Key Attributes of Successful Dairy Farmers

This article presents a snapshot of some of ifac top performing farmers, who participated in a recent survey that highlights how they allocate their resources and the rationale behind key management decisions.

These top performing farmers, from around the country, have achieved impressive results with farmers reporting an operating profit of 18.62cpl or €2.16/KgMS, based on actual performance data from 2023.

Now, let’s dive into the attributes and strategies that distinguish these farmers from the rest.

1. Smart Breeding Decisions

All the farmers we spoke to prioritise milk recording, with most doing it six times a year and some recording up to eight. Fertility and milk solids are central to their breeding decisions. By staying on top of their breeding policies, they ensure productivity and profitability from their herd.

2. Clear Goals and a Vision for the Future

Every farmer we interviewed had a clear vision for the future. They didn’t just hope things would turn out well—they set both short-term and long-term goals. While only a third of these farmers wrote their goals down, all were actively working with advisors to make sure they stayed on track. One farmer told us, “While I don’t write my plans down, I do work closely with my accountant and advisor to map out where I’m going.”

3. Grass Management: The Backbone of Their Business

Soil and grass management is fundamental to profitability. Every farmer in our survey regularly walks the farm to measure grass, often using tools like spring and autumn rotation planners. Most test their soil every two years and use these results to guide fertilization and reseeding strategies. Well-managed grassland means healthier cows and more consistent production, no matter the weather.

4. Conservative Financial Management

Successful dairy farmers are careful with debt. While they might be conservative with short-term loans, they are open to using long-term debt strategically when it benefits their business. They also maintain "rainy day" funds, ensuring that they have cash reserves in good years to help weather any financial storms.

5. Efficient Machinery and Overheads

These farmers don’t overspend on machinery. They keep their costs low by focusing on what’s essential and ensuring they have a solid maintenance plan in place. In good years, they invest in maintaining their equipment to reduce costs in leaner times.

6. Regular Financial Reviews

Financial health is as important as physical health on these farms. All the farmers surveyed use budgeting systems and adjust them throughout the year to account for changes in milk prices or input costs. They review their financials quarterly and aren’t afraid to shop around for better loan deals when needed.

7. Valuing the Farm Team

The top dairy farmers know that their team is crucial to the success of their operation. Staff are valued, consulted, and included in key decisions. Even on smaller farms where external labour isn’t employed, the family or part-time help is appreciated. Everyone, including the owner, takes time off to recharge.

What sets these dairy farmers apart? It’s not just one big thing; it’s the combination of smart decisions, from breeding policies to financial planning. By staying on top of every aspect of their business, from pasture management to debt handling, these farmers are ensuring their long-term success. Whether it’s setting clear goals, valuing their team, or keeping a close eye on the books, these farmers show that success is built on a strong foundation of practical, everyday actions.

If you’re looking to improve your farm’s profitability then start by focusing on these areas, and you’ll be on your way to joining the ranks of the top-performing dairy farmers.