DairyNZ launches new tools to help dairy farmers budget

MEDIA RELEASE
Tuesday, 19 April 2011

For immediate release

DairyNZ launches new tools to help dairy farmers budget

DairyNZ wants farmers to know it’s not too late to get started on next season’s farm budget and have launched several online tools to make the farm budgeting process easier.

DairyNZ Development Team Leader - People & Business, Geoff Taylor, says many dairy farmers have used the new tools over the past few months and have found them very useful.

“We have developed some great templates that take a farmer through the step-by-step process of developing an annual cash budget, monthly cashflow budget, personal budget and more. Plus, we’ve put together guides that teach farmers how to develop these budgets.

“We’ve used these new templates during our recent series of Cashflow Budgeting Workshops, held throughout the country during February, March and April. Hundreds of dairy farmers have found these tools extremely helpful and they are now available on our website,” explains Mr Taylor.

Dairy farmers can download the new budgeting templates and guides for free at: http://www.dairynz.co.nz/budgets.

DairyBase Manager Dr Adam Barker says he has seen the power of the budgeting process multiplied for those farmers who are also using DairyBase.

“Budgeting is a critical process for any successful business. Putting together a budget allows you to take control of all your spending decisions.

“However, where we’re seeing dairy farmers gain even better results is when they use their budget and their DairyBase reports hand-in-hand to make business decisions on farm.

“For instance, farmers are using DairyBase to benchmark farm working expenses. They can determine if their expenses are above or below the average on other farms, and then make decisions to change based on their individual farm business goals,” says Dr Barker.

DairyBase is a tool that helps farmers analyse the resources they have, the way they're using them and, by way of benchmarking, compares their use of resources with other farm businesses.

Farmers can register for DairyBase for free at www.dairybase.co.nz or by phoning the DairyBase bureau on 07 858 3890.

DairyNZ top ten budgeting tips:

1. Take charge – make sure you own the budget.
2. Look for trends in your historical records.
3. Use DairyBase to compare your expenses to other farms.
4. Start from ‘zero’ for expenses that concern you to determine required expenditure.
5. Determine which figures are ‘certain’ vs ‘estimates.’
6. Allow a contingency for unexpected capital repairs/replacements.
7. Use a long-term payout forecast in your budget to ensure your farm is robust over time, then prepare a budget based on next year’s forecast.
8. Test scenarios: lower than expected production, drop in payout; higher expenses.
9. Use a trusted ‘outside’ person as a sounding board.
10. Give your accountant and banker a copy of your budget.

ENDS

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