Several of our accepted on-farm practices are keeping many sheep and beef farmers in a state of low profit and lack of belief that they can generate any more profit than they are doing now. In fact these practices tend to be recommended to farmers with the belief that they are sound. However, there tends to be very little connection with long term use of these practices and the historically poor business results from farming that are keeping our farm businesses just off survival. Here are some examples:
Although some of these ideas may be true sometimes, there are not rules of thumb at all. They result from “income” thinking, not profit thinking. They are driven by the mistaken beliefs that more (apparent) income automatically equals more profit and take no account of an allocation of all farm working expenses as the value change of an animal is generated. Gross Margins and the like are inaccurate “profit” metrics and keep farmers in the production treadmill. Low pasture covers post winter almost eliminate the ability to capture the spring profit period. The concept of prime and store values above tend to be a pride thing as opposed to good business sense where the extraction of profitable value change from animals is the real key.
Those who understand true profit principles know that following these ideas keeps them generating low or no profit for years. There are ways and methods of getting clear on true profitability so that they can double, triple or even quadruple sheep and beef farm profits compared to historically “normal” years. Yes, this is not only possible, farmers are doing it right now!
Perhaps it is time to take a look behind our typical farm business results and discover the real deal.
If you are curious about how the GrowFARM® System can help sheep and beef farmers generate the profits they really want, contact me here.
accurate thinking achievement action adversity all blacks autumn beef benchmarking business business operational literacy business owner business owner thinking business strength change client client masterminding cobalt communities community complimentary ebook compulsory levies confidence conversion of pasture into profit disruption doing what it takes do what it takes economy engage events failure family farm farm business farm business cycles farm business iteracy farm business profit farm business results farmer farmer attitude farmer confidence farmers farming farming for profit farm profit farms farm systems financial literacy focus funding generate governance growfarm growfarm season plan habit change kiwis legacy livestock livestock farming loyalty mistakes money nz economy older farmers ownership pasture pastures planning positive farmer attitude price makers pristine environment production productivity profit profitability profitable farming profit and sustainability profitlive profit methods profit on purpose profit periods profit principles profits profit vs income protein risk riskiness rural rural professionals sales scale sheep sheep & beef farming sheep and beef sheep and beef farm sheep and beef farming sheep and beef farm profit soil spare cash strategicplan strong farming industry success succession sustainability take control target pasture covers teach team topdressing unlock potential vision win/win work with nature young young farmers
Post your comment
Comments
No one has commented on this page yet.