20+ Years of Client Growth at over 18%p.a.
Our mantra at CowBank is “Helping You Grow – Through Thick and Thin”.
We have recently seen some good times in the dairy industry, it is great to see clients making money and building wealth rapidly. It is well deserved as we see our clients work very hard even at times when their times have been tougher.
In CowBank’s 25th year we have been reflecting on some of the great client achievements in the CowBank journey – for privacy reasons there will be no names but if you recognise yourselves give yourself a “pat on the back”.
We have always analysed farm numbers in the same way, over the longer term one measurable outcome of financial success is equity growth. More often than not our clients come back for a second herd lease, which gives us the chance to measure their equity growth over time.
Early this year we had one of our early clients came back for another herd lease. We had not seen them for 10+ years after they had done five leases in the 2000’s as they grew to over 500 cows. This time they came back to fund extra cows and wanted to use CowBank for the tax deferral.
When we did their first lease they had a small amount of equity, some experience and an opportunity to go into share-farming with a good farm owner. Locals referees knew them well and they had earned a reputation for being smart and working hard.
This year we did the analysis of their equity growth after ~20 years, their equity has grown from not much to ~$7.5m. This works out to be ~$865 per day or 18.5% p.a. compound equity growth, after tax and living/family expenses. A great effort!
What are the lessons that have given this family the reward and what does it take to do it?
- Hard work.
- Commitment through thick and thin.
- Skill and a family team support.
- They say CowBank gave them “the opportunity”.
These guys are a credit to our industry and we are glad to have had them as part of our CowBank journey. Successes like these is what motivates us to keep looking for the next good client. Contact us if you would like to talk to us about opportunities to grow and become connected to our client farmer network.
