LMT_Dec_19_2022_Vol_116_issue_03

22 lmtimes.ca • Last Mountain Times • Monday, December 19, 2022
Oft-revisited
theme
Recently I was perusing some online agriculture media sites
just to keep up a little more with the issues of the day, and one
headline popped out and made me smile; ‘Beef breeding must
aim for profitability.’
22124CC0
Ag Notes
CALVIN
DANIELS
The reason for the smile was twofold. For one, it’s hard to imagine anyone who has managed
to survive in the often volatile beef sector who hasn’t long ago realized you have
to work to try and make at least a few dollars at the end of the year. Secondly, the idea
of reinforcing the idea of profitability is far from new and is, in fact, an oft-revisited theme.
The reason is actually not so hard to understand. We, and in this I suggest business in general,
not just farming, can easily be followed by big number revenues, equating a hefty cheque
with profitability.
It is quite understandable, given society always seemed focused on making more dollars
without factoring in the costs associated with achieving a higher cheque at day’s end.
In farming, it is also very much a reality tied to the goal of higher production and equating
that with profit. If an acre of land produces ten more bushels of a crop, it seems obvious it is
more profitable. If a calf weans at 50 pounds heavier, profits have to be higher. Neither the
additional bushels nor added pounds are not necessarily profitable production.
There are costs to production – fertilizer, labour, fuel, crop production products in the case
of crops – and those need to be factored against the production.
One can easily imagine upping input costs, and while getting a positive boost in production,
that boost not offsetting the added input investment costs. However, ‘the system’ of
agriculture largely pushes the idea of maximizing production as the measure of
success.
It might sound good at the coffee shop to brag about big bushel crops, but the
real measure of farm success has to be those bushels generating a net profit. At
present, achieving profits for crops is not as challenging given the high returns
possible from strong markets.
The cattle sector is different right now, with higher feed costs and much tighter
margins to work with, so controlling costs to give the operation a better chance
at being profitable is a must.
If a sharper pencil can help profitability in a tighter price market, it should be a useful and
much-used tool at all times, as net income would seem the most important number in a business
ledger.
- CALVIN DANIELS
Comment on this article at lmtimes.ca/calvin
Disclaimer: opinions expressed are those of the writer.
R.M. of Mount Hope Meeting
Highlights - December 13th, 2022
• The Municipal Office will be closed from December 23rd, 2022 to December 26th, 2022 for
Christmas holidays, as well as January 2nd, 2023, in lieu of New Years’ Day.
• Bylaw No. 7/2022, being a Bylaw to amend the Zoning Bylaw has been adopted. This Bylaw
will require the minimum setback for all dugouts, borrow pits, trees, and shrubs to be 148
feet from the centreline of a developed road or provincial highway. If you would like a copy of
this Bylaw, please contact the Municipal Office.
• Various tenders will be put out in the upcoming weeks, which will include the request for
weed inspector services, custom gravelling, gravel crushing, and the supply of a motor grader.
• We are applying for funding through the “Canada Summer Jobs” program hosted by Service
Canada. If funding is granted, we will be hiring two summer students to work in the Public
Works Department for the 2023 season.
• Virtus Group LLP has been appointed as our auditor for the 2022 fiscal year. The annual
audit is scheduled for February 27th, 2023 and will be conducted in person at the Municipal
Office.
• The January Regular Meeting of Council will be held on Tuesday, January 10th, 2022, at 8:00
a.m. in the Municipal Council Chambers.
-SUBMITTED, RM of Mount Hope