Take stock of EOFY with Elders
With June now in full swing, it’s now or never to get organised before end of financial year.
Elders general manager agency and financial services Dave Adamson says preparedness is key during this time of the agricultural cycle.
“During this financial year, many parts of Australia have experienced their best results for decades,” he said.
“With widespread favourable seasonal conditions, including above average rainfall, exceptional sales results have meant that many growers enjoyed excellent financial returns.
“Preparedness will always be fundamental to the success of farm businesses. That includes effective financial management. Elders always seeks to offer products and services to assist in achieving effective financial management of Australian farm businesses.”
With the end of the financial year approaching, Elders appreciates the demands on farmers at this busy time. To assist with preparation for tax time, Elders has a wide range of financial services solutions. We explore some of them below.
When you are completing your 30 June livestock-on-hand reconciliation, consider if you are fully stocked and whether you’re prepared for opportunities that might arise.
With strong livestock prices, and growing opportunities to trade stock, Elders is able to offer its clients 100 per cent funding for commercial sheep and cattle and an option for stud stock purchases. Learn more about livestock funding options.
Farm Management Deposits and offset accounts
Farm Management Deposits (FMDs) allow you to set aside up to $800,000 pre-tax income and earn interest on it. To be eligible for taxation benefits, you need to hold funds in your FMD for at least 12 months.*
Just as seasons and prices fluctuate, so does farm income. A Rural Bank FMD Offset Account allows primary producers to offset capital held in an FMD account against the balance of an eligible Rural Bank variable rate Term Loan to assist in reducing primary production business financing costs.*
Learn more about FMDs and FMD offset accounts.
It’s now an ideal time to consider investing in infrastructure that will achieve farm efficiencies and improve productivity. Competitive equipment finance options are available to assist you in purchasing, upgrading, or replacing your farm business equipment, while preserving your working capital.
Prepay your inputs
When reconciling your accruals and creditors, consider utilising the Elders Rural Products Prepayment Program.
You can prepay with Elders before 30 June and receive a 4.2 pc per annum reward on future rural products purchases.**
Unlock the equity in your wool
When you are assessing your cash flow needs, consider unlocking the equity in your wool.
To provide you with the financial flexibility you need to manage your cash flow, Elders offers the WoolPlus cash advance facility. This facility provides eligible growers with access to up to 50 pc of expected wool proceeds in the six months prior to wool sale.
Defer payment of grain sale proceeds
Through our relationship with Clear Grain Exchange (CGX), Elders clients can access deferred payment terms, offering protection from macro forces influencing your grain selling decisions.
You still have the benefit to call on those funds at any time if your working capital circumstances change.
Easy access to your financial statements
Elders makes it easy for you to coordinate the supply of your statements to your accountant, through Elders Online.
This portal provides quick and easy access to all your transaction details and allows you to view, print or save all your historical transaction details. You’re also able to reprint invoices, download a transaction file which can be loaded into your accounting software and view all of your payments due and coming due.
EOFY product catalogue
Elders released its annual EOFY catalogue on 23 May, with the sale ending 30 June (or while stocks last). It’s packed full of great specials and offers designed to give you maximum bang for your buck.
View the catalogue now or enquire at your local branch.