Virginia Cotton: Make Your Budget More Efficient

A pretty wet week will give us more time for paper work.  When I think about budgets, I also think about ways of reducing costs.  So as we move forward some of the ideas we come up with deserve some consideration, however we need to be the most careful on cutting costs that also reduce gross revenue.  The first thing I try to do is to classify items as essential vs optional. 

For the optional items, I tend to look whether or not those optional items actually increase total revenue enough to pay for them, or do they simply offer an easier or time saving step for my operation.  If the optional item is not an income producer, it can still be justified when it frees up time that allows you to make money on another area of your operation.

Essential items by definition cannot be cut out, however; we can still evaluate these items to be sure they are offering maximum returns.  Some examples of fine tuning essential items include many of the usual items like specific field by field fertility plans.  Perhaps looking closer at nitrogen adjustment as some fields have enough residual nitrogen to make 1000 pounds of cotton.

These typically are our most productive fields.  We are also at a cross roads where some new chemicals or varieties are higher cost, but the older options may still be more profitable.  Sometimes, just removing duplication can lower the budget.

The top investments are coming from seed, fertility, and equipment and these are probably the areas where our focus could have the biggest impact.


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