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#004 - The RBA Raised Rates (What It Means For Farmers) · Dollars In The Dirt

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  Today. As expected, the independent reserve Bank has increased the cash rate by 25. Recent increase
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  from the reserve Bank is going to have an impact on farmers in terms of borrowing capacity, do all
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  sorts of things on your property. Are you saying voters were meant to read between the lines that
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  inflation would start climbing back up again? If you look at today's data. None of it can be
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  attributed to the budget settings. Seriously. He's the treasurer of Australian government, and he
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  thinks that it's not attributed to the government. What's your five year plan? It doesn't really know
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  what it's going to do in the next five hours. Why does it have a plan? A lot of farmers don't have a
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  plan either. They are property punters. Today we're talking my new favourite asset class. And that is
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  farmland. This guy is now a farming expert. Welcome to dollars in the dirt. I'm Brecken Curtis and
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  this is where we break down the finance side of farming so you can grow your operation, buy that
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  next property and build real wealth. Let's get into it. Hey guys. Welcome back. Seems people like
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  these reaction videos. And here we are. We're going to do some more today for you guys to have a look
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  at. Watch along. Interested in everyone's thoughts on these and look forward to seeing what you guys
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  think are my reaction to to some of these somewhat controversial videos today. As expected,
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  the independent reserve Bank has increased the cash rate by 25. This will be difficult news for
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  millions of Australians with a mortgage. So here we go. Another interest rate rise recently from
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  the reserve Bank. Today's decision was widely expected. Obviously expected since when? We know
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  that many Australians are doing it tough, which is why we continue to roll out the responsible cost
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  of living relief, including responsible, since when this guy had done anything that's responsible.
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  Recent increase from the reserve Bank is going to have an impact on farmers in terms of borrowing
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  capacity, being able to secure that next property, do expansion, do all sorts of things on your
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  property if you need to borrow more money. Obviously, if you're if there's interest rate
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  rises going through the system, well, that's going to lower your ability to borrow more money. So
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  having a budget, being able to understand, um, where the market's heading and your cash flow forecast
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  going forward, um, is crucial in a rising interest rate market. So there's no unexpected surprises in
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  the near future. What's your five year plan? What's the five year plan like? What are you going to do
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  in the next five years? Well, what am I doing in the next five years? Yeah. Five years of a plan
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  into a five year old doesn't really know what he's gonna do in the next five hours. Oh, boy. Does
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  that have a plan? A lot of farmers don't have a plan, either. Guys, we've talked about this in the
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  past around having a plan, being bank ready, acquisition ready. It's really important that you
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  have your plan down on paper that's really easily able to be communicated to your broker, to your
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  bank manager, the farmers out there that have their plan ready to go. Um, able to to react
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  quickly as opportunities arise in the market, are well ahead of their neighbours and other people
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  that are in the market looking to buy properties as well. This real it's really pertinent in the
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  sense that we're sort of joking about Alamo not having a plan, but in reality, there's a lot of
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  farmers out there that don't have a plan. The.
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  Air conditioning in these plans. Cook it up. This is like a lot of our customers. And as they should
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  be, they're focusing on buying new machinery to make their farms more productive rather than
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  worrying about a new pair of jeans that, you know, the old jeans with the split in them still do the
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  job and and even got a bit of built in air conditioning as well. So this is how everyone
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  should roll. You know, focus on the things that actually make you the money just quickly. If
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  you're tired of explaining your operation to a new bank manager every year, only to get a one
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  size fits all deal that doesn't fit your business. We can help at season Finance. We do things
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  differently. We've got over 70 years of combined experience in agricultural lending, and we work
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  for you, not the banks where the consistent expert team in your corner fighting to get the finance
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  that actually helps you grow. Purchase the next property and build your legacy. Don't leave money
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  on the table if you're looking at your next move or just want a second opinion on your current
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  setup, click the link in the show notes to book a confidential, no obligation chat with the team and
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  we'll show you what's possible. Righto guys. Now back to the episode. Well, I think when it comes to
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  inflation specifically, the worst is behind us. The worst is behind us. Holy moly, has he not bought
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  anything lately? The impression that the election was clear that the worst was behind us. Are you
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  saying voters were meant to read between the lines that inflation would start climbing back up
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  again? If you look at today's data, none of it can be attributed to the budget settings. You're. Which
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  country does this guy live in? None of it's attributed to the budget settings. Seriously, he's
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  a treasurer of Australian government, and he thinks that it's not attributed to the government
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  arguing in that answer that this has got nothing to do with you. I mean, they've been spending like
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  drunken sailors day on day after day. Voters, remember? You take credit when inflation falls.
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  This is proof of the responsible economic management which has responsible economic
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  management. Since when? But now, when it's going up, it's got nothing to do with you. Nothing to do
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  with them. The farmers out there would all know that prices of everything are going up. Fertiliser
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  input costs for crops. Freight for cattle. Everything's going up day after day. So, um, it's
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  really important that you understand the financial management of your business, where
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  you're heading, what the costs are, and and analysing that on today's prices, because prices
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  keep going up and budgets, you know, would have stacked up three years ago probably doesn't stack
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  up today because the prices of of everything have gone up significantly. Yeah. Property punches today
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  we're talking my new favourite asset class and that is farmland. This guy is now a farming
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  expert. When I'm talking farmland about being a great real estate investment, I'm not talking
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  about it. Doesn't look like much of a farm with this guy. Look at him. I'm talking about proper,
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  productive land that you can run as a primary producer. Jack Stolz all of a sudden become a
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  farming expert here. But, um, I think when you're when you're looking at getting finance for farms
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  and anything to do with agricultural land, you need to make sure that you've really got someone
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  specialised that understands your industry, understands locations, the risks with farming,
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  there's there's significant risks. And, you know, just be careful around the advice that you take
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  from guys that maybe, you know, don't have a lot of experience in the farming world and the
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  agribusiness world. So interesting that Jack's all of a sudden becoming a farmer, but good on him and
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  I wish him all the best. Hey guys, hope you enjoyed my reactions today to these few videos. Send
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  through any comments. Look forward to seeing if you guys agree disagree with with my comments
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  around these videos and and look forward to catch you in the next episode. Thanks for tuning in! The
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  dolls in the dirt. If you've got value from today's episode, make sure to subscribe so you
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  never miss the insights you need to grow your business. And if you're ready to stop being just
• 6:38
  another number to the banks, visit Season Finance via the link in the show notes. Remember to follow
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  us on socials and catch you next time.