ProAdvice Podcast - Balancing people, profit and the environment

A conversation with Melle Nikkels from the Netherlands with key insights for what could be on the horizon for agriculture in Australia.

• How is farming different in the Netherlands compared to Australia?
• What are the key issues facing agriculture in the Netherlands especially when it comes to balancing food production, population, climate change and the environment?
• What do the terms positive externalities, nature inclusive and circular agriculture mean?
• What uncertainties should be considered when farming in the Netherlands and are they the same or different in Australia.

A conversation with John Gibson discussing the federal budget as well as some other timely reminders

• Flood relief and Director ID
• General overview of the budget
• What is in it for business?
• What is in it for individuals?
• Other spending
• Key takeaways

A conversation with Marilyn Williams preparing you for the transition to STP2:

• What has changed from STP phase 1?
• What is required from an employers perspective?
• What are the benefits for employers?
• Why is STP transitioning to STP2?
• When is STP2 starting?
• What to do if you need help?

A conversation with Lachlan Polkinghorne discussing the benefits of travel and attending conferences.  Attending conferences provides many benefits such as:

• An opportunity to reset
• Provide some different perspectives and challenge your own thinking
• Affirm your own views
• Networking
• Develop skills in leadership and self improvement

A conversation with Clinton Peake regarding leading in uncertain time.  Clinton provides some useful insights gained over a lifetime of leadership roles on the sporting field and in business. He provides some tips regarding what leadership needs to look like at the present time:

1. Start with strategy
2. Be nimble with your tactics
3. Be inflexible with your destination
4. Be patient with you explanations
5. Celebrate along the way

A discussion with Rob Edwards regarding his keynote presentation at the upcoming ProAdvice ProNet Conference from 24-26 August in Daylesford Victoria.  Rob will talk about how to look after your most valuable asset - yourself.  He will also discuss how small, consistent actions, can make the biggest difference to your long-term performance and the quality of your life, both personally and professionally. Rob will also teach us how to set goals that really matter as well as providing some tips to improve your group presentation skills.  To book, follow the link below:

https://www.proadvice.com.au/#pronet

A conversation with Chris Scheid regarding designing profit in your business rather the profit being a default outcome

• Why do we need ot design a profit?
• Is calculating profit in the past useful?
• What changes are required?
• What metrics should be considered to assess profitability?

A conversation with Jarrod Lundie from ProAdvice regarding what is required to get the most from Tax Planning with your accountant from a clients perspective.

• Get the books up to date
• Provide a forecast for expected income and expenses for the remainder of the financial year
• Provide an indication of livestock / crop on hand
• Include a summary of the key business and strategic priorities for the business moving forward (growth, succession, consolidation, other)

Keep in mind issues regarding plant and equipment supply delays, instant asset write off eligibility, super contributions and Div 293, Section 100A trust distributions, FMD's and pre-paid expenses.

A conversation with Jarrod Lundie regarding the recent Federal Budget.  Items of interest include:

• Temporary increase in the low and medium income tax offset
• Temporary reduction in fuel excise
• 120% tax deduction to train and upskill employees
• 120% tax deduction to boost technology investment
• Primary producers - concessional tax treatment for carbon abatement

A conversation with Lachlan Polkinghorne providing some additional perspectives on succession planning:

• Succession or transition?
• How to come to a consensus when dividing the asset base?
• Additional tactics and observations
• What are some stereotypes?
• What is usually missing from the process?
• Why is it useful to engage and external facilitator to work through the process?

A conversation with Lachlan Polkinghorne discussing the dos and don'ts of land leasing.  In this episode, we will cover the following:

- Key concepts when negotiating a lease

- Where do most lease go wrong?

- How do you set a fair and reasonable price for a lease?

- How do you asses the returns?

- How to make the lease work from a lessors and lessees perspective?

- Other considerations that have historically worked well?

Pulling apart the 'Dirty Dozen' attributes and strategies of a successful farming business with Mark Morton:

1. Clear and communicated vision

2. Established key performance metrics to measure success

3. Position descriptions, roles and responsibilities

4. Governance process in place

5. Risk planning

6. Defined organisational capability

7. Lead indicators in place and the ability to report on them

8. Understand solvency

9. Reporting process in place (balance sheet, cash flow, profit and loss, trading accounts)

10. Technology plan

11. Proactive management of succession

12. Policies in place to assist with decision making

A conversation with Judd Smith from ProAdvice regarding refinancing from a lender perspective:

• What are the ingredients of an ideal client from a lenders perspective?
• What to and what not to include in a finance proposal?
• What value proposition can a bank provide additional to the interest rate offered?

A conversation with Marilyn Williams discussing STP finalisation.

• What is STP finalisation?
• Why do you have to do it?
• STP troubleshooting and tips
• When is it due?
• What are the steps to reconcile year end payroll and finalise?

