​How much less can be spent before the farm is cutting corners rather than costs? 

During periods of depressed milk price, dairy farmers focus on reducing costs to conserve cash. When there is not enough money to go around, fewer purchases are made and many purchases are second-guessed. Dairy farming through 2009, I fully understand the actions farmers are inclined to take today.

It is natural to cut spending. However, will doing so without thoroughly evaluating the full effect on earnings result in decisions that cost more than they save?

Attention VT dairy farmers!
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Dairy Improvement and Water Quality grants have been announced by the Vermont Housing and Conservation Board. 

As in the past, the Dairy Improvement grants are up to $40,000 for members of St. Albans Coop and DFA. These funds can be used toward a wide range of projects that will improve the performance and sustainability of your farm.

The water quality grants are to assist with implementation of practices or projects to comply with Vermont's Required Ag Practices (RAPs). Information is available online at https://vhcb.org/our-programs/vermont-farm-forest-viability-program/grants.  The deadline for submission is a short 6 weeks away, August 13th.

E-mail me at [email protected] or Call/Text me at 802-535-5535 for assistance in preparing and submitting the application, business plan, and financial analysis. 

Most farm businesses that take the effort to analyze their financial performance typically do it at the end of the calendar year.  In late fall, as the crop season winds down and the large bills associated with harvest fill the mailbox, farmers wonder if their best efforts have paid off. At the same time, the tax accountants start calling for tax planning numbers and the lenders want the ominous year-end balance sheet. With these tedious tasks looming, finding the time and energy to complete benchmarks is hard to muster.

Benchmarking shouldn't be burdensome and certainly doesn't need to pile on at year end. More importantly, how useful is benchmark information that comes to you 12 to 15 months old?  

The Dairy Dashboard's benchmarking is done on a 12 month rolling basis along with the farm's actual vs budgeted financial and production performance reports, making the benchmarking process less tedious and more timely.  Milk price and large variable expenses such as purchased grains are constantly changing. If we look at cost only by calendar year we lose the ability to understand performance today.

Is it easy to start benchmarking mid-year? Yes! Think about it. The previous year books are complete, the balance sheet is done, and thank goodness - tax season is over! Discover the power of monthly benchmarking and find areas of opportunity for improved management on your farm.