We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
Just two days ago, I got off the phone with a 25-year-old corn farmer named Billy who recently became a father. He explained to me that only a few days after the baby was born, he was given the chance to see the farm’s financials for the first time.
Casually walking into the bank one day a few years ago, I bumped into a dairyman I have known since 2006. We caught up about our kids and life. Then he described a situation he was in that is a common one I find in my consulting work with dairies.
As people who live in rural areas, we are all used to the potholes that jar our vehicles and rattle our teeth. Likewise, the financial statements that measure the position and performance of our dairy businesses have potholes that are sometimes difficult to navigate.
Work on a dairy farm can be hectic. A lot of your success and efficiency is tied to clarity on who does what and when. Consider creating more energy when you understand what I call the family roles guide.
The COVID-19 pandemic taught and continues to teach numerous lessons to those of us in the dairy industry. We found out in March 2020 that the processing and packaging part of the industry could adapt but was not very nimble in doing so.
An effective risk management adviser should be able to provide you with advice on local feed contracts as well as strategy on managing longer-term price risk using futures and options. With this team, you can take control of your financial future and achieve your long-term goals.
The milking parlor is the “heart” of your operation. It’s the harvest point for you and your herd’s hard work – but with all the other complexities of running a dairy, it can be taken for granted and overlooked.
Basis is a very important number. It can be a metric used to determine your likelihood of profitability. It will tell you how your sales are priced compared to another processor. Even though dairy farmers today do not have much option to pick and choose where their milk is sold, basis is a number you should know.
It’s the end of harvest. It’s time to clean up or make repairs to your equipment to get it ready for next year. It’s also a time to think about how you’ve performed from an operational standpoint. But, as you have more downtime over the coming months, it’s also an opportunity to take your management skills to the next level.
RSS
