Valuable business skills courses for dairy farmers
© Adobe Stock Many dairy farmers tend not to be driven by profit: satisfaction comes from a herd of fine cows, full clamps or milk in the tank.
But being good at milking cows does not necessarily mean being good at business.
A profitable and sustainable dairy farm, however, requires skills in financial management, strategic planning and working with people.
Regulations are getting harder, environment schemes create paperwork and spiralling costs need controlling.
So business management should be seen as something valuable for the family farm, says dairy business skills trainer Becky Miles.
See also: 5-step guide to preparing a budget for your dairy farm
Having worked in benchmarking, Becky knows that dairy farmers often lack business skills, yet specialist training for working farmers is thin on the ground (see “Business skills courses for dairy farmers”).
A series of “lean management” workshops for dairy farmers – and their whole farm team – is being launched by Becky this spring.
They will learn how to reduce waste, improve efficiency and make the dairy farm profitable.
“There is safety in numbers and being with like-minded people. Being in a safe environment is also important because everyone is usually scared to show how little they know about business,” she explains.
Improve the basics
In Wales, sheep farmer-turned-training provider Julie Thomas says farmers like a short, sharp, one-day course to get skills they can apply at home.
Teaching a range of courses to hone basic business skills, Julie finds that dairy farmers are usually ahead of other sectors on business planning.
“They deal with milk contracts, their technology is ahead and they do more benchmarking as part of their milk contract. They also tend to use a consultant,” she says.
“Leadership and team development are increasingly requested as people strive to be good employers.”
Case Study: Worshipful Company of Farmers – Gavin Green, estate manager, Gloucestershire
Time management, communication techniques and investment appraisal were skills picked up by Lydney Park estate manager Gavin Green from the Advanced Course in Agricultural Business Management in 2013.
The residential course at Cirencester combined farm and estate visits with lectures from industry speakers designed to make people think and open their minds, says Gavin.
“It was not a technical course, we had talks on succession planning and psychological profiling, and we learned about business strategy,” he says.
“Investment appraisal was good for on farm. It was learning to sense-check purchases, such as a new parlour or tractor, and if the decision was a good idea.
“Terminology was explained as we went along.”
Gavin thinks this course is for a farmer who is open-minded and willing to look critically at their own business.
“And also you need a level of experience running the farm business, it’s not for someone young or a recent graduate,” he adds.
Setting goals
A UK business course specifically for dairy farmers is now in its 12th year.
Working with the Royal Association of British Dairy Farmers (RABDF), consultant Tony Evans set up the Entrepreneurs in Dairying programme as he felt agricultural education was technically driven, with little focus on money and business.
The course is open to both new entrants and born-and-bred dairy farmers, and there is no age limit.
Whether they had some financial tuition at college or have acquired it on the job, they can remind themselves where it all fits.
“Learn the terminology and put it into context for your farm. Then do a wider business course,” he says.
Case study: RABDF Entrepreneurs in Dairying – Josh Fincham, joint venture contractor, Dorset
Farmers Weekly 2023 Dairy Farmer of the Year finalist Josh Fincham says he learnt how to build a budget, review it and stick to it while on the Royal Association of British Dairy Farmers (RABDF) Entrepreneurs course in 2016.
As a herdsman, Josh had had little experience of farm accounts; now that he is in a dairy farm partnership, it is essential.
“I wanted to get a better understanding of dairy businesses and how they work, accounts and budgeting, as well as networking with like-minded people,” he says.
Josh Fincham and partner Lauren Pincombe © Kathy Horniblow
Josh thinks this course is best for someone who wants to make that step up into a dairy farm partnership, or anyone from a family farm who wants more understanding of the business.
For those from dairy farming families, this offers a chance to meet people with different ways of farming to gain ideas to take back, he says.
“They can get an understanding of how accounts are built – and how the supply chain works – so they can have a better conversation with mum and dad when they get home.”
Business skills courses for dairy farmers
Simply The Best Training
- Julie Thomas, Wales (Lantra training provider), tel: 01443 670267, simplythebesttc.co.uk
- Accounts, bookkeeping, cashflow, planning
RABDF Entrepreneurs in Dairying
- rabdf.co.uk/entrepreneurs-in-dairying
- Covers the supply chain, tax and trading, people skills, budgeting, finance
Lean management workshops
- Becky Miles, leanfarminguk@gmail.com
- Six sessions, each three hours for the whole farm team looking at farm efficiency
The Worshipful Company of Farmers Advanced Course in Agricultural Business Management
- farmerslivery.org.uk
- Two-week residential course followed by online workshops and coaching