In agriculture, we often shrug and say things like, “Can’t control the weather,” or “We’re at the whim of the markets.” Sure, there’s truth in those statements. But the mindset we bring to these uncontrollable elements can dramatically shape our business outcomes—whether that’s profit, freedom, or future options.

What we’ve seen time and again is this: farmers who take a step back from the paddock and look at their businesses holistically almost always uncover ways to plug leaks in expenses and crank up income, whether in this season or the next.

Turning the Dials

On the income side, improvements might come from a new product, paid advice, or better use of technology. But none of that starts without a conscious decision by farm management to seek improvement.

On the expense side, savings might be found in fertiliser, finance, machinery, or even drawings. Hunting down those one-per-cent gains is rarely glamorous, but it pays.

Let’s look at a hypothetical. Using the Planfarm Benchmarks from 2023, an average farming business in the Medium Rainfall Zone that lifts yield by just 0.1 t/ha can generate six figures of additional farm gate value:

 

 

That’s not an insignificant sum. In fact, it’s 31% higher than the current average national wage in Australia.

Squeezing the Cost Side

We know from benchmarks that average operating expenses over the past six years have hovered around 70%. Despite some strong seasons, two very challenging ones have kept this figure above the ideal 65%.

Here’s what happens when a business reduces operating expenses by just 1%:

 

 

That’s a 50% increase in profit, from a single percentage point.

Now, let’s say the business has the capacity to invest. If spending $1 more in operating costs generates $5 more in income, the impact is even greater:

 

 

Going Below the Line

Looking further at ‘below the line’ expenses, such as interest costs:

In the same region, the average farm liabilities were $3.7m. A modest 0.5% reduction in interest saves $18,500 annually.

The Bottom Line

Big gains often come from small shifts. Decisions made at the desk—not just in the paddock—can transform your business. Small changes to big numbers make a big difference to the bottom line.