| | Business management | Farm management | Make decisions for the right reason | Animal welfare | Human factors
Variable weather conditions are a global phenomenon. New Zealand’s current cold, dry conditions have "the needle on the feed-ometer in the precarious" zone. With their production systems based on grazing, dry conditions have a serious impact.
Meat and Wool New Zealand has some excellent documents. From the homepage, go to Issues, then Drought Management.
Here is a short summary, adapted to Alberta, of a few key points in one of the excellent documents available on the website:
Business Management
- Make decisions and set dates to implement decisions early: Successful operations have the ability to make timely decisions based on a plan. A plan includes specific actions, target dates and priorities.
- Update and revise plans regularly: Resources and circumstances change. Plans need to be flexible and based on the ‘best assessment’ for the time.
- Plan through the whole production year ahead: Simply feeding livestock until the money runs out, or market prices drop and then deciding to sell is a waste of resources. It’s also incredibly stressful. If you don’t have a year’s supply of feed stockpiled, know exactly what you will need to get through the coming year.
- Focus on profitability: Some portions of a farm business are more profitable than others. One option may to be to exit an enterprise that isn’t profitable, even though there may be future potential.
- Cut losses quickly: Strong businesses recognize that a ‘bird in the hand’ is actually worth three or four in the bush. Individually businesses need to decide at what point it’s better to cut losses and sell stock rather than continue to buy feed.
- Plan the recovery: Rebuilding livestock numbers when everyone else is doing the same means ‘buying high’, usually raises prices and reduces choices. What other options are possible?
Farm Management
- Feed budgeting: Balancing feed resources with feed requirements and cash flow is the basis of profitable management.
- Prioritize stock to sell early: Know in advance which stock will go when a trigger point is reached. If moisture reserves are low over winter, sell cull ewes first and fast. The goal should be to maintain the best of the best - the prime ewes in their prime productive years. Sorting animals without good production records is really rolling a dice.
- Sell stock early: In previous dry periods some producers preferred to sell stock rather than buy high cost feed of unknown quality. Plan all sales and carry them out at predetermined target dates.
- Feed livestock as well as possible: A flock of thin ewes has little to no profit potential. Concentrate on per head performance to maximize returns. The best ewes, well-fed, will produce better lambs. There is no money in poor, under-finished, underweight lambs.
- Match feed requirements to animal requirements: Sample all feeds and have them tested. Build rations suited to the type of animal (ewes, lambs) and to the production phase (maintenance, growing, milking, etc). Avoid waste.
- Focus on maximizing income rather than reducing costs: Most farm costs are fixed, so reducing costs tends to impact production returns. Plan to achieve the best return on every dollar spent.
- Have a water management plan: Know what water you have and what you will need. Have a back-up plan. Be ready to move quickly if water supplies deteriorate or decline in quality.
Make Decisions for the Right Reasons
- Decisions on the sale of livestock: Make for the right reasons which are animal welfare and profitability.
- Understand tax implications: Discuss selling of capital assets, livestock with your accountant early
- Tax deferral for drought induced sales of breeding livestock. Revenue Canada recognizes that basic livestock herds are generally sustained on the basis of average rainfall producing average grazing capacity and feed production. Talk to your accountant.
Animal Welfare
The responsibility for ensuring the health and welfare of animals rests with the owner. Call for help before crisis point.
Advice available:
Animal Farm Animal Care - call 403-932-8050. The focus of their work is on early intervention and taking action to prevent distress in livestock, especially during crisis situations which can be a part of drought.
Concerns about the condition of livestock or livestock welfare:
Livestock Care Alert Line at 1-800-506-2273.
Human Factors
People who focus on their strengths tend to improve their own performance and self-esteem:
- Motivation and determination
- Decision-making skills
- Gracious with people, ruthless with money
- Spouse / partner closely involved with decision-making and planning
- A problem shared is a problem – halved
- Seeker of information
- Work hard and smart
Common signs of stress:
- Withdrawal and reluctance to plan medium to long-term is common
- Low job satisfaction, decision-making grinds to a stop
- Behavioural changes
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