Doing the right thing at the right time has long been a key driver of success in agriculture, but often putting this into practice isn’t as simple as the theory suggests.
The constraints of having cashflow tied up on-farm - in the form of livestock not ready for sale or grain sitting in storage awaiting the right market conditions - has forced farmers to become increasingly savvy with their finances.
As a result, more agribusinesses are looking outside the box for innovative options that will allow them to maximise profits and harness buying opportunities.
For Craig Miller, this search for an alternative cashflow stream led him to the buy now, pay later service DelayPay.
Running a sheep and cropping operation across 1500 hectares at Temora in the Riverina region of New South Wales, Craig knows all too well the need to buy inputs like fertiliser and chemical while he’s holding onto grain, waiting for commodity prices to improve.
Through DelayPay, he has been able to buy what he needs in the short term, then pays it back within six months once he’s sold his grain.
In particular, he finds the quick 24-hour service from DelayPay really helpful, allowing him to purchase inputs when buying opportunities come up at short notice and the price is right.
“DelayPay works really quick, with much less mucking around than the banks,” Craig said.
“And nothing is ever a hassle; they return phone calls and are easy to contact, which makes doing business on a tight timeframe easy.”
According to DelayPay chief executive officer Kelsey Miller, the number of farmers looking for easier ways to do business on a tight timeframe is on an upward trajectory.
“Over the past 12 months, we’ve seen changes in the agriculture landscape where commodity prices have been dropping in a couple of key areas like grains and livestock,” Kelsey said.
“This has had a direct impact on the way farmers are using their funds and determining when they sell and when they buy.”
Kelsey said examples of this behaviour have been clearly evident in the livestock game now that the autumn break has hit.
"With prices coming off the boil, there are opportunities for good buying options,” he said.
“We’ve seen farmers holding off selling stock when pricing isn’t great, but instead they are keen to buy in this market.
“Buy now, pay later is super useful in this instance, to maximise returns and grab good livestock opportunities as they arise.”
Similarly, it’s a great option to buy more feed to continue to fatten stock until it’s the right time to sell, Kelsey said.
“In the grains industry, we’ve seen farmers who are trying to work out how to hold grain to avoid selling in a flat or degrading market, while still balancing the need to establish crops for next season.
“Through the use of DelayPay’s buy now, pay later service, growers are able to purchase crop inputs and tillage machinery to establish crops, then sell what they have in storage when the time is right.”
This article is sponsored content from DelayPay.