September 24, 2024 • 8 mins
Kylie Fisken looks at the positives that need to be celebrated in the rural sector at the moment.
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Episode Transcript
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Speaker 1 (00:09):
Wednesday afternoon. This is the muster. Kylie Fiskin from Malt
McClain plus more joins us in studio once again. How
are you fabulous? And sunshining shunt sign shun USh.
Speaker 2 (00:23):
You've forgotten how to say that.
Speaker 1 (00:25):
I have honestly two days a sun of the road.
That's all we ask for, just two blooming days.
Speaker 2 (00:31):
Yeah, I've got hay fever. So that's a positive, is
it not?
Speaker 1 (00:36):
Maybe not for you, but the fact that the pollen's
releasing at the moment, but it is. You know, you
just got to acknowledge the way that things have been
over the last couple of weeks. It's been hell on
a hole.
Speaker 2 (00:45):
Yeah, I mean it's been a bit miserable. Absolutely. Put
it in perspective. I love chatting with their senior farmers,
and I get to chat with a lot of them,
especially my father. So having a chat with the old
boy the other day. And my eldest brother had a
birthday and he's fifty eight years old and on the
day that he was born dead remembers the snowstorm that
(01:07):
lasted three days. It eventually stopped raining. It was a
really good year on a sheep farm. And remember in
nineteen sixty six, there was no Stony Creek jackets or
hot grips.
Speaker 1 (01:18):
So we start off the cuff as well. I mean
mental Health Awareness Week. You need to acknowledge it at
the moment, don't you.
Speaker 2 (01:24):
We do need to acknowledge that mental health. You know,
everyone I'm speaking to is in the same boat. We're
all suffering with the springtime. So I guess the key
is look after your team, look after your mates, but
most importantly look after yourself. Make sure that you're getting
your required nutrients or if it's a cold beer at
the end of the day, it's a cold beer at
(01:46):
the end of the day. Acknowledge of farmers at this
point in time, I mean, especially at Southland Farmers, the
best in the world. Let's just go out there and
show them how it's done. This is not their first rodeo.
Speaker 1 (01:57):
The little things are the big things. But the moment, yeah, the.
Speaker 2 (02:02):
Little things are the big things. But don't let the
little things become big things.
Speaker 1 (02:05):
Yeah, well, I'm talking about just getting off farm I mean,
we've got the royal support trust with the brunches on
us occurring over the next couple of days continuing and
it's all about if you're coming to town or whatever,
just for half an hour or whatever, just going at
yourself a burner, go and get a coffee, go and
do whatever.
Speaker 2 (02:21):
Get bab shops open again.
Speaker 1 (02:23):
Anyway, we look at the mood that's happening on farm
at the moment, and I mean, yeah, okay, it's not flesh.
We've had a crap couple of weeks. Prices aren't that
flesh at the moment, but there are signs of positivity.
Speaker 2 (02:34):
Yeah, So we're going to look forward and look at
all the positives that we see coming across my desk,
especially at the moment. So yeah, for a couple probably
the last couple of years, it's been hard to find
too many positives, but they're starting and yeah, I just
want to acknowledge them and talk about how we can
make the.
Speaker 1 (02:53):
Most of them. So how do we make the most
of these positives?
Speaker 2 (02:56):
Then, Well, we're looking at our cash flows going forward.
So we're going to look into the future and highlight
a few things that we can kind of take some
comfort in. The First one is our farm working cost
increases have plateaus. Okay, so we saw a huge increase
in our farm working cost inflation repressures. I say, apart
(03:17):
from obviously our rates and insurance, the costs have stabilized.
It's quite uncanny really, you kind of ask them, are
you actually working to a number and does that mean
that we've found our most efficient way of running air operation?
Not sure, I need more evidence of that. But as
(03:39):
a measurement of air gross farming come, we aim for
a fifty percent farm working cost of air gross farming
come pure sheep farming. This is extremely challenging at the moment,
but not impossible, and it's probably more a lack of
income side, not necessarily a cost blowout.
Speaker 1 (03:57):
Yeah, it's fascinating, isn't it when we look back at
the last and a half years as to what we've endured.
But we've got to look ahead to the next four
and a half as well and beyond and just look
at our businesses and just doing what we need to do.
Speaker 2 (04:09):
We're here to make money, aren't we.
Speaker 1 (04:11):
Of course you are right.
