Investment key to turnaround

Treasurer David Clarke announced in his annual report at last week’s conference that NSW Farmers returned a profit of $3.66 million in the last financial year, compared to a loss of more than $5m the year before.

“It’s a $9.2m improvement,” Mr Clarke said.

A re-evaluation of the assets owned by NSW Farmers was a major factor in the turnaround, with property a major part of the association’s investment strategy.

Mr Clarke provided figures showing about 71 per cent of NSW Farmers’ investment was in the form of property, about 11pc in bonds and cash, 14pc in equities and 4pc in alternative sources.

“There has been a big rebound in the value of our investment properties,” he said.

At least one member at the conference was unconvinced by the re-evaluation of existing assets pointing out the association would still be in the red without it.

Mr Clarke said that may be the case, but with better financial management across the board, NSW Farmers was still $1 million better off than last year, even when the asset re-evaluation was taken out of consideration.

“We are very responsible in how we spend our money,” he said.

“Expenditure has fallen in all categories (at administration level).”

Mr Clarke said sponsorship opportunities were expected to increase this year and a further review of the investment strategy would be forthcoming later in 2014.

“We are looking to bring the organisation into a cash neutral position.”

With the cash balance of NSW Farmers improving every year for the past few years, Mr Clarke was hopeful this trend would bring about that cash neutral position soon.