AGRIBUSINESS

Lack of off-farm investment and marketing knowledge concerns

We analyse the latest survey results to highlight primary areas of concern for members

Ben White

This article is 8 years old. Images might not display.

Kondinin Group members were asked to nominate any knowledge gaps in their farming business enterprise. Of the 200 respondents, just over half said they wanted to know more about off-farm investment and 46 per cent needed to understand more about marketing their produce. An understanding of legal liabilities concerned more than two in five farmers surveyed while a third struggled with a sound understanding of business structures and how to best make them work in their farming operation. See figure 1.

OFF-FARM INVESTMENT

For most farming families, assets are usually tied up in the family farm, particularly on farms where expansion of the operation is a primary objective. 

But for well-established enterprises, particularly those with operators viewing retirement, off-farm investment can be an opportunity to reduce the exposure to weather and price variations.

In a 2011 report to industry, the NAB suggested always seeking advice and ensuring personal goals are kept in mind as well as business goals including succession planning. Consideration of future financial requirements for equipment or asset purchases should also be part of a sound strategy.

Over the coming 12-months, Farming Ahead will identify a number of opportunities around off farm investment and explore how they may fit into your farming business.

MARKETING

Production is usually something most farmers have their head around, but marketing that produce requires another skill set and can take time to understand. 

Whether it is understanding forward contracts, hedging or simply exploring new market opportunities, a series of articles will revisit all aspects of marketing grain and livestock over the coming year.

Grain marketing in particular can influence profitability and should be well understood to maximise rates of return. As an example, one member said their son broke a leg playing sport and was unable to assist in the paddock with harvest three years ago. 

Instead, the son utilised his time in actively marketing grain over harvest. The family estimate the additional return was in excess of $100,000.

LEGAL LIABILITIES

Often the unknown legal standing can influence the way we farm. Hiring staff in particular was raised by members as an issue they need to know more about.

Legal obligations for sales and purchases, consumer law, mining and exploration, debt recovery and property transactions are all areas farmers are likely to encounter in a farming business.

Kondinin Group will consult with legal experts to provide a basic framework of knowledge for members on these legal issues.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Research Report: Sealable Storage Options (August 2025)

Kondinin Group researchers in collaboration with the GRDC Grain storage extension team test dozens of gas-tight sealable grain storages to Australian Standard AS2628-2010 identifying best and worst features in the ultimate grain storage buyers guide.

editions

Research Report: Cordless Impact Wrenches (July 2025)

Six battery-powered impact wrenches were bench tested in this month's Research Report, focusing on their ability to get nuts done up and undone.

editions

Research Report: Mouse Bait Applications (June 2025)

Mice remain a significant issue for cropping regions and the June Research Report, supported by an investment from the Grains Research and Development Corporation, brings together the latest research and practical recommendations for bait spreading and machinery performance to help growers improve mouse control strategies.

editions

Research Report: Farm Labour (May 2025)

Farm labour, whether temporary, casual, contract or permanent staff, is an essential part of agriculture. This Research Report provides insights to help better source and manage one of the farm’s most valuable assets – its people.