Expand your farm business or invest off-farm? Compare for profitability

There is no substitute for undertaking a professional approach to farm business analysis. There are positive options when deciding whether to expand your farm business through land purchase, land leasing and share farming, or instead investing off-farm. The key is, however, to undertake the correct analysis so the whole farm performance of liquidity, efficiency and wealth is understood. This will ensure sound decision making and improved risk management. Good, sound farm business analysis isn’t always easy, but it can be done using improved analytic technology, and is worth doing. Do this for yourself or use a professional farm business management [...]

Your Farm Business Journey: Tracking Your Goals and Progress

This quote by Steven Covey is a great way to start anything – whether it is something short-term like a weekend fishing trip or a long-haul journey around Australia. But it is especially empowering for your farm business journey . What is your goal, or the ‘end’ that you hope to achieve? Even for a short-term goal like the weekend fishing trip, the ‘end’ may be very different for different people. Is it really about catching fish, or is it more a chance to get away and relax? Maybe it is a bit of both. Whatever the goal, and whether this is [...]

Knowing your Cost of Production: A risk management tool for the farm business

I was recently forwarded this interesting commentary from a trusted source in the US: What is interesting in this quote is that most of the strategies suggested here are for managing and improving production outputs. Of course, without production there will be no income. But as a producer, how do you assess what is providing your business with the best financial return? One of the main drivers to remaining competitive is measuring your cost of production at the end of each season. This information can provide powerful insight into how your business can be improved into the future. [...]

By |2019-02-13T23:31:46+00:00December 18th, 2017|Farm Business Decision-Making, Improving Profitability|0 Comments

Are you making the most of your tax return information?

The completion of the annual business tax return comes as a major relief to us all, often with a heartfelt, ‘Thank goodness I don’t have to do that again for another year!’ However, the discipline of completing the annual tax return does have benefits apart from hopefully saving you tax: The process makes you assess another year’s income and expenses and can, with some editing, measure your business’ financial performance. It becomes even more valuable if you look at this edited income and expense trends over a number of years. In fact, as a tax return is the only legal [...]