How often have you stopped and taken the time to consider your farming business? If you can answer that question, then I reckon you're a member of a pretty small group of farmers nationally! When most people stop to think about their farm as a business, its around tax time, completing a BAS statement or as part of financial discussions.
Assessing your financial performance is not just important, its vital for your business. But its not the only thing you need to be assessing. Every farm is made up of systems that contribute to the level of production and the financial returns your system producers.
These systems are the obvious ones such as the livestock your carry, the pastures and soils that you rely on, the infrastructure that supports your programs. Less obvious are the systems that bring it all together, your management skills, as well as the specialist skills that you need to manage your livestock, your pastures and soils as well as the specialist marketing skills you need when you look to make a return from your production.
So how do you assess if your enterprise is running to its full potential?
When you are making your assessment, how objective are you?
The four steers in this
photograph are all the same age, and were all from the same property when this photograph was taken. The variation between the four of these steers is obvious in the picture.
However variation like this is common across the herd. The flow on effect of that variation impacted on sale times, sale weights and income on the steer and surplus heifer sales. It also impacted on joining weights and the conception rates recorded in the fixed time joining that was being followed.
One of the problems in rectifying this situation was the owner was so used to seeing the herd, the variation was no longer obvious. The flow on effects were being ignored or not addressed correctly, instead the owner focussed on other areas to manage.
I reckon the problem is that most people are so used to seeing their operation every day, they lose their ability to see the variations, or to be objective about the strengths and weaknesses that exist in their systems, and in their farm as a whole. When you can't identify your strengths or your weaknesses, it makes it very hard to capitalise on the opportunities that exist for you, or to prepare for the threats that may be coming.
One of the key roles of the RaynerAg business is to provide producers with an objective view of their program. Helping reduce the variation in a program is one practical approach. But its not just about working through the cow herd and taking out the extremes!
More importantly, I reckon its my role to help identify the strengths and weaknesses that impact on the whole business. And then to work with the producer to come up with a plan to use the opportunities available to be more productive and profitable, and to be prepared for the threats that could be coming.
If I can help my clients take a more objective look at their business, and to do that on a regular basis, I reckon I've done a good days work!
So if you're part of the large group of Australian farmers that haven't had an objective look at your business in a while, why don't you get in touch? I'll be happy to help you see the variation and work out ways to fix it.