Download Agricultural Investment Article: Management Principles to Machinery Decision Making
Agricultural machinery decision making can be a complex area requiring investment of significant capital. There is always a combination of emotional and business decision making being undertaken by the farmer. Here, David Heinjus, Managing Director at Rural Directions, advise that machinery business should be looked upon as a separate entity, and not just capital that is integrated with the rest of the farm assets – in order for the operations business to be managed like a profit centre. Heinjus gives us several pointers on farm machinery decision making, including:
- Asking yourself “what is the cheapest and most cost effective way to undertake the operation”
- Change an existing machine when the cost of owning a new machine becomes cheaper
- Maintaining machinery investment to income at 1:1 for a sustainable business objective
In order to explain the principles behind this, he provided 2 case-studies – one on owning a new truck, and two, on changing over the spray tractor. If you are keen to find out more about how to calculate efficiencies in farms, you can download the full article here.
This above is an abstract from Rural Direction’s article on “Management Principles to Guide Effective Farm Machinery Decision Making”.
About Rural Directions
Rural Directions Pty Ltd is an agribusiness consultancy company, specialising in the areas of:
- Business Planning
- Succession Planning and Family Business Management
- Strategic Planning
- Whole Farm Planning and Land Management
- Crop and Livestock Production
- Agronomic advice
- Farm Budgeting and Business Management
- Grain Marketing
- Project Management
- Coaching and Mentoring
- Workshop delivery
David Heinjus , Managing Director at Rural Directions, will be speaking at the Agriculture Investment Summit Asia on the topic “Evaluating new opportunities in the Australian agriculture landscape”. Don’t forget to join us at the event held in Singapore from 16-17 October 2012, where more than 200 agriculture industry professionals gather to discuss strategies and form new partnerships. You can download the programme here.