Farm Futures logo

Build resilience into your farm operation

Finance First: Prepare your team to come back stronger after facing challenges on the farm.

Darren Frye, CEO

April 8, 2024

3 Min Read
Farm sunset
Getty Images/AlenaMozhjer

Farmers are certainly some of the most resilient people in the world. It takes a certain kind of person to face the types of challenges that farmers face every day to produce a great crop or livestock and keep doing it year after year.

What is resilience? It’s the ability to come back even stronger after facing significant challenges. A few of the biggest challenges in farming come to mind that aren’t within anyone’s direct control. I’m thinking of weather and markets.

Making an impact

The way a farm leader approaches how he or she handles any challenge in the operation, but especially those that are out of their direct control, can show a great deal about the level of resilience they have. When we choose to focus our time and energy on the areas and decisions where we do have control, rather than on those we can’t control, we can make a much bigger impact.

Farmers can also reduce the uncertainty and anxiety that often come along with major challenges by focusing on proactive planning and decision-making. Building more resilience into your operation is another good way to help reduce uncertainty and anxiety.

Three ways to build resilience

Here are three main areas to work on building more resilience into your operation where that will make a big impact.

  1. People. Every single person on your farm – from leadership to every employee – will be well-served by becoming more resilient. And since becoming more resilient helps a person in all aspects of their life, you and the people on your farm will find improvements not only in work life, but personal life as well. Employees who are more resilient can often solve problems on their own more easily and more creatively. When you demonstrate that problems or challenges in the operation aren’t roadblocks, but opportunities to come up with new and innovative solutions, that can become a major advantage to your farm’s culture (the way everyone works together).

  2. Processes. Building resilient processes on the farm is another key piece. Processes become more resilient when they have the chance to continue developing and adapting. There need to be opportunities to review the farm’s processes regularly so that the leaders can check whether the processes are optimized – or could use some tweaking. A resilient process and a regular review time for them will become better over time as the people who are closest to the process provide feedback and additions.

  3. Plans. Creating resilient plans for the farm operation is also important. Farms need to have resilient production plans, business plans, financial plans and marketing plans. Spending time working to build these plans includes making sure resilience is built in – that the plans can adapt and change to changing conditions or new information. This helps keep the plan effective, helping it serve the farm best. Doing resilient planning lets farm leaders focus on being proactive and taking action on aspects they can directly impact while accounting for the ever-changing landscape of each crop year.

Farmers have found that getting some third-party perspective from our market advisors has helped ease their minds. 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 two-week 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.waterstreetag.com.

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

Subscribe to receive top agriculture news
Be informed daily with these free e-newsletters

You May Also Like