Rural Financial Counselling Service,
NSW - Southern Region (Inc)
ABN 24 641 712 065
Supported by the Australian and NSW Governments
Annual Report
For the year ending 30 June 2011
RFCS, NSW - Southern Region Annual Report 2011
Acknowledgements
The Rural Financial Counselling Service, NSW – Southern Region recognises the following
organisations for their support:
For funding
The Federal Department of Agriculture, Forestry and Fisheries
The NSW Department of Primary Industries
For referrals and promotion of the Service
Accountants within our region
Banks and their staff within our region
Centrelink
Department of Community Services
Drought Support officers
Financial Planners
Health and Welfare organisations
Livestock Health and Pest Authority (LHPA)
Local Councils
Local Media (newspapers and radio)
Regional Development Boards
Rural Outreach Services
Rural Women's Network
Solicitors
State and Federal members
Stock and Station Agents
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RFCS, NSW - Southern Region Annual Report 2011
Table of Contents
Contents
Acknowledgements ......................................................................................................... 2
Table of Contents ............................................................................................................ 3
Background on Service provider ..................................................................................... 4
Map of NSW Service areas ......................................................................................... 5
Industry Overview ........................................................................................................ 6
RFCS, NSW - Southern Region Organisation Chart as at June 2011 ......................... 7
Southern Region Staff ................................................................................................. 8
Chair's Report ............................................................................................................... 15
Board Report ................................................................................................................. 17
Executive Officer's Report ............................................................................................. 21
Rural Financial Counsellors' Reports .............................. Error! Bookmark not defined.
Performance / Year in Review ....................................................................................... 25
Key achievements ..................................................................................................... 25
The Strategic Plan and Communications Plan .......................................................... 26
Operating statistics and graphs ................................................................................. 27
a)
Clients Activity Comparison per Counsellor .... Error! Bookmark not defined.
b)
Client Numbers per Primary Enterprise Type ............................................... 28
c)
Clients per Rural Financial Counsellor ............ Error! Bookmark not defined.
Financials ........................................................................ Error! Bookmark not defined.
Compliance information................................................... Error! Bookmark not defined.
Appendix A - Abbreviations ............................................. Error! Bookmark not defined.
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RFCS, NSW - Southern Region Annual Report 2011
Background on Service provider
The Rural Financial Counselling Service NSW - Southern Region was formed in October 2006 by
the amalgamation of the community based services in the southern third of NSW. In almost five
years the Service has helped thousands of farmers and rural small businesses throughout this
region to move positively toward viability and if that avenue was not available, to allow
enterprise owners to leave their industry with dignity. Southern Region has provided this
service in the last year with 12 Counsellors located in eleven offices from Hay to Cobargo.
Our Counsellors work closely with clients to assist them to resolve urgent issues and to develop
a plan for their future and that of their families and their enterprise. Immediate assistance can
include liaison with banks to review or renegotiate loans, submission of applications for various
government assistance if they prove to be eligible or referral to other service providers. A
review of a clients' financial position gives understanding of the current situation and
subsequent development of cash-flows, budgets and forecasting all aid in development of a
longer term plan and options for the client to make informed and conscious decisions for their
enterprise, which may include farm debt mediation or initial preparation for succession
planning. For the first time during this financial year we have been permitted to assist clients in
the initial preparation for Succession Planning.
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RFCS, NSW - Southern Region Annual Report 2011
Map of NSW Service areas
5
RFCS, NSW - Southern Region Annual Report 2011
Industry Overview
This year has seen Southern Region move out of the severest drought in at least fifty years. The
downside however has been that this has occurred by way of torrential rain and flooding. The
Services' main work has then shifted from drought relief activities to flood disaster relief.
The wet conditions downgraded a potentially record cereal harvest in the Riverina however
prices for damaged grain remained at high levels. The first significant rice sowing in four years
took place in March 2011 with a planting of approximately 80% of average annual area. Prices
were average for the tonnages harvested.
Graziers in Southern Region had a strong year with reasonable pasture growth and very good
commodity prices for wool, sheep and beef. This favourable growing season was experienced
throughout the whole of the Region from the Western Division through to the South Coast.
The dairy industry has been revived with solid milk prices and markedly reduced fodder costs.
These two factors have ensured that many dairy farmers have produced sound profits this year.
Horticulture has been the Achilles heel of agriculture in Southern Region this year from both
dry land and irrigated farms. Cherry growers have suffered from crop destruction from hail
storms and split fruit from heavy rains prior to picking. Wine grapes have suffered from fungal
and bacterial infections caused by wet conditions along with tonnage prices at approximately
two thirds of production costs. Citrus growers, who have had a reasonable run with production
and prices over the last four years, have suffered this year from all grades of fruit selling at
considerably less than production cost, some crops not even paying for their harvesting costs.
The only exceptions to this horticultural downturn are those farmers who have ongoing
contracts with wineries and juicers at prices set in prior years.
All irrigated agriculture in Southern Region has returned to full water allocations in this year.
