Look ahead without losing vision under grids

The Dutch dairy farming sector is facing turbulent times. For many farmers, the past year and a half has felt almost unrealistically good. Milk and meat prices reached levels not seen in a long time. There was room to breathe, to address overdue maintenance, and to invest in the business. That optimism was justified, but also temporary, as it turns out.

Milk prices have plummeted in recent months, and predicting exactly what 2026 will look like remains difficult. At the same time, this is countered by a significant challenge: unprecedented pressure on the manure market. Manure disposal is expensive, difficult, and increasingly under scrutiny. "The paperwork and the cellar must match" is no longer a cliché, but a daily reality.

And as always, making a profit is nice, but rarely without obligation. The tax bill follows automatically. Meanwhile, investments have been made to keep the company up to date, often necessary, sometimes unavoidable. This gradually creates a tension that every entrepreneur recognizes: liquidity versus obligations. Especially at this stage, financial management is not an afterthought, but a core competency.

Strategic: facing the long term
At the strategic level, it's about the big questions. Where do I want to take my business? Are my current size, intensity, and structure still aligned with societal developments? Legislation regarding nitrogen, manure, animal welfare, and the environment isn't just temporary noise, but a structural factor.

The entrepreneur who only reacts to today's milk price runs the risk of being overtaken by regulations or market conditions tomorrow. Looking ahead here means daring to create scenarios. Not predicting, but being prepared. What if the milk price remains structurally lower? What if manure disposal becomes even more expensive? And what role do I, as an entrepreneur, want to play in this changing landscape?

Tactical: making plans and justifying choices
Tactically, this long-term vision translates into concrete plans. Investments made in stables, technology, or sustainability require well-considered financing and timing. This is also where the tension between profit and tax comes into sharp focus.

How do I deal with tax pressure without losing sight of my liquidity? Is restructuring financing necessary? Is my business structure still appropriate for the phase the company is in? Good planning doesn't mean sealing everything off, but making conscious choices. And reassessing those choices periodically.

Operational: the daily reality
At the operational level, the daily grind plays a role. Manure disposal is more expensive than ever, stricter inspections, and administrative matters must be in order. The barn and accounting records must be consistent.

It's precisely here that the danger of the daily grind consumes everything. Yet this level also demands acuity: knowing where your figures stand, having insight into cash flows, and being able to identify promptly when obligations start to outpace liquidity.

Reflecting on society and looking ahead
Today's dairy farmer isn't just a producer, but also an entrepreneur in a social context. Expectations are changing, regulations are evolving, and support is no longer a given. Reflecting your role as an entrepreneur on these developments isn't a weakness, but a form of leadership.

The lesson is perhaps simpler than the practical application. Look ahead in time. Think about solutions before problems arise. Organize your questions and choices: strategically, tactically, and operationally. But never lose sight of the picture beneath the grids. Because ultimately, entrepreneurship begins and ends on the farm.

Arjan Ausma

Arjan Ausma is senior relationship manager at Farmers Funding & Advice and he is a steward/broker. He also has his own farm.

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