managing a farm or business in the country requires a variety of economic, technical and human analytic skills. This includes identifying the needs of consumers that your farm operation is uniquely positioned to meet, planning marketing and production and ensuring that resources are utilized effectively and efficiently. It is also important to evaluate regularly the effectiveness of the current practices as well as the latest technology.
A solid financial plan is essential to a successful farming operation. This includes preparing annual farm plans and budgets, together with cash flow reports. These are used to formulate management action plans and to evaluate the performance of the company in terms of meeting its goals. It is important to create an emergency plan for what might occur to the company in the event that an event of disaster occurs, or in the event of you decide to sell the business or lower it to hobby status.
It is essential to seek out guidance and support whether it’s from a consultant in business with experience in agricultural industry or a listening-to-the-voice for ideas that you have written down on scrap paper. There are many organizations in Wisconsin which help farmers and food-related businesses begin and expand. One such example is Farm Answers, which features a library of how-to resources and guidance, as well as a list of beginner farmer training programs.
Effective farm managers have a plan in place to allow their children or other family members to take over the business at some time in the future. This isn’t an easy process and can cause tension. However, it is important to begin the conversation early.
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