The Agri-Women’s Development Trust (AWDT) has been allocated $331,000 from the Ministry for Primary Industries (MPI) to research, design and deliver the financial risk management training course. The pilot starts this month, with the programme being delivered in six locations.
“The aim of the course is to empower farmers and growers to understand the different types of risks facing their business, and give them the skills to develop plans to manage the financial and personal implications of those risks,” AWDT’s general manager Lisa Sims says.
Up to 130 people are expected to take part in the Resilient Farming Business course during its pilot with sheep, beef, dairy, arable and horticulture businesses in Hawke’s Bay, Manawatū, Canterbury, Otago and Southland.
The financial support from MPI allows farmers to attend the programme for free.
“The primary sector is the backbone of our economy and it’s vital we ensure farmers and growers are equipped to withstand challenges facing the sector,” MPI’s director of Rural Communities and Farming Support Nick Story says.
“This course will give them the skills, tools and confidence to help make their agribusinesses more financially resilient. Farmers and growers can’t control the weather, commodity prices or shifts in consumers’ shopping habits, but they can plan and prepare for change.”
The pilot programme consists of two face-to-face full-day modules, one month apart. It also includes self-directed premodule and intermodule work, to help participants get the most out of the programme.
It is aimed at farming and growing business owners and managers with financial responsibility for a business or business unit, with an existing budget and the ability to create and monitor a budget. Attendees must also have the ability to read financial accounts, including a balance sheet and profit and loss statement.
Funding for the programme is part of a $1.15 million commitment in the 2020-21 financial year to reduce the risk of primary producers getting into financial strife.
MPI has earmarked $500,000 a year for three years to help enhance financial literacy and risk management skills, and a further $100,000 has also been allocated to the Farm Business Advice Support Fund to provide farmers with independent advice to help tackle farm debt.
“This fund is managed by the Rural Support Trust national council and has already been accessed by more than 40 businesses. It’s believed the support has prevented farmers from defaulting on loans and requiring the services of the Farm Debt Mediation Scheme,” Story says.
The Farm Debt Mediation Scheme was launched in July 2020 and has an annual budget of $550,000 to help farmers and growers work through debt issues with their lenders.
“There have been 42 requests for mediation services through the scheme. Importantly, it has encouraged lenders to engage in conversations with at-risk clients earlier, avoiding the need for mediation,” he says.
Farmers and growers can request mediation at any time and hardship funding is available through MPI.
Details of the pilot locations can be found in the table below and more information can be found at awdt.org.nz/programmes/our-resilient-farming-business/
