01 Jul LAND FORMING
A farming metamorphosis is an economic marvel when witnessed through the lens of hindsight. Land transitioning or land forming as recently seen in the Murrumbidgee and Lachlan Valleys with cotton now becoming the stoic crop of choice, has created a new vibrant economy in rural communities not seen for a generation.
A pedestal reserved for the resilient, this phenomenon only been achieved through creative financing to allow a dramatic transformation to take place on such a large scale.
Whatever the production conversion is taking place on a farm, the time between substantial capital deployment, infrastructure development, crop planting, production, harvest and marketing can prospectively stretch the tensile of most banks.
The journey of taking your business from A to B is not that simple as witnessed from the observation deck. Key considerations are;
- Capitalisation of costs
- Tenure to completion
- Execution risk (budget and time)
- Liquidity and solvency
- Funding risk
- On completion valuations and viability
How to fund expansion with full support of the banks or non-bank lenders to achieve an objective has been a high point of discussion over the past week.