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Climate Change Adjustment Program (CCAP). Farm Business Analysis and Financial Assessment template This presentation consists of: Background Model Structure/Assessment Criteria Completing the template.

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climate change adjustment program ccap

Climate ChangeAdjustment Program (CCAP)

Farm Business Analysis and Financial Assessment template

This presentation consists of:


Model Structure/Assessment Criteria

Completing the template

NOTE: Use the navigation keys at bottom left of screen to move between slides

  • The Climate Change Adjustment Program (CCAP) is part of the Australia’s Farming Future initiative (AFF), which helps primary producers adapt and respond to climate change.
  • The CCAP assists farmers in financial difficulty who are, or are likely to be, adversely impacted by climate change, including those experiencing hardship due to drought to:
      • develop options for on farm climate change strategies and practices
      • seek specific professional advice and adjustment training
      • obtain re-establishment assistance for those who decide to leave farming.

The program provides assistance to:

  • Undertake professionaladvice and adjustment training of up to $5,500 (GST inclusive).
  • Undertake a farm business analysis and financial assessment to provide farmers with a clear understanding of their financial situation and future prospects, in the context of the future climatic (and financial) environment.
  • Develop a Climate Change Action Plan which outlines options for on-farm climate change adaptation strategies and practices through access to professional advice, information and training.

The Farm Business Analysis and Financial Assessment is a compulsory assessment of the farmers financial situation.

Assessing the farmer’s financial situation is important because it:

  • provides the farmer with an independent appraisal of their financial position, and
  • helps them to decide what is best for the future of their farming business and their family.

Determining the level of assistance:

Centrelink undertakes an initial Income and Assets Test to confirm eligibility.

Centrelink issues the farmer with a voucher to undertake a Farm Business Analysis and Financial Assessmentwith a Prescribed Adviser.

The result of the Financial Assessment will determine the level of assistance required by the farmer to develop their Climate Change Action Plan.

climate change adjustment program ccap7

Climate ChangeAdjustment Program (CCAP)

Model Structure/Assessment Criteria

model structure and assessment criteria
Model Structure and Assessment Criteria
  • The Financial Assessment is based on four tests that are designed to assess the financial status of the farmer and the farm business.
  • A financially sound business would usually have the following elements:

an ability to earn profits or surpluses

an ability to generate sufficient cash flow

sufficient liquidity to meet short term cash flow obligations

a sound financial structure whereby the entity is not over leveraged and has a sufficient level of assets to operate its business.

model structure and assessment criteria9
Model Structure and Assessment Criteria
  • The four tests used to determine eligibility for assistance are:

Farm business income and non-farm income

Non-farm assets


Debt to equity position

model structure and assessment criteria10
Model Structure and Assessment Criteria
  • TEST 1 - Farm business income and non-farm income

NewStart Allowance Income Test Rate

Non-farm income

Farm business cash flow (estimated 12 months)

is less than

A farmer earning insufficient income to cover their family’s living costs is unlikely to be in a position where they can fully consider their future adjustment needs.

Centrelink applies the personal income test for NewStart Allowance and the estimate of income aligns with Centrelink adjustments.

model structure and assessment criteria11
Model Structure and Assessment Criteria
  • TEST 2 - Non-farm assets

NewStart Allowance Asset Test Rate

Non-farm assets

Non-farm debt

is less than

  • This test ensures that the farmer does not have significant net non-farm assets that should be used before seeking assistance from the Government.
  • To be eligible, the value of the farmer’s non-farm net assets must be less than the applicable NewStart Allowance asset test limit taking into account their homeowner status and marital status.
model structure and assessment criteria12
Model Structure and Assessment Criteria
  • TEST 3 - Liquidity

Cash and trade debtors

Current liabilities


is less than

  • The ratio of cash & debtors/current liabilities is the most appropriate measure of liquidity for a farm business. This test is calculated by dividing the farmer’s balance of cash by current liabilities (quick ratio).
  • Farmers may be eligible for the CCAP Program if they have a quick ratio of less than 1.0.
model structure and assessment criteria13
Model Structure and Assessment Criteria
  • TEST 4 - Debt to equity position

Total Farm debt

Total Farm assets (less total farm liabilities)


is greater than

  • A farmer with a low level of debt compared to assets should be able to extend their borrowings before seeking financial assistance from the Government.

A debt to equity ratio greater than 1.0 will be a pass as it indicates the farm may not be able to increase its borrowings.

model structure and assessment criteria14
Model Structure and Assessment Criteria
  • Total Net Assets Cap


$1.5 million

A farmer with total net assets worth more than $1.5 million is automatically ineligible for assistance.

