Managing a farm and business in the country requires a variety of economic, technical, and human conceptual and analytic skills. This includes identifying the needs of the customers your farming operation is uniquely placed to satisfy, planning production and marketing and ensuring that basic resources are utilized effectively and efficiently. It also includes continuously assessing the effectiveness of current practices and testing the latest technology.
A sound financial plan is vital to the success of your farm. This includes the preparation of annual budgets and farm plans, along with cash flow statements. They are used to develop management plans and evaluate the performance of the company in terms of reaching goals. It is also important to come up with a contingency program for what could happen to the company in the event of a catastrophe or if the decision is taken to sell or reduce to hobby status.
It is important to get help and advice from other people regardless of whether it’s a sounding board for ideas that are swirling around in your head or scribbled on a piece of paper or a business advisor who has experience in agriculture. There are also many organizations in Wisconsin that assist farms and food-related businesses start and grow. One such example is Farm Answers, which features a collection of how-to guides and guidance, as well as a list of beginner farmer 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 an easy process and can create tension. However it is crucial to begin the conversation early.