Speaker 2 (04:12):
So the next thing that we're going to talk about
in a positive sense is that our interest rates are falling.
It's a huge cost on farm. We know that slowly
they are falling, but they are heading in the right direction.
So talking with our bankers and our customers. Some are
looking to lock in some short term fixed rates just
(04:35):
to give the immediate relief. Others are waiting for the
next two OCR announcements, so October and November. Nobody, I
mean absolutely nobody, and all they should is looking long term.
Right now in terms of fixed interest rates, we are
nowhere near a new normal yet, and do we even
know what our new normal is yet?
Speaker 1 (04:57):
Interest rates are frustrating, aren't they.
Speaker 2 (04:58):
Oh, yeah, you've got to.
Speaker 1 (05:02):
Anyone's got a crystal ball. It's been able to read
that crystal ball. And if you could read that crystal ball,
you'd be a very wealthy person. Yeah.
Speaker 2 (05:07):
Absolutely, Also, every situation is different. It's a matter of
finding a number that you're comfortable with and be realistic.
It can't be three right positive our next positive dairy futures,
you know, FONTI a really strong result, very strong result,
and dary futures are definitely looking promising. It's not cash
(05:28):
in the bank yet, but could create a healthy cash surplus.
So this can give confidence, especially at the moment, that
if you need to buy feed, just buy it. I
was on the road yesterday a few units of truck
and trailer units of bailage moving north end south, so
swimming around the countryside. So if you got to buy
it just to get through, do it. Talk to the bank,
(05:51):
They'll make it happen.
Speaker 1 (05:53):
There was a lot of bailage made in November as well,
and speaking to a few people over the last couple
of weeks that excit they've had from the winter as
camen blooming handy, and it's about dealing with the now.
Speaker 2 (06:04):
Yeah, dealing with the now and having a backup plan
for the now.
Speaker 1 (06:08):
Now as far as tax advice for the current situation,
what are you thinking right?
Speaker 2 (06:12):
So ah, what we are doing at the moment, as
you know, sitting down with our customers, looking at the future,
looking at are we actually going to have a cash
soaplus this year? Are we going to have a decent
catch surplus this year? In trying to look at we're
bouncing back from probably the lowest of the lows. How
(06:33):
do we bounce back?
Speaker 1 (06:33):
Well?
Speaker 2 (06:35):
So if for forecasting is surplus, then the taxable income
will follow. And you may not think about it right now,
but maybe we should be paying some tax now. At
a seventeen and a half percent margin in our twenty
twenty four year by deferring fertilizer to our twenty twenty
five or later years. So defer fertilizer, put it on
(06:56):
your balance sheet. You've got five years to choose when
to use that. So if you're under a seventeen and
a half percent margin, or you have very little income
this year, do you want to increase that paid at
seventeen and a half it's less that you're paying at
thirty next year or higher.
Speaker 1 (07:12):
The fertilizer is a big one for a lot of
people for obvious reasons, not putting it on that they're
used to an autumn. But I mean, you just go
look to the future, don't.
Speaker 2 (07:19):
You Just do you have to look to fetch That's
probably the biggest issue I've got with the fertilizer deferrals
that I want to do this year is that we
didn't get enough on you know, it just didn't happen
in the autumn.
Speaker 1 (07:31):
So so it's been interesting lessons as well from the
last twelve months though, hasn't it.
Speaker 2 (07:36):
Yeah, vieral sense, Yeah, it absolutely lets us work asse smarts,
dare I say, and do some future planning to try
and get the best being for our buck. So the
lesson is here to our farmers. Keep refecasting those numbers.
If it's a no, we're not going to have another
week day. But if it is a week day and
you're looking for something positive to do, get on your computer,
(07:57):
get things up to date, do a reforecast. Cash flow
is fluid. Talk to the mink if you're running out
of money right now. They do understand and they can
help if you provide them with a good, realistic forecast.
Speaker 1 (08:10):
Mount mcclaim plus more the best way to get in
touch with the team.
Speaker 2 (08:12):
Give us a call O three to I wait five
oh double seven, or you can email us at Hello
at MMCA dot cold oz.
Speaker 1 (08:20):
Kylie always appreciate your time and heavy birthday brother, Stephen.
Speaker 2 (08:23):
Oh yeah cool, well the other day yeah two years ago,
two years to go, Kylie Fiskin from Moult McClain plus
more on a Wednesday afternoon.
