About Us
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What is CowBank?
CowBank was established in 1999 by Rod Banks and Bruce Parncutt, and is a small agricultural company specialising in herd leasing to dairy farmers. To date CowBank has leased 38,500 cows to 210 dairy farmers throughout south-east Australia. In addition to the leasing business, CowBank together with Warakirri Asset Management, manages/advises a group of dairy farms on behalf of investors. This aspect of the business is referred to as Warakirri Dairies. Warakirri Dairies currently operates 10 dairy farms in Victoria and South Australia, milks over 8,500 cows, and employs in excess of 100 people. CowBank has recently been involved in establishing three farm leases with high % sharefarming. These leases involved over 1300 cows in two states. The opportunity this has provided for both the landowner and the sharefarmer is a WIN : WIN to all. CowBank has played a small role in leasing some of the cows which gives the Landowner some cash to do the things they want to do and in doing so provide cash flow. Our role has been in setting up the legal agreements and heads of agreement for the management entity, with assistance from professional advisors to the parties to do the final agreements. The system was first used by one of our clients 10 years ago, and we watched them go on to farm ownership, and since then we have done it with 4 more clients. We are currently working on two more of these agreements. The old 50:50 agreement used to work well when seasons were good and prices were reasonable but in the volatile times we currently face they damage all the parties. If you are interested in these agreements give us a call. Who is CowBank?
Our people are: Shareholder/directors The leasing business was founded by Rod Banks and Bruce Parncutt - who each bring different skills to the team - financial, strategic and agricultural. In 2009, six new shareholders were introduced into the business. They are all industry professionals committed to making the business grow. Their influence and dairy expertise in the business will assist our community. In the field We have two agricultural specialists: Ella Credlin and Cheryl Edwards-Bennett, who have the knowledge and understanding of the dairy industry and work closely with dairy producers on farm level. Ella's role as Agricultural Analyst is to process leasing applications for new and existing clients, while Cheryl visits farms to complete herd audits once a lease has commenced. Both Cheryl and Ella have an excellent understanding of what it takes to grow equity and are both very passionate about the dairy industry and its future. CowBank offers a very dynamic blend of skills from both agriculture and business to investment banking. Why would farmers find this attractive?The CowBank lease is an operating lease, therefore all payments except the residual indemnity are tax deductible, so you can grow your equity behind a tax shield (seek your own professional advice) A CowBank lease is not linked to a land mortgage; therefore your mortgage capacity is not reduced. You have the security of knowing that if tough times arrive, some of your mortgage capacity is still available to you. We call this "freeboard", often the biggest effect on profitability is lack of working capital. Cows are for turning grass into cash - why tie up valuable equity to fund your whole herd? Why would owner operators find this attractive?If you employ people then a CowBank lease when combined with yourself and a key staff member can increasing staff retention and commitment to the landowner. The staff member has an opportunity to grow equity provided they perform and retain their position. Our program provides a sound "win : win" solution for both parties. Why would sharefarmers find this attractive?A CowBank Herd Lease offers sharefarmers an alternative way to break into the industry, and grow their own equity position. CowBank believes that the business of leasing offers a great opportunity for sharefarmers to purchase their own cows and make lease payments on a monthly basis, from their milk income. CowBank’s Leasing Goals
What can the leasing funds be used for:CowBank provides leasing facilities to Dairy Farmers who can demonstrate a solid trading performance and have sound business management practises. Specialists in herd leasing, approved funds from CowBank can be used for the following business purposes:
 Why is the CowBank product different?Â
CowBank is the original stock leasing company offering dairy farmers leasing alternatives, other than livestock mortgage finance. We have been in operation for over 10 years and have the experience and knowledge of the dairy industry and recognise how we can best increase your business potential. Pastoral houses and banks may offer stock mortgages, however this is limited to 50% of a discounted animal value. At CowBank, our lease facilities can be for the full market price of the cows and we recognise the true value of your asset, but try and operate "safely". CowBank's lease is not linked to any mortgages to land. CowBank is an asset financier with a living asset that if properly managed will not depreciate over time. We have seen clients use this product as an important wealth creation tool. Leasing with plant and equipment is very common, as one our clients says: "he has never seen a tractor have a baby tractor to replace itself". What does CowBank look for in a farmer?
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