Good farm management is based on sound record keeping, so measuring performance and recording data underpins good decision-making.
It is generally accepted that you should only look back if you want to learn something and many would argue that doing this is the most important part of good decision making.
Whether we realise it or not, we all follow the action learning cycle when managing a business.
Plan, Act, Monitor and Review are the steps that follow in sequence and the process starts over again.
In practice we plan the program, then we action it, monitor it as the season progresses and then we review it once completed.
The review step was not just about the outcome of cropping program or lambing season, but it was to analyse how improvements could be made in each of the four steps.
Before any records are kept on a farm, consideration needs to be given to how you will use them to your benefit. This may help decide the format of the spreadsheet or system that the records are kept on.
Records are usually kept to improve a situation or solve a problem, so designing a system that makes this easy should be your number one consideration.
Most decision making is based on a hypothesis - a supposition that is made on basis of limited evidence as a starting point for further investigation. So, record keeping is the building of evidence for better decisions.
Optimising gross margin is one of the key performance indicators on any farm and it is fundamental that you have accurate input and output records.
Every farmer should know how efficient they are at turning expenses into income.
Spending one dollar to gain three should be the minimum target in dryland farming.
Collecting a whole lot of data is not all that exciting for a lot of farmers, so knowing how to distil the numbers is critical in gaining some meaningful information on which you can make an improved decision.
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One lot of records that are commonly overlooked are the pictorial records. It is commonly said that a picture is worth a thousand words and nothing inspires a farmer more than to see improvement visually.
Sometimes we need to be reminded how far we have come in farming and photos give us instant feedback in this regard. With the ability to take photos on our mobile phones, there is no excuse for not doing so.
It is then to print off the relevant ones and assign them to a photo display board in the office that can be easily seen from the office desk.
In the years that are tough, you can push back from the desk and look up at the board and gain reassurance that you have come a long way and you are a good farmer.
Having photos on display can also be a useful reminder to the bank manager, agronomist, agent or accountant when they visit your office, of the role they have played in your journey as well.
- Details: kensolly@rbm.com.au
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