The shearing season is not just about long days in the shed and bales on the truck, it is one of the most important checkpoints in your farm’s financial calendar. For many mixed farmers, the wool cheque is the first significant cash injection before harvest, making it a critical moment to steady cash flow and sharpen the bigger plan.
This is why shearing matters financially…
Wool sales can ease the squeeze of spring bills, cover input costs, or give families the breathing room to think strategically. However, too often wool cheques vanish into expenses without being put to work.
With a clear plan, that income can reduce debt, strengthen working capital, or build reserves for machinery and future investment. It can also create space for succession conversations or give you confidence to take the next step when an opportunity arises.
Here are some practical questions to ask…
- Are shed maintenance and equipment breakdowns eating into margins more than they should?
- Are labour and contractor costs sustainable?
- Will the wool cheque carry the business through to harvest, and has enough has been set aside for tax, loan repayments, or reinvestment.
This isn’t about turning shearing into a boardroom meeting. It’s about grounding decisions in facts, not guesswork.
Here are ways to strengthen the shearing season…
Wool Cash Advances can provide funding to cover costs like shearing expenses before your wool is sold, so you’re not dipping into reserves or waiting on delayed payments.
A Wool in Transit Warranty ensures your clip is protected financially while it’s being transported to the store.
Broader Agribusiness Finance can also support your operation by smoothing seasonal costs or giving you the flexibility to seize opportunities when they arise. Having these tools in place adds confidence when you’re juggling expenses, labour, and timelines.
Here are my Two Tips for shearing season
- Don’t let the wool cheque slip away. Earmark it early, whether that’s debt reduction, running costs, or reinvestment, so the money doesn’t disappear into day-to-day pressures.
- Use shearing as a review point. It’s a natural time to sit with your accountant, agronomist, and finance bloke to align the numbers with your goals before harvest ramps up.
Shearing is more than wool off the sheep’s back. It’s a chance to steady the ship, reduce risk, and position your family for the next opportunity.
Incorporating wool income into your budget is about showing you’re prepared and serious. So when land opportunities pop up or refinancing becomes necessary, a clear budget backed by planning gets you to the front of the line.
If you would like to chat about making your business more “bank ready”, I encourage you to contact me on 08 8253 2906 or email info@financialservicessa.com.au.