Speaker 1 (08:32):
Up next Jill Naylor from Real Women, New Zealand
Wednesday afternoon. This is the muster. Kylie Fiskin from Malt
McClain plus more joins us in studio once again. How
are you fabulous? And sunshining shunt sign shun USh.
Speaker 2 (00:23):
You've forgotten how to say that.
Speaker 1 (00:25):
I have honestly two days a sun of the road.
That's all we ask for, just two blooming days.
Speaker 2 (00:31):
Yeah, I've got hay fever. So that's a positive, is
it not?
Speaker 1 (00:36):
Maybe not for you, but the fact that the pollen's
releasing at the moment, but it is. You know, you
just got to acknowledge the way that things have been
over the last couple of weeks. It's been hell on
a hole.
Speaker 2 (00:45):
Yeah, I mean it's been a bit miserable. Absolutely. Put
it in perspective. I love chatting with their senior farmers,
and I get to chat with a lot of them,
especially my father. So having a chat with the old
boy the other day. And my eldest brother had a
birthday and he's fifty eight years old and on the
day that he was born dead remembers the snowstorm that
(01:07):
lasted three days. It eventually stopped raining. It was a
really good year on a sheep farm. And remember in
nineteen sixty six, there was no Stony Creek jackets or
hot grips.
Speaker 1 (01:18):
So we start off the cuff as well. I mean
mental Health Awareness Week. You need to acknowledge it at
the moment, don't you.
Speaker 2 (01:24):
We do need to acknowledge that mental health. You know,
everyone I'm speaking to is in the same boat. We're
all suffering with the springtime. So I guess the key
is look after your team, look after your mates, but
most importantly look after yourself. Make sure that you're getting
your required nutrients or if it's a cold beer at
the end of the day, it's a cold beer at
(01:46):
the end of the day. Acknowledge of farmers at this
point in time, I mean, especially at Southland Farmers, the
best in the world. Let's just go out there and
show them how it's done. This is not their first rodeo.
Speaker 1 (01:57):
The little things are the big things. But the moment, yeah, the.
Speaker 2 (02:02):
Little things are the big things. But don't let the
little things become big things.
Speaker 1 (02:05):
Yeah, well, I'm talking about just getting off farm I mean,
we've got the royal support trust with the brunches on
us occurring over the next couple of days continuing and
it's all about if you're coming to town or whatever,
just for half an hour or whatever, just going at
yourself a burner, go and get a coffee, go and
do whatever.
Speaker 2 (02:21):
Get bab shops open again.
Speaker 1 (02:23):
Anyway, we look at the mood that's happening on farm
at the moment, and I mean, yeah, okay, it's not flesh.
We've had a crap couple of weeks. Prices aren't that
flesh at the moment, but there are signs of positivity.
Speaker 2 (02:34):
Yeah, So we're going to look forward and look at
all the positives that we see coming across my desk,
especially at the moment. So yeah, for a couple probably
the last couple of years, it's been hard to find
too many positives, but they're starting and yeah, I just
want to acknowledge them and talk about how we can
make the.
Speaker 1 (02:53):
Most of them. So how do we make the most
of these positives?
Speaker 2 (02:56):
Then, Well, we're looking at our cash flows going forward.
So we're going to look into the future and highlight
a few things that we can kind of take some
comfort in. The First one is our farm working cost
increases have plateaus. Okay, so we saw a huge increase
in our farm working cost inflation repressures. I say, apart
(03:17):
from obviously our rates and insurance, the costs have stabilized.
It's quite uncanny really, you kind of ask them, are
you actually working to a number and does that mean
that we've found our most efficient way of running air operation?
Not sure, I need more evidence of that. But as
(03:39):
a measurement of air gross farming come, we aim for
a fifty percent farm working cost of air gross farming
come pure sheep farming. This is extremely challenging at the moment,
but not impossible, and it's probably more a lack of
income side, not necessarily a cost blowout.
Speaker 1 (03:57):
Yeah, it's fascinating, isn't it when we look back at
the last and a half years as to what we've endured.
But we've got to look ahead to the next four
and a half as well and beyond and just look
at our businesses and just doing what we need to do.
Speaker 2 (04:09):
We're here to make money, aren't we.
Speaker 1 (04:11):
Of course you are right.
Speaker 2 (04:12):
So the next thing that we're going to talk about
in a positive sense is that our interest rates are falling.
