Monday, April 4, 2016

Creating More Value Than You Consume

As a citizen of these United States the goal is to create more value than you consume.

It is amazing how many people do not view their life from a contribution mind set. They have a consumption mentality. What can I get verses what can I give.

If you want to thrive in farming or any other occupation you need to produce value.

This Money Monday we are going to look two examples of value on the production side and on the input side.

There are many layers of value. On the production side, for example, several tomatoes may be worth a dollar if you sell them wholesale. Two dollars at retail in a store. Three dollars fresh picked at the farmers market. Seven dollars if you can them, direct market, and make salsa.

You can also multiply value on the input side of farming. I can buy a bag of fertilizer for $25, or I can buy a ton of compost for $25, or I can buy a bag of pea/oat seed for $25 and get ten tons of organic matter to till into the soil, or I can buy a pound of red wiggler worm for $25 and leave them in my compost for a season. The worm castings are worth $3000 and the worms are worth $7000. Each of these scenarios cost the same but at each new level of thinking the fertility is an order of magnitude (or ten times) greater. So the final approach is 1000 times more effective than the first.

This is the type of value thinking you need to apply to your life.

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