Here’s an exciting fact: the gross value of Australian farm production is predicted to rise 3% over the next year.
The expected 13% increase on the 5 year average will see the total annual profit balloon to $58.4 billion, with sugar and cotton exports predicted to increase by 21% and 40% respectively.
But whilst this exciting news is cause for celebration, it’s also a time to review your capacity: are you ready for the boom?
Here’s our checklist for making sure your business is ready to ride the wave of new agri-business:
1. Equipment that is flexible.
The best employee anyone can have is a multi-skilled worker, who is willing and able to try new things. Where possible, your equipment should be the same.
It’s important to consider the equipment you are currently using, and determine if you are getting the best out of it.
For those who work in the sugarcane or cotton industries, could you cope with extra production? For those not in those industries, does your equipment allow for diversification to ride the imminent boom?
2. Ability to be nimble and imaginative.
The opportunities that present themselves during this time of growth are endless – but to be able to pursue them, you need to be prepared to try new things, and have the ability to do so.
We love the story of Queensland graziers Jodi and Tony Besch. They are a great example of moving with industry trends not just for survival, but for growth.
Trying to find financial backing to expand their beef business proved difficult, so they started looking for something more intensive. That’s when they discovered aquaculture: yep, Jodi and Tony traded out cattle, for barramundi. And it’s been so successful they are going to quadruple their output over the next year.
In fact, by using the waste water from their barramundi tanks to irrigate their grazing pasture they have actually improved their cattle stocking rate.
3. Affordable changes for big rewards.
So, with a significant boom on the horizon, how can you look to branch out with your property’s equipment? And, a bigger question again – how you do it affordably? The answer could be in secondhand equipment.
Far more affordable than new options, purchasing secondhand equipment might just be the difference between being able to diversify your property’s offering, and not.
No dead money in your investments.
The most important factor in business diversification is making sure that none of the money you spend is wasted. There’s no point purchasing expensive and new equipment, only to discover that not only is it not useful or tapping into trending markets – it’s going to depreciate at a rapid rate.
Make sure that any money you spend can be reused or reinvested in some way. A great option for experimentation within agriculture is GoGetta. The Rent.Grow.Own system turns dead rent money into ownership with our 12-month contract.
The great advantage of this contract is that you are building equity in the asset with each affordable weekly payment. By the 12-month mark, you can purchase the equipment at a heavily reduced price. Or give it right back.
Find out more.
GoGetta has actually put together an eBook to help you plough through the used equipment market. Whether you are buying or selling second hand equipment, this eBook is here to guide you through the process. It has a detailed checklist of what to look out for during the sale, as well as some real life examples of costs and experiences.