Wayne Pike – Instructor 2005 – A Year of Opportunity And an Annoying Reminder of our Need to Change and Grow Wayne Pike – Instructor April 2006 http://www.riverland.edu/mgt/wpike/index.htm

3 Characteristics of Your Farm Business Management Instructors We are exceedingly dedicated. We are really good with numbers.

The Cruelest Tax-Inflation “A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.” It is here to eat our lunch. If your business does not grow, you are on a fixed income. You are slipping downstream against the current of change. A cost of living increase based on the inflation rate (such as Social Security cost of living adjustments) is not getting ahead. That is why it is called a fixed income. To get ahead we have to beat inflation.

Inflation Adjusted Family Living

Net Return Feels the Squeeze

Farm Earnings v. Everybody Else USDA says: 2 million farmers 12 million other self-employed (plumbers, doctors, etc.) 94 million who work for others (FBM instructors, rodeo clowns, etc.) Farmers earn more than those who work for others, but less than other self-employeds. Farmers are wealthier than those who work for others and wealthier than half of other self-employeds. Source:http://www.ers.usda.gov/amberwaves/February04/Findings/AssessingFarm.htm

Conclusion Growth comes in many forms: Scale (more land, more livestock) Profitability (improved margins) More equity, less debt. Working less, earning the same. Earning the same with less investment. Innovation – Adopting technologies. Using other people’s ideas.