Insights that still matter: Over-capitalisation revisited

What is over-capitalisation, what does it look like on a dairy farm and how does it impact your business performance? It is important to be aware of how over-capitalisation can add to your business’s cost of production – adding to both cash and non-cash costs.

This month, updates have been provided on average depreciation and interest costs as we revisit one of our very early podcast episodes. The content and insights provided by Jake are as relevant today as they were in 2021.

Useful resources related to this podcast:

·       Jake Musson (Dairy Australia) – NSW System Performance presentation (~19:20 minute mark for ‘Plant and equipment vs. Depreciation) https://www.youtube.com/watch?v=HLb7Z2DU6fI 

·       Tower of Resilience (John Mulvany)

·       Farm Business Snapshot calculator

·       NSW Dairy Farm Monitor reports

 

This podcast is an initiative of the NSW DPI Dairy Business Advisory Unit – further information and resources are available here - Dairy | Department of Primary Industries

It is brought to you in partnership the Hunter Local Land Services

Please share this podcast with your fellow farmers and colleagues and feel free to contact us with suggestions or comments via this email address [e-mail]

Further NSW DPI Dairy channels to follow and subscribe to include:

NSW DPI Dairy Facebook page

NSW DPI Dairy Newsletter - Connect with us | Department of Primary Industries 

Transcript - Here

Produced by Liam Driver

The information discussed in this podcast are for informative and educational purposes only and do not constitute advice.