Managing a country farm and business requires a variety of technical, economic and human analytical and conceptual skills. This includes identifying the requirements of customers that your farm operation is uniquely placed to meet, establishing a plan for production and marketing, and making sure that basic resources are utilized efficiently and effectively. It also involves regular evaluation of the effectiveness of current practices as well as testing the latest technology.
A sound financial plan is vital to a successful farm operation. This involves preparing annual budgets and farm plans together with cash flow reports. These are used to formulate management plans and evaluate the performance of the business by assessing its progress towards achieving its goals. It is also important to devise a contingency strategy for what could happen to the company in the event of a disaster or if the decision is made to sell or reduce to hobby status.
It is crucial to seek advice and support from others whether it’s a sounding board for ideas that are bouncing around in your head, or written on paper, or a business advisor who has experience in Agribusiness. There are also organizations across the state of Wisconsin which are dedicated to helping food and farming businesses grow and start. Farm Answers is one example. It features a how-to library, guidance and a listing of beginning farmer training programs.
Effective farm managers have a strategy in place to allow their children or other close family members to take over the company at some point in the future. This is not a simple procedure and can lead to tension. However it is essential to start the conversation early.