What is in this article?:
How corn and soybean farmers can manage their farms more effectively to prepare for lower grain prices. Reid Weiland, Garner, Iowa, uses financial gauges like yield per CSR, cost per bu., P&L per field, and other metrics for his financial dashboard.
Weiland Farms' mission statement is "to grow value with precision and integrity while nurturing while nurturing relationships, the land and the community."
With 66% of financial performance hinging on uncontrollable variables like weather, Weiland Farms takes the remaining 33% of what it can control role seriously. (See Kansas State University study on profit consistency for more information.) As more export competition, the ethanol blend wall and weather wild cards push risk to new heights, he maps out intentional growth using these tools:
- A farm mission statement and employees to execute related strategies.
- Complete due diligence any given land parcel’s productivity metrics before renting or buying.
- A “manager's dashboard” to track productivity measurements.
- Joining a professionally moderated peer group.
- Investing in fertility and technology to buttress productivity.
- "Collaborate with suppliers so that 1+1=3.”
If you take care of these details, .333 is a good batting average, Weiland says of farmers being able to control only one-third of their success (as compared to weather and market moves). “We look for walks and singles that reduce risk.”