What are the potential impacts on Agricultural assets during the COVID-19 pandemic?
The Impact Ag Partners team take a look at the things you need to consider for your agricultural assets for the uncertain times ahead. Being prepared is key, thinking about early precautions and what potential longer-term measures may be required if the situation worsens.
Workplace
Supporting workplace safety and the wellbeing of your employees is paramount. In general, being outdoors on a farm will be one of the safer, cleaner environments!
Considerations for the on-property management team
- Working environment – The majority of time staff will be outdoors and somewhat alone or with a colleague, consider team meetings and other gatherings and how those need to be managed.
- Employee leave – How will you manage personal leave if staff become unwell for extended periods?
Business Risk for Consideration
- What plan would you enact if your key management contracted the virus? Who would take over the day-to-day? Who else in the team would have to self-isolate?
- What time-critical operations that rely on contractors external to the business could be disrupted due to labour shortages? (planting, harvesting, shearing or logistics)
- How are you for supplies of inputs? (fertiliser, chemical, animal health products etc) Will they be available when needed?
- Have your markets been impacted and disrupted? Will you be able to sell your commodities through the usual channels? What are the options?
- Could any of the above impact your cash flow for the year? How could this be managed?
It is prudent to start thinking about the impacts now even if there is little action or risk for you at present and keeping clear frequent channels of communication open with your team.
Government assistance
Governments worldwide are implementing both lockdown and support measures to deal with the COVID-19 pandemic. In Australia, the Federal Government has released three rounds of stimulus measures, and most state and territory governments have announced their own support measures, for businesses and affected areas.
To see if your business is eligible, fact sheets from the Australian Government on the economic response to the Coronavirus are available here.
Impact Ag also summarises options for your Agricultural asset
How the Australian Government stimulus can assist your Agricultural asset
More resource information to build the right team for your asset
Building the best team to look after your property