Farmers - stop taking the same old hits!

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Posted by Brendon Walsh on 9 August 2016

Nonu tackle on Folau

It has concerned me for some time that many sheep and beef farmers are not really in control of their own businesses and results. Just take a look at the usual results that flow across rural banker’s desks or rural accountant’s year end processing files! Highlighting these results are an average of 2% Return on Investment and poor cash flows. Have you ever heard this one - Asset rich, cash poor? Of course you have, we all have!

Farmers have quoted many and varied reasons for this over the years. They say that it’s the constant impact of the weather, variable commodity prices, variable livestock markets (quantity and values), lack of capital, lack of labour, rascally behaviour by some suppliers of industry products and services, among others.

But don’t these things always occur? Haven’t we seen them before? Yes, and Yes!

Then why do we keep talking about them? Why do we keep being adversely affected by them?

Once again, reasons abound. A lot of our farmers in NZ don’t have a clear understanding of business, profit and planning. Many discover opportunities after they have become unavailable again, if at all. Several are under-resourced to achieve what they really want. Some don’t know what they really want so anything they do will not really bring satisfaction - they end up taking business and personal hits year after year.

Now, I am not down on farmers for this. In fact, it pains me to see it continue, especially on family farms where generations have persisted until the current generation feels they have no other succession alternative than to sell the farm.

A rural professional attended a recent Regional Mastermind Meeting of GrowFARM® clients, and during our feedback discussions afterwards he made the following remarks: “Your clients realise that what they put into their business is what they get out. They understand that if they plan, put the admin time in, and make decisions proactively, they are in control of their own destiny and in turn very few comments complaining about climate or commodity prices were made.” I appreciate his feedback and trust his judgement - he means what he says and says what he means. If this wasn’t clear to him he wouldn’t say it.

To GrowFARM® clients this is normal. Why would they not want to be in control of their own destinies? Why would they want to whinge about those things they can’t control? They just get on and build profitable businesses with greater resilience and ability to handle risk. Opportunities can be spotted well ahead of time and planning can easily account for it. Personal results tend to turn up first and business results follow. In other words, they learn how to be ahead of the game. But whether or not a sheep and beef farmer is with GrowFARM®, they need to operate this way every day. Only then will we see true leadership, strength and passion emerge in our rural communities.

A client from many years ago said to a group meeting back then that in his opinion the difference between a good farmer and a bad farmer is “A good farmer is proactive; a bad farmer is reactive.” Funnily enough, his opinion is making more sense the older we get!

If you are curious about how the GrowFARM® System can help sheep and beef farmers generate the profits they really want, contact me here.

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Comments

  • I don't agree with the term good or bad farmer. I think it all depends on what they are trying to achieve! Do they even have an awareness of why or what are they trying to achieve it? The GrowFARM system is a very powerful tool that helped me identify what I wanted to achieve, but the power is in the support of keeping the why you want it present in your mind so you can take action . Then you can take hits if you need to, block others but most importantly GrowFARM gives you the confidence to bring your A game in everything you do! Not because your bottom line is better (nice side effect!) but because you are doing what is important to you!! Decisions that were once impossible are made opening up huge opportunities!
    Do you know what you are trying to achieve? Or Why??

    Posted by Mel Bradley , 10/08/2016 7:32am (8 years ago)