Blog Post #7 – The Story So Far

Real Conversations, Real Planning: Navigating a Farm Budget with Purpose

Running a successful farming business takes more than just hard work on the farm. Behind every productive season is a series of decisions — financial, strategic, and personal — that shape both short-term outcomes and long-term goals.

CMK Accountants are collaborating with Dairy Women’s Network, Figured and Mediaworks, and working alongside Kevin and Nicole Oppert who are dairy farming in Te Puke. We recently met with them and explored what it means to truly own your numbers and use them to support better decisions. From structural changes to budgeting tools, cost sharing to cash flow management, the conversation was a great example of proactive planning in action.

Here’s a look at what we covered — and what other farmers might learn from it.

Building the Right Foundation

Currently contract milking 750 cows, Kevin and Nicole have recently purchased shares in the company that owns the dairy farm. This is an exciting step in their farming journey and we discussed this shareholding purchase, the financial implications and what it means for them moving forward.

Budgeting with a Clear View

Using Figured software, we worked through a review of last season’s milk production and historical costs and set realistic forecasts for the year ahead. The aim was to ensure that in their contract milking operation that they have a clear understanding of the season ahead, and their cashflow requirements.

Together we were able to align their forecast with operational decisions (like feed strategies and staffing requirements) and discuss who should be responsible for costs – Kevin and Nicole as contract milkers, or the landowning company.

Cash Flow and Seasonal Pressures and Capital Expenditure

Like many dairy farming businesses, Kevin and Nicole experience uneven cash flow throughout the year. We reviewed their current bank position and forecasted periods of tightness — particularly during winter months before peak production resumes.

Making Asset Decisions Strategically

Another theme was how and when to invest in equipment. Kevin and Nicole recently attended the Field Days and purchased calving equipment and are considering further asset replacement if their cashflow allows. We discussed the timing of these purchases, the new Investment Boost tax initiative announced by the Government, and the overall cash impact of these potential purchases.

Decisions regarding when to investment in capital expenditure are key, as they must fit both the operational on-farm need, as well as the cash position of the farming business.

Personal Planning Included

Farming is not just a business — it’s a lifestyle. We discussed with Kevin and Nicole their family needs and the overall impact of taking shareholder drawings versus shareholder salaries and ensured their forecast allows for appropriate expenditure.

A Living Budget, Not a Static Plan

Perhaps the most important takeaway from this session was that a budget is not something you build once and shelve for the season. It’s a living tool. We encouraged Kevin and Nicole to keep using Figured regularly:

• To update actuals as the season progresses
• To run reports comparing forecasts with past performance
• To take “snapshots” they can refer back to as decisions evolve

This kind of regular interaction keeps the budget relevant — and makes it an essential tool to assist them with running their farming business.

Looking Ahead

We wrapped the session up with a review of next steps, including tax planning once their Financial Statements have been prepared, and an upcoming podcast episode where they’ll share more about their journey. The plan is to reconnect after calving, once they are through the busy period.

Final Thoughts

Kevin and Nicole’s story is a reminder that smart financial planning isn’t just about cutting costs or chasing numbers. It’s about understanding what’s happening in your business, being proactive, and using the tools available to make better decisions.

Their willingness to ask tough questions, stay engaged, and take ownership of their financial future sets them up well — not just for this season, but for many seasons ahead.

If you’d like to take a closer look at your own farm budget, or get support with Figured or financial planning, we’re here to help.