Start fresh, plan smart, and farm better in 2025–26
As we turn the page on another financial year, it’s a perfect time for farm businesses to reset, refocus, and roll into the new year with a clear game plan.
Here are five practical, no-nonsense resolutions that every farm business — whether you run sheep, crops, cattle or a bit of everything — should consider adopting this year.
1. 🎯 Set Clear Financial Benchmarks
Resolution: “We will establish enterprise-specific financial targets and monitor them quarterly.”
Gone are the days of just trusting your gut. The best-performing farms know exactly where they stand — and how each part of the business contributes. Break it down by enterprise: cropping, sheep, cattle — each has its own numbers to track. Monitor your cost of production, gross margins, and return on assets. And don’t forget to compare against your peers — benchmarking gives you a real sense of what “good” looks like.
2. 💰 Improve Working Capital Management
Resolution: “We will maintain a minimum three-month buffer of working capital.”
Cash flow is king — especially in farming. Get proactive this year by mapping out your income and expenses across the seasons. Renegotiate payment terms where you can, and use cash flow forecasts to avoid being caught short. A three-month buffer means you’re better prepared for dry seasons, late payments, or that surprise breakdown in the header.
3. 🛡 Strengthen Risk Management
Resolution: “We will review all key business risks and implement at least two new mitigation strategies.”
You can’t control the weather, commodity prices or global politics — but you can control how prepared you are. Start by updating your insurance cover, especially for crops and income protection. Think about forward contracting or hedging where it makes sense. And take time to review your succession plans and asset protection — better to plan early than panic late.
4. 📲 Invest in Farm Data & Digital Systems
Resolution: “We will digitise our production and financial records by June 30.”
Still got that shoebox of receipts and hand-written notes? This is the year to change. Cloud-based tools like Figured, AgriWebb and Xero make it easier than ever to track inputs, invoices, and performance. Having everything digital not only saves time — it strengthens your case when applying for finance or reviewing enterprise profitability.
5. 🏦 Review & Optimise Debt Structure
Resolution: “We will reassess our finance arrangements to improve flexibility and reduce cost.”
Interest rates, loan terms, fixed vs variable — your debt setup might be costing more than it should. Take time to review how your debt is structured. Are term loans and working capital clearly separated? Is there room to refinance, renegotiate or restructure? A good adviser can help run a tender to market and secure better terms tailored to your farm’s needs.
Wrapping Up
A good season helps — but a good strategy makes the difference. These five resolutions won’t just tidy up your books; they’ll put your business in a stronger, more resilient position for the years ahead.
Here’s to a successful, well-run 2025–26. Time to make it your best year yet.
