Tag Archives: profitability

Economic Profitability Key to Sustainable Dairy Farming

My personal vision of dairy farming has changed over the years. When I was a little girl, I wanted to be a farmer, a vet, an ice cream maker; among other things. I will never forget in discussing my plans with my Great Uncle Frank – everyone has an Uncle Frank right? – who was a dairy farmer himself back in the ‘40’s and 50’s in Westborough, Massachusetts. When I told him I was going to be a dairy farmer, he replied, “Oh, you’re going to marry a dairy farmer!” Being the determined person that I am, I said, “No , Uncle Frank, I’m going to be the dairy farmer.” To which he then said, “Oh, you’re going to marry a man, he’s going to do the work, but you’re going to be the farmer!” And I just shook my head and walked on, but little did Uncle Frank know that my love for dairy would lead me to life not only in the industry but also on the farm.

My vision for dairy farming continues to evolve as I meet more and more people in this great industry. My vision includes a great diversity of business models and smallowners/managers – commodity and value added, large and small, conventional and organic, purchased feed and homegrown, cattle and sheep or goats. There are certain characteristics that are common to all models – hard work and a love for the animals and land in our care.

For my own family, we are proud to be continuing a family tradition, and raising our children in a farming life. Our two young farm boys already have such a grasp of how things like tractors, mowers and choppers work as well as the importance of caring for another life. While it’s hard to predict the future, it’s exciting to think about the time when either one or both of them take over the reins of the farm.

Whatever the business model, the old adage will remain true – “If your outgo is more than your inflow, you’re upkeep with be your downfall.”

Having a good handle on your finances and making sound decisions based on what they tell you will be central to economic sustainability – an absolutely key component to farm sustainability. What’s more, planning ahead using economic information will allow you to get ahead. Tools like benchmarking, forecasting and budgeting will serve to improve the performance of our dairy businesses. The importance of financial skills cannot be understated as we move forward into the future – so that we can carry on with our passion, our farms, our livelihood.

 

The above was from a short speech given at The Vermont Dairy Summit, November 2015.

 

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