Why cattle cashflow is different
A cow-calf business can go most of the year with little coming in. The weaners might sell in February or March, the cull cows in autumn, and that's often it. Meanwhile pasture, fuel, wages and interest go out every month.
Trading cattle work the other way. A big cheque goes out when you buy the steers, and it comes back months later if they grow and the market holds. The NSW DPIRD steer growout budget for June 2026 puts the purchase at about 64% of the sale value. That leaves a thin margin for the price to move against you.
Most places in the Central West and Orana run a mix of the two, often beside some cropping. So the overdraft swings hard through the year. We build the cashflow month by month so you can see the low point coming.
What the bank looks at in a cattle business
When a credit team assesses a cattle business, a few things always come up. The first was the stocking rate compared with what the country carries in a dry year. The second was what the business earns when prices fall, and they do fall. MLA's restocker steer indicator dropped more than 50c/kg in September 2026 alone.
A credit team will also look at how much you owe against what the land is worth (your LVR). They'll check how many times your profit covers the interest bill (interest cover). Cattle and sheep farms usually have strong equity because land values have risen. Operating returns are a different story. The 2026 Australian Beef Report by Bush Agribusiness found the average southern beef business made a loss over the last three years.
The bank wants to see that you know your numbers in a good year and a bad one. It also wants to know what you'd do when the dam gets low, and how many head you'd sell first.
What goes in a cattle Bank Review Pack
The Bank Review Pack costs $1,850 plus GST ($2,035 incl. GST). For a cattle business it includes the following.
- A budget for each enterprise, with weaning rate, sale weights and prices set out so the bank can follow them.
- Your cost of production in c/kg liveweight, compared with published benchmarks.
- A monthly cashflow through to the next weaner sale, with the peak overdraft marked.
- What happens if prices drop 15% or you have to destock early in a dry spring.
- A debt schedule, a statement of what you own and owe, and a two-page covering note written the way a credit team reads.
Book it about six weeks before your review, so there's time to check the stock numbers with you.
How we work with your vet, agent and accountant
We don't give advice on animal health, nutrition or pasture, because your vet, nutritionist and agronomist do that well. We'll take their plan and put dollars against it. Your stock agent is the best source on what your cattle will make, so we'll often ring them about sale prices. Your accountant keeps the tax side, and we'll use their figures so we're all working from the same set of books.
We don't arrange loans in-house. If you need finance for a vehicle or equipment, Levelhead Business Advisors, run by the same company, can help. It earns a lender commission, which we'll tell you about before you go ahead, and you can use any lender you like. Other lending we refer to The Lending Lab.
A year with Farm CFO on a cattle place
On the Farm CFO retainer, at $800 a month plus GST, the year might run like this.
In winter, around calving, we set the budget and the cashflow to the next weaner sale. In spring we check pasture and feed spending against the budget, and we look at what to do if the season dries off. Before the weaner sale in summer, we'll update the forecast with your agent's price view. Then in autumn we prepare the bank pack and sit in on the review if you'd like us there.
If you'd rather start smaller, the Farm Health Check is $850 plus GST. It turns three years of your financials into the ratios a bank checks. For a step-by-step method, read How to build a cattle budget and cashflow.
