3 Things to Consider for Farm Business Decisions

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Transcription:

A lot of the time when you’re making decisions about whether to do something (or not) at home, there are three factors to take into account:

  • Economics – is it profitable?
  • Finance – how do we fund it?
  • Tax – what are the tax implications?

Unfortunately, a lot of people we see in ag actually go (what I think is) the wrong way around. They’ll worry about tax first – do I or don’t I do this, based on whether or not it will cost me tax. Then they’ll worry about whether or not they’ll be able to get the money from a financier or bank. Whether it’s profitable or not doesn’t come in as high in priority as it should.

So let’s flip that around and ask ourselves the first question: Economics – is it profitable? Finance – how are we going to fund it? And then worry about the tax component and what your tax obligations are going to be.

Let’s maximise profits first and minimise tax second.