Prepare drought budgets if droughts are forecast
When Climatologists warn of a possible drought, it does not mean a drought will happen. It is, however, an indicator that the probability of a drought is increased. In these circumstances it is wise to prepare a drought budget so that you are well organised to manage a difficult year.

Maintain a low cost structure
During a downturn in any industry, the farms which are best placed to survive are those with the lowest cost structures. These farms are most able to maintain profitability during tough times, such as droughts or price crashes. Two important ways to achieve this are, to keep machinery overhead costs and labour costs per cropped hectare low. Benchmarking and comparative analysis provide a mechanism for analysing farm cost structures. You can access this service by contacting WARMPlan or your local farm management consultant.

Al and Sally Nino have a computer, but don't at present operate an effective computerized cashbook. The computer is mainly used by their two children, who play games on it. Because the GST is looming, and also because they want better financial control, they enroll in the VFF Computerised Farm Management Project in a course at Sea Lake. At the course they learn how to professionally set up and operate a computerized cashbook. They also enroll in Stage 2 of the program where a consultant from the VFF project helps them implement what they learned at the group training day.

After the training, Sally Nino says, 1 can now speedily enter the farm's financial data, and with a few minutes' work, generate all the reports we need to manage and control our business".

AI Nino says “It is relatively easy to alter our budget on the computer, so as to convert it into a drought year budget. This will help us better manage the next drought when it comes".

Murray Grey, their consultant, says, "I'm impressed by the ease with which we can obtain the data we need for analysing the farm business. It's just what we need".

The Ninos plan to join a benchmarking program so they can benchmark and compare their cost structure. They are particularly keen to achieve low overhead costs

During the 1994/95 drought both Al and Sally had felt irritable and flat. So much so that some important decisions were not made correctly.

In particular decisions relating to when to sell and feed livestock. Al Nino says, If I had felt more like my usual self I would not have left matters drift. But because I felt so flat I was much less decisive".

Al and Sally decide to be prepared for the next drought by:

• Talking about how they feel to each other and to friends.
• Seeking out and attending drought discussion groups and seminars to help focus on key management decisions. Knowing what to do relieves a lot of stress.
• Maintaining outside interests such as tennis, football and holidays (even if they are a bit cheaper).
• Starting a new positive project such as painting part of the house.
• Learning and practicing the techniques of relaxation /meditation. Al believes Sally is easier to live with now she relaxes/meditates. Sally, however, says the same about Al.

How can I respond to the business management challenges of drought?
Stress rapidly builds up when we don't know how to cope with a situation we face. So a lot of stress-relief is achieved when we know we have the best management skills available for managing drought. That is why it is so important to seek out and attend drought-planning seminars and obtain competent professional advice. Because droughts are periodic events, many young farmers have never experienced them. They can however learn a lot from other people's experience. One of the best ways to do this is to attend a drought?planning seminar before the drought occurs.

How can I respond to the emotional challenges of drought? Most publications about drought focus upon physical and financial aspects, but omit any reference to their emotional impact. This is a mistake, as people who are emotionally stressed by work are more likely to be affected by anxiety and depression. When this is prolonged, as is the case in drought, it can be harmful both with respect to work performance and health. Stressed managers are less able to react constructively to the challenges faced. Ways of responding to this stress are:

• Gain the skills you need to make the
• decisions you face.
• Share how you feel with family and friends.
• Learn how to relax/meditate.
• Maintain outside interests and social contacts.
• Setup a new low cost project which will keep you positively focused.