Restocking after the dry

It's rained, the paddocks are greening up and the phone is full of agents offering stock. After a hard year, every empty paddock feels like lost income. Restocking is a big money decision, so plan it like one.

Let the feed come first

Buying stock before the feed is there just moves the cost from the bank to the paddock. Give pastures time to recover before grazing them hard. Your agronomist or local land services office can help you judge when the feed is ready. Redo the feed budget for the new season before you buy.

The cash gap

Restocking turns money into stock long before the stock turn back into money. A cow bought now might not have a calf on the truck for a year. A ewe bought now might not give you a lamb or wool cheque for many months. Freight, animal health, feed and interest keep running in the meantime.

So the key question is: how much cash do we need before the first sale, and who funds it?

Your main options

• Buy in: gets numbers back fastest, but costs the most cash and usually adds debt.
• Breed back: keep more heifers or maiden ewes. It costs less cash but it's slow, and the overheads don't wait.
• Agist or trade: take in someone else's stock, or run trading stock, to earn from spare feed without a big outlay. Get any agistment in writing.

Many farms mix these. Talk to your vet before you buy, because bought stock can bring in disease, worms or drench resistance.

Stage the purchase

We like restocking in stages. Buy part of the numbers, see how the season holds, then buy the rest. It costs a little more in freight and time, but you keep the option to stop if the follow-up rain doesn't come.

Show the bank the plan

Take a cashflow to the bank before you buy. Show the cash gap, when income returns and what you'll do if the season fails halfway. The restocking budget calculator compares buying in with breeding up. Our guide to restocking after a dry year goes further, and the livestock finance guide covers borrowing for stock.

If you'd like help keeping the plan up to date through the recovery, that's what our Season Partner service is for.