The year has been good on the farm, about 5% better in terms of revenues and about 14% in terms of profits. If we consider that 2023 was our best year ever, then the scope of our success cannot be understated.
In the end, the wheat and corn businesses were "worth it" only when considering that about half our output was sold internally to various affiliate companies. We may plant wheat again next year for that reason alone, but it was very good at soil stabilization. The excess corn was used mostly to feed our forest pigs. We harvested about a dozen pigs this year, and 120 cows too. Our mini slaughterhouse also processed 40 pigs and 200 cows from neighbours, which meant that our plant was operating at 60% of rated capacity, but at 90% for our team in the slaughterhouse.
Energy-wise we did well, we only purchased 10,000 gallons of diesel, which is good, but diesel prices have been declining for two years now, and we are back to the levels we first saw in 2018, so as an expense it has been declining. We don't consume energy from third parties, we are entirely self-sufficient in our electrical power needs.
Our staff fixed costs, have risen by about 8% year on year. Our staff variable costs are in line with 2023 too, granted 2023 was by far the highest bonus year for the staff, this year was the same. Everyone got their salary and bonuses on Friday, so they all know. The farms' profitability is excellent, as a group our ancillary businesses are taking an increasing percentage of overall revenues, we acquired two new businesses this year that should begin contributing to our bottom line in 2025, which brings us to 10 in total. Our non-farm businesses consume nearly half of our farm production; quarter B2B the other quarter is a pass-through of our direct-to-consumer meat sales (not really direct...but I've discussed this in the past).
On a side note: we noticed a massive increase in predatory lending practices, as our staff's life requirements change, many are buying homes, and my wife and I were shocked by some of the practices, one fellow wanted to charge a fee equal to 5% of the loan amount for "his services". Since then we have offered our staff the option of talking to us when buying properties. I don't know if it's the same in the cities, but in the country side...terrible.
On a festive note, as three of our four children and their families are spending Christmas with us, I want to take this opportunity to wish everyone a happy Christmas.
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