This has been an incredible turn around from the previous year when many crops could not be
planted.
Generally agriculture has had an uplifting year during 2010/11 and farmers and rural small
businesses are in a stronger financial position. Six years of drought however have left the
Regions' businesses with depleted cash flows and a battered enthusiasm for agricultural
production.
Southern Regions' role over the next four years is to assist our clients move back to a solid
financial standing and to again see agriculture and its ancillary industries as a positive and
rewarding way of life.
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RFCS, NSW - Southern Region Annual Report 2011
RFCS, NSW - Southern Region Organisation Chart as at June 2011
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RFCS, NSW - Southern Region Annual Report 2011
Southern Region Staff
Executive Office, Cooma
Ian McGufficke
Executive Officer
Ian was raised on the land and is a third generation farmer from Jindabyne. He qualified and
worked as a Certified Practising Accountant in Australia and overseas before starting up his
own practice in Cooma. With his background in accounting he ensures the Service has high
standards of financial management thereby meeting budgetary targets and requirements.
Ian was employed as Executive Officer of Southern Region in January 2007 and is a strong
proponent of the Service. He has presented Bush Business Benefits to the Institute of
Chartered Accountants Australia which provided an overview of Rural Financial Counselling.
He provides ongoing support and guidance to all Counsellors to assist them in meeting the
requirements and changing aspects of their roles and strives to ensure a consistent, high
quality Service is delivered to all clients by enabling Counsellors to develop their skills with
regular training opportunities.
Penelope Chamberlain
Susan Walters
Administration Manager
Finance Officer
Coleambally
Graham Christie
Rural Financial Counsellor
Graham has a balanced understanding of agriculture at all levels – as a former lecturer on
farm management at the University of Melbourne and with hands on experience running
mixed, irrigation and livestock farms in Western Victoria and the Riverina.
He relates well to farmers as he knows what it is like dealing with the day-to-day issues of
managing changing water allocations and watching the political issues unfold. Graham
knows the importance of financial analysis, budgeting and planning, and he delivers these
services to farming families to help them identify the best path for their future.
He has worked with the Service since October 2007 and holds a Diploma of Agricultural
Science, a Graduate Diploma in Agribusiness and has also attained the Diploma of
Community Service (Financial Counselling).
Cooma
Leanne Jardine
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Rural Financial Counsellor
RFCS, NSW - Southern Region Annual Report 2011
Leanne was born and bred on the Monaro and after years of working in the corporate
world, mostly in Canberra, she moved back to Nimmitabel and a farming life. As counsellor
for the Monaro and South Coast since July 2010, Leanne, considers her role with the Rural
Financial Counselling Service as a ‘dream job’. She said it was great being able to work with
families across all of the local rural industries – from wool and meat livestock to dairy and
even oyster farming – and to get to know them along the way.
Her role at the RFCS includes helping people identify a clear business direction, looking at
their budgeting and financial statements and investigating opportunities to improve their
bottom line. She also helps farmers to connect with funding options they may not be aware
of such as natural disaster loans or conservation-based initiatives. A major focus in the
region has been providing assistance for exceptional circumstances.
Leanne believes it is important for farmers not to become complacent – they should always
be looking for a better deal on prices for their products, the services they use and in
particular when it comes to their banking and finance arrangements.
Leanne is currently studying to attain the Diploma of Community Services (Financial
Counselling).
Helen Watson
Administration Assistant
Cowra
Greg Paul
Rural Financial Counsellor
A commitment to farming and farming families brought Greg to the role of RFCS counsellor
in Cowra in March 2010. Prior to joining the RFCS Greg worked as an agronomist for a
Dubbo consulting firm and serviced clients in the Forbes, Tullamore, Yeoval and Wellington
areas.
Greg has also had experience managing a range of rural enterprises from corporate farms to
his families’ property at Tullamore, and also a contract crop spraying business. This
background ensures that Greg knows that it is tough earning a living on the land. ‘Timing,
hard-work, enterprise and well thought out planning’ is a good recipe for success in rural
Australia according to Greg.
Greg believes strongly in Rural Financial Counselling as a sure way of strengthening rural
communities and encourages people on the land to talk to a counsellor about the services
that can be provided.
He has a Bachelor of Applied Science in Agriculture and is currently studying to attain his
Diploma of Community Service (Financial Counselling)
Jane Moon
Administration Assistant
Crookwell
Cath Carter
Rural Financial Counsellor
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RFCS, NSW - Southern Region Annual Report 2011
Cath joined the Service in January 2008 and is well positioned to support farmers in the
Crookwell region. Before moving to the region, she was the Counsellor for the Mid North
Coast, NSW and also worked in Sydney for the Rural Assistance Authority.
Coming back to a prime sheep region has almost been like coming home for Cath – her
childhood was spent on the family sheep property North West of Bourke so she knows
about life on the land.
Cath has a business degree with an agricultural commerce major and has also completed
further training in the areas of mediation, conflict resolution and counselling. She has also
attained the Diploma of Community Service (Financial Counselling).
