KY Dairy Notes (January '23)
This months issue dedicated to:
Understanding the financial side of the dairy business, an area as important if not more important than the cattle side.
Regular Review of Financial Records Trait of Profitable Dairy Herds
For dairy businesses to be profitable and sustainable, their owners must be excellent managers of cattle, crop production, employees/family members, and financial resources. All of these pieces are necessary. However, finding the time to devote to completing and reviewing these financial records on a routine schedule throughout the year is a necessary management practice.
Are You Competitive as a Dairy Manager?
One needs to objectively evaluate some key management-related areas which directly impact the financial bottom line. The top expense and controllable management-related categories on a dairy which directly impact the financial wellbeing and cow/heifer management should be reviewed.
Is Your Dairy Business a Good Investment Risk in Your Banker’s Eyes?
Bankers use financial information from a balance sheet to determine the risk associated with lending capital to your business. Essentially, they are determining the probability or risk as to whether you will be able to repay the loan and, if not, do you own assets that will allow the bank to recoup the value of the loan.
