This field, which a few short years ago held only alfalfa, is now home to our farm and our family. Dreams do that.
Since tax time is behind us on the farm, it is time to consider plans for the year which has already started. We look at our financial indicators from the past year, analyze what went well and what didn’t, and try to take a step toward our long-term goals. Keep in mind, this doesn’t do us any good if we don’t have long-term goals. How do we step in the right direction if there is no direction?
So this year:
- How much profit do we want to make? (Yes, this is a choice we all make! Profit is income minus expenses and principle payments.)
- Does that profit come from the farm, or non-farm income?
- How many pigs do we want to farrow? raise? feed? sell?
- Where is our market? Do we need to find more markets?
- Will we buy any equipment, land or breeding stock?
- What do we plan on planting for the coming year. Will we need to rent any land?
- Do we want to continue raising hogs? (Yes, that’s a legitimate question that needs to be considered.)
These decisions are not made lightly. They are a collaborative effort by all members of the farm and farm family (Loren and myself on our farm), with the help and insight of our farm business management instructor. Loren is enrolled in a course through Minnesota State Community and Technical College in Detroit Lakes. It is not structured like a “normal” college class, and a farm only gets out of it what it puts in. There is no grading curve. Farm and personal success (happiness, meeting goals, paying bills) are the determiners of success in the class.
So I guess what I’m trying to say, is that farming is not just getting up every morning and checking if the animals need to be fed. There is a little more which goes on behind the scenes. It’s planning time…