A tax planning refresher with John Gibson discussing the key themes.

- What is tax planning?
- Where do you start?
- What information is required?
- What options are there managing a surplus?
- What should the decision be based on?

A conversation with Jane Chopping discussing some tips and suggestions to assist with managing your inbox and document filing systems.

A short episode discussing some responses to a few questions from the listeners:

• Structuring of a business – corporate vs family business – what to consider?
• What is tax planning and when is the best timing?
• Depreciation - how to make best use of current concessions without setting a future tax trap?
• Monetary policy and the macro effect on commodities?
• How to realise profits out of your business during a good year?
• How to change accountants?

A quick review of 2020 which has certainly provided many items of interest for discussion and analysis.  Some key themes for agriculture for the year include:

• Improving rainfall conditions in Eastern Australia
• Strong livestock commodity prices
• Improved grain yields
• Good adaptability and resilience from ag sectors in managing uncertainty and risk due to the pandemic
• Continued strong land prices and demand

A conversation with Bronwyn Walker from ProAdvice discussing developments in the technology area to assist with creating an automated office. 

In this podcast we discuss the following:

• What are the main processes and functions that can be automated?
• How have these processes been completed historically and what are some current solutions?
• What have been some of the technological developments that have enabled automation?
• What other processes could be automated moving into the future?

A conversation with Cody Townend from Proadvice  discussing cryptocurrencies and blockchain technology and what applications there may be in agriculture.

• What is a cryptocurrency?
• Advantages and disadvantages
• What is Blockchain?
• Application in business generally
• Applications in agriculture
• Other potential benefits

A conversation with Clinton Peake and John Gibson regarding the recent Federal Budget.

• Tax implications
• Instant Asset Write Off
• Trends in currencies, land prices  and commodities
• Global risks
• The road ahead and how to navigate

A conversation with Clinton Peake from ProAdvice discussing the risk of not considering risk.  In this episode we discuss the following:

• How do you define risk?
• What are the main sources of risk in business?
• What can be done to manage risk?
• Why should business consider risk?

A conversation with Lachlan Polkinghorne discussing trends in the agricultural sector property market.

• How is rural property valued?
• What is driving the current trends in the ag property market?
• What to consider when investing in rural property?
• How do you work towards becoming 'land purchase ready'?
• Are we in a rural asset bubble?

With some unrest in the relationship of our major trading partner China, what does the future of the commodities markets look like?  Rob Herrmann of Mecardo will share his views on the future of sheep meat, beef, grain, and wool.  Other questions we have posed for Rob include:

· What has been the play out with historical global economic shocks in Australian red meat and grain markets?

· If there is a hyperinflation event as a result from government injection of cash into the system due to the global pandemic, will this be a good or a bad thing for commodity prices and farming net profit?

· Will the wool price recover or is the current pricing the new normal?

· Can domestic consumption in red meats and grains fill any shortfall from global demand fluctuations?

· If unemployment goes to 20% when the accelerator comes off the job keeper pedal, what will this mean for red meat and grain markets?

Andrew Beattie outlines the key issues to consider when it comes to refinancing.

• What does a bank consider when lending to clients?
• Does everyone with the same background get the same deal?
• How to get the best deal from your bank?
• Apart from the interest rate, what other items should you consider when comparing offers?

With the world in the grip of a health pandemic and many economies struggling to the point of recession, what will this mean for our investments?  Join Charles Gabriel from Morgans to hear his views on the future of global investments.  Other questions we have posed for Charles include:

• What will the Government and Federal banks injections into the currency and equity markets mean for the future?
• How do people mange risk and return in investment strategies during these times?
• What are some companies and sectors that currently look attractive?
• What are some companies and sectors to avoid at this time?

Returning to work on the family business
Lachlan Polkinghorne will facilitate a panel discussion with some next gen farmers on their decision to return to work in the family business.  Even before the legal matters of succession are considered, how do people fit in and what lured them back to the family business as opposed to continuing in their careers?

The panel includes:

Jamie Taylor – After developing a career in Collins St, Jamie and his wife Georgie have traded coffee on Sydney Rd for life on ‘Warrambeen' located between Shelford & Rokewood in Victoria.

Jo Williams – Now an integral part of a family business, Jo's early professional career was with the Ag Department in Port Lincoln.

Jeremy Lush – Jeremy has recently completed his tertiary education at Marcus Oldham, and with his parents Rodney and Sally, has chosen a career on farm located between Keith and Tintinara in SA.

Thomas Botterill – Thomas has built a successful career working with Barenbrug Australia, and has only recently decided to move back into the family business located at Digby in Victoria.

Tune in to find out how these families managed the challenges of working with family, the strategies they implemented, and the key take home lessons.

