Grain is the staff of life, as the saying goes. That’s because nearly two-thirds of the world population would starve without these essential ingredients. As a grain farmer, you play an integral role in the American economy, and at Friendly Meadows, we want to see your business thrive. Here is our second in a two-part series of helpful tips that will make your operation that much more successful:
1. Sell underperforming or nonperforming assets: Underperforming or nonperforming assets should be sold before they become a drain on the profitable parts of the operation.
2. Develop a marketing plan: Marketing is another business skill that sets successful farmers apart. It has two critical steps – developing a marketing plan at the start of the season, then executing it. Be a proactive seller.
3. Understand the financial impacts of their decisions: Business decisions are made daily, weekly, monthly, and annually in agriculture. By making one choice, you may be limiting your options down the road. Alternatively, one move could open a whole new set of possibilities for your operation. Knowing how your decisions and future opportunities work together is important.
4. Think holistically about cash flow and costs: It’s important to think holistically about your farm’s business decisions. Think about working capital per acre on all your acres, and machinery costs per acre on all your acres.
5. Maximize profit vs. yield: Find the sweet spot. Make sure you’re getting a return on investment on each acre.
6. Pursue getting better, not just bigger: Concentrate on strengthening your farm’s weak points before pursuing expansion. If you get bigger before you’re ready, your operation’s problems may be compounded.
Think of Friendly Meadows as your partner in farming success. We offer a selection of grain cleaners and separators designed to make your grain farming process easier, more efficient, and ultimately, more successful. For more information, give us a call today.