1. © Rural Solutions SA www.ruralsolutions.sa.gov.au W E ’ VE BOUGHT A H OBBY F ARM... “R URAL L IFESTYLE P ROPERTY ” D R S EAN M ILLER P RINCIPAL C ONSULTANT – I NTERNATIONAL D EVELOPMENT

2. © Rural Solutions SA www.ruralsolutions.sa.gov.au Turning the ‘Dream’ into ‘Reality’

3. © Rural Solutions SA www.ruralsolutions.sa.gov.au Turning the ‘Reality’ into the ‘Dream’

4. © Rural Solutions SA www.ruralsolutions.sa.gov.au What if we haven’t purchased yet? Moving “to the Country” means doing the homework first How much do we want to invest? What do we want from our Property? Size Location The House, or The Building Site Access to power & water Existing land use (& infrastructure) Planned land use Water / irrigation requirement Road access Proximity to ‘real agriculture’

5. © Rural Solutions SA www.ruralsolutions.sa.gov.au What can we grow? Perhaps ask first... “What are we most interested in?” Animals Crops / horticulture Native vegetation / conservation

6. © Rural Solutions SA www.ruralsolutions.sa.gov.au How much money can we afford to invest? How much time can we afford to invest? What skills do we bring to this enterprise? What assistance will we need to make it a success? Making the most of the opportunity

7. © Rural Solutions SA www.ruralsolutions.sa.gov.au Property Condition will determine spending priorities What is the general condition of the property? House Fences Yards Pastures (soils) How much will we need to invest to adapt the property for our use? Consider the finance options that are available to implement the plans – if it’s a business, write a Business Plan! Understand what we have...

8. © Rural Solutions SA www.ruralsolutions.sa.gov.au Soils ain’t soils...

9. © Rural Solutions SA www.ruralsolutions.sa.gov.au Soil type will affect the enterprise Soil testing will aid important decisions Soil type and depth What will our soil grow? Soil pH (acid vs. alkaline) Lime or gypsum? Soil nutrient status What fertiliser do we need and how much?

10. © Rural Solutions SA www.ruralsolutions.sa.gov.au

11. Animals need to be managed!

12. © Rural Solutions SA www.ruralsolutions.sa.gov.au Facilities Yards Shed / shearing equipment (sheep, goats, alpacas) Cattle restraint (crush or headbail) Stock-proof fences Adequate, year-round water supply

13. © Rural Solutions SA www.ruralsolutions.sa.gov.au Crops & Horticulture What will grow on my patch? How long does it take... from preparation to harvest? Can I sell the produce easily? Does it need to be irrigated? Is there someone else doing it... competitor / advice?

14. © Rural Solutions SA www.ruralsolutions.sa.gov.au Small seed production carrots onions clover seed speciality seeds Vegetables potatoes onions carrots leaf vegetables Nursery trees & shrubs etc. turf Crops & Horticulture

15. © Rural Solutions SA www.ruralsolutions.sa.gov.au Ask the Questions... Who has done this already? What problems did they have? What successes did they have? Was it profitable ($ & time)? Where is the expertise (for advice)? What are the alternatives?

16. © Rural Solutions SA www.ruralsolutions.sa.gov.au Should we buy machinery? Depends on... The scale of the business Financial capacity Time availability Alternative is to use contractors Fencing & yard construction Spraying & fertilising Paddock preparation & sowing Harvesting & haymaking Animal husbandry

17. © Rural Solutions SA www.ruralsolutions.sa.gov.au Where can I get advice when things go wrong? Your Neighbour... may have experienced something similar Local Veterinary Surgeon – fee for service PIRSA... Rural Solutions SA – fee for service Biosecurity SA – ‘free’ animal health & production advice (limited) SENRM – ‘free’ weed and pest management advice Rural Merchandise Store – ‘free’ production and management advice

18. © Rural Solutions SA www.ruralsolutions.sa.gov.au Keep records! Product integrity and traceability Mandatory for some produce (e.g. Livestock) Assists in future decision making Range of record keeping systems Paper records Electronic Commercial farm management software ‘Excel spreadsheet’ SENRM & SERIC... nrmFARM Essential if you’re planning to sell produce...

19. © Rural Solutions SA www.ruralsolutions.sa.gov.au nrmFARM

20. © Rural Solutions SA www.ruralsolutions.sa.gov.au Case Study #1 4 ha (10 ac) at Yahl Property was well established, but required some additional development Running cattle (dry), and previously grew vegetable seeds Average Operating Profit of about $2,000 per year The Good Purchased as a lifestyle property – agricultural activity has been a bonus Distance from neighbours

21. © Rural Solutions SA www.ruralsolutions.sa.gov.au Case Study #1 (cont.) The Bad Livestock ties you to the property Requires good planning to be able to get away for holidays The Ugly Small seed crops can be very challenging – you need to do your homework to make it work Risk of a financial loss – need to avoid these at all cost!

22. © Rural Solutions SA www.ruralsolutions.sa.gov.au The Finances Operating Exps

23. © Rural Solutions SA www.ruralsolutions.sa.gov.au Case Study #2 50 ha (125 ac) at Kalangadoo Run-down, undeveloped property when purchased in 2003 Running sheep (breeding) and cattle (dry) Consistently generating Operating Profits, but runs at a Net Loss ‘Tax effective’ The Good Rural lifestyle is great for young children Physically and mentally challenging weekend activity Serves a complimentary professional purpose

24. © Rural Solutions SA www.ruralsolutions.sa.gov.au Case Study #2 (cont.) The Bad Investment required to develop the property has been significant Increasingly difficult to manage with competing work commitments – now requires a change in enterprise focus The Ugly Seasonal ‘disasters’ prove very challenging for all Distance to the day job... & kids activities ‘in town’!

25. © Rural Solutions SA www.ruralsolutions.sa.gov.au The Finances Always made an Operating Profit

26. © Rural Solutions SA www.ruralsolutions.sa.gov.au The Finances Always made a Tax Loss

27. © Rural Solutions SA www.ruralsolutions.sa.gov.au Don’t offend the neighbours!

28. © Rural Solutions SA www.ruralsolutions.sa.gov.au Remember that you’ve bought a ‘Rural Lifestyle’... and enjoy it!