How can Growth Farms add value to my business?
How much control do landowners have?
How do we know if our land will be looked after?
How are Growth Farms fees calculated?
Will OHS procedures be undertaken on my farm?
How can Growth Farms add value to my business?
Analysis of Growth Farms managed farms compared to the industry average, shows that Growth Farms managed farms generate a higher return on capital than the average of other farms in the same district. This is primarily due to the higher standard of management that Growth Farms provides but also the savings on input purchases.
Growth Farms structures the labour differently to most farm businesses, as the Area Manager takes responsibility for many of the higher level strategic issues which is one of the areas critical to achieve good results. Area Managers are very experienced in managing farm businesses and are across issues such as finance, risk, enterprise choice and enterprise structuring. Their cost is spread over a number of farms. This means the manager at the farm level requires a different skill set – they can focus on getting things done in an efficient and timely manner. The combined cost of these two people is often less than the traditional way of running a farm where the manager is employed to do all things ranging from strategy, to finance as well as the day to day tasks to get things done.
Growth Farms also has in place an arrangement for the purchasing of farm inputs. The group buying power provides considerable cost savings, all of which is passed on to the farm owners.
How much control do landowners have?
The level of control kept by the landowners is completely dependent upon landowner preference, however to ensure the smooth running of the farm’s daily operations, Growth Farms will assume day-to-day responsibility.
Landowners are consulted on any strategic decisions including the development of the 5 year plan and annual plan. Once agreed with the owner Growth Farms takes responsibility for implementing the plan.
Each month, actual v budget reports are provided to the landowners so they are aware of the monthly progress of their farm business.
How do we know if our land will be looked after?
Landowners are involved in all of the major farm business decisions, including enterprise mix, rotations and drought strategy, as well as any Landcare activities. These are agreed to in the annual plan by both Growth Farms and the landowner, then carried out over the term of the contract by the farm manager and Growth Farms’ experienced area managers.
Many of the farms currently managed by Growth Farms have substantial improvement programs including soil improvement (lime, fertiliser), fencing to land capability, tree planting and erosion control and establishment of perennial pastures.
Growth Farms prefers to have long term arrangements with landowners because it helps to ensure good farm business performance. This ensures that our interests are aligned with those of the landowner; therefore it is to the benefit of Growth Farms that the land is looked after.
How are Growth Farms fees calculated?
Growth Farms charges two types of fees for farm management, a base fee and a profit share.
The base fee is charged quarterly and depends on the type of operations being carried out on the farm. This fee is usually calculated on a per hectare basis for cropping operations and on a per DSE (dry sheep equivalent) basis for livestock operations.
The profit share is charged annually, and calculated on the profit or loss of the farm business. This means that if the farm business runs in profit for the year Growth Farms receives an agreed amount. However this also means that if the farm business runs at a loss, Growth Farms also takes a share of that loss and carries it forward against future profit shares.
Will OHS procedures be undertaken on my farm?
Growth Farms has developed an OHS manual which provides guidelines for the safe work procedures. Part of this manual is an induction procedure which is completed for all farm labour and contractors. To ensure the OHS manual is being followed, as well as for the assessment of risks, an OHS audit is carried out annually, which will recommend any improvements that are required.