Blog – From Contract Milking to Farm Ownership

Meet Kevin and Nicole Oppert—2023 Central Plateau Share Farmers of the Year, passionate contract milkers, and dreamers with their sights set on farm ownership. They’re brilliant at what they do, but like many successful farmers, they’ve learned the hard way that technical expertise alone isn’t enough to build the business of their dreams. 

The Wake-Up Call Every Farmer Fears 

Picture this: You’ve worked incredibly hard, built a solid reputation, and things seem to be going well. Then your accountant calls with news that hits like a rogue bull—a massive second-year tax bill you never saw coming. 

This exact scenario happened to Kevin and Nicole, and it became their turning point. That surprise tax bill wasn’t just a financial shock; it was a wake-up call that technical farming skills, no matter how exceptional, need to be paired with financial management skills to build a truly successful business. 

Sound familiar? You’re not alone. Like many people who start their own business, you probably developed your skills while working for someone else. You watched, learned, and one day realized you could do it better, differently. That inspired you to be your own boss. 

Most farmers start with this motivation, but here’s what catches everyone off guard: running and growing a successful business takes more than just having the skills of the trade. You need more than farming skills—you need money-management and numbers skills. 

The Hidden Skill That Changes Everything 

Knowing your numbers is a skill in itself—some would even say it’s a talent. But here’s the encouraging news: everyone has the potential to understand and learn their numbers. It’s a core business skill that means having the know-how to handle your agri-business properly, setting plans in place, conducting business effectively and efficiently, and not leaving things to chance or relying on luck. 

Kevin and Nicole embody this journey. Currently in discussions to buy equity in their existing farm, they’re focused on growth, savings, and setting themselves up for a secure future. They understand that their long-term goal of farm ownership depends not just on their exceptional farming abilities, but on mastering the financial side of their business. 

The Dangerous Trap Most Farmers Fall Into 

Here’s where many Kiwi farmers go wrong: they place too much emphasis on their year-end financial statements. The harsh reality? Your financial statements are good for only two things: 

1. To apply for a loan from the bank—no bank will give you credit without them 
2. To calculate your end-of-year tax requirements and satisfy your taxation obligations 

But here’s the problem: the information in your financial statements could potentially be 6 to 9 months out of date. In some scenarios, you could be trading for up to 18 months before you realize the business isn’t achieving the results you thought it was getting. 

Imagine discovering a lame cow 18 months after the injury occurred—you’d never tolerate that delay in your farming operations. Yet many farmers operate their businesses with this same dangerous blind spot. 

Why Your Accountant Can’t Do It All 

You might say, “that’s what we pay our accountant for,” and while a partnership with your accountant is crucial, nothing beats being number-savvy so you can look into your business at any point and make informed decisions when needed. 

Time is one of your most precious commodities. Can you truly afford to wait until your accountant ‘catches’ a mistake when they prepare year-end accounts? By that time, you may already be in too deep. 

As Kevin and Nicole have learned, having a basic understanding of everything affecting your business means you can truly take charge. When farmers know their numbers, they run their businesses better, make more money, and have more fun doing it. 

Your Legacy Depends on Financial Confidence 

Your farm and business may be the most important assets you have. The vast majority of farm owners in New Zealand are committed to the long term and have a strong desire to see the farm pass on to the next generation. 

Like Kevin and Nicole working toward farm ownership, achieving this goal requires you to look after your business, understand it, and develop it so it can support you and the generations that follow. The satisfaction of achieving this will give certainty and peace of mind that no market volatility can shake. 

Building Financial Resilience Through Real-World Guidance 

The farmers who thrive aren’t necessarily those with the biggest operations—they’re the ones who understand their cost structures, cash flow patterns, and key performance indicators. They make decisions based on current, accurate financial information, not year-old statements or gut feelings. 

This is exactly what the Milking It project demonstrates through Kevin and Nicole’s journey. By sharing their real-world challenges and victories, we gain insight into how practical financial management can be both accessible and achievable. 

 

Ready to Transform Your Farm Business Journey? 

Kevin and Nicole’s story shows that mastering your numbers isn’t about becoming an accountant—it’s about becoming a complete farm business owner with the confidence and tools needed to manage finances effectively, ensuring both business success and personal well-being. 

Their journey from that shocking tax bill to confident financial planning demonstrates what’s possible when you combine exceptional farming skills with solid financial management. They’re building the foundation not just for business success, but for achieving their dream of farm ownership. 

Join the Journey: Follow Kevin and Nicole’s real-world experience through the Milking It project as they navigate financial management, build toward farm ownership, and demonstrate how financial resilience in dairy farming is both achievable and essential. 

Your farming expertise got you this far. Let your numbers knowledge take you to farm ownership and beyond. 

Ready to start your own financial resilience journey? Connect with the Milking It project through DWN and CMK to discover the journey so far.