Farm Tender

Finding a way

Extracted from the Farm Tender weekly Newsletter - Sign up and get the email every Wednesday morning before 6 am. www.farmtender.com.au

By Dwain Duxson

Generally, Farming has been very good in 2021, one out of the box for many. We also know that confidence is very high in Ag right now, but there are little bits and pieces bobbing up suggesting that 2022 might be a slightly different story.

Don't get me wrong, I think Farmers should stay very confident about the future, but I think we all know there will be some challenges and headwinds ahead. Evidence of that has already surfaced. Managing those will be the key.

Supply chain issues, shortages of goods, the cost of things we buy for the Farm and knowing what sort of volumes are needed going forward are some of the questions Farmers will ponder from here on.

2021 has been a ripper year for Machinery and Equipment sales, and we think it will stay the same in 2022. Why not offset some of the increases in the prices of the things we buy by offloading assets we have but aren't really using. Remember, if you don't need it, move it on because someone else will more than likely require it. That's how the market is today, there is limited stuff available, and the demand is there.

A few are switched onto this tactic, but many just don't get around to it. Those items sit in the shed, gathering dust and going down in value.

Machinery Tyres are a good example. We had a Tyre shop owner buy a large number of near-new (but used) Tyres that were listed by a customer. They couldn't get any new ones of that size, and his customers were screaming out. Tyres are a great example of the current market dynamics. Surely heaps of Farms have got some decent Tyres lying around, never to be used again. Get them out there. The demand is there.

Another trigger that tells us that things are in short supply is the number of wanted ads we are seeing.

For the 2021 year, most Farmers will have a scenario where the revenue will outweigh expenses, a profit in other words. The trick in 2022 will be to do it again whilst factoring in a higher cost base.

Farmers always "find a way" when challenges like this are laid out in front of them. The ability to meet these things head-on is one of the best traits I reckon a Farmer can have in the toolbox.

It's how we get better at Farming by working things out, implementing them and taking the good bits and learning from the rest.

Find "your" way. I'm sure you are up for it.

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