Alison Whiteford: Support tools can boost your profit

N-Smart sprayers can dose paddocks precisely to help hit new nutrient limits imposed by environmental constraints.

I recently read that sheep and beef farmers who use decision support tools experienced, on average, a 78 per cent increase in their per-hectare gross margin.

The NZ Institute of Primary Industry Management Journal article carried on to reveal an even more remarkable figure for North Island hill-country farmers. They experienced a more than 100per cent increase in gross margin.

Increased margins are the ultimate motivation to embrace technology and be open to change.

However, as with all opportunities, there are challenges. For instance, using technology in hill country includes the obvious challenge of internet connectivity. But there is plenty of low-hanging fruit for farmers to target that should increase profit margins.

When you look at IT investment in the sector over the past decade - up to $400 million (NZIPIM Journal, 2016) - there must be some easy pickings among the applications developed. Decision tools out there include financial, production and environmental.

A "hot" tool at the moment is the Beef + Lamb New Zealand land and environment planning tool kit, which incorporates other tools, such as: Overseer to measure nutrient discharge; farm mapping to identify different land use capabilities; and yield mapping tools, like Farmax.

Developing a plan is sound from a policy perspective, but is also increasingly important as a good business practice.

Analysis into the value of land after environmental constraints have been placed is noteworthy. Looking to Taupo as an example, the value of dry stock farms inside the Taupo catchment is 37 per cent less than farms which sit outside the catchment (NZIPIM Journal, 2016). That's a statistic that can't be ignored.

So, what decision support tools are out there that could make your operation more profitable?

Take the time to find out. Also find out which regulations are likely to be introduced in your area in the future. There will be tools that can help you front foot these changes and add value to your bottom line.

- Alison Whiteford is an extension manager for Beef + Lamb New Zealand. She can be contacted on 0274897343 or alison.whiteford@beeflambnz.com