Farm viability is linked to farm size Farming has been undergoing a continuous process of increasing farm size. This has occurred as international pressures drive down agricultural commodity prices, causing farms with high cost structures (generally small farms) to sell up. Bigger farms expand, gain “economies of size” and position themselves to be viable in the long run. |
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However leasing and or buying more land is not always a good idea and in some cases it results in the farm which buys or leases more land becoming less viable due to an unsustainable debt level. Consequently such decisions require careful planning before proceeding.
We work with clients to help them budget and evaluate these options. If profitable we assist clients prepare cash flows and business plans to support loan applications to lenders.