Pauline MacLaren
Administration Assistant
Deniliquin
Murray Freshwater
Rural Financial Counsellor
Deniliquin counsellor Murray Freshwater commenced work with the Service in October
2010. He has worked the land in the Riverina since 1989, after relocating from southern
Victoria, where he has owned and operated farming properties with interests in dairy,
cropping, horticulture, wool and meat livestock.
This hands-on experience in farming and connection to the local region has given Murray a
real understanding of the daily trials and tribulations that go with operating farming
businesses.
After eight years working in accounting, finance and banking, Murray also has the ability to
understand the position of a business from a financial and banking perspective.
The former merchandise manager and district banking manager for Elders is passionate
about the Riverina and about helping locals recover from recent tough seasons, to adapt to
the new conditions imposed by the Murray Darling Basin Plan and to prepare for the
inevitably challenging seasons that will lay ahead.
He is currently studying to attain his Diploma of Community Service (Financial Counselling)
Shannon Bulmer
Administration Assistant
Ganmain
Edward Redfern
Rural Financial Counsellor
Eddie joined the Service in November 2008 and what he loves about his role as a counsellor
is the people and the opportunity to make a difference. ‘One hundred percent of people in
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RFCS, NSW - Southern Region Annual Report 2011
farming and grazing are hurting in one way or another and each situation is different – you
need to get to know the people so you can understand their position.’
Eddie has more than 20 years experience in the banking sector, mostly in rural NSW, and
worked for 10 years on a large property near Hay. This combined experience gives him the
insight into the financial aspects of each operation as well as a solid understanding of the
day-to-day pressures facing farming families.
Ganmain is Eddie’s home-town which means he knows the key stakeholders and
understands the community, the farming practices and the seasons. He services the region
north of the Murrumbidgee River, as far east as Gundagai, west to Narrandera and north to
Temora.
He has attained the Diploma of Community Service (Financial Counselling)
Carmel Walsh
Administration Assistant
Griffith
Kevin McCrum
Rural Financial Counsellor
Kevin has strong links to the rural sector. He was born and raised on a farm at Weethalle,
then attended Yanco Agricultural High School before going on to study veterinary science at
university. After working as a vet for three years both here and overseas, he returned to the
family farm – a dry area, mixed cereals / grazing property, eventually buying and running it.
He has faced the challenges of drought, fluctuating commodity prices and succession
planning before returning to the work of a vet in the Griffith area for four years prior to
joining the Service in January 2011. He maintains a strong involvement with the local
community and commitment to family and is providing assistance to many clients in the
Griffith-Leeton district.
He is currently studying to attain his Diploma of Community Service (Financial Counselling)
Suzanne Alpen
Administration Assistant
Hay
Darren Macartney
Rural Financial Counsellor
Backgrounds in farming, banking and small business provide the foundations for Darren’s
role as counsellor for the Hay region which commenced in September 2008.
Darren knows first hand what it is like to be part of a farming family. He grew up on a sheep,
beef and cropping property at Berrigan in the southern Riverina.
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RFCS, NSW - Southern Region Annual Report 2011
A long career in banking, including roles as agribusiness manager servicing customers all
over New South Wales and Victoria, gives Darren invaluable expertise and knowledge. Using
this skill set, Darren has been assisting farmers to assess their financial situation and to use
this information to determine the options that will allow them to move forward.
For much of his banking career, Darren was based in Hay and as the owner of a local
business he is part of the community. Darren has an extensive network of contacts in the
rural, business and financial sectors throughout the Riverina.
He is a Justice of the Peace and has also attained the Diploma of Community Service
(Financial Counselling).
Filomena Pingiaro
Administration Assistant
Lake Cargelligo/Ivanhoe
Linda McLean
Rural Financial Counsellor
When Linda McLean signed up as Counsellor for Ivanhoe in March 2009 she bought with her
a great wealth of knowledge and experience. Her experience was gained during a previous,
four-year career, as counsellor for the Lake Cargelligo region. She is now back with an
expanded role that sees her servicing both Lake Cargelligo and Ivanhoe areas.
Linda, a Certified Practicing Accountant plus other business qualifications, brings refined
accounting and business skills to the role and has a wealth of knowledge and experience.
She has also worked for a large mixed agricultural firm and as part of a farming family Linda
has the knowledge and insight to help local farmers.
Living on a predominantly sheep grazing property near Hillston Linda also knows first hand
the different issues facing the people of both areas and while there are slight differences
there is a lot of common ground. She knows and understands the people of the area and
she can relate to the situations they may be facing, not only on the business side but also
with family, health and other social issues.
Southern Riverina
Carl Scroope
Rural Financial Counsellor
Carl has been with the Service since April 2007 and works out of the Ganmain office
servicing the region south of the Murrumbidgee River down to the Victorian boarder; east
to Tumut and west to Urana. More often than not he is on the road visiting farming families
and talking through options with clients.
With more than 30 years experience in agribusiness banking Carl knows how to interpret
information and conduct financial analysis, he also knows what banks require, how to
present information and how to assess loan applications.
