Home / Cases / How to Increase Farm profits

How to Increase Farm profits

Improving any aspect of your farm system is seldom about addressing just a single issue more likely it will involve working on a whole combination of factors together in order to achieve the most successful and sustainable results.

Even as a simple formula PROFIT is a combination of …
YIELD x PRICE – Cost Of Production = PROFIT

Whether you are a mixed farming operation, continuous cropper, grazier or corporate farm, dryland or irrigation, this equation is fundamental to your bottom line.

Increase Production (Yield)

  • Improve soils
  • Balanced rotation – complementary crop and pasture sequence
  • Best practice – targeted agronomy and husbandry
  • Better pasture management (native or exotic) – optimum stocking rates

–          faster turn-off times

Better Price

  • Marketing strategies
  • Enterprise selection – target markets – prime hard wheat or prime lamb
  • Meet specifications – price premiums
  • Manage risk – minimum crop estimates

Lower Costs of Production(COP)

  • Complementary crops – cereals, break crops, pulse, legume, manure

–          grow your own nitrogen

  • Integrated weed management – herbicide / non-herbicide
  • Effective spray application, better grazing management
  • Timely animal health programs, improved carrying capacity
  • Controlled traffic farming
  • Increase scale – purchase, lease, sharefarm

Other Factors

  • Cash flow and current circumstances
  • Positive attitude
  • Focus / communication – a plan, direction and targets
  • Skilled / informed – labour and management
  • Team – bankers, advisors, accountant
  • Succession prepared

(Source – http://www.3d-ag.com.au/content/how-increase-farm-profits)

Leave a Reply

Your email address will not be published. Required fields are marked *