Agribusiness survey reveals advisory board misconceptions

Results indicate farmers confuse external advisory support with complex corporate structure. 

A diligent management and accountability system is essential for the long-term sustainability of any business, and that’s no different for New Zealand’s primary industries. That’s why Findex is sounding the alarm on what it believes is a potential weakness affecting farms and farmers on the back of recent research conducted among clients. 

Nearly half of farmers see no need for advisory support 

Nearly half of the farmers that participated in a recent Findex survey say they don’t have any advisory board or governance group support, with 45% saying they don’t see the need. One of the biggest misconceptions is that structured advisory support is only relevant for very large farming operations, and that simply is not right. 

The research provides a temperature check, and canvassed views on financial, governance, succession and related matters. When nearly half are on board on a single matter, and the other half aren’t, that’s statistically significant. And when it comes to structured external advisory support, it’s an issue that needs to be talked about. 

Governance is about decisions, not farm size 

It’s not about how many staff you have, or whether you consider yourself a large farm. It’s about the assets, debt, risk, and decisions you are managing. Many farming businesses are managing millions of dollars in land, livestock, plant, and working capital. In almost any other sector, a business with that level of capital at stake would have some form of external governance or advisory discipline around it. And it does not need to be complex or expensive. 

Starting with simple financial discipline 

For many farms, the first step is simply getting into a quarterly internal reporting rhythm. That means reviewing real-time management accounts, not just annual tax accounts, understanding where the business is tracking, benchmarking performance, and making clear decisions about where it is likely to land. 

External advice can also help remove some of the emotion and bias that naturally comes with owner-operated businesses. Farming is personal. It is family, history, land, legacy and lifestyle all wrapped into one. That is exactly why an external view matters. It helps test capital decisions, investment choices, and succession issues with a bit more objectivity. 

Better-performing farms rely on measurement and accountability 

Recent ANZ insights show that top-performing farms are lifting productivity and managing higher costs through better decision-making, targeted investment, and tighter margin management. The evidence is clear. Better-performing farms are not just working harder, they are measuring better, investing smarter, and holding themselves accountable. Advisory support should be scaled to the business, just like insurance or risk management. It does not need to be over-engineered, but it does need to be deliberate. 

Benchmarking shows what’s possible 

It’s necessary to understand individual performance against other market participants. Benchmarking against top performers locally and globally gives farmers a frame of reference to see how they are doing and shows where there may be room for improvement. I challenge every farmer to measure themselves against others in their industry, because until you know what’s possible, you may well be missing out without even knowing it. 

Governance as a performance tool, not a formality 

The opportunity for farmers is to see governance as a practical performance tool, not a corporate formality. No farm is too small to benefit from greater financial discipline. Even the act of measuring performance, quarterly review, benchmarking against others in the industry, and being held accountable by an external adviser is a step forward. The farms that do this consistently are more likely to make better decisions, protect capital, and improve profitability. 

Planning and expert advice remain essential 

Farms that don’t grow and thrive are those that don’t plan. While almost every farmer I’ve ever met is incredibly resourceful and tends to have an informal advice network among many suppliers and associates, proper advice in financial and governance matters is absolutely essential. 

This is a key element in improving performance by taking advantage of specialised knowledge in compliance, hedging against market risk, dealing with interest rate fluctuations, technology identification and adoption, capital management, and the always-challenging topic of succession planning.

Now is the time for farmers to view governance and advisory support not as a corporate formality, but as a practical tool for stronger business performance.

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