There are two key components to profitable shepherding. As shepherds and farmers, we have a tendency to over look one of these components, putting all of our energy and time into just one area. If we want our farm to be sustainable and for our sheep to earn their keep, then we need to invest into both areas of our farm management.
Key Components
There are two areas that we need to focus on when running a farm operation: farm management and farm business. These are broad areas which encompass several smaller areas.
Farm Management
The first component is farm management. When we think of farm management, we think of honing in on farming practices and methods that promote profitability, efficiency, and productivity. As a shepherd, this translates into well ordered and streamlined flock management. This area tends to get the most attention, after all, this is where our expertise and passions lie. We are very comfortable making these decisions and know where to find resources to help us when we have a problem. We know a well managed flock has the potential to bring in the highest return. Flock management includes areas such as:
- lamb mortality rates
- disease prevention and control
- biosecurity
- maintaining a productive line of breeding ewes
- retaining the best-culling the rest
- genetics and breeding program
- feed resources and nutrition
- facilities
- record keeping
Farm Business
The second key component to running a profitable operation is farm business. Farm business often gets neglected. Many have a romantic view of farming, forgetting that operating a farm is actually running a business. A well managed farm business goes beyond flock management. Farm business does not just encompass book keeping, spread sheets, and business plans. It has many moving parts, all of which are important to your success. It is often what will either make you or break you from a profitability standpoint. Farm business planning looks at several areas:
- writing a farm business plan (Business plans are like the framing of a house. They are what provides structure, stability, and solid footing. It is like a roadmap for your farm.
- marketing strategy (This includes product development, and tactics used to sell it to your customers.)
- branding your farm image (Branding is like what you put inside of your house. It is what gives you identity and what is important to you. Without a strong brand image, your farm will be like an incomplete house and it will be lost among the many farms out there.)
Learning to Run a Profitable Farm
You can learn to run a profitable farm business. The key is to identify your brand image and promote your image across all media. Branding your farm takes time and hard work, but the result makes it all worthwhile. It is your brand image that speaks to the heart of your customer and establishes your identity in the marketplace.