A conversation with Marilyn Williams regarding the importance of keeping accurate and up to date records.  During the podcast we will discuss the following:

• What is record keeping?
• How can financial records be stored?
• What are records used for?
• What are the 5 golden rules from the ATO's perspective?
• Why should you keep accurate records?
• Special items to keep in mind with regard to the Job Keeper and Cash Flow Boost programs from a record keeping perspective?

A taster for the ProNet Webinar series scheduled for August.  Topics and presenters include:

Week 1 (05-Aug-20) - Panel Discussion with Lachlan Polkinghorne from ProAdvice - Returning to work on the family business.

Lachlan Polkinghorne will facilitate a panel discussion with some next gen farmers on their decision to return to work in the family business.  Even before the legal matters of succession are considered, how do people fit in and what lured them back to the family business as opposed to continuing in their careers?

Tune in to find out how these families managed the challenges of working with family, the strategies they implemented, and the key take home lessons.

Week 2 (12-Aug-20) - Economic Outlook with Charles Gabriel from Morgans.

With the world in the grip of a health pandemic and many economies struggling to the point of recession, what will this mean for our investments?  Join Charles Gabriel from Morgans to hear his views on the future of global investments.  Other questions we have posed for Charles include:– What will the Government and Federal banks injections into the currency and equity markets mean for the future?

– How do people manage risk and return in investment strategies during these times?

– What are some companies and sectors that currently look attractive?

– What are some companies and sectors to avoid at this time?

Week 3 (19-Aug-20) - Commodity outlook with Rob Hermann from Mecardo.

With some unrest in the relationship of our major trading partner China, what does the future of the commodities markets look like?  Rob Hermann of Mecardo will share his views on the future of sheep meat, beef, grain, and wool.  Other questions we have posed for Rob include:– What has been the play out with historical global economic shocks in Australian red meat and grain markets?

– What has been the play out with historical global economic shocks in Australian red meat and grain markets?– If there is a hyperinflation event as a result from government injection of cash into the system due to the global pandemic, will this be a good or a bad thing for commodity prices and farming net profit?

– Will the wool price recover or is the current pricing the new normal?

– Can domestic consumption in red meats and grains fill any shortfall from global demand fluctuations?

– If unemployment goes to 20% when the accelerator comes off the job keeper pedal, what will this mean for red meat and grain markets?

Week 4 (26-Aug-20) - Being Resilient in Uncertain Times with Justin Langer.

The all-time cricketing great Justin Langer will be presenting his views on being resilient in uncertain times.  It was Justin Langer who stood tall in the midst of the ‘sandpaper-gate’ which at the time was a major crisis plagued with uncertainty for the players, the Board and Australian Cricket as a whole.  It was through Justin’s leadership that the team found their way back into the hearts and minds of Australian’s and it is this level of resilience and leadership we hope to learn from Justin and apply to our businesses in these current uncertain times.

A conversation with Dave Shelley, Managing Principal from Page Seager Lawyers discussing the following:

• Legal considerations when transitioning control and ownership with family business.
• Why it is important for families in business to have a will?
• Given the pros and cons of relying completely on a will, is there an alternative process that could be considered?
• Tax and Stamp duty considerations?
• What are the most common issues or complications from a legal perspective with transitioning generational family business?

A conversation with Malcolm Beattie discussing entities and business structures.  During this podcast we discuss the following:

• What are the different entity types?
• What are the pros and cons of each entity?
• Is there such a thing as a standard structure?
• Other options for owning assets?
• Triggers for changing entities in family business.

A discussion with Jane Chopping regarding management reporting and how it can create value in your business.  In this episode we discuss the following:

• What is management reporting?
• What is the difference between accounting reporting and management reporting?
• How do you get started with management reporting?
• Why should management reporting be part of your business? 

In this episode, Clinton Peake discusses many of the commonly asked questions at tax planning time including is paying tax a good thing, what is the best structure for tax, business implications of private or tertiary tuition fees as well as some moral questions of paying tax in general.

A conversation with John Gibson regarding Covid-19 tax changes, grants and rebates and what you need to know in preparation for the end of financial year including tax planning, business health checks, budget review and planning.

A conversation with Lachlan Polkinghorne from ProAdvice discussing some useful tips when integrating a family member into the business.  This process is slightly different due to the age of the family member and we will discuss issues specific for both teenage and adult children.

A conversation with Chris Scheid discussing questions to ask when it comes to investment on farm.  We delve deeper in to three main areas:
1. Is the venture profitable?
2. Can the venture be financed?
3. A question about resource scarcity - if this was the last available investment, would you still proceed?

A conversation with Andrew Beattie regarding the do's and don'ts of succession planning.  Andrew will discuss the difference between succession and estate planning, outline a general model for succession planning and ways in which you can increase the chance of success in this area.