If you grew up in my family, you were a farmer, an accountant, teacher, or a veterinarian. Hence, my job title. Nonetheless, you don’t have to be an accountant to understand that on a dairy or calf ranch we pay taxes all the time, not only on goods and services, but there’s always invisible tax we pay. Invisible tax?!? What’s an invisible tax?
An invisible tax is the tax you pay for something not improved upon or an invisible opportunity you don’t take advantage of to further your production or bottom line. Another way to think of it is invisible bottlenecks in your operation which steal profit from your pocket. An example would be lost profit due to elevated mastitis rates, not taking advantage of the beef markets by growing out your bull calves, or not appropriately hedging or contracting your milk.
As we have turned the corner on 2015 and you prepare your taxes with your accountant, I would encourage you to sit down with your business partners and leaders on your operation to discover what your next three bottlenecks are and how your management team will overcome them in the next year. If we at the VMC can help you identify those bottlenecks, don’t be afraid to call. You can reach us at (507) 343-0386.