Drought can be one of the toughest challenges for farmers, affecting not only the land but the lives and livelihoods tied to it. It’s more than a dry spell; it can put every resource under pressure and challenge even the best-prepared farmers.
For South Australia, 2024 brought some of the driest conditions in over 70 years, particularly across the Eyre Peninsula, Yorke Peninsula, and Mid North. For farmers here, drought isn’t just a dry spell; it’s a strain on every resource and a test of resilience. With rainfall levels at historic lows, restoring productivity will be a multi-year journey.
A strong drought management plan, backed by proactive strategies and resources, is essential. Here’s a guide to help you prepare, activate your plan, and manage through drought seasons with resilience.
1. Start Early: Build Your Plan Before Drought Hits
The best time to prepare for drought? Before it starts. Early planning gives you time to build reserves, make strategic decisions, and stay in control when conditions turn dry. Here are a few essentials to set up a drought-resilient farm:
- Document Your Plan: Write down specific strategies for preparing for, managing, and recovering from drought. This document not only keeps you organised but also strengthens any applications for drought support, such as the Regional Investment Corporation (RIC) loans, which require a solid plan to show how funds will be used.
- Prepare Your Farm Operations: Identify activities that will build resilience, such as efficient water systems, flexible crop types, and feed storage options that keep you ready for unpredictable conditions.
Starting early doesn’t just mean preparing for drought; it means setting up systems that support your farm in the long run, no matter the season.
2. Leverage Available Resources and Expert Advice
Don’t go it alone—there are plenty of tools and resources available to help make drought decisions easier and more informed. From agronomists to financial experts, leveraging technology and professional support will keep your operation stable:
- Management Tools and Apps: Drought-specific management tools can offer insights on water use, crop health, and livestock needs, helping you make proactive adjustments.
- Work with Agronomists and Livestock Specialists: Get tailored advice from crop and livestock experts who can suggest drought-resilient crops, alternative feed options, and tips for keeping livestock healthy.
- Explore Drought Loans: RIC’s Drought and Farm Investment loans provide up to $2 million with flexible repayment options, giving you the resources to cover operational costs, water needs, feed, and drought-resistant technology.
Using these tools helps keep you on top of things, giving you valuable insights and support at every step.
3. Adjust Stocking Rates and Livestock Strategies
Managing livestock during drought requires balancing feed and water resources. Adjusting stocking rates and adapting breeding and weaning strategies will help manage the demand on your resources:
- Reevaluate Stocking Rates: Evaluate your feed and water resources and reduce stock early if needed. This helps ensure you have enough resources when they’re needed most.
- Adapt Breeding Cycles and Weaning: Altering breeding or weaning schedules can reduce the demand on your feed supply, giving you more flexibility. Livestock experts can help identify the best options based on your herd’s needs and available resources.
These adjustments support more efficient use of your resources and help reduce stress for both you and your animals.
4. Build Financial and Physical Reserves
A good buffer is worth its weight in gold. Creating drought reserves—both financial and physical—can keep things steady when cash flow is tight. Here’s how:
- Financial Reserves: Setting aside funds during good seasons will help cover costs when income dips. Look into deferred payment options and government assistance to relieve cash flow strain.
- Feed and Water Reserves: Stockpile feed and water resources during favourable seasons to create a buffer for drier times. Consider investing in storage facilities and preparing deferred sales to keep supplies stable.
With reserves in place, you’ll be better equipped to handle drought without scrambling for last-minute solutions.
5. Seek Additional Support and Alternative Income Streams
When drought squeezes cash flow, exploring new income sources and support can keep your business on its feet. Consider these ideas:
- Off-Farm Income: Look into off-farm work or alternative revenue streams that can supplement your primary income during tough times.
- Sell Unused Equipment or Assets: Unused equipment can provide a quick cash boost when cash flow is tight.
- Access Drought Loans: The RIC offers loans to help farmers manage and recover from drought. These funds can be used for operational costs, water infrastructure, and other essentials.
These options create a safety net, giving you the flexibility to maintain essential operations and meet your needs.
6. Drought Recovery: Planning Beyond the Rain
When rain finally arrives, it’s a relief, but the path to full recovery can take years, especially after severe droughts like the one in South Australia, which has seen record-low rainfall across many regions. For South Australian farmers, rebuilding to pre-drought productivity isn’t immediate; it’s a gradual process requiring patience and a clear plan.
- Prepare for a Long Recovery: After the drought breaks, it can take years to fully rebuild. Feed reserves, soil health, and water resources all need time to recover. Plan for a phased return to productivity, allowing time to restore essential reserves and stabilise cash flow.
- Calculate Capital Needs: Additional working capital may be necessary to support your operations through the prolonged recovery. Explore financing options or restructuring debt to bridge the gap as you restore reserves.
- Reflect and Adapt for the Future: Once immediate needs are managed, evaluate what worked and what could be improved. Consider updating your plan with practices and tools to build greater resilience for future droughts.
This phased approach to recovery ensures your farm emerges stronger, and equipped to withstand future droughts and challenges.
7. Stay Connected with Support Networks
Drought doesn’t only impact one farm—it affects the whole community. Staying connected with support networks and professional advisors can provide relief and offer a broader perspective during tough times:
- Engage Local Support Services: Rural Business Support Services, financial advisors, and industry groups offer guidance and resources tailored to the drought.
- Community Connections: Drought affects the entire local economy, from families to businesses. Staying connected with others means you’re part of a support system, sharing resources and resilience.
- Professional Guidance: Sometimes, an outside perspective makes a world of difference. Consulting with experts helps ensure you’re making the best decisions for your unique situation.
Drought Can’t Be Controlled, But It Can Be Managed
Droughts bring significant challenges, but with the right plan, they’re manageable. By activating your drought management plan, using available resources, and making thoughtful adjustments, you can navigate even the most severe dry spells. Remember, you’re not in this alone—seek support early, connect with your community, and consult with professionals for guidance.
If you need help mapping out your drought management strategies and setting priorities for your farm’s success through all seasons, give Dibbo a call today. Let’s work together to ensure your farm is resilient, prepared, and in the best position to thrive through every challenge.
For more information on how Dibbo can benefit your farming business, please contact us directly at 08 8253 2906 or info@financialservicessa.com.au.
