INCREASED demand for farm business training has prompted the Limestone Coast Red Meat Cluster to offer a series of courses focussing on profitability in February and March.
New cluster co-ordinator for the Limestone Coast Red Meat Cluster, Meg Bell, said the group is planning a short course on improving farm business profitability to be delivered by Chris Scheid of ProAdvice.
There was increased demand for farm business management training followed its two successful courses run by the cluster in 2016.
The course ‘Improving your farm business profitability- it’s all in your taxation accounts’ will assist producers to understand which business levers to pull to improve business profitability, which ratios banks use to assess business lending prospects, and to make real changes that will improve business profitability.
Mr Scheid noted said that ABARES 2010-2014 return on assets (ROA or profit) figures showed that for the average South Australian mixed farm, the ROA was 2.4 percent.
“With inflation around the same level for that time period, this means that the average SA mixed farmer has not made a real profit in the last five years.”
SA grazier ROA figures worse
Mr Scheid said the figures for SA graziers were a little worse, with beef producers at 1.4pc ROA, sheep producers at 1.6pc ROA and sheep and beef producers at 2.4pc ROA.
“Capital gains have not assisted south east SA producers either,” Mr Scheid said.
“For the past five years (to 2016), capital gain has averaged -0.3pc in the south east, according to Rural Bank’s Australian Farmland Values 2016 report.
“Fortunately, this looks to be a short term drop as recent land sales have been strong. Additionally, over the longer term, SA farmers have averaged 5.8pc over the past 20 years – so clearly, you have to be able to survive in the short term to improve your balance sheet in the long term.”
Mr Scheid said producers will finish the course with a comprehensive understanding of their business’s profitability, their financial (bank) assessment, and what they need to do to improve their business’s profitability.
The course will be run over two and a half days in separate weeks in February/March 2018. The first day will involve the participants analysing a live case study and that case study’s taxation records to determine real business profitability, outlining where the business needs to grow and improve. Day two will use the participants’ own taxation figures, and with the assistance of other experienced business coaches, assist participants to calculate their own business’s profitability and a range of economic and financial indicators. Day three will be run as a ‘board’ style session, with participants assisting each other as board members and advising on business improvement.
“Day three was the highlight of the short course for last year’s participants, as many found new insights from peers or received advice that they were already considering, that re-affirmed a direction for them” said Mr Scheid.
Course dates and location:
Chardonnay Lodge, Coonawarra
Tuesday February 13 9am-5pm workshop 1
Tuesday February 27 9am-5pm workshop 2
Wednesday March 7 or Thursday March 8 (1⁄2 day) workshop 3
Keith Institute, Keith
Wednesday February 14 9am-5pm workshop 1,
Wednesday February 28 9am-5pm workshop 2,
Tuesday March 13 or Wednesday March 14 (1⁄2 day) workshop 3,
There will also be two optional one-day modules held on Wednesday March 21 and Wednesday March 28. Course cost is $350.
For more information and to register your expression of interest, please contact Limestone Coast Red Meat Cluster Coordinator, Meg Bell on 0433 499 630 or [email protected], or see the website for more details: www.limestonecoastredmeat.com.au