Managing your Farm During Challenging Markets
Markets across many agricultural products have been challenging over the past few years. Have you been too busy farming to take the time to manage? In my 38 years being involved in the business of agriculture, from several vantage points, I have noticed that brainpower beats horsepower nearly every time. Often, we are so busy working in our business, we never find time to work on our business.
I recently read an article published in the Farm Bureau News that highlighted the drop in Michigan net farm income from 2011 through 2013 to 2018 through 2019 dropped by 65%. (Here is a link if you would like to read it. https://www.michiganfarmnews.com/michigan-net-farm-income-down-65-2nd-only-to-minnesota ) I would like to see the management teams at Apple, Nike, and Coca Cola work through that!
I have prepared a short list of concepts that may help you get back to managing your farm business, instead of handling tasks.
Take inventory of all your resources and put them to the best uses (land, equipment, facilities, people)
Evaluate your existing operation and focus on your strengths and most profitable areas
Review your marketing program and consider other options to increase revenue on your existing enterprises (Many of us are guilty of spending all our time improving on production while ignoring marketing.)
Look for ways to improve efficiencies (reduce trips with no-till, only milk early lactation cows 3x)
Look for some specialty or niche crops or livestock that can be produced with minimal changes to existing resources
When investing in iron, favor galvanized (irrigation and storage) with better cash flow benefits
Consider diversification options both in production ag and non-ag enterprises
Seek outside help for fresh eyes with a different perspective or a specialist in a particular segment of your operation (agronomist, nutritionist, financial adviser, accountant)
There are a few blogs on the MVI website that may be helpful:
Will Center Pivot Irrigation Benefit My Farm?
Looking for More Yield? (Concentrate on your acres closer to home)
Wait and Pay Cash for Center Pivots or Finance and Boost Yield Now?
ABOUT THE AUTHOR
Pete is the marketing manager for Michigan Valley Irrigation, having joined the company in 2016. He was raised on a dairy farm in western New York and graduated from Cornell University with a B.S. in agricultural economics. His entire working career of over 37 years has been involved in agriculture. A farmer helping farmers. When away from Michigan Valley he operates, Joyful Noise Farm, a small livestock and produce farm and spends time with his family.
