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How to figure out where your operation will benefit most from change.

Darren Frye, CEO

May 31, 2022

3 Min Read
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How has your operation typically approached new ideas? Think of a new idea of any kind – ranging from a new way to approach doing a certain task to new technology to a business idea from outside of agriculture that you could apply in your operation.

Farms might approach using – or not using – new ideas in any number of ways. Some of the best approaches I’ve seen when it comes to looking at new ideas or new ways of doing something look like this: The farm leader keeps an open mind in general to ideas that could potentially benefit the operation. The leader doesn’t outright dismiss ideas simply because they’re new or something that hasn’t been tried in their operation – but the leader also doesn’t try out every single new thing they hear about.

Think it through

The leader puts new ideas and approaches through a careful analysis first – and that analysis will look a bit different for each leader and for each operation. But it will always involve trying to judge as best as possible whether that idea or approach would be suitable and beneficial for their unique operation.

Not every new opportunity out there will be right or helpful to every farm operation. But farms also run the risk of becoming stagnant, less efficient – and ultimately – less effective if the leader isn’t watching for and testing out new things in the operation that bring actual improvements. The key lies in striking the balance and the leader’s careful analysis of what might work best for their farm and focusing any change efforts in those areas.

Ask questions

What are some questions a farm leader can consider when looking into a new idea or approach? Here are three questions to include in your analysis.

  1. What does the new idea add and why is that important to our operation? Asking that question can help keep the focus on adding value to the areas of the farm that are most important and make the biggest difference. Keeping your farm’s unique long-term vision, values and goals in mind can help in answering this question as well.

  2. Can we quantify the added benefits, if possible? Try to figure out a way to quantify the benefit to the operation if the new idea were incorporated. Figuring out a dollar amount is the most helpful, of course, but try to get creative if generating the benefit in dollars just isn’t possible.

  3. What are the trade-offs? Selecting any new idea to implement involves trade-offs – other things that will not be prioritized or purchased because of what you are choosing. Figure out what those are, hold them up next to the new idea and have any tough discussions, if necessary, about what you’re choosing and what might not be the top priority right now.
     

What are your 2022 marketing goals?

When it comes to grain marketing, have you ever felt stuck doing the same thing over and over again? Have you felt uncertain about using different tools or resources in your marketing plans? Do you feel anxiety around marketing decisions?

Many farmers have found that working with our market advisors has helped ease their mind. The advisors help farmer clients with planning and execution around marketing decisions and help keep them up to speed on the current rapidly-changing grain market situation – and how it impacts their operation.

Get a free week-long trial of our marketing information service (MarketView Basic). Your free trial includes regular audio and video updates, technical analysis, recommendations and more. Learn more about our market advisor programs and offerings at www.waterstreetconsulting.com.

The opinions of the author are not necessarily those of Farm Futures or Farm Progress. 

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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