In terms of managing farm operations there are a multitude of financial considerations.
The things financial advisers might have to consider include:
- debt repayment and lifestyle goals
- off-farm investments
- planning/budgeting for farm acquisitions
- re-forecasting as conditions and/or prices change.
Financial advisers can help farmers to obtain an accurate and complete picture of farm performance and connect them with other relevant parties such as accountants, bankers, farm consultants and lawyers.
This paper explains the types of things that financial advisers specialising in agricultural businesses help clients with on a daily basis.
Farm succession is usually the 'elephant in the room', but also one of the greatest challenges facing farmers Australia-wide. There is no single easy solution, and families and farms can be destroyed if not undertaken properly.
Farmers want to ensure that the family farm is passed onto the next generation while making sure the business stays viable and profitable.
The best-case scenario is that the retiring farmers have an adequate income and some provisions are made for the non-farming children.
Due to the intricacies of family groups, it is very important that farmers receive personalised financial planning advice, tax and legal advice.
A self-managed superannuation fund (SMSF) is a private superannuation fund, regulated by the Australian Taxation Office (ATO), that people manage themselves or with the assistance of trusted advisers.
SMSFs can have up to four members. All members must be trustees (or directors if using a company trustee) and are responsible for decisions made about the fund and for compliance with superannuation rules.
An SMSF can provide more control over investments and can invest in other assets such as shares, property (including primary production land), managed funds, cash/term deposits etc.