Farm Management Deposits: A Smart EOFY Strategy for Farmers

When the end of the financial year draws near, it’s time to bring Farm Management Deposits (FMDs) back into focus. Whether you’re wrapping up seeding, managing livestock or just trying to stay on top of cashflow, it is the time to be thinking of tax planning – and the FMD scheme remains one of the most effective tools for doing just that.

Why FMD’s Matter

Exclusive to Australian farmers, the FMD scheme allows eligible¹ producers to shift pre-tax income – up to $800,000 – into a dedicated deposit account, which can be drawn on in tougher years. It’s a powerful way to smooth out the financial highs and lows that come with running a farm.

FMD Trends: What the Numbers Tell Us

National FMD holdings sat at around $7.1 billion at June 2025, holding near record levels for a fourth straight year. But the headline figure hides a more interesting shift underneath: the number of FMD accounts has fallen from about 45,700 in 2014 to 43,600, while the average balance has climbed to roughly $162,000. Fewer farmers are holding larger deposits — a sign the scheme is maturing as growers use it more deliberately.

The state picture has also moved. Victoria is now the largest single holder of FMDs, with balances up 189% since 2010 to about $1.82 billion, overtaking New South Wales. Queensland continues to grow steadily. Western Australia, by contrast, remains about 27% below its 2019 peak.

Industry Breakdown: Who’s Using FMD’s?

Grain growers dominate the scheme. Mixed grain-sheep/beef farms hold the largest share at around 24%, followed by grain at 22% and beef at 16%. Together, grain-related enterprises account for more than half of all FMD value, a reminder of how central the scheme is to cropping businesses managing price and seasonal swings.

Among the gainers, sugar producers again stand out, lifting their holdings by around 38% over the past five years, with dairy and intensive livestock also building balances strongly

Final Word

EOFY is more than just tax time. It’s an opportunity to set your business up for the year ahead. FMDs are a proven tool to help build resilience, manage risk, and strengthen financial outcomes. Speak with your advisors early and contact Bendigo Bank Agribusiness to explore how a Farm Management Deposit can help strengthen your EOFY position.