Financial literacy an underappreciated skill for Australian farmers

In order to succeed in the modern agricultural environment, a farmer needs to be skilled in many areas – science, technology, business and environmental stewardship, to name just a few. Financial management is a particularly important skill, and it’s an area in which farmers possibly don’t get enough credit for the complex work they do.

We spoke to David Weickhardt, General Manager of Products at MYOB, about the unique financial needs of Australian farmers and how they are punching above their weight. MYOB has been providing support to farmers and their accountants across the country for 26 years, and the company knows more than most about the competency levels of farmers when it comes to financial management.

“In general, many Australian small businesses aren’t that financially literate because it’s not their passion and they haven’t had training in it,” says David. “The majority of farmers in this country are small business owners and, considering they are managing businesses far more complex than the average small business, they’re generally doing a pretty good job of it.

“The perception of the farmer being behind the average when it comes to financial literacy is inaccurate – I think they’re better than your typical small business in that regard.”

When it comes to financial management, farmers have a few very specific needs. Cashflow is an issue for all businesses, but it is critical for farmers given it is highly seasonal and variable. Farmers are also very asset rich, which means they are reliant on bank loans or lines of credit to stay solvent – necessitating accurate and detailed financial reporting to the bank. And on top of this, farmers are notoriously time poor.

For companies like MYOB, it means they need to tailor their products to these specific needs and nurture an environment in which financial management is as pain-free and easy as possible for farmers.

“Although farmers have specific needs, we know what those needs are,” says David. “We can build the ability to meet those needs into the software and hide it from the farmer, so they can focus on getting things done and running their business.

“The provision of live data is one thing that can really take a weight off farmers’ shoulders. The quicker they can get their financial data and share it with their accountant, the better – being able to access their farm data remotely and in real time takes away a lot of the heavy lifting for the farmer.”

And, as David has experienced, the embrace of technology by the Australian farming community has extended to the financial management software offerings of companies like MYOB – despite what many outside the industry may think.