Managing a farm and business in the country requires a range of technical, economic, and human conceptual and analytic skills. This includes identifying the needs of the customers your farming operation is uniquely placed to meet, arranging marketing and production and ensuring that resources are utilized effectively and efficiently. It is also essential to periodically evaluate the effectiveness of the current practices as well as the latest technology.
A sound financial plan is vital to a successful farm operation. This includes the creation of annual farm plans, budgets and cash flow statements. These are utilized to develop management action plans as well as to evaluate the performance of the business in terms of achieving its goals. It is also essential to devise a contingency strategy for what might happen to the business in the event of disaster or if a decision is made to sell or downgrade to hobby status.
It is essential to seek out advice and assistance, whether that be from a consultant in business with experience in Agribusiness industry or a scouting-board for ideas you’ve sketched on scrap paper. There are also organizations across the state of Wisconsin that are devoted to helping farms and food-related businesses grow and start. One example is Farm Answers, which features an array of how-to materials and advice, as well as a list of beginner farmer training programs.
Effective farm managers have a strategy that is in place to make arrangements for their children or other family members to take over the company at some time in the near future. This is not an easy process and can create tension. However it is crucial to begin the discussion early.