Print Page   |   Contact Us   |   Sign In   |   Join Today!
Resources
Share |




 
 
 
Control What You Can Control
 

 

Wednesday, April 4, 2018






Best Practices and Risk Management Factors

“Control what you can control,” is the advice that came from Compeer Financial’s Bob Le Cocq, Dairy Specialist. Numerous other dairy lenders agreed at a recent meeting with Deputy Commissioner of Ag, Matt Wolhman, and Rural Finance Authority staff. The current economic situation in the dairy industry affects all dairy farms regardless of size. The dairy lenders at the table agreed with the following areas proposed by Le Cocq to help mitigate risk and maximize opportunities. 

 

Below is a tool to help gauge how well you are doing on your own farm. Use it as a point of discussion and remember this is not an all-inclusive tool. It’s a guide to help you focus on what you can control to be more profitable, reduce risk and manage distractions. How close can you get to 100%?

 

 

Management Risk Factor Estimated Rating

Rate the following 15 factors relative to your farm

With 1 being best and 5 being poor.

 

1

2

3

4

5

1. Manages using budgets

 

 

 

 

 

2. Has an effective production/labor team

 

 

 

 

 

3. Has quality accounting system, cash plus accrual

 

 

 

 

 

4. Knows cost of production at least quarterly

 

 

 

 

 

5. Has a defined marketing/cost management team

 

 

 

 

 

6. Practices “margin management”

 

 

 

 

 

7. Above average production producer

 

 

 

 

 

8. Manages and records feed inventories consistently

 

 

 

 

 

9. Relates proactively with lender and other vendors

 

 

 

 

 

10. Protects the major input costs

 

 

 

 

 

11. Has farm/family transition plan in place & updates

 

 

 

 

 

12. Executes on decisions, decision makers are well defined

 

 

 

 

 

13. Manages w/ respect to financial positions/trends

 

 

 

 

 

14. Willing to invest time & money to manage risk

 

 

 

 

 

15. Actions support the farm-business plan/goals

 

 

 

 

 

 

If you have additional questions, please contact Minnesota Milk at (877) 577-0741.

 

Special thanks to the Dairy Lenders below.

 




 

Click here for a PDF of these Best Practices and Risk Management Factors

 

Association Management Software Powered by YourMembership  ::  Legal