What are the Traits of a Successful Farming Operation?
This time of year, growers are thinking about traits. They are examining the traits they purchased in their hybrids and determining if they were successful. Farm Credit Mid-America is asking farmers to also examine the traits of a successful farming operation and see if their farms have those traits. Matt Davis, Vice President of Agribusiness with Farm Credit Mid-America, told HAT one of the traits of a successful operation is planning, “Farmers should develop a crop production plan that fits the farm. The right seed and crop inputs, combined with the right in-season management, are primary factors for improving yields.”
On the Financially Speaking program, heard on HAT radio stations across the state, Davis added, “Farmers should also know what the market is offering and what each field is capable of producing, so they can heighten their return for each field.”
Another trait of a successful operation is a well-considered and written out marketing plan. Davis stated, “Don’t sell your product until you know the true cost of production. Many farmers calculate cost per acre, but that might not be accurate enough. You should aim to know the production cost of every unit for sale. Understand all costs, including fixed costs and family living expenses, before determining a price.”
Davis will examine other traits of a successful operation in the next installment of Financially Speaking which will air later this month. In the meantime, Farm Credit Mid-America has more financial tips, insights and perspectives at e-farmcredit.com/insights.