Kristjan Hebert: Myths Versus Facts of Modern Farms

Let’s bust through some outdated ways of thinking

I can’t tell you how many times I’ve heard these statements from people I meet while doing business and speaking at agriculture events in Canada and the U.S. We’ve heard them for so many years, some of us foolishly believe they are true. Evan Shout, Hebert Grain Ventures’ chief financial officer, and I decided to bust some of the most common myths we hear in agriculture today.

MYTH: Bigger is better. 

FACT: Size is not a function or profit. Some of the best producers we’ve seen are what you might consider small. Instead of bigger is better, we like to say, better is better. Constantly assessing and optimizing farm management practices will drastically improve your bottom line per acre. Sometimes those efficiencies are labor, not machinery. For example, we added 5,000 acres last year, but didn’t need to add more staff.

MYTH: Machinery should be my most important investment. 

FACT: Labor almost always trumps machinery. Yes, every farm needs new equipment, but it shouldn’t be the focus. Instead, equipment should allow you to use your labor efficiently. We did a combine trade that allowed us to reduce two machines from our combine fleet. While these are bigger combines, it’s actually less machinery, and they free up our staff to do other jobs. Also, consider the costs. A new employee might cost $60,000 to $100,000, while a new combine can run from $250,000 to $1 million.

MYTH: It’s impossible to run a 24-hour farm operation during planting. 

FACT: We have been doing this for the past decade. By adding 12-hour day and night shifts, our productivity increased, and our employees were happier (some like the night shift!). Since our employees can go home and rest, our safety record improved as well. We have found historically anything over a 16-hour shift will cause safety concerns and mistakes.

MYTH: We don’t need data and analytics. 

FACT: Being really clear on your financial data is key, and there are various platforms out there to help you do it. Here’s a great example: Last year we hauled our own grain (many farms hire a third-party trucking company). Once we analyzed our costs, labor, etc., we determined we made money by trucking our grain. We would not have realized that until we analyzed the numbers. 

MYTH: We shouldn’t share our ideas. 

FACT: Sharing challenges and learning from others will help you avoid mistakes. Call it ego or rugged individualism, the biggest downfall for some farmers is their inability to ask for help and learn from others. The growing prominence of peer groups, business coaches and farm advisers mean you can share knowledge, ask questions and learn from others. This is how it works in many other industries, so why not farming?  

Hear Kristjan Hebert on the Farm CPA Podcast with Paul Neiffer:

Read More: Running a successful farming operation: Myths vs Facts

Kristjan Hebert is the managing partner of Hebert Grain Ventures, a 30,000-acre grain and oilseed operation in southeast Saskatchewan. He was the 2020 Top Producer of the Year.

Connect with him at: KristjanHebert.com or @KristjanHebert