It's a huge cost on farm. We know that slowly
they are falling, but they are heading in the right direction.
So talking with our bankers and our customers. Some are
looking to lock in some short term fixed rates just
(04:35):
to give the immediate relief. Others are waiting for the
next two OCR announcements, so October and November. Nobody, I
mean absolutely nobody, and all they should is looking long term.
Right now in terms of fixed interest rates, we are
nowhere near a new normal yet, and do we even
know what our new normal is yet?
Speaker 1 (04:57):
Interest rates are frustrating, aren't they.
Speaker 2 (04:58):
Oh, yeah, you've got to.
Speaker 1 (05:02):
Anyone's got a crystal ball. It's been able to read
that crystal ball. And if you could read that crystal ball,
you'd be a very wealthy person. Yeah.
Speaker 2 (05:07):
Absolutely, Also, every situation is different. It's a matter of
finding a number that you're comfortable with and be realistic.
It can't be three right positive our next positive dairy futures,
you know, FONTI a really strong result, very strong result,
and dary futures are definitely looking promising. It's not cash
(05:28):
in the bank yet, but could create a healthy cash surplus.
So this can give confidence, especially at the moment, that
if you need to buy feed, just buy it. I
was on the road yesterday a few units of truck
and trailer units of bailage moving north end south, so
swimming around the countryside. So if you got to buy
it just to get through, do it. Talk to the bank,
(05:51):
They'll make it happen.
Speaker 1 (05:53):
There was a lot of bailage made in November as well,
and speaking to a few people over the last couple
of weeks that excit they've had from the winter as
camen blooming handy, and it's about dealing with the now.
Speaker 2 (06:04):
Yeah, dealing with the now and having a backup plan
for the now.
Speaker 1 (06:08):
Now as far as tax advice for the current situation,
what are you thinking right?
Speaker 2 (06:12):
So ah, what we are doing at the moment, as
you know, sitting down with our customers, looking at the future,
looking at are we actually going to have a cash
soaplus this year? Are we going to have a decent
catch surplus this year? In trying to look at we're
bouncing back from probably the lowest of the lows. How
(06:33):
do we bounce back?
Speaker 1 (06:33):
Well?
Speaker 2 (06:35):
So if for forecasting is surplus, then the taxable income
will follow. And you may not think about it right now,
but maybe we should be paying some tax now. At
a seventeen and a half percent margin in our twenty
twenty four year by deferring fertilizer to our twenty twenty
five or later years. So defer fertilizer, put it on
(06:56):
your balance sheet. You've got five years to choose when
to use that. So if you're under a seventeen and
a half percent margin, or you have very little income
this year, do you want to increase that paid at
seventeen and a half it's less that you're paying at
thirty next year or higher.
Speaker 1 (07:12):
The fertilizer is a big one for a lot of
people for obvious reasons, not putting it on that they're
used to an autumn. But I mean, you just go
look to the future, don't.
Speaker 2 (07:19):
You Just do you have to look to fetch That's
probably the biggest issue I've got with the fertilizer deferrals
that I want to do this year is that we
didn't get enough on you know, it just didn't happen
in the autumn.
Speaker 1 (07:31):
So so it's been interesting lessons as well from the
last twelve months though, hasn't it.
Speaker 2 (07:36):
Yeah, vieral sense, Yeah, it absolutely lets us work asse smarts,
dare I say, and do some future planning to try
and get the best being for our buck. So the
lesson is here to our farmers. Keep refecasting those numbers.
If it's a no, we're not going to have another
week day. But if it is a week day and
you're looking for something positive to do, get on your computer,
(07:57):
get things up to date, do a reforecast. Cash flow
is fluid. Talk to the mink if you're running out
of money right now. They do understand and they can
help if you provide them with a good, realistic forecast.
Speaker 1 (08:10):
Mount mcclaim plus more the best way to get in
touch with the team.
Speaker 2 (08:12):
Give us a call O three to I wait five
oh double seven, or you can email us at Hello
at MMCA dot cold oz.
Speaker 1 (08:20):
Kylie always appreciate your time and heavy birthday brother, Stephen.
Speaker 2 (08:23):
Oh yeah cool, well the other day yeah two years ago,
two years to go, Kylie Fiskin from Moult McClain plus
more on a Wednesday afternoon.
Speaker 1 (08:32):
Up next Jill Naylor from Real Women, New Zealand
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