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RFCS, NSW - Southern Region Annual Report 2011
Carl has extensive contacts throughout the Riverina, ensuring that farmers have the support
of a full network of assistance, as required. Carl’s solid understanding of the rural sector and
his personal on-farm background means he really understands the business of farming, the
highs and lows and the importance of planning and budgeting.
He has attained the Diploma of Community Service (Financial Counselling)
Tracy Ryan
Administration Assistant
West Wyalong
Lisa Minogue
Rural Financial Counsellor
Lisa joined the Service in July 2008 and has a good solid link to the community – she grew up
on the land and is now part of another farming family in the region. She knows the issues,
the opportunities and the decisions that people are facing.
Lisa completed a degree in Agricultural Economics where she specialised in Farm Business
Management and subsequently worked with major rural organisations. The combination of
formal qualifications and hands-on experience in farming and previous work as a Counsellor
in the Deniliquin area some years ago, mean Lisa can work through situations with farming
families, identify options and provide support for the future direction they choose.
She also has attained the Diploma of Community Service (Financial Counselling).
Yass
Beverly Houterman
Rural Financial Counsellor
Beverly joined the Service in January 2011 bringing with her experience from many years
working in the financial services industry and also running her own company. She has
developed skills and knowledge of the rural sector by owning and running a small farm in
the Boorowa district.
In addition to the practical experience of managing a successful small business dealing with
clients she has written financial based text books and course material for university study as
well as lecturing on related topics.
She understands the challenges and pressures encountered by small business owners and
those managing farming enterprises. She has an MBA in Finance and experience with the
establishment of succession plans.
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RFCS, NSW - Southern Region Annual Report 2011
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RFCS, NSW - Southern Region Annual Report 2011
Chair's Report
Welcome and thank you to all Members and Staff. Your efforts throughout the year have
made a major contribution to the ongoing success of our Service. I am proud to have been
your Chairman, and will be presenting myself as a candidate for re-election to the position
for the 2011-12 financial year.
As usual, funding has been a subject of concern over the past 12 months, however, at our
Chairmen and EO’s Conference in Melbourne earlier this year, (17th + 18th February, 2011)
we were given the starkest of messages concerning our future funding by Andrew
McDonald, General Manager of the Farm Adjustment Branch, i.e. we were told to wait for
the Federal Budget in May to learn whether we had secured funding. This spread alarm
through all Services and a subtle but apparently effective campaign was launched to aid our
cause.
Your Executive Officer and I (plus others) went to Tamworth to meet with independent
Member of Parliament Tony Windsor MP, to put our case and this was followed up with a
visit to Parliament House itself. We met quite a number of Members of both Houses and
although most were Opposition Members, a satisfactory outcome was achieved and funding
was announced about a week before Budget Day.
In June 2011, our Service organised an RFCS State Conference at Merimbula, which was
attended by Management and Counsellors from all Services in NSW with some
representation from Queensland and Victoria. Congratulations to our staff for a well
organised and well run Conference. An excellent range of speakers proved to be interesting
and informative.
As usual, politics has had a far greater affect on the viability of our farmers than the
weather. We have had the ongoing dramas of the proposed Murray Darling Basin Plan as
well as the sudden cessation of live cattle exports to Indonesia, then importation of fruit and
vegetables from China and New Zealand, with all of the disease threats and other problems
that are implied by these decisions. How a country with the productive capacity of Australia
can become a net importer of fruit and vegetables defies belief.
Seasonal conditions are more favourable than we have been used to over the past decade
or so, this has meant that most of our areas have been taken out of EC declaration
(Exceptional Circumstance), and moved to various other schemes, CCAP (Climate Change
Adjustment Program), TIS (Temporary Income Support) and EAPs (Enterprise Action Plans).
This has taken our Counsellors back to old fashioned work, which is a welcome change.
However, some regions have had less than favourable weather and have been hit by floods,
dry periods and other problems such as plague locusts and mice, almost of biblical
proportions. Additional funding was provided to enable our Counsellors to undertake
preliminary work with Clients with a view to getting them involved in succession planning.
(That funding has since been discontinued).
Your Board has continued with reviews of the Constitution, as well as various Policies and
Procedures. We have also done market research into our client base to ascertain what the
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RFCS, NSW - Southern Region Annual Report 2011
requirements will be into the future. We are also conducting workshops with our Rural
Counselling staff into likely future directions for the Service.
In the past year we have had a very low turnover of staff, as usual, but I would like to wish
all those who have moved on, our best wishes for their future and welcome our newcomers
on board. I extend the gratitude of the Board to all of our staff for their excellent work and I
know that you will continue to do your very best for our clients.
Donald W Ward OAM
Chairman
RFCS NSW-Southern Region
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RFCS, NSW - Southern Region Annual Report 2011
Board Report
Chair
Donald Ward, OAM – Deniliquin
As the current chairman and long-standing board member, Don has had significant input to
the RFCS and its direction over several years. He is passionate about helping farmers and
believes that the flow-on effect to our rural communities is often underestimated. He
believes helping farmers helps communities.
