Begin Planning for 2020 Now
While the frost is hardly on the pumpkin, and we all hope it won’t be anytime soon, now is the time to start planning for 2020.
Determining and then obtaining feed for your operation for next year should be among your highest priorities this fall. “Ensuring that we have sufficient feed inventory and enough high-quality feeds this fall are keys to herd performance and profitability for next year,” says Jim Moriarty, Director of Dairy at Compeer Financial based in Baldwin, Wis.
“It’s important to identify how much forage and grain you’ll need for the next year for your targeted cow and heifer numbers, and then make your best assessment on yields and quality of your own raised feeds,” he says.
“You can then determine where there are gaps you need to fill,” he says. Then, they may be opportunities to purchase high moisture corn or silage from neighbors yet this fall to fill those gaps.
Planning should include the price you are willing to pay, your harvest window, storage capacity and separation of different quality feed and cash needed to buy the feed.
“Cash flow available after meeting operating expenses and debt payments each month should first be allocated to obtaining sufficient feed inventories, and then paying down accumulated account payables,” he notes.
For more information on cash flow priorities, click here.