In any business, including natural resource-based enterprises like farming, fishing and forestry, knowing your costs has always been important. But in today’s world of tight margins, it is imperative. Knowing, and managing, your cost of production is essential to running a profitable operation.
Estimates are that $600 million in profitability (based on $8.4 billion of gross sales) is missed each year in Northeast agriculture. Don’t leave money on the table, or miss an opportunity for your farm business.
Management tools are an important piece of a business’s record-keeping strategy, and solid records are key to business success. Beyond tax compliance, a solid record-keeping strategy can reveal ways your business can become more profitable.
As a business owner, it can be easy to hope things will soon return to “normal” when it comes to agricultural cycles. It is tempting to assume a downturn will end and that markets will improve, but that approach doesn’t prepare your business for an ‘abnormal’ situation.