BUSINESS & RISKS ANALYSIS
Our independence underpins out service, and as such the integrity of our recommendations is not compromised by product sales. All recommendations are supported by evidence based science. Detailed agronomic planning and an in-depth knowledge of what drives farm profit means our advice will improve your farm businesses’ bottom line.
INDEPENDENCE & INTEGRITY
Astute enterprise selection underpins resilient and profitable farm businesses. It is uncommon on a farm that a single enterprise will remain profitable for the long term. Having two or three enterprises spreads the risk to of failure of a single enterprise. To achieve the best enterprise mix there are several planning matters that should be considered:
• Finance and cash flow
• Labour, skills and workload spread
• Synergies between enterprises
• Risks: Markets, labour, disease, climatic, finance, etc
• Infrastructure and equipment needs
Enterprise selection decisions are quite complex and farmers can often benefit from assistance. AgriStrategies and associates have the necessary skills and experience across many agricultural enterprises to be able to help with a wide range enterprise decisions.
Stocking rates and feed planning:
Many graziers would say that most common risk on a livestock property relate to high stocking rates and the occurrence of drought. However, unless stocking rates are adequate pastures will tend to remain ineffectively grazed, resulting in reduced carrying capacity due to accumulated dead material. Regular assessment of pastures and putting those figures through a feed budget allows feed on offer to be quantified. By considering this information with changes in livestock condition, rainfall forecasts, and the status of drought feed reserves, feed risks can be managed. Timely adjustment of stock numbers based on such information is critical to successful feed risk management. Enquire about the GRAZMAN seminar to improve skills in this area.
The 2018 drought has been one to remember. During and after droughts some important questions need to be asked.
• Considering past droughts what was normal and what was different this time?
• What happened to the farming business during this drought?
• How prepared was the business and what was learned?
Droughts are an integral part of life on the land, but the damage that a drought can inflict on the average grazing business and it’s owners mental well-being cannot be overstated. The financial and personal impacts and the disruption to farming enterprises can take years to recover from.
What can farmers do to be better prepared? Talk to us if you would like help putting together a drought management plan. Every farm needs one and now is a good time to prepare yours.
In order to run a profitable business, decisions need to be made in a timely manner based on accurate information. Key performance indicators (KPIs) should be chosen for the whole business and individual enterprises to regularly compare farm performance to industry standards. Regular monitoring allows continuous improvement. Consider the AGRI-Strategies FARM ADVISORY BOARD PROGRAM. The Farm Report Card used in that program allows ongoing monitoring of KPIs.