Don has served Southern Region since its inception in 2006 and is well qualified with past
experience to fulfil the role of Chairperson having been Chairman of the Southern Riverina
Rural Advisory Service for 11 years and a committee Member for 19 years. He is a semiretired dairy farmer and has been an Executive Member of the NSW Dairy Farmers
Association and Committee Member of the NSW Dairy Industry Conference. He is also exnavy and is Vice Chairman of the Deniliquin RSL Club Ltd, and President of the Deniliquin RSL
Sub Branch.
He has completed DAFF training in Corporate Governance and Risk Management as well as
Management Committee training and subsequent refresher training. In June 2009, he was
recognised in the Honours list “for service to the community of southern New South Wales,
particularly through financial counselling for farmers affected by drought”.
Deputy Chair
Paul Sullivan – Cooma
Paul is a resident on the Monaro and has a background in farming and private sector
business with expertise in risk and finance assessment so brings to the Service an
independent approach. He believes the Service is an important resource to help farmers
and small rural businesses manage the consequence of bad seasons, poor terms of trade
and the effects of climate change.
He spent 12 years with the Monaro Rural Financial Counselling Service prior to the creation
of Southern Region and has also served for five years as Foundation Chairman for Snowy
Monaro Business Enterprise Centre as well as the Cooma Rugby Union President for two
years. He is currently a Board member of Cooma Ex-Services Club Ltd.
Paul has completed the Governance and Directorship workshop through AICD, has a
Bachelor of Commerce degree and an MBA. He has also attended refresher training to
remain current with changes in Governance requirements.
Treasurer
Brian McCleary – Hay
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RFCS, NSW - Southern Region Annual Report 2011
Brian is the Principal Partner of a Chartered Accounting Practice based in Deniliquin with
offices in Hay and Barham so he knows the hardships that rural people face in the region.
He has been involved with Southern Region since its inception and also with previous
models that provided financial counselling to those suffering hardship.
As Treasurer he has provided expert financial and accounting skills to the board throughout
his association. He has completed the DAFF Corporate and Risk Management training, has a
Master of Commerce and is a past Secretary of the South Riverina Irrigation Council.
Board Secretary
Mark Hall – Lake Cargelligo
Mark lives and works in the Lake Cargelligo region and has a passion for community
involvement and has actively volunteered in a variety of roles providing services and
pastoral assistance within the rural environment for over 20 years. Prior to becoming a
Baptist Minister Mark’s career was in resource management both in Australia and SouthEast Asia.
Mark has a long association with the RFCS having been a member of the Lower Lachlan
Board before the new structure of Southern Region was created in 2006. He believes the
Service is invaluable particularly as the farming sector sees more and more change to the
industry as a whole and it is critical for small communities.
He has completed the Governance and Directorship workshop by AICD and has attended
refresher training to remain current with changes to governance standards. He has recently
attended a Managing Change workshop with a bearing on improving Board/Governance
skills and is continuing with a self paced Conflict Resolution course.
Board Member
Linda Hague – Lake Cargelligo
Linda lives on a mixed farming and grazing property at Lake Cargelligo, with the family
farming partnership also owning a grazing property near Ivanhoe. She is the Executive
Officer for Lower Lachlan Community Services Inc which is an organisation hosting a range
of services for the local community and acts as a rural transaction and support centre in
Lake Cargelligo.
Her involvement with the RFCS has covered many years in a variety of roles. She has been
an assistant, a Counsellor and most recently a member of the Board since being elected at
the 2009 AGM. She brings to the Board management, business, accounting and farming
knowledge whilst also providing a perspective and insight from the role of rural women.
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RFCS, NSW - Southern Region Annual Report 2011
She has recently completed a Certificate IV in Corporate Governance and is currently
participating in the Workplace Training Advisory Australia’s 'Australian Applied
Management Colloquium' after being granted a scholarship.
Board Member
Richard Lawson, RFD – Nimmitabel
Richard is also a resident on the Monaro having achieved his goal of returning to the land
with the purchase of a property near Nimmitabel ten years ago. He has a background in
mixed farming from south-eastern South Australia but left to pursue a 20 year career as a
senior administrator in government.
Elected to the Board in 2009 Richard is delighted to be involved in an organisation that is
providing a very necessary service. As well as his farming background and skills he brings
knowledge of policy, finance and business experience adding depth to the broad set of skills
required by the board. He is also an Associate of the Institute of Chartered Secretaries and
Administrators.
Richard has a Bachelor of Business in Public Administration and a Graduate Certificate in
Corporate Management.
Board Member
David Needham – Sutton
David is a resident of Sutton, north of Canberra. He is also an elected Councillor at Yass
Valley Council. He has fulfilled a range of business and executive roles with multinational
corporations, and so brings strategic business skills to the Service as well as a background in
Information Technology.
