The shift that determines success.
WHAT DISTINGUISHES A FARM BUSINESS FROM FARMING
Deciding what to produce by what it earns, rather than by habit or availability.
WHAT THAT REQUIRES
Knowing your costs Knowing your yields Knowing what you sell for Keeping records
WHY RECORDS COME FIRST
Without them, no decision can be assessed.
WHAT MOST SMALL FARMS DO NOT KNOW
What it costs to produce one unit of output.
WHY THAT MATTERS
It determines whether the enterprise makes money at all.
WHAT TO CALCULATE PER ENTERPRISE
Total costs for the cycle Total output Cost per unit Revenue per unit
WHAT AN ENTERPRISE MEANS
One crop or one livestock activity.
WHY SEPARATE THEM
Farms frequently carry a losing enterprise funded by a profitable one, without knowing.
WHAT COSTS TO INCLUDE
Inputs: seed, feed, fertiliser, chemicals
Labour, including your own Land, whether rented or owned Power and fuel Transport Losses
WHY YOUR OWN LABOUR
Excluding it makes unprofitable production appear profitable.
WHAT TO ESTABLISH
Which enterprises earn, and which do not.
WHAT TO DO ABOUT THOSE THAT DO NOT
Change or stop them.
WHAT TO TREAT THIS CATEGORY AS
General business guidance, with technical practice from qualified agricultural advice.
