Tactics for managing your farm business
3 min read
Maintaining profitability in dairy farming is a challenge, especially with increasing costs. The page provides guidance and tips on how to manage your farm's budget effectively. Strategies include surrounding yourself with a knowledgeable support team, investing in quality, controlling costs, managing pasture efficiently, and reassessing feed economics. Tools like benchmarking, budgeting, and using specific budgeting resources can help you stay profitable and prepare for the future. It's important to consult with trusted professionals and consider the insights shared by others in the farming community.
Managing a viable farm business in the current economic environment is a challenge many farmers are facing.
Knowing what actions you can take now and what you need to consider over the next 18 months will help you plan and give peace of mind so you can get on with farming.
DairyNZ has pulled together nine tactics to help farmers with their decision-making during this period. These tactics are based on research, data and learning from similar past seasons.
Every farm is different, so take time to consider your options and find what works best for your farm business.
Some of our high-performing farmers have shared how the payout drop will impact their budgets, along with tips and strategies to help navigate these challenging times.
Tactic #1: Farming is cyclical, stay positive and focus on your end goals
Tactic #2: Continue to focus on ways to reduce costs within your business
Tactic #3: Communicate with your advisors and support people early and often.
Employ a no-surprises policy and get their input to help you make meaningful changes.
Tactic #4: Establish your options for reducing mating and breeding management costs without compromising results
Tactic #5: Look for efficiencies in your animal health spend
Tactic #6: Evaluate feeding decisions around your farm's pasture and supplements
Tactic #7: Think about the strategic and tactical use of fertiliser
Tactic #8: Look after your farm team and explore any opportunities for labour efficiencies
Tactic #9: Keep sight of the long-term, plan, monitor regularly and adjust as needed
Waikato farm owners Bryce Anderton and Aleisha Broomfield share how the current period of increased farm costs and high inflation is affecting them and how they’re coping. Speaking live at Fieldays 2023, Bryce and Aleisha talk about the impacts on their businesses, actions they’ve taken to maintain profitability, the role of cost control, advice for other farmers, and their go-to tools and resources.
How are Kiwi dairy farmers managing their way through the current economic climate to maintain their profitability? In Part 2 of this series, hear from Waikato owner operator John Bluett and Canterbury herd-owning lower-order sharemilker Kylie Marriott. John and Kylie share their approach to coping with cost increases, how they calculate profit from various inputs, how they budget when things are changing so quickly, and what they’ve learned from previous tough times.
How are farmers managing their way through the current economic climate to maintain profitability? In this first episode, we’re joined by farmers Dan King and Marc Jones. Dan and his wife Kate are owner/operators on the West Coast; and Marc and wife Nia are 50/50 sharemilking 700 cows at Mamaku, Bay of Plenty, and contract milking 500 cows in Tirau, Waikato.
DairyNZ Head of Economics Mark Storey joins Rowena Duncum from The Country on the DairyNZ site at Fieldays 2022, to chat about managing cost pressure in an uncertain environment.