Running a business or farm in the country requires a variety of economic, technical and human conceptual and analytic abilities. This includes identifying the requirements of consumers that your farming operation is uniquely placed to satisfy, planning production and marketing and ensuring that the resources you have are used effectively and efficiently. It also includes regular evaluation of the effectiveness of current practices and testing the latest technology.
A sound financial plan is crucial to a successful farm operation. This includes the preparation of annual budgets and farm plans together with cash flow reports. These are then utilized to develop management action plans and assess the performance of the company in relation to achieving its objectives. It is essential to develop an emergency plan of action for what might happen to the business if it is struck by disaster or you decide to sell the business or lower it to hobby status.
It is important to seek assistance and advice whether it’s from a business advisor who has experience in the agricultural industry or a listening-to-the-voice for ideas that you’ve written down on scraps of paper. There are numerous organizations throughout the state of Wisconsin which are dedicated to helping food and farming businesses grow and start. Farm Answers is one example. It provides a how-to library, advice and a directory of beginning farmers training programs.
Farm managers who are successful have a plan in place for their children or close family members to inherit the farm in the future. This isn’t an easy process and can cause tension. However it is essential to begin the conversation early.
