“Some of the greatest losses in agriculture are profits that were never realized. If you’re trying to do it all yourself and don’t see the opportunity, you don’t have any advisors, you may not have lost out of pocket, but you’ve lost potential profit. Businesses with a solid management team rarely overlook that potential.”

~ John Anderson, Farm Business Management Advisory Specialist, Kingston, ON

Team up for farm business success

Behind many successful farm business managers is a management team – a group of experts sharing their unique insights and experiences to create on-farm success. These managers know they can benefit from outside expertise – especially in the increasingly complex business of agriculture that demands various skills and knowledge. It’s tough to be an expert in every aspect required for today’s farm business – from production and finances to human relations, legal affairs and more. Bringing together individuals to advise you in these areas is key to building a better bottom line. And by helping you make more efficient use of your time, teamwork can also put you closer to your lifestyle goals.

Know your strengths

“The managers of today and tomorrow recognize their strengths and weaknesses. They recognize they cannot be all things to all people. These managers surround themselves with a resource team,” says John Anderson, farm business management advisory specialist with KPMG in Kingston, Ontario.

According to research conducted by the Agricultural Management Institute (AMI), one barrier to excellence in farm business management on Ontario farms is a lack of management skills. Team members like Anderson can address this deficiency by delivering management guidance and serve as a fresh set of eyes.

Pat and Francis Jackson of Evenstar Holsteins in Gananoque, Ontario are benefiting from a fresh perspective. They recently engaged Anderson to help with the transfer of their dairy farm. “We wouldn’t have dreamed of attempting succession planning ourselves. We really wanted some good skills to protect us because our farm has been in the family for many years,” says Pat, whose son Scott and daughter-in-law Joyce will be the next generation to helm the operation. “We had an idea on how to proceed, but Mr. Anderson suggested something completely different – a more positive approach that protects our assets and ensures continued positive cash flow. It was just a different way of looking at the situation.”

Build a resource team

This team approach may not come natural to some farm managers. “Farmers have traditionally worked very independently,” says Jackson who has first-hand experience of the benefits that come along with having off-farm advisors you can trust. The Jacksons count on many resources to provide support for various aspects of their operation. Their veterinarian, feed dealer and banker all offer advice that the Jacksons greet with an open mind. Family members are also an important component of the team approach. Each of the Jacksons has clearly defined roles and responsibilities, which allows the team to perform at the highest level. By combining all of these talents and using open and honest communication, the Jacksons are better prepared to manage risk and seize opportunity for their farm business.

Are you ready to take a team approach or to add bench strength to your existing lineup? Visit the AMI website for some useful team-related resources.