For many, the last few years have been unique and positive – resulting from low inflation, low-interest rates, above-average commodity prices and above-average production.
Now, our current reality is very different.
We will likely see an extended period of increased inflation, increasing interest rates and softening commodity prices. In addition, from a production standpoint, there is talk of El Nino weather patterns ahead…
The question we should ALL be asking is: Can my farm business model handle this new reality.
In this episode, I call on the “Brains Trust”, inviting Farm Owners Academy Co-Founder Greg Johnsson and Executive Director at RLS Agribusiness Jeff McDonald to join me to explore this question in detail.
We discuss the importance of:
- knowing your numbers;
- presenting proactively to your bank;
- developing a compelling economic model for your farm;
- stress-testing your farming system based on long-term average yield & prices;
- knowing your ‘new’ cost of production; and
- being financially strong as a farm business owner.
In this, we share 2-3 key performance ratios we each need to be aiming for and emphasise the importance of considering these in confirming you have a business model that is agile, flexible, profitable (in most years) and resilient.
For more on this important topic, join Greg Johnsson & me on Wednesday 7th, June for a 90-minute webinar where we will dive deep into the core numbers you need to know and insight into what the top 20% of farmers are doing differently to adapt and thrive in this new agri-economic climate. For more information or to secure your seat, click here.
As always, a compelling conversation when I bring these two incredible minds together.
Enjoy, and all the best as you stress-test the strength of your business model.
Hutch & Team
When you’re ready to take the next step and work with us, here are three things you can do:
1. Subscribe to our ‘Profitable Farmer’ podcast
This free audio podcast delivers ideas to help you run a great business, leading to more profit, control and freedom – Click here.
2. Join the Farm Owner Academy’s closed Facebook group ‘Profitable Farmer’
Our new Facebook community is where smart farm owners learn how to get more profit, control and freedom, and you can connect with like-minded farm owners – Click here to join
3. Work with us privately
If you’d like our team to help you scale up your farming business or create a ‘freedom farm’ just email us at firstname.lastname@example.org and put “Private” in the subject line… tell me a little about your business and what you’d like to improve and I’ll send you the information you need to get started!