No 451 - Tuesday's Club Notes

The “Club Notes” for Tuesday, the 4th of March, 2025.

By Dwain Duxson - An Ag Enthusiast

The values Triangle

When we had our catchup with Kerin Ag the other day, the first thing that Nigel drew up after our introductions was their "Values Triangle". See it below. Each decent-sized decision they make for the business has to be run through this triangle. I'm going to do a bit of scenario-playing here and run a hypothetical 5000-head Lamb trade through as an example. Now, let's assume we have the grass to finish the Lambs, so let's start at the bottom. Do we have the cash to do the trade? Let's say it's mostly stock finance (OPM, remember), so we have the cash, is it going lead to growth, we have a buy-in price, a selling price, and we roughly know how much weight we can put on, so tick. Do we have the infrastructure? Yes, it's ok, good enough for this job, and do we have the tech? They all have EIDs, and we have the facilities to handle 5000 head. And what about the people? That might be a problem because it's just me, so that might be a red flag that would need to be solved before we go into the trade. I would need a contractor to help out on those big days. So before we pull the trigger on the trade, we need to organise that. This is how I understood how the Values Triangle would work. Can you get an understanding of how something like this could work each and every time there is a decision to make? It would be essential when buying a piece of Machinery. Do you use something similar, or can you see the merit in doing it this way? Reply to [email protected] or 0427 011 900

What’s in the paid section today:

Story 2 - This Farming lady isn’t afraid to ask….

Story 3 - The political double whammy…

Number of articles and images - 69 titbits of valuable Farming info and news, including 19 funnies and 3 just sayings

Number of Farmer replies - 7, with a few on youth crime.

Subscribe to Premium to read the rest.