The impact of weather
Weather affects many businesses but it has a huge, unpredictable impact on the ability of a farmer to make loan repayments. Sadly, banks often ignore it when signing up farmers to a farm loan. Bankers focus on boosting bank profits. Whether it is a wheat crop or a lambing, bad weather can change a farm’s profit for the year. Lambs can die and a crop can be decimated by bad weather.
As a 4th generation sheep and cattle breeder himself, Greg Bloomfield knows just how that works. That is why farmers all over Australia trust Greg and his Good Banking Agribusiness Consultancy to help them obtain the right sort of loan to cope with bad weather. They also know he will if necessary, with his Chartered Accountancy background, help them if that farm loan becomes the subject of a farm debt mediation or foreclosure.
GBAC suggests that farmers carefully think through the implications of bad weather on their farm loans before signing up with the bank. Its Borrow Better facility enables primary producers to see what sort of farm loans are on offer from a number of banks in the same way that they might see what sort of sheep or cattle are on offer at the saleyards. That is really the only way to ensure that the loan contract recognises from the start that weather can have a beneficial or detrimental impact on farm loan repayments.