For many, the last few years have been unique and positive – resulting from low inflation, low-interest rates, above-average commodity prices and above-average production.
Now, our current reality is very different.
We will likely see an extended period of increased inflation, increasing interest rates and softening commodity prices. In addition, from a production standpoint, there is talk of El Nino weather patterns ahead…
The question we should ALL be asking is: Can my farm business model handle this new reality?
In this episode, I call on the “Brains Trust”, inviting Farm Owners Academy Co-Founder Greg Johnsson and Executive Director at RLS Agribusiness Jeff McDonald to join me to explore this question in detail.
We discuss the importance of:
knowing your numbers;
presenting proactively to your bank;
developing a compelling economic model for your farm;
stress-testing your farming system based on long-term average yield & prices;
knowing your ‘new’ cost of production; and
being financially strong as a farm business owner.
In this, we share 2-3 key performance ratios we each need to be aiming for and emphasise the importance of considering these in confirming you have a business model that is agile, flexible, profitable (in most years) and resilient.
For more on this important topic, join Greg Johnsson & me on Wednesday 7th, June for a 90-minute webinar where we will dive deep into the core numbers you need to know and insight into what the top 20% of farmers are doing differently to adapt and thrive in this new agri-economic climate. For more information or to secure your seat, click here.
As always, a compelling conversation when I bring these two incredible minds together.
Enjoy, and all the best as you stress-test the strength of your business model.