Tag Archives: work

Progressive? Marginally.

Why the mass exodus of young people from farming?  Here is another example of  one of several problems – well identified – yet apparently laughed off by the current generation of farmers and ranchers left scratching their heads wondering why junior is leaving for good.  Sad, very sad.

Children leaving the farm.jpg
Copied from The Progressive Farmer – April 2018

To Hay or not to Hay?

If, by purchasing hay, i can increase the number of employees (cows) which do not need health insurance, workman’s compensation, employee benefits, bonuses, etc and they seldom complain about the work (grazing and raising babies) they enjoy, and in so doing, also increase the soil quality by feeding microbes (making those employees happy as well), and would decrease my actual labor costs and time, wouldn’t this be a good thing?

I’m not sure!

There are many qualified experts who discourage the hay habit – and i completely agree if i had to own and operate the very expensive equipment and time needed to bale hay, which would be on my own property, thereby simply moving nutrients from one point to another and not increasing – so, am i missing a very big point?

Winter is basically 180 days in north Missouri, so if hay is the sole feed source, the amount would figure as 180 days times 30# per cow/calf pair= 5400#,  allowing some ‘waste,’ and unusually harsh weather, it would be reasonable and wise to round up to 6000#.  If it cost me 5 cents per pound delivered and unloaded at my farm, this is $300 per cow/calf unit for winter feed (180 days), the rest of the year would be 2 acres per cow/calf at the rate $55 per acre rent or $110 per annum.  Total grass/hay feed costs total $410 per cow/calf unit.  It would actually add about 12 hours of my labor to position the bales for bale grazing.  So adding another $20 per cow/calf for $430

Given that info, my farm, depending on weather, could accommodate 200 pairs, figuring 2% death loss of calves to various reasons would result in 196 calves to sell.  If i continue with what i can do and graze only through the winter (relying on fall rain to grow stockpile), then there are 98 calves to sell.  So, to compare:

Calves to sell:  196 times 400 lbs times 1.80/lb = $141,120 – $86,000 = $55,120

Calves to sell: 98 times 400 lbs times 1.80/lb = $70,560 – $22,000 = $48,560

BUT, soil quality is not increased (unless mob grazing is implemented), and certainly not as fast,  Compared to renting more acres, fence and water maintenance does not increase.

What is the right answer!!!!????  

There is time for more reading, listening, studying, and sharpening the pencil.  In the meantime, first week of April , calves will be weaned, then second vaccinations on weaned calves, by 25 April cows will begin calving for 45 days, soil sampling select paddocks, then i plan to implement UHGD (aka mob grazing).

Cheers

tauna

snowy 048

Winter grazing in north Missouri.

 

Making Investments vs Creating a Job

Economic definitions:

Investment – an investment is the purchase of goods that are not consumed today but are used in the future to create wealth.  to put (money) to use, by purchase or expenditure, in something offering potential profitable returns, as interest, income, or appreciation in value.

Job – a paid position of regular employment.  a piece of work, especially a specific task done as part of the routine of one’s occupation or for an agreed price. Everyone has goals in life – some will involve being financially secure.  If you are interested in building financial wealth, there are a few basic premises which need to be incorporated into your plans.

1) Your saved dollars must be put to work!

2) Break free from the bondage of financial slavery by changing your spending habits

3) Invest in yourself – education or your own business

4) Learn to manage the money you do have – more money will not necessarily fix your financial problems

5) Debt is a hard task master – avoid it!

6) Use your income from a paid job to make investments that will gain in value while you continue your paid job.  Later you can retire from your job and enjoy your investments.

Many, many economic experts have different ideas about how to invest, so it’s up to you to decide who or what you want to invest in.

