Home' Smart Farmer : May 2012 Contents May 2012
By MAX OPRAY
FF-FARM income is the key
for those looking to finance a
treechange, says Norwood-
based Smartline broker Craig
"The main thing is whether your
payment capacity is reliant on
income derived from property, or
from your business," he said.
"If you can afford to meet commit-
ments without including farm
income, that's when you can lend on
a residential rather than commercial
basis, which means substantial-
ly reduced rates."
Mr Brooks, who regularly
arranges mortgages for
small farms in the Barossa
region, worked in bank-
ing for 20 years before
becoming a broker nine
years ago. He is familiar
with life on both sides of the fence.
"It used to be fine to go direct to
the bank when you had a traditional
local manager to work with, but
these days you will just be reliant on
their policies. A broker can source
the best deal from a multitude of
banks -- both the major ones and
second-tier lenders," Mr Brooks said.
Rabobank state manager James
Robinson agrees brokers are impor-
tant in assisting with loan applica-
tions, but argues that the
relationship with the bank itself is
"It is the bank that assesses the
loan proposal, not the broker, and in
Rabobank's view, a strong client-
banker relationship is critical to the
way we conduct our business and
successfully support our clients," he
Mr Robinson said farmers could
use bank finance for more than just
land purchases, including financing
existing loans, buying plant,
machinery or livestock, and working
He said they should consider
investment loans to fund houses,
units or shares.
Mr Robinson said loans ran the
risk of being rejected if there was
insufficient security being offered,
unrealistic budgets, weak equity, a
history of poor past performance, or
a lack of business management skills.
Equity, loan balance keys to maintaining a solid ...
Security -- assets provided for the
loan to be secured against
Past performance of the farm
business -- evidenced through
Budgets/cashflows for the business
-- to determine the serviceability of
Equity -- how much equity the
farmer has, or would have, in the
business or enterprise
Business plan for the operation
The borrower's financial and
business management skills
An once the loan is secured, the
financial battle begins.
Rural Business Support Service
general manager Kay Matthias has
helped out many cash-strapped agri-
culture businesses in her six years in
The RBSS, which also trades as the
Rural Financial Counselling Service,
is an independent agency which
gives free and confidential assistance
to farmers and small businesses in
financial difficulty with no indepen-
dent source of financial support.
Mrs Matthias said a lack of plan-
ning was the main reason farmers
sought RBSS help.
She said farmers needed to have
sufficient capital to survive the
unpredictable nature of agricultural
"In SA, we can see ups and downs
in seasons. For example, the drought
a few years back was followed by
plenty of rainfall," Mrs Matthias said.
Another common problem was the
lack of planning for property inheri-
"For most farmers, their superan-
nuation is the farm itself. They have
no off-farm investment and this eats
into the cashflow for the next gener-
ation," she said.
"There needs to be better commu-
nication between family members to
hand down a family business
• Need to know more?
Rural Business Support Service
1800 836 211 or www.rbss.org.au
Smartline's Craig Brooks says brokers can seal the best deals on loans.
Rural Business Support Service general manager Kay Matthias says farmers
need strength of capital to survive agriculture's unpredictable nature.
PERFORMANCE • PASSENGER • 4 WD
GOLDSTAR TYRES & BATTERIES -- BALHANNAH
30 Glebe Rd • Ph 8388 4176
or visit: nankang.com.tw
Straight wide grooves enhance tire
drainage efficiency and maneuvrability
on wet road conditions.
Sub straight grooves.
The two sub straight grooves on tyre
should not only share the main groove
drainage efficiency , but reduce tread
Tiny Lateral Kerfs.
The kerfs can reduce pattern noise
caused by tire rolling.
Sipes tire should reduce tire block rigid-
ity, lower the noise from road, and in-
SPORT SERIES NS-20
Four straight groove designed pattern
enhances the drainage efficiency and the
maneuverabilty on wet ground.
Special block pattern design enforces
The gradually broadened groove expe-
dites drainage efficiency.
Pitch pattern designed by computer --
simulated calculation reduces the noise
COMFORT SERIES XR-611
Two straight broad grooves & arc sub-
grooves design can enhance drainage ef-
ficiency and prevent from hydroplaning.
Noise prevention bar on the shoulder
groove can reduce the pattern noise.
The blocks with sipes make the block
stiffness feasible, and improve the pre-
mature tire wear and riding comfort.
Increase noise prevention bar is to re-
duce the noise generated by the pattern.
Two centre wide circumferential grooves
design can efficiently direct water away
and enhance superior wet handling.
Added sipes in the block pattern is to
normalize the tire surface hardness, thus
increasing comfort and buffering the
noise generated from the road.
Design by Nankang's NSS (Noise Simu-
lation System), the pattern is arranged
so that the noise between the pattern
blocks is effectively lowered.
Special rigid shoulder and sidewall de-
sign absorbs the shake from rugged
roads and reduces car bumping.
Stud holes design suits to all terrain.
Studs can be driven to enhance the ma-
neuverability and braking if necessary.
The Computer-simulated blocks perform
excellently on all kinds of road condi-
White letter sidewall shows unique and
4X4 WD N889
Special profile design is adopted to in-
crease the tire rigidity and driving stabil-
The tread surface is broadened and the
shoulder groove is reduces to give better
Zigzag main grooves design is adopted
for mud road conditions.
Gradual widening sub-groove pattern is
aimed to divert the gravel out more effi-
ciently when cornering.
The noise prevention bar is created on
the should to prevent premature wear
and to reduce the road noise generation.
4X4 WD FT-7
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