5 things successful farms have in common
No two farms are the same. It’s true, but what separates the mediocre from the great is quite consistent. A recent farm management conference identified 5 key components shared by successful farms, regardless of type.
Here they are, along with our best picks to help you put your plan into action.
1. Up-to-date balance sheet and projected cash flow
Read: 3 financial ratios to measure farm financial success
Understanding liquidity, solvency and profitability is the first step in building the financial picture of your operation. Learn how to calculate your own current ratio, debt-to-asset-ratio and return-on-assets ratio.
2. Solid marketing plan
Read: Want a profit boost? Make sure you have a good marketing plan
Learn why having a solid commodity marketing plan can mean the difference between profits and losses.
3. Adopting new tech based on return on investment
Follow: Ag tech expert Peter Gredig (@AgWag)
Producer and tech expert Peter Gredig explores the latest innovations and unlocks their potential advantages for managing your farm business.
4. Strong production practices and skills
Read: 2 important questions for better problem-solving
Effective problem-solving requires that we ask better questions. However, two of the most important questions – “What if?” and “Says who?” – require courage. Because if you ask them on a regular basis, you’re challenging your farm’s history, traditions and the status quo.
5. Annual strategic plan
Read: How to pressure test your strategic plan for farm success
Building financial strength takes follow-through with made-to-measure plans, experts state. Once you determine where revenues go and gain education in making money grow, you need to execute your plan to meet goals.