Max Sealy (Chippenham)

With the current situation and milk prices and rising inputs, many processors have been looking very hard at how they calculate production contracts and fixed pricing contracts have come under pressure.  Many processors have been good at recognising this and moving the debate in terms of milk prices to a different level. 

One of the issues that always comes up in the cost of production is input by farmers, both in terms of physical and management time.  It is an interesting exercise to do.  Try and record your time to see where you spend it e.g., how much of it is spent on manual tasks; how much is spent in management of staff, and to what extent is this micromanagement.  At the next level up there is basic farm management such as ringing around to get prices on things and keeping track of ordering and inputs.  This takes an increasing amount of people’s time, particularly with the unreliability in the supply chain, difficulty getting orders as well as changing prices etc.

At a management level, there is obviously the monitoring of budgets, tracking of cashflow and inputting of data, some of which is done by owners and farm managers and others which is outsourced to external staff.

Then you need to consider time spent with consultants, bank managers and other professionals advising your business and look at the payback that you get on all of this time. 

Having done a breakdown, it is possible to see where you can save time and be effective, but also look at those decisions that save time.  For example, a lot of our clients spent time in February securing feed contracts before the invasion of Ukraine and this will probably be the most profitable few hours they will have spent.  Equally reading through your milk contract and understanding the terms in it is a good use of time to ensure that you’re benefitting fully from everything that you do.  The same applies to the marketing of cull cows, store cattle, calves etc.

Returning to the issue of manual labour, automation is being billed as a great way forward to reducing time on farms and that needs to be thought through as to whether it reduces your time or those people working for you and what impact does that have on their potential earnings.  With the cost-of-living crisis, a lot of farm staff are looking to increase their own incomes. 

Simple analysis of tasks that you do every day is a very effective and quick way of getting payback on your time, looking at things that could be saved and discussing routines with all of those on the farm can be an effective way of saving time. 

A small amount of investment could become a big payback here.  For help with setting up a system of time recording in your business contact Max at maxsealy@fcgagric.com or your local FCG Office.