When you think about your farm operation and what you want it to be like in the future, what comes to mind? It’s probably a successful, thriving operation that will be around long into the future. Maybe there are family members in the next generation who are involved. Maybe there are additional acres or side businesses that bring in more revenue.

However you picture your operation in the future, you as the farm leader have a major role in helping to ensure it gets there. And it’s the job of the leader to build a better farm business.

Efficiency’s the thing

One of these important aspects is the concept of efficiency across the whole operation. In a commodity business such as grain farming where farms are producing a commodity product (grain), the key concept is to work on becoming the most efficient producer per unit (in grain farming, per bushel).

It’s true that while margins may be greater right now for many farms, becoming more efficient is still key. As many farmers know, a day will come when grain prices go lower – it’s all part of the commodity cycle. Typically you’ll have two or three years where greater production is encouraged through higher prices, followed by six or seven years or so in a lower price range.

Working to become more efficient in many areas of your operation while margins are still in that wider range is one of the best things farm leaders can do. Being aware of – and always using – the concept of financial feasibility when it comes to every “money decision” for the operation is the right mindset to take.

Consider these three

Here are three things to consider when working to build in greater efficiency.

Free trial

One area that farm leaders say can be challenging is marketing the crop. Many farmers have found our marketing information service, MarketView Basic, to be helpful. You can get a free two week trial – which 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.