Farming not paying the bills? Well stop fighting symptoms!

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Posted by Brendon Walsh on 16 January 2017

Collage of farming not paying the bills

A recent NZ weekly farming publication presented several stories of sheep and beef farmers who were developing extra businesses, because “farming wasn’t paying the bills.” The businesses included food, tourism, literature and conservation operations additional to the farm, which had tapped into passions that the farmers had. They were touted as success stories and I agree – well done! But isn’t this missing the point big time and avoiding some very real opportunities?

Don’t get me wrong, I’m all for creating opportunities for other businesses and bringing in greater profit from farms if it fits in with the vision of the farmers. However, if the reason that extra business is needed in the first place (a low profit farm) is not addressed then the low profit farming business remains, generating low profit or loss. In other words, it is drawing on that new business and the farmer and their family are working harder and longer to accomplish all this! Phew! It is almost exhausting thinking about it.

Perhaps farmers in this situation need to understand their farm business first and get the profitability sorted so that when they then put their energies into the new operation, they have two business doing well without having one draw upon the other. I’ll bet you any day that situation is preferable for anyone, rather than the farm losing money with only the extra business being profitable.

When the farm business is not doing well and the accepted solution is to look elsewhere rather than fix up the farm business, it would appear that the owners and their advisors don’t see any other way to run the farm business or even know how to turn around its profitability. If they did know they would be putting that energy into it. I have no disrespect for anyone as we are all trying our best to do what we do. Just consider the point that eliminating the cause of the issue (low profit in the farm business) would seem like a better short and long term solution for all concerned than fighting a symptom (farming not paying the bills) while low profit in the farm business continues.

The theory goes that the extra profit brought in from the extra business will go some way to alleviating the pain from the low profit farm business, so I get it. And good stuff! Anything to help right? Well, trying to run an exciting 100m sprint race with a concrete necklace will still get incredibly tiring at some point, not to mention bad for your health! I have some of my own clients investigating and starting other opportunities additional to their farm businesses, but they have addressed the real issues of low profit from the farm first and are turning or have turned them around, and extra efforts will only add to the positive mindsets and profits.

If you happen to get brutally honest and end up discovering that farming just isn’t the thing for you, then it makes sense to move away or transition out by starting another business. This may be the best path for you. However, this is not the case for most farmers who love farming and want to continue.

Please don’t use lack of knowledge or understanding of how to farm profitably as a reason to spread yourselves thin and run harder and faster just to stay afloat. There are ways to be profitable from your sheep and beef farm, grow your business abilities and deliver profits that you can be proud of. In fact, there are systems that anyone can use and get results from if they are prepared to learn, grow, and do what it takes. In doing this you will also grow your business skills to use positively in those other businesses. There is only upside!

It doesn’t matter about what you have or haven’t achieved in the past or what you know or don’t know. It just matters that you are clear and honest about what you want, that you crave those better results badly enough and that you are prepared to do what it takes. So please, before you fight symptoms, fix the issue first and then rock on with your new opportunity. Your future depends on it!

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

  • Thanks 5ofus for your comments. Excellent stuff about showing your farms to others and bridging the urban rural disconnect! The key point is that the farm must be profitable regardless of what you are doing and there are ways to do it without it draining a second enterprise.

    Posted by Brendon Walsh, 21/01/2017 6:05pm (7 years ago)

  • Doesn't take into consideration some of us enjoy showing our farms to others (and perhaps making a little $$ on the side from tourists). Now more than ever there is a disconnect of urban rural and the need to show what really happens on farm is great.

    Posted by 5ofus, 21/01/2017 7:28am (7 years ago)

  • There's so much sense in this blog. I have spent time talking to several of Brendon's clients recently and these are happy farmers, with hugely increased self respect, feeling in control and MAKING PROFITS. Every one was full of enthusiasm for what they are doing these days, and realise that doing what they'd always done was not only not profitable, lots of it was downright wrong. These days it's happy families and happy stock.

    Posted by Sue Edmonds, 16/01/2017 11:10am (7 years ago)