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Volume 5, September 2019                                                          
A message from Phil
It’s Victoria’s turn to be on the right side of the seasons. We can empathise with those suffering dry conditions and we wish them a better season for 2020, however if 2019 is profitable for you then what should you be planning?
The last ORM newsletter talked about using the good years to build financial buffers, but should we also be looking for opportunities to diversify and expand?


Click here to read the full article including 'Whats news?' for September.
 
Interest rates - how do I know what rates should be available and when to fix? 
The Reserve Bank recently noted that banks long-term debt funding has declined to record lows because of a fall in base interest rates as financial markets begin to price in a reduction in cash rates. Whilst it must be remembered that while home loan rates closely follow movements in the Reserve Bank cash rate, business rates, though correlated, are not as closely linked. Interest rate swaps however do provide a clue as to where Bank business rates should be. An interest rate swap is a financial instrument where one entity swaps a stream of floating interest payments for another entity's fixed interest payments. Currently, swap rates are the lowest they've been in 6yrs, with the previous low occurring around August 2016. In fact, 10yr swap rates are very similar to variable rate (30d) swaps, hence the premium to fix, in theory, is marginal.
 
So, do you 'manage your greed' and fix rates at 40+ year lows, or do you keep riding the variable rate joyride and hopefully pocket more savings?

Click here to read more about fixing interest rate.

 
On-farm grain storage options

Things to consider when deciding what form of on-farm storage suits you include:
• How long am I planning on storing the grain?
• Is the storage simply for harvest logistics/timeliness?
• How will I manage grain pests?
• Will I require aeration or drying facilities?
• Is the ability to either in-load or out-load at short notice and in a timely manner important?

Once these points have been addressed, then it’s important to analyse the economics of the grain storage options that best suit your operation. These could include grain bags, bunkers, sheds, unsealed silos, sealed silos or a combination of these storage methods.

Click here to read the further.

Three tips for finding skilled labour
Finding skilled labour is difficult. Especially when the role is for some of the longest shifts, shortest sleeps and high stress levels! So how do we find our newest recruit for the peak seasons?
Click here to read more about the steps required to help you find the right employee, including identifying the role and your requirements, where to look and what to do next. 
Link to Success in a challenging season - 2018: Tim Bateman
Update on happenings at ORM
This month we say farewell to Brett Symes, one of our Senior Agribusiness Consultants. Brett provided farm business consulting services and was involved in the planning and delivery of GRDC Grains Research Updates and industry specific extension events. Brett has been an integral part of the team for 13 years and we wish him and his family all the best for whatever story unfolds in the next chapter.

After a short stint with ORM we wish Liz Duncan all the best. Liz’s experience in corporate Australia and her management expertise were invaluable to the team.  Liz is transitioning to contract work so we hope to work with her again at some time in the future. We wish Liz all the best for her future roles. 
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