In order to ensure that assistance is provided to the correct target group for the Climate Change Adjustment Program, it is considered appropriate that eligibility for assistance be subject to a net asset cap.

completing the financial assessment template
Completing the Financial Assessment template
  • The Financial Assessment template is an excel spreadsheet:
      • used to assess the level of assistance required by the farmer to develop their Climate Change Action Plan, based on their financial position
      • completed by a prescribed adviser
      • part of the Farm Business Analysis and Financial Assessment form

Note: The Financial Assessment template is also available on CD.

Please call 1800 638 746 to request a copy.

what information do i need to complete the template
What informationdo I need to complete the template?

The farmer should provide:

  • Copies of the last 3-5 years tax returns and financial statements
  • Details of current income, including Centrelink payments, income from off-farm employment or rental income
  • Any superannuation payments, annuities and other income
  • Details of assets and investments, including bank and building society accounts, Farm Management Deposits, shares or managed investments
  • Details of any debts
  • Details of planned expenditure (Children’s education, house maintenance etc).
completing the template
Completing the template
  • The Financial Assessment template can be downloaded from:
  • To open the template, click on the Financial Assessment template link.
  • Select the Enable Macros option.

Note: The income and asset test levels in the template are based on the Centrelink NewStart Allowance rates. The income test rate is revised in March and September each year, while the asset test rate is revised annually in July. The template is updated in conjunction with these rate changes.

Please check the DAFF website for the latest template version.

navigating through the template
Navigating through the template

There are 6 steps to completing the template:

  • Complete the Farmer and Prescribed Adviser details on tab 1.
  • Complete the Cash Flow and Historical Data tables on tab 2.
  • Complete the Assets and Liabilities Data tables on tab 3.
  • Assess the farmer’s eligibility on tab 4.
  • View the eligibility calculation summary and result on tab 5.
  • Save and Copy the assessment.

Tabs 6, 7 and 8 contain Guidance and Explanatory information and a Glossary of terms.

NOTE: You can navigate through the fields by clicking in the fields or using the Tab button on your keyboard.

step 1 complete the farmer and prescribed adviser details
STEP 1:Complete the Farmer and Prescribed Adviser details
  • Click in the blue fields in the Introduction worksheet and type in:
    • the name of the farmer
    • the name of the prescribed adviser
    • the name of the prescribed adviser’s organisation
    • the date of the assessment.
  • Go to STEP 2 by clicking on the Cash Flow & Historical Data tab.
step 2 cash flow and historical data
STEP 2:Cash Flow and Historical Data
  • Enter the financial year end in the blue field at the top of the page.
  • Dates for current and future years will be automatically shown in the cash flow table.
  • Dates for previous years will be automatically shown in the historical data table.
step 2 part a cash flow data
STEP 2:Part A: Cash Flow Data

For the current (including next3 months) and next two financial years, enter the farmer’s:

  • Anticipated Income
  • Estimated Expenditure
  • Cash Balance position.

The Cash Flow Surplus (or Deficit) and Closing Bank Balance are automatically calculated here.

NOTE: The total of Farm Business related income should exclude amounts to be paid to the farmer as drawings or salaries to avoid double counting this income.


Make sure all the columns and rows have a value entered in order for the calculations to work correctly!

  • That completes Part A of STEP 2.
  • Part B requires you to complete historical income, operating costs and debt details...
step 2 part b historical data
STEP 2:Part B: Historical Data

For the previous four financial years, enter the farmer’s:

Income (sales income is to be shown as gross)

Expenditure, as Drawings and Operating CostsThe Operating Surplus is automatically calculated here.

Enter the farmer’s Debt history here.

Note: The Average is automatically calculated.

A glossary of terms used in the Cash Flow & Historical Data tables is provided on the Glossary tab.

step 2 part b historical data25
STEP 2:Part B: Historical Data
  • The Operating Ratios of the farm business are automatically calculated here.
  • You can also view a summary of the farmer’s Cash Flowand Historical data presented in graphs and charts...
step 2 part c graphs and charts
STEP 2Part C: Graphs and Charts
  • Scroll down the spreadsheet on the Cash Flow & Historical Data tab to view graphs and charts of the calculated components, which have been automatically produced from the data entered into the tables.
  • There are ten graphs and charts available to view.
step 2 part b c historical data graphs and charts
STEP 2:Part B & C: Historical Data, Graphs and Charts
  • That completes Parts B & C of STEP 2.
  • STEP 3 requires you to complete the Assets and Liabilities tab...
  • Go to STEP 3 by clicking on the Assets and Liabilities tab.
step 3 part a assets
STEP 3:Part A: Assets
  • Enter details of the farmer’s currentasset position, including:

