Operating a mixed farming enterprise on the outskirts of Proserpine, the Pratts engaged in the Farm Business Analysis Assistance program, administered by the Queensland Rural and Industry Development Authority (QRIDA), to help set their business up for success.
“The last couple of years, I thought I’d come in and bring William’s admin side into the 21st century,” Sharron said.
“The previous Business Manager exposed us to QRIDA, and I saw all of the opportunities to better your farm across succession planning, the Sustainability Loans, and drought preparedness.
“It’s a long process, but with using QRIDA’s Farm Business Analysis Assistance, we can get things done a little bit quicker.”
The free, no-obligation report provided through the program has given the Pratts a bird's-eye view of their operation, allowing them to explore different pathways to improve the overall financial health of their business.
“It’s good to have it all down on paper and run through all the options financially over the next 10 years. It was so much better than doing it in your head,” William said.
The Pratts worked with independent provider, BDO, to forecast their business’ performance and set short-term and long-term goals.
“He [BDO provider] helped us with forecasting for up to 2035. It [the plan] sets different goals, so you’ll have short-term, extremely long-term, and medium-term goals. It gives you a bit of peace of mind because you know where you are at,” Sharron said.
Having their information documented by an independent party gave the Pratt’s Bank Manager valuable insights into their cattle and cane business and how they intended to achieve their goals.
"The bank manager loved it. And if you’ve got a project you want to do, it shows you straight away where you’re going to end up in 10 years,” William said.
“Failing to plan is planning to fail. It makes you self-aware of where you sit, that your kids will be alright if something does happen to you, or even if you want to sell it. They have everything there that can be put on the market.,” Sharron added.
The couple’s children are part of their farm’s future, who will eventually return to the family farm and take over the operation when William and Sharron are ready to hand over the reins.
“We’ve got adult children, they’re not ready to come back to the farm, but they eventually will. And we’ve included them in these talks and our planning so they can also see a future on the farm,” Sharron said.
“They can see that they’re actually creating and building something more that hopefully will be intergenerational for decades to come.”
QRIDA’s Farm Debt Restructure Officer Manager, Daniel Elder, encourages producers to consider the Farm Business Analysis Assistance program for their future planning.
“The Farm Business Analysis Assistance program is an eight-week process by which we review your historical financial position and look at your prospects going forward,” he said.
The program is for producers who have lost a bit of confidence in their operation but are also looking for alternative paths forward.
Producers will receive guidance from an independent provider who will assess your business and finances, then provide an impartial report with recommendations to resolve debt issues.
“Eligible producers can either be existing primary producers, past primary producers who have lost capacity, or new primary producers who are trying to get to capacity. Examples for producers can be the investigation of existing strategies, but also potentially alternative ones that can be in the way of succession or diversification,” Daniel said.
For more information on the free Farm Business Analysis Assistance program, visit qrid.qld.gov.au or call 1800 623 946.
