National Ag News
80/20 rule in tight margin environment
Jan 30, 2017, 13:42 PM
by
System
An extension crops business management specialist recommends an 80/20 rule as farmers continue to face tight margins.
Jack Davis is with South Dakota State University.
“You’ve got 20 percent of your things give 80 percent of results. I try to look at that on the cost side (and) pick those top 20 percent line-items that are going to make up 80 percent of your costs. Spend your management time on those.”
He says variables like seed and fertilizer can be managed differently as prices fluctuate, but fixed costs are tougher to adjust.
Continue reading 80/20 rule in tight margin environment at Brownfield Ag News.
