matters as well as an attractive operation. Is there something you can do better for staff? It can also be quite challenging if the team is small. Decisions made under pressure can be rash, so Hall added that to keep a business resilient, farmers should think ahead and plan for when staff are unavailable. Make tasks easier in case someone new needs to take over. Think about how tasks will be communicated. Are manuals availa- ble for special skills? Will trainers need to be called in? Are other staff available locally to cover an absentee? Creating re- silience also means building up a part-time workforce. Hall said that this will take the weight off the farmer’s shoulders and might stop them having to go from working 60 hours a week to 90 hours just to keep the wheels going on the farm. Have contacts in place, whether via part-time staff or through agricultural contractors. Dairy farmers should also do their bit in the community to at- tract locals. For example, some farmers focus on making their farm a really great place to work and putting in effort and money to attract people. Pay the fair going rate; it is amazing how news of this infiltrates the community. The effort in mak- ing the local area attractive as an employment option can re- ally change perceptions of working on a farm. Think of infla- tion and dealing with that at the farm level. Be a competitive employer to remain labour-efficient not just in worker short- age situations, but also to allow the business owner to take time out and time off.
The money side What does a resilient business look like in terms of money? A business that is making a higher profit percent margin of turnover is essential to keep a good operation. Hall said, “It’s consistent profits that grow well and that service debt. That consistent profit indicates that there is a repeat in per- formance year in and year out.” A five-year average profit is a good way to look at this and is often what lenders are looking at. Another point is trying to generate a return on capital that is higher than your cost of funds. “If you are borrowing money… to run a business, it is important that you are making a margin on that for yourself.” On the resilience point, he said you always want an eye on the long-term wealth creation goals, that is, in reference to retirement or succession and where you want to be in ten years or in the long run. Business owners should know what this plan looks like. This should be considered when it comes to building yearly targets and should be factored in. Don’t forget, repeating good business is key. Keep customers happy so that the business can keep doing it each year. En- suring customers get what they need will help to continue a successful and resilient operation.
The webinar Building Farm Business Resilience is available at
ahdb.org.uk.
▶ DAIRY GLOBAL | Volume 9, No. 2, 2022 25
To keep a busi- ness resilient, farmers should think ahead about what the plan is when staff are unavailable.
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