Disregard the Unicorn and Run the Farm Like a Business — The 5% Rule

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There are a lot of good operations out there. But they could be great, says Kristjan Hebert, if managers stopped looking for unicorns, or big home runs, and focused on making small changes.

Hebert is a managing partner at Hebert Grain Ventures, a 12,000 acre grain and oilseed operation in Saskatchewan. He is a chartered accountant, a graduate of Texas A&M’s The Executive Program for Agricultural Producers, and chairmen of Global Ag Risk Solutions.

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Kristjan Hebert, managing partner at Hebert Grain Ventures, joins Shaun Haney to discuss The 5% Rule, and his upcoming presentations at Farmtech, January 26 and 27, 2016. Can’t see the embedded video?

He calls the focus on small changes, the 5% Rule, and uses the example of increasing yields by 5% (maybe 2 bushels/acre), increasing the price you sell grain by 5% (maybe 50c/bushel) and increasing efficiencies (maybe upwards of $17/ac). For many producers, these goals are much less intimidating than 500 bushel corn, 100 bushel wheat or 52 bushel canola. And, as Hebert reminds us, 5%+5%+5% often adds up to much more than 15%.

In his upcoming concurrent sessions at Farmtech, Hebert will guide attendees through gross margins and fixed expenses, and the surprising simple math to help their farm’s bottom line.

Hebert is scheduled to speak at Farmtech on January 26 at 4:45pm and January 27 at 10:15am.

Other Episodes

FarmTech (view all)Season 6 (2016) Episode 27
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