Financing

Meet the Bank

Bankers have a mutual interest in the business success of dairy farmers. Therefore, the relationship between a dairy farmer and their banker operates best as a partnership. The greater the understanding of each party's perspective, the stronger the business partnership.

Dairy Australia's Meeting the bank fact sheet and the video below have more information on how dairy farmers can approach their next discussion with their banker.

Meet the Bank is available as a short workshop for dairy farmer groups, including discussion groups. It covers what is required to meet the bank with confidence and with the information that will assist achieving the best possible outcomes.

What to take to a meeting with the bank

The more information provided by the dairy farmer, the more confidence the banker will have in the business. Annual summaries of financial and physical performance plus monthly cash flow statements underpinned by assets and liabilities, milk production and feed budgets, along with longer-term plans and projections are all important things to take to a bank meeting.

Other key documents include:

• Three years of financial reports from the accountant (if current year unavailable, draft financials or cash book figures formatted as a profit and loss report)
• Corresponding year’s annual milk statements (usually June’s statement has all details required)
• Statement of assets and liabilities
• Bank statements for past 12 months
• Last year’s DairyBase report
• A business plan, including risks and how they will be managed, budget and cashflow
• An income estimation from your processor
• Budgets for the next 12 months underpinned by milk production and feed budgets

Tools and training

Dairy Australia has developed a range of business tools in conjunction with the dairy industry.

Training in farm business management is available in Dairy Australia’s Farm Business Management training modules Farm Business Fundamentals and Dairy Farm Business Analysis.

Further information is available from Dairy Australia's regional teams