John Ellsworth and his staff at Success Strategies have helped us to better organize our business decisions through the development of an annual operating plan.
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As we look forward to 2012 I would expect that if the milk prices that are reflected in Futures Markets truly hold up we should see some sound cash flow and reasonably good profitability on most dairy farms.
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2011 may be a year some dairy industry producers would like to forget about. It was characterized by extremely high feed prices, which put a dent in our profitability. But keep in mind that record high milk prices were seen in 2011 as well. So, in its entirety, net income should be relatively positive.
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An important aspect of dairy farm profitability is keeping your expenses in line. Here John provides some insights into how to do this effectively.
Important conclusions and lessons learned from 2011 on the dairy farm
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Author Steve Chandler, in his book, 100 Ways to Motivate Yourself, says, “Whatever type of problem you are facing, the most self-motivated exercise I know of is to immediately say to yourself, ‘I am the problem.’ Because once you see yourself as the problem, you can see yourself as the solution. When we see ourselves as victims of our problems, we lose the power to solve them. We shut down creativity when we declare the source of the trouble to be outside of us. However, once we say, ‘I am the problem,’ there is great power that shifts from the outside to the inside. Now we can become the solution.” This is equally true on your dairy farm and throughout the dairy industry.
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