The agricultural industry is navigating one of its most challenging periods in recent memory. From ongoing biosecurity concerns and prolonged dry spells to rising input costs and the impact of international tariffs, farmers and growers across the country are under immense pressure. These challenges are testing resilience, business models, and the wellbeing of those who live and work on the land.
This period of disruption will no doubt shape the future of agriculture in Australia. While the immediate environment is tough, it also presents opportunities for reflection, adaptation, and long-term transformation - particularly in how agri-businesses plan, govern, and respond to risk.
In the absence of widespread external support, many agri-businesses are finding that strong internal leadership, clear direction and collaborative decision-making are key to moving forward with confidence.
Having an advisory or governing board, no matter how small, can help seek clarity in chaos. Good governance helps establish discipline, focus on strategy, plan and mitigate challenges, and future-proof compliance obligations.
To have a board to either advise (in the case of an advisory board) on decisions that need to be made, or to make the required decisions, helps deliver the best outcomes. The old notion that two heads are better than one, or a problem shared is a problem halved, cannot be understated.
When a business is in crisis, a cool head and strategic-level thinking is essential. Boards navigate external pressures by staying informed of volatility, industry challenges, disruptions and threats, helping to make informed decisions in the best interests of the business and its strategic objectives.
Family businesses are at the heart of agriculture. It can be said that a crisis tests relationships - let alone family relationships. Financial stress and external pressures on a business are all-consuming, and the familiarity of the family environment makes it harder to separate profession from family.
Having an independent Chairperson or an advisory board helps ensure that family politics and relationships are managed and kept out of the boardroom. A professional advisory board also ensures accountability and compliance in the longer term, helping keep the business focused on its strategic plan and looking beyond immediate pressures.
Good governance ensures that related policies are in place at all levels. It enables compliance to form part of a continued company strategy, providing a foundation for ongoing sustainability and protection against unforeseen events. An advisory board built with the right expertise for your business’s needs can also reduce the costs of consultancy and professional fees. It creates a team to support and build you and your business.
For guidance on strengthening governance in your agricultural business, Joanna Andrew is a trusted expert. As a specialist governance lawyer, she helps businesses navigate complexity, improve decision-making structures, and plan for long-term success.
To find out how good governance can support your operation, contact us at molawyers.com.au.