Recent studies show there are approximately 57,300 broadacre and dairy farm businesses in Australia. Yet, despite this, new farms are constantly being established and there is potential for more livestock farms. The simple fact is that demand is there, if you have the space to farm livestock you can generate an income and make a living.
Of course, many things need to be considered before you can get a livestock farm off the ground. One of the biggest issues will be finance, livestock housing, and feed is not cheap. That’s why you need to know the right steps to take in order to secure the funding you need for your livestock farm.
- Make A Plan
You are going to need a business plan before you can start farming. After all, without a plan, you won’t know how much livestock to get and what space and buildings you will need.
It is essential that you take the time to plan your farm as this will allow you to calculate potential earnings and the costs you are likely to incur in your first year or eighteen months. That is how long it is likely to be before you start seeing any revenue.
The plan will help you to set yourself small goals. Achieving these will help to ensure you reach your overall goal. Your plan will also be essential when considering finance.
- Research Finance Companies
There are plenty of businesses offering finance solutions. However, if you are looking for finance for a livestock business you need a specialist in livestock finance. This business will understand your needs, the issues you are likely to face as a livestock farmer, and they will be able to create a finance offer that suits your needs.
Because they understand the industry they will be more supportive of issues, especially when you are struggling to meet the payments. Choosing the right finance company is more important than the finance packet.
- Know Your Finance
There are several options when it comes to livestock finance. It is important that you are aware of the different options and know which one you would prefer to have.
The most common types of finance are either direct animal-secured finance. This is when your livestock is the collateral for the loan and you can’t sell the livestock without paying the loan back. It is unlikely this type of finance will be for longer than 5 years.
The alternative is an operating loan which is based on your costs and potential income. This type of loan is generally more flexible and can be for a longer-term. But, you may need to put other collateral in place, such as your farm buildings.
- Get Your Documents Ready
You will need proof of address, ID, and the acquisition quote from your intended livestock supplier. Of course, your business plan will also help and the finance company may ask for other information.
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