How can sheep and beef farmers navigate climatic extremes in times of reduced cashflow?

New Zealand sheep and beef farmers can face volatility from multiple directions at any one time. Particularly in the form of unpredictable climatic conditions and fluctuating product values/input costs. When these occur simultaneously as many farmers have recently experienced, it puts a tremendous strain on the farmer’s businesses, and the farmers themselves.

The following report aims to analyse how high performing farm businesses reach and sustain the levels of performance, resilience and wellbeing they do. Through a literature review and semi structured interviews this could be uncovered. A thematic analysis was carried out which helped determine how performance, resilience and wellbeing could be sustained when faced with climatic extremes and reduced cashflow. The relationship between these elements could then be understood.

Key findings included:

• A clear vision and plan positively contribute to, high performance, resilience and wellbeing. A portfolio of strategies can then be developed to face challenges.
• Positive relationships and value of connection were core drivers of success in challenging times.
• ‘Sticking to their knitting’ and focusing on their most profitable enterprise ensured sustained performance. Strong awareness of their farm system and a large trading stock component allowed this.
• A growth and curiosity mindset led to a more effective response to challenges and increased performance through innovation and creativity.
• By pursing high performance and excellence, farmers also positively influenced resilience and wellbeing.

Recommendations for early career farmers included:

• Develop a clear vision and strategic plan, with a focus on preserving condition of capital stock and maintaining a buffer of feed.
• Focus on flexibility, decrease lower performing capital stock numbers and increase trading component.
• Improve relationships and networks, surround yourself with positive people and endeavour to help others as they will help you in return.
• Enhance resilience and grit, build a portfolio of strategies and persevere in the face of challenges. Remain self-aware to avoid burnout.
• Adopt a mindset of curiosity and growth. Innovate, try new things and learn from setbacks.
• Prioritise wellbeing, incorporate the ‘5 ways to wellbeing’ into daily practices.