Problems › What Should We Do Next Quarter? › Agriculture & Agribusiness
Most quarterly plans on mixed cropping farms fail on capacity arithmetic rather than on choice of priorities. For mixed cropping farms, this shows up in a particular place. The numbers that carry the answer are 4,800 hectares and 24.9 percent gross margin, and the complication specific to this industry is that forward contracts cover 48 percent of revenue locking prices twelve months ahead while 52 percent spot exposure leaves ebitda vulnerable to price and water volatility. The general version of this problem and the one you are actually in have different first moves.
Most quarterly plans on mixed cropping farms fail on capacity arithmetic rather than on choice of priorities. For mixed cropping farms, this shows up in a particular place. The numbers that carry the answer are 4,800 hectares and 24.9 percent gross margin, and the complication specific to this industry is that forward contracts cover 48 percent of revenue locking prices twelve months ahead while 52 percent spot exposure leaves ebitda vulnerable to price and water volatility. The general version of this problem and the one you are actually in have different first moves.
A quarter contains a fixed amount of management attention and a fixed amount of packing line hours plus groundwater licences, and most plans commit more of both than exist. The result is not failure but silent triage: the farm fulfils the forward contracts that lock 48 percent of revenue and lets the 52 percent spot exposure take whatever water and intake slots remain.
A plan that survives contact ranks candidate moves by return on the 24.9 percent gross margin, checks each against the packing utilisation and licences actually available, and sequences them so the first improves utilisation or secures water for the second. Three real priorities beat twelve stated ones every time.
The part almost always missing is the stopping rule — the observation on spot prices, water allocation, or third-party intake that would say a chosen move is not working, defined before it starts rather than argued about afterwards.
These three together are the signature. One on its own usually points somewhere else.
✓ Last quarter's forward contracts were met but spot sales and third-party intake fell short with no formal record of what was dropped.
✓ Priorities appear as a list of crops and licences with no ranking against the 71 percent packing utilisation or 4.1 times interest cover.
✓ No initiative carries a written failure condition tied to groundwater levels or spot market movement.
The move that usually makes it worse. Committing to every forward contract and every third-party intake that appears available, which guarantees the packing line and water licences choose for the farm by whichever runs out first.
It is for you if you run or finance a mixed cropping farm and last quarter's plan was partly done and nobody formally dropped anything. It is the situation where the numbers are available but nobody has put them in an order that produces a decision.
It is not for you if Percision is the wrong tool if you already know the answer and only need execution capacity, or if the business is pre-revenue — then the constraint is evidence about the market, not analysis of your own figures. Percision is not a lawyer, tax advisor, auditor, licensed appraiser, clinical or regulatory filer, or an AI implementation shop. It does not do HR casework, creative-only brand work, or impersonate a named consulting firm. It is a strategy analysis engine — not a template library. Also wrong if you need facilitation, politics, or someone to sit with a lender or buyer. Those are human jobs.
Percision is not a lawyer, tax advisor, auditor, licensed appraiser, clinical or regulatory filer, or an AI implementation shop. It does not do HR casework, creative-only brand work, or impersonate a named consulting firm. It is a strategy analysis engine — not a template library.
Below is an excerpt from a real run of this analysis on a mixed cropping farm. It is a sample profile rather than a customer, and it is unedited engine output — this is the format you get, on your own numbers.
The subject is Halloway Fields Group, a sample company profile used for testing rather than a customer — $51.8 million revenue from 4,800 hectares.
Excerpt from a real Percision run · Cost Reduction & Efficiency · sample company profile
The move. Lock 60 percent of output under CPI-protected supermarket contracts to stabilise EBITDA against input-cost shocks.
| Investment required | $0.2–0.4 million for commercial renegotiation and legal costs; drip-irrigation on the additional 576 hectares is already funded inside the $2.1 million committed irrigation line within the. |
| Expected return | Base case incremental EBITDA of $0.8–1.2 million annually (180–240 bps margin improvement) on the $0.2–0.4 million commercial investment, yielding a 3-year payback and 2.0–3.0x cash-on-cash. |
| Revenue, year 1 | $52.8–53.4 million |
| Revenue, year 2 | $54.1–55.2 million |
| Revenue, year 3 | $55.8–57.1 million |
| Exit criteria | Strategy should be reversed if, within 12 months of CPI-clause implementation, actual input-cost inflation exceeds 30 percent above CPI and supermarkets refuse to honour escalation clauses, OR if contracted volume falls below 55 percent of output due to buyer defection. |
This is one move out of a full analysis. Read a complete report — every page, no email required.
This question routes to Growth Portfolio Framework, one of 29 engagements the platform runs. For mixed cropping farms it works through 4,800 hectares, 24.9 percent gross margin, 71 percent packing utilisation and 4.1 times interest cover, then produces the sequence rather than a list of options — which move first, what it funds, and the observation that would say the sequence is wrong.
You watch the analysis get built before paying anything. Read a complete report here if you would rather see the depth first.
As many as your real capacity supports, which in most small and mid-sized businesses is two or three. The number is arithmetic, not philosophy.
Rank by return on the capacity each consumes, then by reversibility. When two are close, do the one you can stop.
That is what the stopping rules are for. A plan with pre-agreed failure conditions can be changed on evidence rather than on argument, which is the difference between adapting and drifting.
Materially, yes. Forward contracts cover 48 percent of revenue locking prices twelve months ahead while 52 percent spot exposure leaves ebitda vulnerable to price and water volatility — which changes both the diagnosis and the order of the fixes. The metrics that decide it here are 4,800 hectares, 24.9 percent gross margin, 71 percent packing utilisation, and an answer built on industry-general benchmarks will usually point at the wrong one first.
Less than most people expect. Your last twelve months of revenue and cost split the way you already split it, plus whatever you hold on 4,800 hectares and 24.9 percent gross margin. The analysis is explicit about what it is assuming where your data stops, which is more useful than waiting for numbers you may never have.
Percision is the wrong tool if you already know the answer and only need execution capacity, or if the business is pre-revenue — then the constraint is evidence about the market, not analysis of your own figures. Percision is not a lawyer, tax advisor, auditor, licensed appraiser, clinical or regulatory filer, or an AI implementation shop. It does not do HR casework, creative-only brand work, or impersonate a named consulting firm. It is a strategy analysis engine — not a template library. Also wrong if you need facilitation, politics, or someone to sit with a lender or buyer. Those are human jobs.
Percision is not a lawyer, tax advisor, auditor, licensed appraiser, clinical or regulatory filer, or an AI implementation shop. It does not do HR casework, creative-only brand work, or impersonate a named consulting firm. It is a strategy analysis engine — not a template library.
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