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Honored Advisor
Posts: 8,874
Registered: ‎07-18-2011
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Re: Places To Shave Expenses

Great question Jim,,,,, that is what I am doing......cash flows and expense ratcheting.  

Started with lease evaluations......  any leases left that had $5+ corn in mind??  Travel time and to that 40 mile field way over there... what does that distance cost?

Moved to labor evaluation.     ---- efficiency, efficiency, efficiency.

Repairs ---- irrigation equipment ---ever notice how much the problems increase with strip til on irrigated circles?  Or how much a bean or wheat rotation helps the problem?

then fertilizer and seed.  Both can change with a cropping choice adjustment or an adjustment in expectations...... shooting for the moon has always taken a pot full of money(and created a crisis when we miss.)

Then sprayer management......... Better personal on that can save several dollars.----- Chemical planning beats emergency late catch up applications every time.

Basis and freight evaluation when it comes to marketing...... ie.  are you actually getting a bonus for that 40 mile delivery or just providing cheap freight?

Purchasing decisions....who makes them...Does the hired man know any other places to shop than John Deere and NAPA??

Lets look at Tire wear and travel time which leads and paid dead time,,,,,,,, woops we're back to that labor evaluation.  The management and labor battle is comical.  Good labor makes ya cry because they will move on to running a farm one day--- and the rest can drive ya nuts...... Ever get caught in the "tug o war" over time caused by a monthly salary and good benefits?  Or the great guy who has cattle on the side, can run anything as good as you, wants 60K & ins. from you and will be gone three months in the winter and weekends year round?  Then complain about the hours if he can't get home by 6 pm?

 

Ever notice how hard it is to get cirusXM off the cc after the operator signs the tractor up for two different billings?  Smiley Happy

 

This part is so much fun!