Dairying, 1 of 2

From: Max Jelbart (maxwellj@tpg.com.au)
Date: Sun Feb 05 2006 - 08:06:32 EST

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This is a multi-part message in MIME format.

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=20

Hi All,

=20

Is farming any different to any other business?

Just look at the stats on the failure rate in small business - how would =
you
like to be in the computer business when you look at the number of =
computer
shops that open, then close, yet some are doing really well.

While some farmers are struggling there are top performers in a =
privately
run (consultants) discussion group returning 15+% on assets AFTER taking =
out
an operator allowance!

At least in farming even if you are not cash rich you have an =
appreciating
asset sitting in there behind you.

About 10 years ago there was a letter to the editor in Hoard's Dairyman =
(US
dairy magazine) in almost exactly the same vain as the last weeks =
discussion
- I read it and decided that it was just the same in the USA as it is =
here
with all the pressures on efficiency.

I nearly choked on my Weeties when I got to the bottom - it was written =
in
1868 and perfectly described our current farming environment.

Ken Frost is 100% correct and begs a further question:

How many of those finding it tough it the current environment
(notwithstanding those in multiple year drought situations) have =
business
plans, feed plans etc in place?

If you do not know how to do it then get some help.

If you cannot see your way clear in the short to medium term then the =
plan
MUST change.=20

We often see farmers selling up for many reasons including moving to a =
more
favorable area, increasing scale, down sizing to something more =
manageable
or lowering debt, changing enterprises or occupations etc.

The business environment (whether primary, secondary, manufacturing or =
what
ever) is constantly changing and will continue to do so; we MUST change =
to
stay in the race.

I hear many say we cannot sell because it has been in the family for x
generations - just ask yourself why great grandfather moved to where you =
are
- could it have been that he decided that the environment where he was =
at
the time was no longer viable (potato famine in Ireland) and his =
business
plan had to change??

Do you think he would want you to stay on just for him - I would suggest =
he
would change some part or all of the business today just as he did 150 =
years
ago to find a better life/protect the capital base or whatever?

=20

+++ too long for 'vicdairy-l@unimelb.edu.au'

=20

Max Jelbart

=20

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Content-type: text/html; charset="us-ascii"
Content-transfer-encoding: quoted-printable

<html>

</head>

Hi All,

Is farming any different to any =
other
business?

Just look at the stats on the =
failure rate
in small business – how would you like to be in the computer =
business when
you look at the number of computer shops that open, then close, yet some =
are
doing really well.

While some farmers are struggling =
there
are top performers in a privately run (consultants) discussion group =
returning
15+% on assets AFTER taking out an operator allowance!

At least in farming even if you are =
not
cash rich you have an appreciating asset sitting in there behind =
you.

About 10 years ago there was a =
letter to
the editor in Hoard’s Dairyman (US dairy magazine) in almost =
exactly the
same vain as the last weeks discussion – I read it and decided =
that it
was just the same in the USA as it is here with all the pressures on
efficiency.

I nearly choked on my Weeties when =
I got
to the bottom – it was written in 1868 and perfectly described our
current farming environment.

Ken Frost is 100% correct and begs =
a
further question:

How many of those finding it tough =
it the
current environment (notwithstanding those in multiple year drought =
situations)
have business plans, feed plans etc in place?

If you do not know how to do it =
then get
some help.

If you cannot see your way clear in =
the
short to medium term then the plan MUST change.

We often see farmers selling up for =
many
reasons including moving to a more favorable area, increasing scale, =
down
sizing to something more manageable or lowering debt, changing =
enterprises or
occupations etc.

The business environment (whether =
primary,
secondary, manufacturing or what ever) is constantly changing and will =
continue
to do so; we MUST change to stay in the race.

I hear many say we cannot sell =
because it
has been in the family for x generations – just ask yourself why =
great
grandfather moved to where you are – could it have been that he =
decided
that the environment where he was at the time was no longer viable =
(potato famine
in Ireland) and his business plan had to change??

Do you think he would want you to =
stay on
just for him – I would suggest he would change some part or all of =
the
business today just as he did 150 years ago to find a better =
life/protect the
capital base or whatever?

+++  too long for =
'vicdairy-l@unimelb.edu.au'=

<div>

Max Jelbart

</div>

</div>

</body>

</html>

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