The Lucknow Sentinel, 1982-04-07, Page 40Six M's of successful farm management
By Mel Chambedaln,
Agriculture Representative
Dr. Hiram Drache from
Baker, •Minnesota, speaking
to a recent conference, 'sug-
gested six M's to, successful
management. Each of the
"six M's" could be a topic
for a separate article, but I'll
mention them all now and
add some of my personal
questions and points to each..
To be differentI'll start with
number six.
6. Mechanization. - Dr.
Drache suggested that the
optimum farm was a totally,
mechanized 'husband and
wife; Organizing the machin-
ery systems on the farm is a
major challenge. Do . the
various pieces of equipment
fit together:— do they com-
plement each other? Are you
over spending .on machinery
-- could ' good used equip-
ment be bought, thus reduc-
ing your capital outlay? Do
you really need it this year or
could you putit off? The
annual ownership cost on a
piece of equipment is about
25%-- whether you -use the
Sheep...
.from page 17
will take six -tenths of one per.
cent of gross, wool and lamb .
sales to finance the associa-
tion. Growers can ask for
their check -off back.
Cabinet approval of regu-
lations - is expected shortly,
James said.
$70,000 Budget
The Hinckley study said
that $70,000 per year would
cover a manager's salary,
office, travelling expenses,
secretarial help, and leave
$18,000 for promotion.
Three committees should
be formed by the sheep
producers, the study said.
One would .educate produc-
ers about new faun manage-
ment, marketing procedures,
and increase breeding .effic-
iency.
A marketing planning
committeewould deal with
packing companies, delivery.
agents and auction salesas
well as educate consumers
and help develop new mark-
ets such as heavy lambs.
A third committee, a. farm -
gate producers group, would
develop programs to promote
lamb locally, including freez-
er trade and farmgate ethnic
sales.
P1'owdown •....
•from page 1L5
proves alkali and saline soils;
makes heavy soils less, sticky
and ' all soils less open to
pulverization; and ,reduces
soil erosion.
Additional advantages in-
clude disease sand insect
control by reducing infesta-
tions built up under mono-
culture and weed control
through effective competi- .
tion from well established
legumes.
Sound 'management •' of
plowdown legume crops will .
not only improve soil struc-
ture and • fertility, but also
prevent and even reverse
losses caused by years of
ill•advi'sed summerfallow
practices.
Yp
arm Business
anagement Topics
The Farm Edition, Week of Apra 7, 1982 - 21
machine one day or 30 days.
5. Marketing We hear a lot
aboutmarketing these days.
That's' good. Marketing is a
complex subject. You need to
spend a lot of time in study-
ing all the marketing aspects
and possibilities fora partic-
ular commodity. Changes in
our marketing system have
traditionally been slow to
come about. That's good' too
-- because the • participation
of many is necessary, to
develop the best system.
Individually, producers
must consider marketing ar-
rangements for their product
as part' of . their planning
process. Produce Ia product
for the market -- doh't simply
hope there will be a satisfac-
tory market for your product.
4. Money - Are you getting
.your money from the right
places? Are you putting it in
the right places? Have anoth-
er look at your debt struc-
ture, Land and buildings
should be amortized over a
long term, machinery .and
breeding stock over a medi-
um term. Your operating line
of credit should be used only
for crop and livestock prod-
uction. And remember,bank
money is generally at a lower
rate of interest than money
from farm. supply' sources.
3. Management - Are . you
using the available manage-
ment tools? These include
soil testing, feed testing,
production testing • and, a
number of computerized pro-
grams. Do you prepare cash
flows and project budgets?
Ask yourself •thele questions
-- "What will it do to my cash
flow?" and •"What will it do
to, my net income?" before
you make a management
decision. ,
2. Motivation - Dr. Drache.
said, "Spend no time, with
the doom and gloom crowd."
A goodsuggestion if you
want to remain optimistic
when times are tough. Set
your goals and set them
high. A farm family that
discusses and sets their goals
in life and works together to
achieve them ' is likely to be
successful. And this brings
me to the most important
point, point number one --
MATE.
1. Mate. - As' Drache stated,
"the attitude controller is
most families is the wife."
Do you include your wife in
goal setting and manage-
ment decisions on your farm?
Does she understand the
farm business -- hr if she
runs the business do you
understand it? Do you and
your wife go together when
you seek advice? Many bank
managers have told me they
like to see the farm wife'
present when farm finances
are being discussed. I expect
your accountant . and . lawyer
have similar. feelings. And I
know extension workers do!
Farm
computers...
•from page 19
puter salesmen use jargon
that can be confusing to the,
unitiated. He advised anyone
interested ' in buying a home
computer to read the March
issue of Canadian Business
to ' find out how to deal with
high technology salesmen.
CLEAR THE DE
of
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LE
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II