Seeding is a key time for determining the profit performance of individual grain growing businesses. Timeliness of seeding has a strong influence on the profit drivers for the top 20% most profitable farms.
Farm scale has increased so there’s more hectares to get over, yet the time to get the crop in has tightened with a common goal to have cropping finished by the end of May.
Yet when I look around the neighbourhood some will still be sowing in late June – so why are some behind in their crop planting? Is delaying sowing intended to reduce frost risk, or is it a reflection of the lack of resources available? The real answer is likely to be poor logistics management.
The top 20% profit businesses are good at logistics and planning ahead. They set an end date to finish seeding, they then work back to a seeding start date with an allowance for some delays due to breakdowns or wet weather.
Then there’s the in-paddock efficiency where the good managers know how to ‘keep the seeder wheels turning’. Managing the sprayer, delivery of seed and fertiliser to the paddock, fuel, machinery maintenance and labour fatigue are just a few of the challenges they work through daily.
Family members have a vested interest in getting the job done as they are motivated by the success and profits of their own business, but how do employees find motivation to put in the extra effort to be timely?
If you’ve set a finish date goal and have achieved it then congratulate yourself and the team. You’re now well positioned to capitalise on the season’s potential as it unfolds, and can expect to be in the top 20% for profit if other aspects of your business are also performing well.
If you’d like to review your business to see where you’re currently sitting, ORM can help you pinpoint where you can make some gains. Book your complimentary one-hour introductory consultation, we analyse your business and provide you with actions and solutions specific to you.
- Sheep and lamb prices are at record levels, grain is also strong compared to average prices.
- Good opening rains will enable crops and pastures to be well established before the cold of winter
- Phasing in of Single Touch Payroll (see article in this newsletter)