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Calculating Your Cost of Production with Ease
Many producers are looking to understand their cost of production and cash flow projections. Having a full understanding of these two calculations can help you make the best decisions for your operation.
Calculating your cost of production starts with estimating production; how many cords, and what price. Then we look at all expenses, fixed and variable, as well as non-cash expenses. There are easy to use tools online, including AgStar’s Timber Margin Manager Tool that can help with this task. Remember, your projection — and therefore cost of production — is unique to you and your operation. Nobody else's is the same. When you're putting together a projection it's time to be realistic, not overly optimistic.
“Leadership is influence, nothing more, nothing less.” John Maxwell.
Influence has less to do with position or title than it does with actions. It’s also not about position, but production. It’s also not the education we get but the empowerment we give that makes a difference to others.
Influence really is what leadership is about. The key to influence is credibility. Credibility is gained when our actions match our talk. When combined, they add value to others. In other words when action is guided by character, credibility is gained which in turn produces influence. Positive situations are inevitable when credible influence is used as a guide to progressively reach a goal or resolve an issue. When influence based on character is employed things happen at the speed of trust.
Reminiscing about the days gone by and how things have changed leads me when writing my article this month on mechanized logging. I am a 4thgeneration logger, so I’ve seen a wide variety of different equipment. Both my granddad and dad both used horses. I also started out with a team of horses in 1965. I bought my first mechanized piece of equipment at the end of 1969. It was an Allis Chalmer dozer with a Barko Ramey pull behind trailer with a clam. In 1972, I bought my 1st rubber tire bunk skidder that was a Soderhamn that held 2-1/2 cords. I had 25 men working for me at that time hand cutting. They could cut approximately 50 cords a day.