Managing a farm and business in the country requires a mix of economic, technical, and human analytic abilities. This includes identifying the requirements of customers that your farm operation is uniquely placed to meet, establishing a plan for production and marketing, and ensuring that the resources you have are used efficiently and effectively. It also includes continuously assessing the effectiveness of current practices as well as taking a look at the latest technologies.
A solid financial plan is essential for a successful farm operation. This includes preparing annual budgets and plans for the farm, together with cash flow statements. These are used to develop management action plans and to evaluate the performance of the company in terms of achieving goals. It is also important to devise a contingency strategy for what could happen to the company in the event of disaster or if a decision is made to sell or downgrade to hobby status.
It is crucial to seek assistance and advice, whether that be from a business expert with experience in Agribusiness industry or a scouting-board for ideas that you’ve sketched on scrap paper. There are numerous organizations in Wisconsin that can help farmers and food-related businesses begin and expand. Farm Answers is one example. It offers a step-by-step library, advice and a directory of beginning farmers training programs.
Farmers who succeed have a strategy that is in place for their children or other family members to inherit the business in the future. This isn’t an easy process and can cause tension. However it is crucial to start the conversation early.