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2018 Spring - Tax and regulation for farm business sustainability

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FPJ1503B - Wibberley, BD (2018), Using FMDs to create sustainable farm businesses

FPJ1503B - Wibberley, BD (2018), Using FMDs to create sustainable farm businesses, in Farm Policy Journal, vol. 15, no. 3, Spring 2018, pp. 25-33, Surry Hills, Australia.

Farm Management Deposits (FMDs) were designed by the Australian Government to allow farmers to manage their cash flow risk while conducting their business in uncertain climate, environment and market conditions.
Unfortunately, much of the focus and attention on FMDs in recent years has been on the taxation benefits these financial products provide the business.
The aim of this article is to outline and demonstrate that where primary producers implement a suitable FMD strategy to suit their business, they become an essential tool to manage financial risk for wealth creation, consolidation, expansion and the overall family business success.



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