# 120 - Will your BUSINESS MODEL stack up

For many, the last few years have been unique and positive – resulting from low inflation, low-interest rates, above-average commodity prices and above-average production. Now, our current reality is very different. We will likely see an extended period of increased inflation, increasing interest rates and softening commodity prices. In addition, from a production standpoint, there is talk of El Nino weather patterns ahead… The question we should ALL be asking is: Can my farm business model handle this new reality? In this episode, I call on the “Brains Trust”, inviting Farm Owners Academy Co-Founder Greg Johnsson and Executive Director at RLS Agribusiness Jeff McDonald to join me to explore this question in detail. We discuss the importance of: knowing your numbers; presenting proactively to your bank; developing a compelling economic model for your farm; stress-testing your farming system based on long-term average yield & prices; knowing your ‘new’ cost of production; and being financially strong as a farm business owner. In this, we share 2-3 key performance ratios we each need to be aiming for and emphasise the importance of considering these in confirming you have a business model that is agile, flexible, profitable (in most years) and resilient. For more on this important topic, join Greg Johnsson & me on Wednesday 7th, June for a 90-minute webinar where we will dive deep into the core numbers you need to know and insight into what the top 20% of farmers are doing differently to adapt and thrive in this new agri-economic climate. For more information or to secure your seat, click here. As always, a compelling conversation when I bring these two incredible minds together. Enjoy, and all the best as you stress-test the strength of your business model. Best, Hutch & Team