“I would advise people that the whole bedrock of their plan has got to be research and market analysis. And if they don’t spend at least a year before they put a new crop in the ground, they’re not going to have a very good time of things.”

A planned future is a prosperous one

Where will your farm be in five to 10 years? Don’t have the answer? According to findings from the Agricultural Management Institute (AMI), you’re not alone. The majority of farms in Ontario don’t have a written business plan, although many say they have one in their head. Some farmers don’t see the benefits of a plan and others simply don’t know where to begin. Some even admit they worry if they had a plan they’d have to live up to it.

The truth is business plans are important tools to help you build a prosperous future for your farm and your family.

An important business tool

A plan can take all shapes and sizes, but every plan should address key questions. Where is your farm today? Where do you want to go? How are you going to get there? The answers will help direct your business and serve as a reference point for ongoing farm management decisions.

Proponents of plans see them as a key management tool that can reduce risk and help to achieve business and lifestyle goals. They’re also valuable for communication with family members, business partners and lenders. Some farm business managers are comfortable preparing their own plans while others take advantage of the services of a farm advisor to get a fresh perspective and additional expertise.

A plan that fits your farm

There is no rule to developing a farm business plan – the important thing is to have one. Leasa Janssen has a planning method that’s served her farm business well for more than two decades. Janssen and her husband Peter own Janssen Produce & Specialties Inc. They currently grow Belgian endive, white asparagus, radicchio, arugula and lettuce on their Simcoe, Ontario area farm.

The Janssens are savvy niche marketers who understand the importance of the marketing aspect of their business. “You have to have a plan and you both have to know what that plan is, but there’s nothing carved in stone because it can change in 24 hours,” says Janssen citing the vulnerability of horticulture markets, which can change from one day to the next.

For the Janssen’s planning is driven by research and market analysis. “You don’t make a move in this industry without doing your homework. We spend a year on market analysis before we construct anything, buy a seed and invest in any equipment whatsoever. We’ve done that for basically all of our crops,” she says.

The Janssens have grown more than 20 niche crops over the years. Diversification is a key strategy of their farm business. “If one crop fails you’ve got a cushion around you with your other crops,” says Janssen.

If you’re ready to put a business plan together, resources are available to develop a plan that fits your farm and lifestyle. Check out the AMI website for ideas to guide you to a profitable, planned future for your farm and your family.