Photo / DairyNZ
COMMENT
By DairyNZ
How are your financial budgets looking?
Are they updated? Do you have one?
Most farms will produce half the annual milksolids in the coming weeks and last month’s increase in the milk forecast means income should be improved, if not quite where we would like them.
Input prices remain high.
Fertiliser prices, although volatile, are lower than many may have budgeted.
Feed costs continue to fluctuate, and as a huge part of many farm expenses, along with a forecast El Niño, a revised feed budget will help with a more accurate financial budget.
Labour costs have gone up with the labour shortage, and contractors and graziers are also recuperating some of their cost increases.
Updating your budget now means you have a better idea of how the season is shaping up and enables you to be proactive and make adjustments.
Now is a great time to review capital infrastructure investments, farm cost projections and principal repayments so that you can decide what to do with any surplus and manage for taxation.
For budget templates refer to www.dairynz.co.nz/business/budgeting/
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