He has been on the Southern Region Board for many years and believes the Service must
continue to evolve to ensure it provides farmers and the people of rural Australia with the
right services to support their changing needs. Particularly with an ageing rural population,
the RFCS must ensure it delivers relevant and effective information and referral services.
David has completed a DAFF Risk Management and Governance course along with a Trade
Practices Commission course. He has also attended refresher training to maintain his
knowledge at current standards.
Board Member
Peter Wright – Cowra
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RFCS, NSW - Southern Region Annual Report 2011
The land is in Peter’s blood having been raised on a farm and today he owns and manages a
mixed farming enterprise based south-west of Cowra. As a farmer he faces the same issues
as other farmers throughout the region.
Peter has been on the Board of Southern Region since its inception and prior to that was a
founding member of the former organisation, Cowra Regional Advisory Service. He says the
services and referrals provided by the RFCS are critical to farming families and the wider
community but the organisation also plays another important role as a sounding board.
Many people come to the Service for support and quality financial information but others
come for broader information, a place to talk and establish direction to move forward, all of
which the Service can offer.
Peter has trained in Corporate Governance with DAFF and has attended a refresher training
session to maintain current knowledge. He is a past member of the local Parish council, the
Chairperson of NSW Farmers, Cowra and currently a councillor on the Cowra Shire Council.
The number of board meetings held from July 2010 to June 2011 totalled six.
Board member
Don Ward
Paul Sullivan
Mark Hall
Brian McCleary
David Needham
Peter Wright
Linda Hague
Richard Lawson
20
Number meetings attended
5
6
3
5
4
4
6
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RFCS, NSW - Southern Region Annual Report 2011
Executive Officer's Report
For the first time in Southern Region's history as a service provider to farmers and rural
small business we have experienced average to good seasonal conditions. The same
comment could be made for commodity prices that have been predominantly good over
this period.
Without going into any further analysis of Southern NSW agriculture a series of questions
immediately become evident. After supporting rural businesses over the last five years
where provision of drought relief was our preoccupation, what do we need to do to
maintain our relevance in our service area? How do we adapt to ensure we are helping
farmers and businesses in need? What additional skills do we need to continue to provide
quality service? Has our client base demographic changed?
The need for service goes without question; 'droughts and flooding rains' aptly describes the
ongoing physical precursors for service in this year, however the ageing farmer population,
the need for farm business succession, the necessity for good long-term and short-term
farm business planning, refinancing and financial facilitation between banks and clients all
ensure that Rural Financial Counselling has an ongoing and important role in ensuring viable
agriculture in Australia.
The need for RFCs is certainly not dependent on a dry time or a flood. Ongoing economic
and financial issues need to be confronted by rural business on a year-in year-out basis and
therefore Southern Region staff are adapting to help farmers and businesses address many
of their impending issues on a proactive basis. A segment of the farming population has
planned well. They have planned to maintain viability by expanding and attaining economies
of scale. They have planned for drought by securing water supply, managing soil moisture
and conserving fodder. Other farmers have concentrated on working in their business at an
operational level, and although this is important, it does not always provide sufficient
strategic direction for the farm.
RFCS, NSW - Southern Region sees its ability to assist farmers and rural small business with
formal planning as a major component of its ongoing role in Service provision. Planning is
often the first part of a business which is neglected when our clients are in difficulty and
present to an RFC, so getting them back on track with a vision for the future and a 'map' to
direct them will be a major priority for us in the coming years.
The 2010-11 year has seen the end of many RFCS 'institutions'.
The end of June saw the closure of the first three year contract period for the Regional
Services and the new RFCS model. Unfortunately our longevity as a service provider in a new
funding period came under question as financial allocations in the budget would not be
known until budget night in May 2011 and our major funding body could give us no surety
that any ongoing funding would be made available even then. This period of uncertainty
over March and April, 2011 was typified by Southern Region and its peer organisations
putting our case to government for continuation of the Service and maintenance of the
substantial contribution made to the rural community of Australia. Staff moral was also
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RFCS, NSW - Southern Region Annual Report 2011
severely affected by the uncertainty of ongoing employment and this has made some
negative inroads into Service productivity.
In a pre-budget announcement the Service was re-funded at existing base levels for four
years and this appears to have allowed staff to settle back into work in their current
positions.
Our secondary funding body, NSW DPI was also unable to confirm ongoing funding to the
NSW services until the new NSW Government released its budget on 6 September 2011.
With confirmation of continuing funding from NSW State, Southern Region will be able to
maintain its current level of Counsellors although administration staff time will be reduced
to allow us to balance our budget to base levels of funding.
Assistance within the Exceptional Circumstances programme also finished for RFCs with the
completion of the grace period for applications on 28 April 2011. This had been the 'staple'
work of Southern Region in the last four years and although we have always used the EC
programme as a 'gateway' to the more important consideration of client options, we now
need to work with greater vigour on the holistic farming enterprise. This fits more readily
with the case management approach that we follow using the EAP as the generic tool for
client service.
