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| 1. Realizing our crop land was producing a commodity and selling it at mid-level quality (yellow #2 dent corn for example) -> move to selling quality corn for food-grade white corn. Lucky to have a market within 60 miles. (not specific to small farm)
2. Reduce capital, pay off debt.
3. Letting spouse market the grain. Substitute spouse with a less-emotional employee. (not specific to small farms)
4. Diversify w/livestock (not specific to small farms, but utilized unimproved and marginal ground)
5. Learning a new skill, accepting an advancement in off-farm role for increased off-farm revenue.
6.
Economies of scale are real. Capitalism is difficult when the players are larger and fewer.
Consolidation brings opportunity for customization, but if you're still trying to sell a commodity in an capitalism market with large players; the discounts and incentives afforded to easy, exact, and enjoyable (large) contracts should haunt you.
Hire expensive labor (that comes with free use of their equipment). You have to know what you're good at. If it's marketing, stop trying to be jack of all, master of none by doing prep, seeding, care, and harvest of the crop as well as the management. If you're charlie daniels with a torque wrench, buy aged equipment and keep it going, but rely on somebody to do your marketing. Recently saw a picture in an email chain talking about the effect a rotten/moldy orange has on a freshly picked, perfectly good orange set next to it. Both end up moldy/rotten and keep getting worse. Surround yourself with quality people, and don't become the rotten one in the group.
Swallow your pride. Continuous improvement is part of every successful business - what areas are you not as profitable in? Have your financial advisors (if you can't attain my number 2 ROI) review your records and listen to them. An ego is a bad thing to have in business, especially if you're trying to do it competitively and profitably.
Some might think you should just quit reading my posts. | |
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Small farm ROI
