It seemed like a particularly cold and dark run to the shortest day this year, although if I’m honest it’s possible that I say things like that most years, and a year is just long enough for me to be a little forgetful about what’s coming.
Our farm sits at the edge of what used to be a swamp, and it’s showing its true colours this year. This is certainly the wettest we have seen the land in our 13 years here, with new soaks and springs in the most unusual places.
Forecasts remain for an El Niño year, so for now we are hoping for springtime to bring what we’ve missed the past couple of years — sunshine, warmth and the ability to grow and harvest some good quality fodder for our animals to make milk from.
We are fortunate to have another strong milk price this year, although there’s no doubt that overhead and operating costs are rising to meet it.
Record low interest rates, immediate tax deductions and depreciation balances are gone, and for now so has the export heifer market that has provided a ‘13th milk cheque’ for many of us.
I’m sure we’re not the only ones who have been feeling those extra mouths to feed and feet on the paddocks during a wet winter.
I’m a big believer in knowing the numbers and being on top of the books at any time when running a business, but if you’ve let your financial discipline slip a little over the last few profitable seasons, now is a great time to make the ‘New Financial Year’s Resolution’ to get back on top of it.
It might be an opportunity to get onto computer-based accounting, take courses such as Dairy Business Fundamentals and Dairy Business Analysis, join a benchmarking discussion group, or get a consultant to sit down with you to review your farm and business performance and identify opportunities for improvement.
I have two ‘New Financial Year’s Resolutions’ this year.
The first one is to move from my old computer to the new one that I bought a year ago to replace it. Despite a joyful big screen and faster processor, I keep returning to the familiarity and comfort of old faithful that has served me well for nearly 10 years. Perhaps I’m showing my age in declaring my fear and remembering a time when ‘breaking it’ was all too easy!
The second resolution is to make sure I collect the physical information I need each month to calculate a Carbon Emissions Intensity for our business at the end of the year.
Carbon science and markets are frustratingly immature and frequently changing, but it is clear now that we will soon need to ‘know our numbers’. Whether we like it or not, our bank and trading partners will be asking for it.
The financial records from a season are not too hard to find, but I have found over many years of benchmarking that the physical information (such as stock numbers and locations, feed and fertiliser tonnes) is easily lost. If I can collect the right information now, it will mean I am prepared for whatever comes at us.
I wish you all well for the season ahead — may it bring a sunny springtime, a bountiful harvest and a lovely flow of milk.
Focus on the things you can control, know your business, and it will help you be ready for the opportunities that arise as the seasons and markets change around us.
Lauren Finger
GippsDairy chair
6°C