As government was aware that the termination of EC assistance would leave a gaping hole
in the welfare safety net for business operators in rural Australia, it responded with the
Climate Change Adjustment Programme (CCAP) and Transitional Income Support Scheme
(TIS). These programmes ensure that relief payments are available to rural people in need
and that a mechanism is available for business owners to progress to viability or exit from
their particular industry with the assistance of an RFC. Southern Region has been rapidly
acquiring CCAP and TIS clients since the EC declarations were not extended after 31 March
2011. The Service presently manages 120 CCAP cases with the highest concentration of
these cases in the Murrumbidgee Irrigation Area. This is most probably due to the
decimation of commodity prices for wine grapes and citrus fruit over the last year.
In this last year staff retention levels were higher than in prior years and I think that this is
an indicator of the maturity of the service. Suzanne Davidson and John Oke (Griffith and
Crookwell Counsellors respectively) did leave the Service as a result of proposed funding
changes at the beginning of the 2010-11 year. Peter Muirhead vacated the Cooma
Counsellor position to take up work in his local town of Bega and Sharee McKenzie left Lake
Cargelligo office to indulge her love of farming and have her family.
With a significant amount of work and two interview rounds Southern Region finally
procured the services of Kevin McCrum, a farmer and veterinarian to manage our workload
in the Murrumbidgee Irrigation Area. Kevin has been busy in this office from the initial day
of his employment.
Leanne Jardine is our Cooma Counsellor and comes to the Service with a very strong
business background that she is using to assist clients to better farming outcomes. Southern
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RFCS, NSW - Southern Region Annual Report 2011
Regions' critical needs counsellor, Linda McLean is the Lake Cargelligo Counsellor which is a
return to her prior position held in the Lower Lachlan Community based Service.
Beverly Houterman joined us as a new Counsellor covering the area from Yass to Gundagai
and surrounding districts. Her skills include preparation and delivery of training which has
been put to good use in the promotion of Succession Planning shared with all Counsellors.
The termination of EC declarations at the end of March gives a very clear indicator of how
the seasons affected agriculture in this reporting year. Crops and pastures grew very well
and irrigators received full allocations for the year. Commodity prices over this period
ranged from fair to excellent with record values for some commodities being paid, the only
exceptions being some horticultural crops.
The star performers of this year for Southern Region were the sheep meat and wool
markets. Prime lambs, store stock and breeding ewes all reached phenomenal values. Many
sheep grades have realized ten times the value of only a number of years before. Lambs
reached prices of $250 and older merino ewes to $150. These were prices unheard of in
prior years. The wool market has reached the heights of the 1989 boom after twenty years
in the doldrums. Both sheep meat and wool have shown some volatility in the last couple of
months however they remain very sound markets. These results were achieved with
historically very low sheep numbers which will continue to be the case over the next couple
of years.
Beef producers had a very strong year with cows-in-calf realizing $1200, likewise heifers,
heifer calves to $750 and steers to $800 in the normal selling season. With the good growing
season producers costs particularly in respect to fodder and agistment were significantly
reduced. Herd size in our region was stable after marginal decreases over the last ten years.
Cereal croppers were looking at record crop yields over the whole of Southern Region until
November when rain events delayed harvesting and caused damage that degraded a high
proportion of grain. Fortunately the downgraded harvest still sold at good prices that
allowed most farmers to pay down their seasonal debt and significantly improve their
financial position. Plague locusts created some production issues for areas along the Murray
and in particular the Wakool Region.
With full allocations of irrigation water approximately 80% of average rice plantings were
made in this year. This has been the re-birth of the rice industry in Australia after political
pressure to phase it out and zero allocations in recent years. Harvests were average in
volume and would have been better with more even temperatures over summer and had
the mouse plague not eventuated. Rice prices, as dictated by the world market were at
long-term average levels, but below the expectation of growers in this year.
Sadly the ongoing saga of cherry growers has not become anymore favourable. Hailstones
destroyed a portion of last years' crop with excess rainfall causing the remainder to split
prior to harvest. Foreign competition ensured the 10% of fruit that did get picked in 2010
was below respectable prices. This industry continues to suffer greatly from extreme
weather conditions and tough market conditions.
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RFCS, NSW - Southern Region Annual Report 2011
Irrigated horticulture has up until recently shown great resilience to changes in commodity
markets. The MIA, our major irrigated horticulture region has now become subject to
negative margins for its two most abundant enterprises - wine grapes and citrus. This has
become evident in the service requirements of the Griffith and Leeton offices and the
demands on our Counsellor. This situation seems likely to continue over the next couple of
years.
In summary agriculture and associated rural business in Southern NSW has had a strong
year. This was well deserved by our farmers and essential if we are to move our businesses
into a safer and more viable future.
I take this opportunity to thank the Board and staff of RFCS, NSW - Southern Region for their
tireless contribution to our clients in whatever peril they are discovered and to Kate Brinkley
and her staff at The Financial Counselling and Community Support Section of DAFF for their
support and guidance over the year.
