Financial Management
While there are a wide variety of tools available to manage your finances, a few important elements stand out.
An accounting system is required to store and organise income and expense receipts, and invoices to identify the flow of finances throughout the farm. These records allow the farm manager to develop financial statements, that are then used to analyse equity, income and cash flows. These statements can then also be used to compare the farming operation against the benchmarks of comparable farms. Additionally, the financial baseline created allows for monitoring of the farm over time, and when coupled with the TOWS analysis, allows the farmer to understand the opportunities and limitations of the operation to inform decision making. While the financial management of the farm can be daunting, it’s also important to take the time to manage your own wellbeing.
Wellbeing
We think farming is one of the toughest jobs, and the Australian landscape, with its droughts and flooding rains to the edge. Mental health is a really tough subject to discuss, with it being almost taboo in Australia to show you need help. A recent study found that suicide rates in farmers is 60 per cent higher than non-farmers, with an Australian farmer taking their life every ten days2.
The NSW Government SafeWork website offers some simple signs to keep an eye out for in yourself and others, and some options to help.
Signs of depression include3:
- Low self esteem
- Low motivation or energy
- Insomnia – difficulty sleeping and feeling tired
- Difficulty focusing or keeping focus
- Inability to control your emotions – such as sadness or anger
- Loss of enjoyment in socializing and doing things that previously made you happy
- Changes in appetite and weight or decreased libido
Depression may seem scary but there are some things you can do if you suspect that you may be depressed
- Talk to your family and friends and tell them how you feel
- Speak to a doctor or a trusted medical professional
- Seek information and support online
- Complete Beyond Blue depression checklist
One way of protecting your mental health is through forward planning for your property. Agriculture is seasonal, and with seasonality comes fluctuation in resource availability. A cashflow forecast can soften the impact of leaner years, while planning your costs in advance can help limit financial hardship and shock. We have previously touched on diversifying your income streams by identifying opportunities. Having a variety of produce is one way of buffering the impact of a steep drop in commodity prices. Having additional benefits, such as pollination services from beekeeping, adds another level of complexity to your farm while increasing biodiversity.
First Nations Perspective
Financial limitations are the biggest roadblock to regenerative agriculture being adopted on a broader scale. Many people just can’t afford the cost of transitioning or changing their business model. This can take a toll on wellbeing.
However, everything that has been covered in previous sections are about improving your wellbeing from a First Nations perspective. Wellbeing isn’t just financial, it is social wellbeing through a cohesive and collaborative inner circle of family and friends, it is mental wellbeing, it is spiritual wellbeing, it is physical wellbeing, it is wellbeing of Country.
These small changes towards improving your wellbeing don’t cost anything, except maybe improving the wellbeing of Country. But take small steps, find support through your networks and leverage opportunities to affect change within your own circle, be greater than the sum of your parts.
Reflective Questions
- Do you have systems in place to manage your finances, what are they?
- What is one of the biggest costs in running your business, is there any way of reducing these costs?
- What are three small steps you could take to improve your wellbeing?
If this topic has brought up unpleasant or distressing feelings, please contact either Lifeline on 13 11 14 or Beyond Blue on 1300 137 934
References
1. Kendrick, J. (1985). Regenerative agriculture must be profitable. California Agriculture, 39(7), 2-2.
2. Aliance, N. R. H. (2021). First national study of farmer suicide rates using coronial data. National Rural Health Aliance. https://www.ruralhealth.org.au/news/first-national-study-farmer-suicide-rates-using-coronial-data
3. Source: https://www.safework.nsw.gov.au/your-industry/agriculture,-forestry-and-fishing/farming/mental-health-on-farms
