The graphs were completed using 2012/13 economic survey cost structures and are based on a total milk income of $5.27 for owners and $2.50 for 50:50 sharemilkers. Created in mid-April, the cashflows do not reflect the recent change to the 2014/15 Fonterra pay-out. As such, implications on the 2015/16 cashflow may be more significant due to lower retrospective payments received.
It shows that farmers nationwide will be facing some short-term but significant cashflow management challenges.
A series of events from now until July will provide a forum for discussion to help farmers address this challenge. Tools, resources and the information from 30 Tactics for Tight Times farmers have also been collated to aid decision-making and are available in the Tactics for Tight Times section of this website.
Check out the cashflow for the average sharemilker and farm owner in your region below.