Does your business have a sound succession plan?
Succession is something many business owners don’t consider or talk about other than the thought that...
Two weeks ago, we wrote about the importance of agriculturalists knowing their financial position, ready for what could be a bumpy ride through the 2023 season. Today, Baker Tilly Staples Rodway Taranaki Business Advisory Services associate Kylie Filbee-Cronin looks at the rising costs in more depth to help with your budgeting.
Time to read: 3 mins
By now, farmers will be feeling the pressure of price increases, not just from inflation but also supply availability. The tried-and-true method of copying last year’s actual results to create the following season’s budget simply will not work this year, and farmers who have taken this approach will be caught short. Make sure you aren’t underestimating your overdraft demands for the season by reading our top 2023 budgeting tips below.
Fonterra has come out of the gate with a $9.00 mid-point, quickly lifting to $9.50, NZX Futures is suggesting $10 and higher, and the banks are remaining more conservative at around $9.00. Who is right? Cyclical history would tell us we are over the hill and on the way down, but the market continues to suggest otherwise. If you want some certainty around milk price, it might be time to explore ways to lock it in, using hedging tools such as Fixed Milk Price and Milk Futures.
The 30-day bank bill rate is seven times higher than it was in September 2021. Our team has a wide understanding of how this is applied to your farm’s interest rate, and the key financial and non-financial drivers behind any risk margin that the bank applies to your lending. We can help you present the right information to your banking partner to ensure access to the best interest rates available to you.
With farm profits rising in the past couple of years, your tax obligations have likely also increased. Due to the change in provisional tax interest rules, you may need to allow for additional provisional tax payments.
Make the most of your cashflow by catching up with one of our rural advisors to go through your budget. We can help with:
If you’d like to speak to one of our advisors, get in touch with Kylie Cronin at email@example.com or give us a call on 06 757 3155.
DISCLAIMER No liability is assumed by Baker Tilly Staples Rodway for any losses suffered by any person relying directly or indirectly upon any article within this website. It is recommended that you consult your advisor before acting on this information.
Cookies help us understand how you use our website, so we can serve up the right information here and in our other marketing.