DFMC loans help farmers plan for future
Numurkah supplier Jim Dealy has welcomed the changes to the DFMC loans eligibility, which now give members the opportunity to borrow funds for everyday business proposals, rather than just adverse circumstances.
Jim and his wife Barbara, along with sons Ryan and Greg, will milk nearly 1200 cows on their 3500 acres at Numurkah this season.
The Dealys have used DFMC loans over the last two years to strategically purchase both hay and temporary water.
“We purchased 500 megs of water in March 2019 that set our pastures up well,” Jim said. “When the rain kick started in May we were well advanced.”
“Then in spring when water was too expensive, we locked in our hay supplies to see us through the summer.”
Jim says the DMFC loans were essential in planning for the future.
“Both times we were able to use the DFMC loans to lock in a price to make sure we had what we needed squared away.
“It’s put us in a pretty good position this year and now we hope to benefit from the high milk prices for the rest of the season.”
Like many farmers, the Dealys have become frustrated at how long banks can take to gather information and assess a loan proposal.
“Farmers know a good deal when they see it – we’ve got numbers running around in our head all the time,“ Jim said.
“So when an opportunity presents to lock in an input at the right price, it’s good to know we can make an application and get funds quickly.
“It feels like we’re putting a case to people who actually understand what we’re talking about.”
Always a glass half-full sort of farmer, Jim is confident that the dairy industry can ride out the coronavirus crisis in reasonable shape.
“Farmers are pretty fortunate in that we can go about our business pretty much as usual and there is still demand for what we are producing – and we still get paid for it!”
While Jim acknowledges the potential for prices to retract in the coming year, he is still optimistic about dairying in the Goulburn Valley.
“An average season and a bit more allocation would see us through,” he reckons. “But if we could get to $6.50, it would still be pretty handy.”
Further information about DFMC Supplier loans can be found at https://dfmc.org.au/services/