Mark and Anne run several large grazing properties in western NSW.

In late 2022 Mark and Anne’s properties were experiencing very good seasonal conditions. They were looking to maximise returns, and wanted to keep their bank facilities available for a possible property purchase. Legacy Livestock provided them with a $1.0M livestock finance limit in November 2022 which they used to purchase 616 head of mixed sex cattle in January and February 2023. The plan was to carry these stock until January 2024.

During 2023 Mark and Anne continued to experience very positive seasonal conditions however the livestock market fell 70%. Despite good weight gains, the value of the livestock fell below the value of the loan.

In November 2023, sensing a low in the market, Mark and Anne approached their Legacy Livestock Regional Manager regarding an extension of the loans beyond the original maturity date to allow for additional weight gain and for the market to recover.

Because we had a detailed understanding of Mark & Anne’s business and a positive working relationship with them it was an easy decision to extend the loan. As the extended maturity date for the loan approached Mark and Anne sold the lead out of the line of livestock financed as they had reached their terminal weight. This sale partially reduced the loan. Seeing the potential for the remaining cattle to keep adding weight and sensing an opportunity for further price improvement, Mark and Anne requested a further extension to help them achieve a more favourable sale result.

We were happy to support Mark and Anne to give them the best opportunity to achieve a good outcome for their business. We extended the original loan term again for a total loan term of 18 months from original loan drawdown.
In May 2024 Mark and Anne sold the remaining cattle and repaid the loans in full. It was effectively a break even result on the trade – a great outcome considering the market collapse that occurred throughout 2023. If the original loan maturity was enforced the sale proceeds would have been $200,000 less than the original purchase price and accrued interest.