Dairy Farming

A Successful Dairy Farm has three essential elements according to Teagasc’s dairying specialist “John Donworth” . These are income, lifestyle and personal development.

Above all its three elements, obviously income is the most important for a dairy farming followed by the work life and personal development. Every dairy farmer that wishes to expand in the future, naturally aims for a bigger income but it does not mainly focus on the financial side. Devoting once time and effort also denotes in developing a successful business and getting the whole work life balance issue sorted out to its benefit.

Bigger Cash flow shows a return to the farmer on the capital investment in the farm. Asset growth, on the other hand is the growth in value of the principle assets owned by the business (namely the land and stock). Focusing exclusively on cash returns increases tax exposure, while focusing on asset growth limits cash flow and debt financing capacity. A successful farmer could always manage its assets & liabilities. And adopt new technology which allows them to generate the cash returns necessary to service the debt.

But income always goes with lifestyle and personal development. In order to achieve your desired lifestyle, Farming must be simple yet flexible. In this way, a farmer can easily gain more assets with less requiring large amounts of additional labour and of course to provide time off.

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