There are certain traits and characteristics that are common among profitable farmers that see them earning a higher margin compared to their peers, Agricultural Consultant and Land Agent Mike Brady told the room at this week‘s Irish Grassland Association conference.
He said that for him, the start line of a profitable dairy farm should earn more than €100,000 of profit, which he said can achieved on 40ha and a profit of €1,000 per cow. Net profit per hectare and then the number of hectares that are owned.
“€100,000 is what I would propose as the baseline that any farmer should be aspiring to, by the time all the bills are paid in my opinion,” he stated.
In order to achieve a decent level of financial performance, which he said should start at a baseline of €100,000 for a dairy farmer, there are 7 traits that farmers adhere to:
1. Scale of farm – own a lot of land
The amount of land farmed is the biggest contributor to the amount of profit earned, according to Mike. He said that there is a strong correlation between land owned and potential profit to be made, and as a farmer’s land bank goes up, so should the profits in a steady fashion.
“The more land you own, the more potential profit one can make. There’s two types of farmers in my eyes, good ones and bad ones, not big ones and small ones.
2. Focus – know their system of milk production