Dave Ramsey Investing Philosophy

How to Become Wealthy  – Nine Truths that can Set You on the Path to Financial Freedom

Rich Dad/Poor Dad – Dave Pratt, Ranching for Profit newsletter

Shabbat Shalom!

tauna

The Three Secrets for Increasing Profits

Farmers and Ranchers seldom spend time WOTB, but now that it is too hot outside to be working in the business (WITB)  cutting trees, spraying brush, etc, now it’s time to sit back and listen to David Pratt, owner of Ranch Management Consultants, and the dvd i just received entitled, “The Three Secrets for Increasing Profits” and begin WOTB.  (Working On the Business).

Happy 4th of July!!!  be safe out there!

Cheers

tauna

“If our farms are not fun, not profitable, or are too much work, our children won’t want them…. Romancing the next generation is the ultimate test of sustainability.” Joel Salatin, Polyface Farms

A Great Place To Raise A Family by Dave Pratt

Dave Pratt, owner of Ranch Management Consultants (formerly known as Ranching for Profit) hits it on the head again with another great blog entry.  Although his niche is specifically ranching, the ideas he shares are often for any business.

 

Home > A Great Place To Raise A Family

A Great Place To Raise A Family

I occasionally lead workshops I call Hard Work and Harmony: Effective Relationships In Family Businesses. In it I like to ask participants to explain to the person next to them why they ranch.  Some say they love being their own boss, or love working outdoors and with livestock. Almost all of them say something about loving the lifestyle. Near the top of most people’s lists is, “It’s a great place to raise a family.”

I agree. I grew up on a small place. The biology lessons I learned from tending livestock were more influential than any I ever had in a classroom.  I learned other lessons too. I learned how to work hard and how to be resourceful. But it wasn’t just about work. Our place was a great setting for any adventure my imagination could conjure up. My mom sold it when I was in college and it just about broke my heart.

A ranch can be a great place to raise a family, but it isn’t always. I worked with a rancher shortly after my son, Jack, was born.  When we broke for lunch he asked about my new baby. I told him that when they placed Jack in Kathy’s arms for the first time, I could hardly see him for the tears of joy streaming down my face.  Tears welled up in his eyes too, but they weren’t tears of joy. Trying to hold back a flood of emotion, he told me how he had worked sun up to sun down to build a place “for the generations to come.”  He said that he hadn’t been as involved in his children’s lives as he should have been. As we sat on the hill, he told me that now he rarely hears from his adult children, who want no part of the ranch. A ranch can be a great place to raise a family, but it is not a substitute for our active involvement in family life.

Many ranchers are addicted to work. I’ll bet you’ve even heard some of your colleagues brag about how long and hard they work, proudly proclaiming things like, “I haven’t taken a vacation in 20 years.” They say it as though it is something to be proud of.  When I hear things like that I shake my head wondering, “Are things that bad?” You can’t run a sustainable business on unsustainable effort.

Intentional or not, work can become an excuse to avoid working through the issues every healthy family faces at one point or another.  When work consistently takes precedence over family needs, we set ourselves and our families up for trouble. Engaging in what may be uncomfortable conversations when issues first come up can keep them from growing into big problems.

In the last few months I’ve met a number of people who are learning that lesson the hard way. After decades of avoiding uncomfortable family issues they are facing extremely difficult challenges regarding succession.  Now, without any experience working with one another to resolve small issues, they are hoping to work through the most difficult challenges many of us will ever face. The conversations are made even more difficult because of the hurts that have gone untended and the resentments that have grown from not taking care of the family in the family business.   It’s a tough way to learn that success has more to do with healthy relationships than with conception rates and balance sheets.

I don’t mean to suggest that the physically demanding work that ranches require can be ignored, but it doesn’t have to be all consuming. Many Ranching For Profit School alumni have discovered that the ranch was all consuming only because they allowed it to be that way. After the school they restructured the business to increase profit and liberate their time to put more life in their work/life balance. They still work as hard as anyone, just not as long. Their ranches are great places to raise their families, andthey actually take the time and make the effort to be directly involved in raising them.

To hear how one RFP alumnus decreased the work required to run their ranch while increasing profit and improving their quality of life, click here.