Farm Business Management and Farm Success
IN SUMMARY
Agriculture Producers tell us that their top farm goals are for the next three years are balancing farm and work life, increasing profit margins, reducing debt and maximizing efficiencies. Producers recognize the importance of Farm Business Management (FBM) practices such as business planning, budgeting, benchmarking and marketing, for example, and believe their goals are achievable with good FBM. In particular, Producers see monitoring their finances and financial performance as the #1 way to reach their goals, and they see rising input costs as their main challenge.
Producers say they would ideally engage in FBM practices more often than they actually do. For example, Most Producers say they wish they held farm team meetings around monthly, but 25% of Producers report that in reality, they never hold team meetings whether it be to discuss capacity and opportunity or to check in on meeting farm goals.
Another FBM practice with a large gap between ideal time spent on it and actual time spent on it in reality, is making and referring to a business plan. 20% of Producers say they never refer to a business plan, but 83% would like to at least annually.
click here to access FCC's free business plan bundle (including a template, guide and sample plan)
We asked Producers what 5 characteristics best describe a "successful" farm, and they said the most successful farms are those that
1. Maximize efficiency (of equipment, human resources, etc.) (63%)
2. Maximize profit (60%)
3. Demonstrate work-life balance (56%)
4. Demonstrate harmony in the family and/or farm team (52%)
5. Maximize production (49%)
Producers were asked to predict what will be the most important skills that a farmer will need to be successful in the year 2023.
They predict that future farmers will need skills mainly in the area of Business Management, and specifically in Strategic Management (i.e., risk management skills, business planning sills, adaptability/resilience). They also said that future farmers will need skills in marketing, financial management, people management and technology.
RESULTS BY SECTOR*
(*some sectors had too few participants to analyze data and were combined with other, related sectors)
FBM Sector Spotlight: Fruit, nut, vegetable, melon, horticulture and greenhouse
FBM Sector Spotlight: Grain & Oilseeds
BACKGROUND
FCC partnered with Farm Management Canada and in January 2023 surveyed Vision Panelists about their perceptions and behaviours around Farm Business Management and farm success.
The survey was sent to an online sample of 1382 Vision panelists from across Canada who are primarily involved in ag production. A total of 976 panelists took part in the survey representing a 74% response rate.
STUDY OBJECTIVES:
1. Explore the attitudes and intentions among Canadian Agriculture Producers around farm business management practices and their impact on farm success
2. Determine baseline measurements for Agriculture producer’s practice of farm business management that can inform stronger industry impact goals
3. Determine areas of focus going forward to help farmers become more effective CEOs with increased resilience and strength in their business
AgriSuccess magazine is dedicated to helping Canadian producers advance their farm management practices. Learn from producers and industry experts and get practical advice, real-life examples and innovative ideas to grow your business.