Cash at Bank

Farm Management Deposit

Tax Credit


Produce on hand

Farm Value

Stock on hand


Off-farm investments

Plant & Machinery/Equipment

Non-farm assets

Agricultural holdings

Other assets.

step 3 part b liabilities
STEP 3:Part B: Liabilities
  • Enter details of the farmer’s current liability position, including:
  • Tax Liability
  • Overdraft
  • Trade creditors
  • Mortgage
  • Loans (Personal, Family)
  • Lien
  • Non-Farm Debt.
step 3 part c equity table
STEP 3:Part C: Equity Table
  • After the Assets and Liabilities tables have been completed, the spreadsheet automatically calculates the farmer’s Equity position.
  • In the example above, the farmer’s equity position is rated on the borderline of being Critical.
step 3 part a b c assets liabilities equity
STEP 3:Part A, B & C: Assets, Liabilities & Equity
  • That completes Parts A, B & C of STEP 3.
  • STEP 4 contains the Eligibility Assessment...
  • Go to STEP 4 by clicking on the Eligibility Assessment tab.
step 4 eligibility assessment
STEP 4:Eligibility Assessment
  • The figures in the blue fields are automatically populated by data entered in the Cash Flow & Historical Data and Assets and Liabilities tabs.
  • The data in the blue boxes can be manually adjusted to show a more reasonable representation of the farmer’s financial position if required (for example, due to timing or seasonal fluctuations).

For explanations of the figures calculated, hover your mouse over each of the blue fields.

Further explanations are available on the Guidance tab.

step 4 eligibility assessment33
STEP 4:Eligibility Assessment
  • To assess the farmer’s eligibility, scroll down the worksheet to the Press here to assess eligibility button.
  • To see the result of the eligibility assessment click on the Eligibility Calculation Tab, which will display the Overall Eligibility determination.

Note: the ‘eligibility’ assessment is not determined by the prescribed adviser, but is automatically calculated by the template based on the farmer’s financial details.

step 4 eligibility assessment34
STEP 4:Eligibility Assessment
  • That completes STEP 4.
  • STEP 5 contains the Eligibility Calculation...
  • Go to STEP 5 by clicking on the Eligibility Calculation tab.
step 5 eligibility calculation
STEP 5:Eligibility Calculation
  • The Eligibility Calculation tab shows the income and asset test limits which are equivalent to the NewStart Allowance.
  • Financial ratios are used to assess the farmer’s eligibility based on their financial details.
  • The farmer’s circumstances are assessed into one of three eligibility groups based on four tests including:
  • Farm business income and non-farm income
  • Non-farm assets
  • Liquidity
  • Debt to equity position.

Note: In addition to the four tests, farmers need to pass the total net assets cap of $1.5 million.

step 5 eligibility calculation36
STEP 5:Eligibility Calculation

Farmers are categorised into 3 groups:

  • Group 1 – Climate Change Action Plan to be developed with a rural financial counsellor (case managed)The farm enterprise is borderline or not viable, with no prospect of recovery or insufficient liquidity and assets necessary to operate the farm business. Changes are required to return to a viable position.
  • Group 2 – Climate Change Action Plan to be developed with assistance from Centrelink (self managed)The farm enterprise is financially viable with sufficient liquidity and assets to operate the business, however viability is at risk due to ongoing drought, and changes are required to ensure ongoing viability.
  • Group 3 – Total Net Assets Exceed Allowable CapThe farm enterprise has sufficient liquidity and assets to operate business with no Government assistance.
step 6 save and copy the assessment
STEP 6:Save and copy the assessment
  • For your records, you can print and/or save the completed assessment template on your computer or other device.
  • As part of the assessment, print Tabs 1, 2, 3, 4 and 5, and attach a copy to the Farm Business Analysis and Financial Assessment Form.
  • You need to return the Farm Business Analysis and Financial Assessment form, including the completed financial assessment template to Centrelink with a completed voucher for payment.
  • Provide a copy of the completed Farm Business Analysis and Financial Assessment form and financial assessment template to the farmer to take to their rural financial counsellor or Centrelink to develop their Climate Change Action Plan.
guidance and explanations
Guidance and Explanations
  • Further guidance on completing the Financial Assessment template is available on the Guidance,Explanations and Glossary tabs in the template.

You have now completed the Financial Assessment template.

further information
Further information
  • Call the Australia’s Farming Future Information Line on 1800 638 746
  • Visit the DAFF website at
  • Call Centrelink’s Farmer Assistance Line on

1800 050 585

  • Visit the Centrelink website at
  • Call the Rural Financial Counselling Service Program on 1800 686 175