Brad and Kate Jones project a $2.7 million improvement in their farm's bottom line by year five, shifting focus from tonnes per hectare to return on capital. They credit on-farm trials since 2008, balanced inputs, and a liquid system that cut operations time by roughly 17%.
Questions this video answers
$2.7 million better off.
Five years.
Year three.
2014.
2008.
Chapters
Exhaustive and stringent business planning combined with continuous innovation has seen Brad and Kate Jones change their farm systems and processes to focus heavily on return on investment, resulting in potential savings in the millions of dollars over a five year program.
I've done a discounted cash flow analysis.
Out for five years and we're in.
Year three at the moment. And using that discounted cash flow analysis at the end of the five years we, our bottom line will be $2.7 million better off.
Their aim remains to achieve sustainable margin growth through business scale, reduced fixed costs and input efficiencies.
2014 started to change our metric for success on the farm to return on capital as opposed to tonnes per hectare.
And that was from finding like some analysis on what our breakeven numbers exactly were. And that's when we started to match our inputs to that.
So it's not necessarily low inputs, it's.
More a balanced input system that we're using today.
Mr. Jones says measuring return on capital rather than tonnes per hectare helps them to better match inputs, but they are also achieving efficiencies in other ways.
Knowing what our objective was at the.
Start and the whole team knowing what.
Our objective was, having lots of background from trials.
So we've been doing trials on Farm from 2008, so we knew that if.
We got it wrong it wasn't going to be catastrophic. So that was the most important thing.
So the message that I give to.
Growers now, if they, if they're looking at our system, is just try a bit, do your own on farm trials, see how it fits into your system.
But make sure you know what your.
Objective is at the start. Don't start with the process, start with the objective and build the process from there.
The Jones family is proud of their successes to date and Mr. Jones says it shows that process has been key, particularly their efforts in business planning.
Because yield's not our metric, it's all about return on capital.
So our bottom line is enhanced by saving on inputs.
Our efficiency to a liquid system as.
Opposed to a granular system is enhanced like we're 17% faster than what we were before.
So there's labor costs, there's fuel costs, there's time. So our timeliness is enhanced as well because we can get at it quicker.
We can capture better conditions while we have them, so optimum moisture and better timing.
