This past week my husband and I had an incredible experience attending the Ranching for Profit School. It’s a fairly intense business training but really more than that. He had attended the school a few years ago and we chose to go together this year so I could better understand the economic concepts we were using on the farm. It’s exciting to see how the concepts, in addition to the peer group of other businesses, is helping transform our farm!

Ranching for Profit School began in 1983 and its mission is to help create Healthier Land, Happy Families, More Profitable Businesses. I think many of us can resonate with this. Specifically, the mission is about our purpose, our “why”. I’ve had a personal mission statement for decades, but it’s important for our businesses to have a statement as well. Why? It helps us with decision making and keeps us grounded in the good and difficult times. The mission should encompass the customer value, the owner value, and core principles (values). Our vision is what we want. I appreciated how the teachers kept asking us, “What do you want?” We can’t make wise decisions if we don’t know what we want to aim for. They shared, “If you can see it in your head and feel it in your heart, you can hold it in your hand.” Every business on my team left with an action item to work on our Mission/Vision. I think that’s an important item for all of us to consider for ourselves personally as well as professionally.

For the economic concepts, we were taught a way to determine gross margin per unit. This allows us to evaluate enterprises (each crop and/or class of livestock) side by side to understand where we were obtaining the most value. If we’re going to be profitable, we need to think about the value we’re creating. It’s a way to help us consider the things we should be doing more or stop doing altogether. We also learned strategies to determine how to increase the value of each enterprise.

We were challenged to think about any paradigms keeping us from moving forward. Paradigms are a lens from which we view the world. They’re subconscious beliefs we’re often unaware of. An example many can relate to is, “Hard work leads to success”. However, how many of us work incredibly hard yet aren’t profitable? Often working even harder isn’t possible or practical. We all have paradigms that impact our daily decisions and relationships. Some paradigms can be positive, but others can paralyze our decision-making. Paradigms lead to action which leads to results. Thus, they suggested if we wanted to change our result, we needed to look at our paradigms. Sometimes we can’t see the things right in front of us that need attention because of our paradigms. This is also where it’s important to have trusted peers and advisors who we allow to speak into our lives to help us see what we can’t. One unfortunate story shared how an owner’s deeply rooted paradigm resulted in an operation going bankrupt, in spite of others speaking into the situation using the economics. It made me wonder how quickly that could happen, particularly during really tough economic times such as now in farming. It was helpful for me to become more aware of paradigms I have and hopefully this thought is helpful to you too.

If any of this sounds of interest to you, I’d encourage you to check out the Ranching for Profit website at: https://ranchingforprofit.com/. While the school was designed for ranchers with livestock and grazing/haying enterprises, there are a number of farm and other businesses who attend because of the solid business principles that can be applied anywhere.