Next week we're bringing our Platinum Mastermind community together for two days at our next Deep Dive. 

The theme is Pump Up Scale. 

And before you jump to conclusions, I'm not talking about hectares. 

At FOA, when we talk about scale, we're talking about the net revenue your business generates. 

Which raises an interesting question. 

Does scale actually matter?

We've heard plenty of arguments over the years that it doesn't. That a well-managed smaller business can outperform a poorly managed large one, so you should focus on profitability rather than getting bigger. 

There's a lot of truth in that. 

But recently we went back through our FOA benchmarking data from 1,225 farm businesses to see what the numbers actually tell us. 

And the trend is pretty clear. 

Scale matters.  

Across our benchmarking, median return on assets managed increases from -1.1% for businesses under $500k in revenue to +6.0% for businesses over $5m. 

As scale increases, profitability tends to increase with it. 

But that's only half the story. 

Because when we looked within each scale band, we found something even more interesting. 

The difference between the best and worst managed businesses at the same scale was enormous. 

In fact, getting into the top quarter of your existing scale band is worth around 1.6 to 2.8 times more profitability than simply moving up to the next revenue band. 

Better management can be worth much more than getting bigger. 

And that's an important distinction. 

Because there are two ways you can try to grow the profitability of your farm business. 

You can buy more land, machinery, livestock and infrastructure. Take on more debt, employ more people and add complexity in the hope that greater scale will produce greater returns. 

Or you can become a better manager of the business you already have. 

The second option costs a fraction of the first. 

And this is where the benchmarking data gets really interesting. 

The top 20% of producers are around 5x more profitable than the average producer. 

They aren't necessarily working five times harder or farming five times more land. 

They're managing what they have better. 

Better business models. Better financial management. Better decisions around people, capital and risk. Better systems for keeping everyone focused on the things that matter. 

That's why we work so deeply on management capability with our Platinum Mastermind members. 

Improving your management doesn't just help you squeeze a little more profit out of the business you have today. 

It changes what becomes possible tomorrow. 

More profit creates more cash. 

More cash creates more choices. 

And suddenly when the property next door comes onto the market, you're in a position to buy it rather than wondering how you'll convince the bank to lend you more money. 

That's the difference between chasing scale and being in a position to choose scale. 

One can leave you with more hectares, more debt and the same problems amplified. 

The other can create the profit, capacity and confidence to grow when the right opportunity comes along, while building a life of abundance rather than one of constant financial pressure. 

That's what we'll be working through with our Platinum Mastermind members next week. 

Get better first. Then get bigger deliberately. 

So here's the question I'd leave you with. 

Is your biggest opportunity right now to get bigger... or get better? 

For many farm owners, the answer will eventually be both. 

The order matters. 

If you have goals to scale your farm business over the next few years, book a Discovery Call with one of our coaches. 

Together, we'll look at where your business is today, where you want to take it and whether improving your management capability could be the highest-return investment you make before buying another hectare. 

👉 Yes, I Want To Scale My Farm Business 

Regards 

Sam Johnsson 
CEO, Farm Owners Academy 

PS – Our benchmarking of 1,225 farm businesses found something surprising: better management often pays off more than buying more land. If you're not sure whether your business needs to get bigger or get better first, book a free Discovery Call.