What a winter! Snow and colder than normal temperatures has seen challenging times for some farmers. Funnily enough, this is winter! We would expect these types of things to happen wouldn’t we? By the state of some farms, one could be forgiven for assuming “perhaps not!” It appears we all have a lot to learn about setting up for opportunities on our farms.
Past articles have covered setting up to receive optimum profit from profit periods. With spring upon us now as a profit period, how well have you set up for it? What position are you in now? Are you ready for making the most of the opportunities?
Those who have planned well for the winter and spring have come through with good pasture covers, minimal issues with snowfalls, and great animal health – they are ready to go. Poor planners have poor pasture covers, possibly hungry animals, several animal deaths from the snowfalls and a lot of stress - not to mention little time off during the July school holidays! This is missed opportunity. As winter happens every year, what causes successful performers to have more options, and less successful performers to usually have few options?
The vast majority of NZ farms carry breeding stock in some form. Breeding forms the core business of many so it just makes sense to carry the optimum breeding stock through winter that will allow very good covers for full feeding of mature females and young, post birth (in the spring). Why? This allows females to milk very well and feed their young as best as possible. The young animals grow well, have fewer animal health issues and are up to weight that much earlier. The profit equation then works most positively during the spring to aid in the banking of profit!
Naturally with low or nil pasture growth rates in the winter, stocking levels would not be high and there would be a very good pasture cover being carried through from the late autumn/start of winter. Excess, surplus and non-profit animals would not even be carried. In colder regions, the right numbers of the right animals could be well managed on healthy winter crops to aid in achieving great spring pasture covers. Animal condition would be kept fairly constant throughout the year instead of vastly fluctuating to cover the fact there are too many animals being carried. Pasture growth rates will increase sooner in the spring due to there being plenty of grass already available. Potential opportunities would already be in place over and above breeding females and new young, if needed.
If a farm is mainly finishing or trading, or a combination with breeding, the same principles apply. Stocking rates may be nil to moderate but not high. These farmers know that Dry Matter (DM) is eaten only once and eating lots of feed for no profit over winter is a little senseless, especially with the spring usually being a good profit period.
To determine the plan, scenarios will have been vigorously run and tested well ahead of time. The great thing is that whatever the climate does these farmers are well set up to handle and benefit from it.
It is very unprofitable to farm with a high stocking rate for 10 months just so you can have grass eaten when in comes away in the other 2 months. Successful farm business people not only know this, they have made plans and taken action down a far more profitable route.
If you find yourself always on the back foot in winter, take lessons from those who know, and make a few changes. As AA says, "the definition of insanity is doing the same thing and expecting different results." This statement is truer than we realise. Don't just give it lip service - lets get on with it next year and do what it takes to have a very happy and profitable winter / spring, whatever the climate!