When the Sky Turns Against You
Climate change.
It’s one of those topics – like politics, religion, or race, that gets people bristling in their chairs before the first sentence is even done.
Now that I have your attention, I’m not here to preach about global warming, emissions targets, or who’s to blame. I’m not asking you to believe in anything except what you can see with your own eyes.
Because whatever you believe about the climate, one thing is undeniable: the weather is getting harder to work with. Think Tasman floods, Cyclone Gabrielle, SA and Victoria droughts this year.
What I want to focus in on is the smaller, unseasonal weather events that occur within a season.
These unseasonal events cause chaos.
In recent years, insurance costs have surged across Australia and New Zealand – not because politicians said so, but because insurers follow risk like hounds to blood.
In Australia, 1 in 25 homes are expected to become uninsurable by 2030. Entire postcodes in Queensland and Northern NSW have been blacklisted due to floods. Premiums are rising 20%, 30%, even 50% a year in some places.
In New Zealand, coastal and low-lying areas are already being marked as high-risk, with insurers either pulling out or pushing pricing through the roof.
The Earthquake Commission is reviewing its policy in New Zealand – but not because of quakes. It’s the non-seismic risks now: cyclones, slips, king tides, and torrential rainfall. NIWA is convinced we are seeing five times more extreme temperature events than we would under a stable climate.
This isn’t just happening in the cities – this impacts all of us!
Why did this hit our industry hard?
Natural weather events such as floods, droughts, storms, frosts, and heatwaves all hit agricultural contractors, farmers and growers hard and fast, often without warning.
Simply the time it can take to get damage rectified, combined with a lack of income causes deep ripples through cashflow, logistics and mental health.
What can we do about it?
You plan, not out of fear, but out of leadership.
Obviously we cannot plan and hedge against the most extreme weather events, but we can look to mitigate risk for swings in the ‘norm’ that occur within seasons.
This winter, while things are quieter and everyone is catching their breath, now is the time to look at your business and strategise.
Where are we vulnerable geographically? Which of our clients are sitting ducks? What happens if that back paddock floods again – do we have a plan?
Identify which job locations are on a higher risk spectrum ie: paddocks that are near river banks and paddocks that have low lying spots which could get frosted or flooded. Which soil types and blocks are your (or your customers’) early ground, and which can handle a bit more weather variation.
You already do this subconsciously, however planning on management practices you will implement to suit these is critical.
Think through what happens if a flood delays access, or a frost wipes out a key planting window.
From there, you need a timeline of work. Don’t leave all of your blocks until the last minute. Spread risk, give yourself a plan, so a missed day doesn’t cost a week.
Review your pricing. Are you factoring in the risk of delay, having to go back multiple times? You are quoting uncertainty.
Make your business bend, not break.
Next, look at your fleet. Flexibility doesn’t come from owning every piece of kit under the Sun – it comes from having the right tools that can pivot and be used in multiple circumstances. Multi-purpose gear, transportable units. Fast shift planning. Then when the weather looks like it is rolling in sideways, have someone on speed dial who can step in to help out.
Cashflow? If the weather delays a job, that is one thing we cannot control. However, a delayed invoice, that’s your fault. On time and accurate invoicing, upfront deposits – get your system tight before the mud hits.
Above all, keep your clients in the loop. Customer loyalty is critical. At the end of the day you want them to not just be hiring you to do a job anymore. You want a customer who trusts you to help them manage their own risk. Educate them, align with them and keep communication lines open at all times, so they feel listened to.
If your clients survive, so do you.
Help them make smarter cropping decisions. Offer suggestions for alternative planting plans, perhaps something they have not considered. Consider maturity dates, crop types etc. encourage them to diversify if they need to. If their crop thrives when there was the potential for frost or flood, you have a loyal customer next season.
You don’t need to do it all. But you do need to be seen to be leading.
Final thoughts.
Extreme severe weather events will change the plans of any business; however when it comes to smaller weather patterns within seasons, every storm teaches you something. Every reschedule is a message.
The businesses who come out the other side of this decade in good shape won’t be the ones who worked the hardest, they will be the ones who planned and had the best systems.
So this winter, pour a strong coffee, grab your calendar, and give yourself and your best clients the best possible shot at staying ahead of the next curveball.