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The first step toward better farm decision-making

How farm’s leader goes about this makes a difference.

Darren Frye, CEO

August 24, 2020

3 Min Read
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Richard Hamilton Smith/Getty Images Plus

As a farm leader, whether you’ve been leading the operation for twenty years or two years, you know that there are many decisions that land on your shoulders. Fortunately, it doesn’t need to be every single decision in the operation – and in fact, the operation will run better if there are others who have decision-making power in certain areas.

But there are some decisions that the leader simply can’t delegate – and shouldn’t – because they are major and have high stakes for the farm. For these types of decisions, it can be great to get the insights and opinions of trusted associates or advisors – whether they’re from inside or outside of your operation – before you make a final decision.

Getting another perspective can be eye-opening. Regardless of whether it ultimately changes or alters your decision in any way, the perspective of another person can bring up different elements or ideas that you might not have considered before.

Looking deeper

For farm leaders who want to improve their decision-making process and skills – and ultimately, the decision-making that’s being done in their entire operation – there’s a key first step to take to make that happen.

This step doesn’t involve seeking out information or facts. It doesn’t even necessarily involve any other people or their opinions. The first thing to work on? Knowing yourself better.

Knowing yourself when it comes to decision-making in your operation is the foundation for everything else you can do to help improve the decisions on your farm. There are a few questions to ask yourself to understand your own decision-making tendencies better.

Ask three questions

  1. What are the types of decisions that currently make me most uncomfortable or anxious? Recognizing what decisions are the most difficult for you to make right now can be helpful. This can give you the self-knowledge to dig deeper and ask why those particular decisions make you feel that way. For example, maybe you find that decisions around buying or renting land bring you the greatest anxiety and discomfort. With that self-knowledge, you can start asking why – and then take action on what you find.

  2. When a big decision comes up, what’s my current process of working through it? This could range from something like – “I don’t really have a set process for making big decisions” to avoiding a big decision for as long as possible to having a clear process with set steps you take every single time you need to make a major decision. Then, it’s time to consider why you’re doing it that way. Is it just “the way you’ve always done it”? Or maybe it’s how you saw your Dad or Grandpa make decisions as the leader in the past.

  3. What do I look for first when I have to make a big decision? Some farmers might first seek out data and information. Others might seek out the perspectives and opinions of other people. Others try to pay attention to their gut feeling first. Many farmers use a combination of different approaches before they arrive at a final decision. It’s important that you consider outcomes, including whether the approach helps you feel less anxiety or apprehension about the decision. The ultimate goal is that you feel confidence and peace of mind, especially around the major decisions you’re making as the farm’s leader.

You can get a trusted advisor’s perspective on today’s commodity markets by getting in touch with our market advisors.

About the Author(s)

Darren Frye

CEO, Water Street Solutions

Darren Frye grew up on an innovative, integrated Illinois farm. He began trading commodities in 1982 and started his first business in 1987, specializing in fertilizer distribution and crop consulting. In 1994 he started a consulting business, Water Street Solutions to help Midwest farmers become more successful through financial analysis, crop insurance, marketing consulting and legacy planning. The mission of Finance First is to get you to look at spreadsheets and see opportunity, to see your business for what it can be, and to help you build your agricultural legacy.

Visit Water Street Solutions

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