Welcome to the first edition of our newsletter for 2015. This issue has an article by National Australia Bank regarding ‘natural capital’ and ‘natural value’. I encourage members to read this article as it will be having a significant impact on farmers’ bottom line in the future. Natural capital is defined as the world’s stocks of natural assets which include geology, soil, air, water and all living things. Natural value is a price that financial institutions will be placing on the way farmers manage the natural capital on our farms.
In particular, it will allow banks to price natural capital risk into their business decision-making frameworks, including credit risk assessments. CWFS RD&E activities, as with all Farming systems Groups, provide members with the framework and research outcomes to effectively and proactively incorporate into their farm business well before this comes into effect. I have been notified that it will be incorporated into banking within the next 3-5 years.