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Generating More Profit From Your Farm Business, Tamara Stretch

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This report outlines the main drivers of profit – price, production, costs and management. Knowing a farm’s profit drivers assists managers to analyse the risk and resilience of their business and to make more informed expenditure decisions. With significant volatility in both prices and production, farm managers need to have strategies that smooth price volatility and allow adjustments to costs of production.

When analysing business profitability it is important to look beyond gross margins and capture all cost items particularly large fixed costs like finance and machinery allowance costs. By critically examining the full cost structure of their business managers …