Friday, September 26, 2008

The Business of Agriculture

The Business of Agriculture
Issue II Version 1 Series 1

How would a diversified farm earn enough money to pay for its debts. It would have ot sell products produced on the farm. What would those products be. They would be dependent on what the farm is capable of. What is the farm capable of? It depends on what is the basis of the farmers capability. This is the final answer, what is the farmer capable of?

On a diversified farm that is based in dairy operaions, including various dairy types, the farm is capable of consistant income. Dairy operations have a daily output, and if staggered they are able to produce year round income streams. While winter production is lower it can be sufficeint to support the basic cost of the operations, if structured properly to make the best use of the raw materials. A raw producer is only capable of producing income from buyers. If the value of milk products are reduced, the income of the farm is affected immediately. It is also limited by the amount of dairy production animals that are raised. As there is many other factors, the dairy operations are highly affected by many market factors, and by many on farm factors. In the case of dairy cattle, how many cattle the farm has is directly porportionate to the potential income of the operation. If one cow produces a certain volume of milk on average throughout its wet period then the total amount of cows will produce a certain quantity of milk for a given period of time. If the cow is wet for a certain amount of time, they will then be dry for a certain period of time. Given this, a conventional operation will then have times when they are wet, and times when they are dry.

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