Grains producers to reap rewards of Farm Business Strategic Review

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Family businesses in SA’s grains industry will be better equipped to grow and create jobs through the rollout of the Grains Industry Farm Business Strategic Review – a partnership between Rural Business Support (RBS), Primary Industries and Regions SA (PIRSA), Grain Producers SA (GPSA) and the Grains Research and Development Corporation (GRDC).

Minister for Agriculture, Food and Fisheries, the Hon Leon Bignell MP, says the delivery of the program to the grains industry is the result of a $200,000 commitment through PIRSA, building on a $300,000 commitment to develop the program in dairy in 2015 and 2016.

“I was pleased to support the pilot with 30 dairy industry families, which saw an independent cost benefit report confirm $3.65 million in new investment as a direct result of their involvement in program,” Minister Bignell said.

“SA’s Premium Food and Wine strategy has a $20 billion export target that requires investment – and the Farm Business Strategic Review has been proven to help families achieve this. This innovative and proactive program will encourage more businesses to grow and create jobs, contributing to our overall export goal.”

The South Australian Government’s commitment will be matched by $100,000 from GPSA and $50,000 from GRDC, with participating families each contributing $500.

Rural Business Support developed the Farm Business Strategic Review to help family businesses better understand their strategic position, analyse their financial status and identify opportunities to improve productivity and profitability.

Grain Producers SA Chair Wade Dabinett says the Grains Industry Farm Business Strategic Review is the largest commitment made by GPSA to an individual project.

“GPSA’s mission is to ensure a viable and sustainable grains industry and we believe financial literacy is a vital component of achieving this,” Mr Dabinett said.

“We want to help our members to develop a better understanding of their financial and strategic position. This can then support timely decision-making, investment in new technology and systems which in turn will lead to increased profitability.”

Rural Business Support CEO Brett Smith says RBS is committed to building the business skills of primary producers and supporting them to plan the future pathway for their family farms.

“Our new web tools help families quickly see where their business is at now, and where it could be in the future factoring in different scenarios – both the planned and the unforeseen,” Mr Smith said.

“This important review process enables the family to develop a strategic plan, budget and monthly cash flow, with implementation linked to banks and consultants.

“By supporting families through effective emotional and economic engagement, families develop the clarity, confidence and commitment to act and increase the resilience of their farm business.”

GRDC Senior Regional Manager South Craig Ruchs says that as an investment specifically designed to increase profitability for South Australian grain growers, the program has a good fit with the GRDC’s purpose to invest in RD&E to create enduring profitability for Australian grain growers.

“It is important that growers take the time to frequently review business performance and develop a long-term strategy based on personal circumstance, individual goals and sound financial advice,” Mr Ruchs said.

“The Farm Business Strategic Review provides an exciting opportunity to deliver a more intensive and targeted extension approach to deliver real and measurable practice change on-farm in South Australia.”

To find out more about the Grains Industry Farm Business Strategic Review and how the program could benefit your grains business, contact Nigel Robinson on (08) 8249 7531 or 0499 556 488 or email grains@ruralbusinesssupport.org.au