix – with great efficiency, cost-effectiveness and skill enhancement. There is a matter of state of mind at play here around full farm ownership and operational control.

Alternative farming structures include joint ventures, shared farming arrangements, capital partnerships, levy structures or even fund managers, business sector finance or cooperatives.

These structures also require a greater level of sophistication in farm management, which leads to greater professionalism, increased financial reporting, greater accountability and long-term business planning.


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