The highest priorities for sheep and beef farm pasture

Posted by Brendon Walsh on 14 December 2015

There are only two priorities for sheep and beef farm pasture - if you want to generate profit that is. They are (as our GrowFARM® clients tell us) very clear, logical and straightforward.

Here they are:

1. Profitable animals fully fed during profit periods
2. Any trimming options (animals or other) if needed, to help #1 to happen

These two priorities do not line up with current inaccurate industry thinking about profit and so unfortunately are not well understood. But this does not make these two priorities wrong. In fact, it highlights the need for real understanding of profit by sheep and beef farmers and a systemised process to allow the transition in thinking and actions to happen successfully.

Most farmers have major challenges understanding what a profit period is. Let’s recap. A profit period occurs when the value change of an animal over a time period (income) is greater than the cost of the Dry Matter eaten (DMe) by that animal over that time period. Likewise, a loss period occurs when the value change over a time period is less than the cost of the DMe (or negative). The cost of the DMe is a portion of ALL farm working expenses allocated to that animal over that time period.

Full feeding over the time period allows the best value change for the cost of the DMe, not to mention very healthy animals! If the value change does not cover the expenses, DM has been eaten for a loss – END OF STORY! If this was done by profit intentioned animals, you can’t get the DM back to have it eaten for a profit! IT’S GONE! Is that a clue as to the poor profit results from sheep and beef farms in general?

With lack of clarity, results will be 50:50 at best because there are times in the year when animals are profitable and times when they are not. This applies equally to breeding, trading, finishing or grazing operations. These times can vary according to region, climate, markets, farmer strengths and other variables, but farmers must know when these periods occur in their businesses well ahead of time, and then set up to capture profit when they are due. Priority #2 (if needed) allows the set up to occur.

But how do farmers get to know when these profit periods are likely to occur, and then set up for full feeding during those periods?

That’s what we built GrowFARM® for. Our clients use the systemised process to learn, run their scenarios in this way and then (with coaching) do what it takes to achieve profit when it is available. By following this system, they build the habits necessary to become consistently profitable farm business owners, not just farmers.

We are often told that the difference between good farmers and bad farmers is being proactive vs being reactive. Does each farmer accept this as a throwaway line, or can they back it up with real understanding, decisions and results?

If you are curious about how the GrowFARM® System can help sheep and beef farmers generate the profits they really want, contact me here.