![]() ![]() OPERATIONS Short term goals are to create more perceived value in their products and get more money. There are no big reasons for reducing the number of animals except for variable costs associated to them. Good if its your own cattle, not so good if you need to babysit other farms animals and make sure your fences are still up, water not frozen, etc. Pastures are leased out if they can be, but it is not a great way to make money as this is seasonal and require a lot of work to maintain and manage. A quick google search can tell you the exact market price of beef and bison on any given day. The farm also does take advantage of government programs which help cover costs for certain things but are usually received as tax credits. "Focus on making the hard times better and the good years will be windfall years". (I will include a link to a general statistics page from Government of Canada) Generally, banks do not like to let farms go out of business, and because they have large capital assets to use as leverage, the farms can make up losses in good years. ![]() ![]() The margins and profits numbers sit on the industry average. If there is someway to show that technological or equipment will help, make more money they are open to this idea. "Investing in new equipment would make the farmers job easier and any which way technological development is a major part of a growing business." - This is true but buying a million dollar combine needs to be justified in some way. Small renovations are not done because they are seen as unnecessary, but there is capital available to make the renovations occur. There is an account that they can pull from for day to day and operating expenses. The farm does not have a fund or account specific to handle renovations. The financials of the organization are robust enough to institute any viable and reasonable business strategic plan. Beef is the costliest product but are easy to handle and get more money for. Generally large losses are not seen as affecting the business too much as most disasters are covered by insurance. Major expenses include fuel, insurance, utilities, veterinary bills, taxes (Carbon and otherwise), seed, maintenance and repair of equipment and salaries. Typically, early winter/fall is when most profits are to be expected. Profits come at the sale of beef and bison and crops in the fall. 200 cows will max out at one calf per cow, but generally an impregnation rate of about 70-80% is to be expected on a good year. The number of sold livestock every year depends on the overall number of calves. Budgeting is currently done annually, and not quarterly and a farming season is typically a year-long process. The horses that are being kept at the farm are used as tools to wrangle beef. FINANCE The expenditures of the hobby farm are minimal and do not impact the overall cost increase of the farm by much. ![]()
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