Using knowledge to improve the farming business was the main takeaway from Rabobank’s Riverina and northern Victoria regional manager Peter Evans at the recent Murray Dairy Business Forum in Shepparton.
The forum’s morning session was attended by about 120 people and Mr Evans said knowledge would only get you so far.
“We all know the game. It’s what we do with the knowledge we have to create actionable foresight (that counts),” he said.
When it comes to the relationship between the banker and the farmer, Mr Evans said it was evolving.
“An effective banking relationship sees farmers as the drivers,” he said.
Mr Evans said it was important to understand that imported money was all the same.
“Debt and equity are the same, it’s all imported money.
“New Zealand’s debt per kilogram of milk solids has risen from about $10 to $20/ kg MS (from 2003 to 2015).
“This upward debt trend reflects rapid expansion in the industry, when improving dairy returns fuelled increasing appetite for land acquisition and appreciating dairy land values,” he said.