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Top farm leaders are using these concepts to increase success.

Darren Frye, CEO

April 11, 2022

3 Min Read
aerial view of a farm in fall
Getty/iStockphoto

In thinking about farm leaders who want to build and improve their operations, there’s certainly no shortage of different approaches out there on how to do so. Yet every operation is unique with differences in location, types of crops produced, soil types, local markets, rented vs. owned ground, mix of businesses and people involved, and so on.

So what are some of the common factors of success – the starting points – for farm leaders who want to take their operations to the next level? There are a few different concepts I see these leaders using in all areas of their operations. Here are four of the main ones.

How to improve your farm operation

  • Set a clear direction. Farmers who want to uplevel their operation are first making sure that they – and then everyone else in the operation – know exactly where the farm is headed for the future. Because the farm leader is the CEO of the operation, they – and any other leadership team members – are responsible to steer the ship. That starts with a clear vision for the future that translates into a clear direction. Everyone involved in the operation should be able to explain the vision for the farm’s future, since it’s communicated regularly to the team by the leader or leaders.

  • Build on efficiency. Becoming more efficient is an essential part of farming – the goal is to become the most efficient producer per unit (per bushel). No matter what part of the commodity price cycle agriculture happens to be in at the moment, the most successful farm leaders continue to keep their eye on the ball when it comes to efficiency per unit. They build on efficiency by tracking key metrics for their operation – and find ways to help their team members recognize their ability within their roles to impact metrics for the better. Some farm leaders are tying bonus opportunities for employees to the achievement of certain efficiency metrics in the operation that employees can individually impact.

  • Focus on leading. As farm owners and leaders grow their operations, they often find themselves responsible for making sure work gets done through other people rather than actually doing all the tasks themselves. This requires a different focus and skill set than what many farm leaders may have been used to earlier in their careers. Farmers who want to uplevel their businesses are working to intentionally improve their business management and people management skills because that’s what’s required of them more and more in their day-to-day work as the farm’s CEO. This might look like seeking out information on leadership, business, and HR skills – reading books, taking a course, working with an advisor, and so on.

  • Watch for opportunity. The best leaders are always looking out for opportunities for their operations. That doesn’t mean they jump on every business opportunity that arises, but they pay attention so they can evaluate the best opportunity for their unique operation. Their awareness of their farm’s needs, successes and challenges allows them to select opportunities that are the best fit for their own operation. Being able to size up opportunity is a key skill for any farm leader who wants to take their operation to the next level.
     

Uplevel your marketing

Do you want to take your farm’s marketing plans and goals to the next level? What challenges and victories are you finding so far this year? This spring, the commodity markets seem to be more volatile than ever due to a combination of factors.

Consider working with our team of market advisors. They help farmer clients with planning and execution around marketing decisions and help keep them up to speed on the rapidly-changing grain market situation – and how it impacts their operation.

Get a free two-week trial of our marketing information service (MarketView Basic). Your free trial includes regular audio and video updates, technical analysis, recommendations and more. Or 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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