Managing a country farm and business requires a variety of economic, technical and human skills, including conceptual and analytical. This includes identifying the requirements of customers that your farming operation is uniquely positioned to satisfy, planning production and marketing, and making sure that resources are utilized effectively and efficiently. It also involves continuously assessing the effectiveness of current practices and reviewing the most recent technology.
A solid financial plan is essential for the success of a farming operation. This includes the creation of annual budgets, farm plans and cash flow statements. These are then used to create management action plans and assess the performance of the company in relation to achieving its objectives. It is crucial to develop an emergency plan that outlines what might happen to the business in the event of a disaster occurs or if deciding to sell the business or reduce it to hobby status.
It is important to seek out assistance and advice, whether that be from a consultant in business who has experience in the agribusiness or a sounding-board for ideas that you have written down on scraps of paper. There are also organizations across the state of Wisconsin which are dedicated to helping farms and food-related businesses start and grow. Farm Answers is one example. It features a how-to library, guidance and directory of beginning farmers training programs.
Effective farm managers have a strategy in place to allow their children or other close family members to take over the business at some moment in the future. This isn’t always straightforward and may cause tension, but it’s recommended to begin the discussion early.