Assuming the family farm is a big step in family succession.
Add in astronomical grain prices through drought and a market disruption in pork prices and it is a tricky situation.
This is exactly what Kym and Lance Baker, beef and pork producers from Woodmillar, near Gayndah experienced in 2019.
Preparing to take over the family farming business from Lance’s father, the Bakers sought expert financial advice on how they could create a financial future.
Importantly, they were able to apply through QRIDA’s Farm Business Analysis Assistance (FBAA) program to access independent advice from a panel of consultants, which gave them the confidence to move forward in their rural enterprise.
“Dad’s life has been this farm,“ Lance said. “He wanted to hand the farm over but also be involved and see the next generation achieve their goals.
“With taking over the farm from Dad, combined with the tough market conditions, we were looking for some independent advice and so we jumped at the FBAA program.”
FBAA is a free initiative that gives producers access to independent advice from a consultant to review their business and provide recommendations on how they can strengthen their financial viability.
Kym said it was great to explore the financial side of their business in more depth through the program.
“As producers we spend a lot of time thinking about nutrition, the weather, the inputs into our farming operation but a lot of people don’t put enough emphasis on the financial side of the business,” she said.
“It’s such an important part to know where you are and where you’re headed so you have that information to make good business decisions.”
Working with Owen, one of the consultants from QRIDA’s independent panel, Kym and Lance were able to build a strong relationship and show them what was happening on farm and in the books.
“It was very important Owen coming out to the farm,” Lance said.
“He could see what we do, where we are and have a look around the farm.
“He was also able to sit down with us and go through the financial side of things with Kym and it was easy because we had everything here.
“With help from Owen, we were able to bed down what we needed to do, to achieve our goals and it was the kind of expertise that we didn’t have.”
Kym said having that knowledge and a plan in place was like a weight off their shoulders.
She said, in hindsight, if they’d known about the program sooner they would have applied earlier.
“We just wished we had done this a little bit earlier but we’re glad now as we’ve had the report and implemented the recommendations.
“We’ve got a great future ahead of us and for our boys coming through as the next generation.”
Lance encourages other producers seeking independent advice on their business to considering exploring the FBAA program through QRIDA.
“From the report, we now have options to take opportunities that might come in front of us.
“Don’t hesitate, just do it. Help is not a scary thing.”
For more information, visit the Farm Debt Restructure Office webpage at qrida.qld.gov.au