I look forward to moving our clients into an even stronger business position in the coming
year with the help of our Board, our excellent staff and all of our stakeholders.
Ian McGufficke
Executive Officer
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RFCS, NSW - Southern Region Annual Report 2011
Performance / Year in Review
Key achievements
During the financial year covered under this report Southern Region has serviced 1657
clients with almost 19% being new clients, only just down on last years' numbers indicating
that farmers and small businesses continue to face challenges in the current environmental
and economic climate. Of all clients 90% were farmers.
Assistance given to clients during the financial year has reduced in frequency by nearly 6.5%
from last year, to 10,909. As there has been greater focus on the completion of Enterprise
Action Plans during the year this slight reduction is not a surprise as EAPs take much more
time than Exceptional Circumstances paperwork, due to the need for in-depth review of all
facets of each individual client's position.
The large number of natural disaster declarations throughout the region has brought a
variation to client activity for our Counsellors which, added to the growth in the Climate
Change Adjustment Program (CCAP) work any time that became available following the
cessation of the Exceptional Circumstances program as been filled. In the last three months
of the financial year CCAP client numbers have grown dramatically for the region.
Eleven clients were assisted by Southern Region to take the step of adjustment out of
agriculture and rural small business with the remaining 1646 clients being assisted to
enhance their business position by the Counsellors.
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RFCS, NSW - Southern Region Annual Report 2011
The Strategic Plan and Communications Plan
Although component parts have undergone review, both the Strategic and Communications
Plans for the Service have been maintained in their previous structures during the financial
year, as they continue to meet the needs of the Service.
Strategic Plan
The overriding strategy to fulfil our responsibilities under the Deed of Grant and provide
quality service to clients remains paramount. Initial discussions have been held at Board
level followed by a joint workshop with Counsellors to review the current service provision
provided and the client base receiving them. This has been to ensure the Service is fully
aware of the many types of clients coming to our Service, the levels of their concerns, the
environmental issues that they face and the full range of options available for offer and that
we can meet these needs. Once this review has been finalised the Plan will again be checked
for any required amendments.
Southern Region has worked diligently toward achieving the goals as defined in our current
strategic plan for the funding period ending 30 June 2011. These goals relate specifically to
client service standards and levels, the building and maintenance of stakeholders
relationships to maximize service potential and appropriate governance standards.
Currently Southern Region is undertaking a review process, including joint Board and staff
seminars that will set the framework for a strategic plan to take Southern Region into the
new funding period with appropriate goals for an era where a new drought policy will be in
place.
Communications Plan
Communications to clients and the wider community that supports or interfaces with the
Service continue with media advertisements, newsletters, mail-box drops and many 'faceto-face' meetings that occur at local events. Approval for the Service to include initial
Succession Planning work with clients has given rise to the preparation and delivery of
special subject based presentations for localised groups.
Board members have been active in promoting the Service in their own regions and
Counsellors themselves continue to attend many rural events in their local areas, contribute
to quarterly newsletters and participate in quarterly conferences which enable updating or
information and sharing of experiences. Further details of Counsellor promotions and
involvement in local events can be seen in their individual reports.
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RFCS, NSW - Southern Region Annual Report 2011
Operating statistics and graphs
The submission by Counsellors of monthly statistics into a database managed for the
Department of Agriculture, Fisheries and Forestry (DAFF) enables ongoing review of
progress against targets for individual counsellors and the Service.
The statistical reports for FY2011 that follow cover:a)
client activity comparison per Counsellor
Client activity relates to the percentage of counsellor weekly hours that are spent with
clients. Travel time, preparation work and administration work take up and often exceed
any remaining time in a standard week.
This graph shows that all established Counsellors in Southern Region are spending at least
50% of their working time providing service to clients with the majority of these exceeding
70%. A number of lower figures for client time per Counsellor are a result of staff that have
terminated employment with the Service during the year, or are new to the Service in this
year. The newer Counsellors are currently building their client base and are also involved in
additional training- work related to the Diploma of Community Services (Financial
Counselling).
b)
the number of clients per primary industry enterprise type
Again the Counsellors of Southern Region have primarily provided assistance for the wheat
growers, sheep producers, cattle producers and rice growers in that order over the last year.
This graph indicates a similar pattern to those of previous years in terms of the enterprises
in highest need. As the Counsellors are now making the Service aware, the last quarter of
the year is showing a significant increase in service requirements by the horticultural
industries. The two enterprises that are showing a rapid increase in requirement for service
are wine grape and citrus growing. Both of these industries are concentrated in the
irrigation regions of Southern Region.
c)
the number of clients per Rural Financial Counsellor
This graph indicates a very strong maintenance of clients requiring service from RFC's over
the last year. Counsellor's client numbers on a quarterly basis have varied in line with the
continuation of the Exceptional Circumstances Programme and specifically with the
deadlines of the programme for completed applications for interest rate subsidy.
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RFCS, NSW - Southern Region Annual Report 2011
a) Client Numbers per Primary Enterprise Type
for period 1/7/2010 - 30/6/2011
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