When Tom and Claire returned to RBS in January 2024, they were no strangers to adversity. The mixed sheep and cropping couple had previously worked with the Rural Financial Counselling Service (RFCS) during the 2018 drought. But after another disappointing harvest, they once again faced mounting pressure on their business.
Operating a mixed sheep and cropping enterprise across a combination of owned, leased and share farmed land, they were familiar with the Rural Financial Counselling Service (RFCS), having previously accessed Farm Household Allowance (FHA) and a Regional Investment Corporation (RIC) loan.
At their first appointment, the Rural Financial Counsellor (RFC) conducted a holistic business assessment. While equity remained sound, their overdraft facility was fully drawn after the disappointing 2023 season, and their most pressing challenge was how to source working capital for the 2024 crop.
Together, they prepared the documentation required to request an extension of working capital from their financial institution. Tom and Claire’s strong engagement and the RFC’s support ensured the proposal was submitted in a timely manner.
However, approval was delayed, leaving the couple to secure inputs through more expensive finance options. Without the RFC’s guidance, they may have been pressured into accepting unsuitable finance from less reputable lenders.
Despite these challenges, their growing confidence saw them independently reapply for FHA when the new 10-year period commenced in July 2024.
Regular meetings with their RFC created opportunities to review business performance, make incremental improvements, and build resilience. Gross margin analysis also revealed that their sheep enterprise was less profitable than expected, while also demanding time and energy that detracted from cropping operations. Acting on this insight, they reduced stock numbers ahead of worsening drought conditions, saving both money and effort.
Although the 2024 season was again drought-affected, more timely cropping operations enabled them to repay their input costs. Their financial institution subsequently approved additional facilities, providing breathing space for the future.
Looking ahead to 2025, they are working closely with their agronomist on a strategy to optimise cropping profits. With a cautious plan to sell land if the season failed, they were relieved when good rains arrived. Their current enterprise mix now focuses on hay, grain crops and a smaller sheep operation, leaving them better positioned to capitalise on favourable conditions.
Proactively using FHA vouchers to build new skills, participating in the RBS Relief Fund NAB Foundation Business Continuity Plan program, and completing a Carbon Baseline project with Grain Producers SA, they have continued to strengthen their business capacity. Their commitment to learning and willingness to adapt has been a hallmark of their journey.
Reflecting on their experience, they said:
“Having access to a financial counsellor is the reason we have survived the current drought. Not only has our RFC kept us informed of help available and how to access it, helped us dissect the nuts and bolts of our business, but most importantly, provided us with the impetus to start the conversations we needed to change our thinking, improve our resilience and move forward with a clear plan. We can’t thank RBS enough.”
This case demonstrates how early re engagement with an RFC can empower farming families to reassess their business in changing circumstances, make informed decisions, adapt their enterprises, and move forward with renewed confidence.