target goals for farm mngr.

[tncattle]

Should have put this in the Contract thread but forgot. Anyway, we're also trying to iron out target economic goals for the farm. In other words, we're setting yearly goals and I'm balking at just simply setting gross revenue goals like set gross income etc. What I mean is:

It doesn't seem realistic to say for example in year two we have a target goal of $175K gross income and my bonus will totally hinge on this. My thinking is the market simply can go up or down and kill your "set" gross income number.

Definitely would appreciate any input on setting yearly revenue goals without just setting one big number to be the end all be all. In other words: what are some better more realistic options for yearly revenue target goals without just stating one big number?

Thanks!

 

[Isomade]

175k on how many mama cows?

 

[tncattle]

175k on how many mama cows?

That is not a real number we have come up with, that was just an example. I just can't figure out how to come up with one set number when there are so many variables, and obviously the main variable is market prices. It will be right at 180-200 mama cows and a stocker group from spring-late summer or early fall and another group through the winter. The stocker program will expand as we get more used to larger numbers. For now probably around 300 stockers the first year.

I was trying to figure out if there is a way to set target revenue goals without having one set number which seems so risky.

 

[tncattle]

I got this from a local extension agent, seems to make sense:

"The market fluctuations that affect gross revenue are beyond the control of an individual producer. Perhaps production goals would better reflect the performance of the farm manager, perhaps based on pounds of calf sold per cow. Or you might look at cost of production per pound of calf sold."

 

[thendrix]

If I read that right then I agree with it. Control what you can control. The market is going to fluctuate, that is a part of life. Feed prices are going to fluctuate, that is a prt of life. I would put my focus on handling facilities, healthy animals, and streamlining my process. The faster you can work cattle the less money you will spend in time, labor, aggrivation, etc.... Obviously the better your health program is the better off you will be. Anything you can do to prevent health problems is worth the cost, I think.

I don't think you will be able to come up with a concrete number because of the variables. What if you have unforseen health expenses? What if feed prices skyrocket? What if cattle keep going up?

I think you should do the best you can with what you have and then spend your $ where it will give you the most bang for your buck. I know that seems pretty obvious but it's the best I can give you. And also, having a Q and A board like this is great, but don't take something that somebody tells you as something you have to do. If you do that you might end up spending a pile of cash on something that works for somebody else and not for you. Take others suggestions as just that. Suggestions. If you think it will work then try it but don't try just because somebody with 10,000 posts says to.

 

[JSCATTLE]

I would look at the farms production for the last 5 years . Average it and go from there . There is more to it than just market . Cow age cow type drought etc.. All effects their production .

 

[shaz]

How did the current owner handle the farm before you took over?
How far away does he live?

 

[tncattle]

How did the current owner handle the farm before you took over?
How far away does he live?

That's why I'm being brought on board it wasn't being handled well, the owner is out of state. The owner is a standup guy and I'll be proud to work for him. He gave the previous guy more chances than he deserved.

 

[TennesseeTuxedo]

I'm so confused.

So you won't be working for the guy here in Brentwood?

 

[tncattle]

I'm so confused.

So you won't be working for the guy here in Brentwood?

We would be leasing his property/cows/facilities.

 

[TennesseeTuxedo]

Ah, I see.

When do you think you'll get started full time?

 

[tncattle]

Ah, I see.

When do you think you'll get started full time?

Hopefully late June or first of July.