Planners to help struggling farmers

Financial planners will work free of charge to assist drought-affected farmers as part of a Financial Planning Association (FPA) pilot project that has been launched in liaison with the Federal Government.

The project was announced on July 23 by chair of the FPA Corinna Dieters and the Federal Minister for Agriculture, Fisheries and Forestry Peter McGauran.

McGauran welcomed the plans and said that while rural financial counsellors have traditionally provided guidance to struggling farmers on problems dealing with cash flow, debt management and access to government assistance, they were legally unable to provide financial advice.

“Often farmers also need help with investments, life insurance ad risk management, or succession planning for the property, and this is where appropriate advice is critical, including financial advice,” he said.

The project’s taskforce will be made up of FPA members, Department of Agriculture, Fisheries and Forestry officials and FPA executives, who will convene to set up and develop guidelines for the project. The success of the project will be determined after six months of operation by an FPA review committee.

Dieters stated that this project was only the beginning of a national pro bono program that would not only assist the farming community, but other needy groups in Australian society.

According to Dieters, many financial planners are already providing advice to disadvantaged people who lack the means to pay, but until now there had been no formal framework or guidelines for them to operate within.

“By putting a pro bono program in place, the FPA hopes to encourage and extend financial planners’ contribution to the communities in which they live and work. Financial planners have expertise in managing money, so we need to work alongside others within the rural community who will understand specific issues affecting farmers during these difficult times. Together, we can deliver a better and more complete package of information on which farmers can base their decisions,” said Dieters.

“Many farmers in the Murray-Darling Basin region, and no doubt well beyond, are facing tough business decisions. They need financial advice now, and at the point they decide to hand over to the next generation.”