As the midpoint of 2023 approaches, farmers are advised to conduct a midyear "farm tuneup" to ensure their operations are on track for the rest of the year. Just like farm equipment requires occasional maintenance, farm management practices benefit from proactive examination and adjustments. The University of Missouri Extension recommends five key steps for a successful midyear farm tuneup.
Revisit agricultural budgets: Farmers are encouraged to evaluate projected costs and returns by revisiting their agricultural budgets. By closely monitoring their operations and utilizing budget calculators, farmers can make informed management decisions to maximize profitability. A variety of crop, livestock, and forage enterprise budgets are available for free download, providing valuable insights for different agricultural sectors.
Evaluate on-farm labor: Effective labor management and maintaining a skilled workforce are crucial for the smooth operation and growth of farms. Farmers are advised to assess their current labor needs and improve employee relations as part of the midyear tuneup. MU Extension offers valuable resources, including how-to videos, checklists, and guides, to assist farmers in attracting, hiring, and retaining productive farmworkers.
Compare custom service rates: Staying updated on current custom service rates is vital for farmers seeking or offering such services. The MU Extension guide "Custom Rates for Farm Services in Missouri" provides median rates for various farm services, enabling farmers to make informed decisions. This comprehensive resource, derived from a statewide survey, covers field work, planting, fertilizer and chemical applications, harvesting, hauling, and more.
Prepare for succession planning: Transition and succession planning is a critical aspect of farm operations. Farmers are encouraged to engage in conversations and take necessary steps to facilitate smooth transitions within the farming business. MU Extension provides valuable resources, including worksheets, guides, and videos, to assist families in navigating this process and ensuring a successful transfer of ownership and management.
Reflect on farm lease arrangements: Before concluding the midyear farm tuneup, it is essential to assess current farm leasing arrangements. Communication with landowners or tenants regarding any changes to existing agreements is crucial. Exploring alternative leasing options beyond traditional fixed cash or crop-share leases can be beneficial. MU Extension offers insights into flexible cash leasing arrangements, allowing for a more equitable sharing of risks and returns.
By following these proactive strategies and utilizing the available resources, farmers can optimize their farm management practices, enhance profitability, and lay the foundation for a successful remainder of the year.
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Categories: Missouri, Business