Farming is a unique business, offering opportunity to work with nature, technology, the markets and people. Done well, it offers a fulfilling life and business career. However, the business of farming is becoming more challenging, with greater variations in commodity prices, continual uncertainty with weather patterns and the challenges of declining terms of trade. At the same time, the demand for agricultural produce is significant and provides great opportunity to Australian agriculture.
The need for improved farm business management skills has been identified as a crucial element for Australian farmers to maintain business sustainability, while taking up the opportunity currently occurring in Australian agriculture. This farm business management eBook series is a significant investment by the Grains Research and Development Corporation (GRDC) to assist farmers with further improving their business skills.
The aim of Module 2 is to provide you with farm business management tools to measure the current financial performance of your business. It focuses on the ‘how to’ of putting together the farm business management analysis and plan. It is useful to have an understanding of the tools available and how to use them to obtain a comprehensive analysis of your farm business. To make the most of these tools, management needs to have a clear understanding of where the business is heading, set appropriate goals, and implement a sound planning and monitoring system.