RIO; turning Risk Into Opportunity for Real Income Optimisation
Rain Is Opportunity; make the most of it.
Every drop of rain is precious. It is the ultimate driving force for you to grow a product and create profit. However, the minute you start spending money to try to realise that profit, then you are exposed to the risk of suffering a loss rather than making a profit. That risk exposure is a particularly serious threat for cropping, but can be easily and reliably offset by including Pristine pastures and forages in your enterprise mix. Rain Is Opportunity and with Pristine it can be used to achieve Real Income Optimisation in every year.
Comparing risk in crops versus pastures and forages.
A pasture or forage generates a harvestable product and therefore the capacity to create profit within weeks of an effective rainfall event, with little cash investment or risk. In contrast, a crop needs many months, many effective rainfall events and for most farm enterprises, tens of thousands of dollars outlays before it even begins to generate a harvestable product. Most farmers are skilled artisans and rarely make crop-busting mistakes. But we do not control the weather, and the weather is making a habit of being the real destroyer. Even a single night of frost or day of hot north winds, and you are staring down the barrel of written off crop income and the debt of massive unrecovered expenses. That is where business control and risk offset with Pristine comes in.
Controlling your enterprise versus being managed by risk.
Good pasture is the cheapest, best and most profitable means for animal production. But if you do not have sufficient rain to grow all the pasture or forage you need to feed your animals, you can always buy in feed and/or sell some of your animals, with minimal compromise to future production capacity. For animal enterprise managers, those are simply business decisions that are routinely made to generate cash flow and income according to prevailing circumstances. However, crop enterprises cannot buy rain to grow a crop. While you can therefore completely counteract the major risk factor to your animal enterprise, there is little or no capacity to do so with dryland cropping. That is the difference between having control and having to manage with what is an uncontrollable risk to the viability of your enterprise.
Offsetting the risk.
By mixing crop and pasture production, the high risk of cropping can be offset by the high reliability of income from pastures and forages. Through the prudent use of pasture in the rotation, the total enterprise risk exposure is insured against and reduced to the degree chosen by the individual manager. There are also many benefits from the complementarities of the two enterprise types. Good integration will increase crop yield and quality, slash fertiliser and other crop costs, spread both workload and income, and turn major enterprise costs such as weeds and crop failures into feed sources to generate animal income.
Building the offset strategy into profit.
Productivity of most wheat sheep zone pastures can be improved enormously by increasing the legume component and then managing for growth. More than half the battle is to reliably get adequate legume numbers on the ground, while the remainder is to make the most of the plants once they are there. If this is done, then many pastures will at least double and often triple their carrying capacity. Hence while expensive, there are enormous productivity and reliability gains to be made through regular re-sowing of legume when it is needed.
Achieving good returns with traditional pasture production systems.
In traditional systems of pasture production, seed was only sown once, with the expectation that it would regenerate over many years from seed set in that first year, and in occasional subsequent years. This can work with careful and attentive management. However, in reality this system is analogous to planting a crop once and then relying on it regenerating from seed that fell on the ground, or went over the back of the header. This can also work, but it is highly unreliable, difficult to manage and requires major sacrifices of productivity just to maintain the desired species component.
Making it easy with Pristine’s 21st century varieties and technologies.
This is where Pristine is breaking totally new ground and where our unique varieties and technologies will put you way in front. We have developed specific traits and patented genetics to make on-farm seed production far easier and cheaper. By joining our client group, you will be licensed produce as much on-farm seed as you need for your own use. With this seed, you can sow whenever you need to, and get all the benefits of high quality, high production pastures and forages without the problems and uncertainties of old regeneration-based systems. You will also be given fingertip access to key knowledge, information and advice that will help you make your pasture production the real success that it can be. Just the seed production license alone will save an average farm many tens of thousands of dollars. The whole package will then add enormously to the productivity of your pastures, plus make the ultimate risk offset tool, plus increase enterprise flexibility and diversity, plus stabilise enterprise income, and so on.
Remember RIO. Rain Is Opportunity. Realising that opportunity does carry risk, but using Pristine helps you insure against enterprise-busting risks so that you can get to RIO (Real Income Optimisation) every year.
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