Supply Planning
Hello!
I recently posted a blog in reference to tax planning at the end of the calendar year. Moving with that same theme, I wanted to discuss supply planning. During the winter months (and in our industry the “down time”), I like to take inventory of my supplies and plan for the next year. Typically on our beef farm, we start shopping now for items such as baling twine, hay wrap, etc. One of our local dealers lets us buy these types of supplies (at a great price) and lock into a price guarantee. They also like to claim the sale for the current year and let us “buy now, pay later.” This allows us to manage our cash flow, lock in at a great price (save money too!) and plan for the next year’s crops. I don’t know how many times I have heard farmers complain about running out of items in the hay field which often leads to increase cost and lost time. My advice: shop around. Ask your local dealers, grain stores, equipment stores for their pricing and terms of the sale. Most times it is better to buy in bulk to get a greater discount. Ask a trusted local farmer if they want to go in on a large order with you to increase savings for you both and maximize your economies of scale. Don’t be afraid to ask!
The High Heeled Farmer 