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Get the ball rolling for ’23 with three steps.

Darren Frye, CEO

October 31, 2022

3 Min Read
Empty asphalt road and New year 2023 concept.
Getty/iStockphoto

As harvest starts to wrap up in some areas and continues to progress in others, it’s also the right time of year to begin your 2023 business planning process.

Some of you might be thinking, “I’ve already started thinking about my 2023 plans for my farm,” and others might even say, “Those plans are started already.” Or you might be thinking, “Hmm, that hasn’t really crossed my mind that much yet,” especially if harvest is still in full swing for your operation.

No matter where you’re at right now in terms of your thoughts and planning process for the 2023 crop year, there are a few steps you’ll want to take once harvest ’22 is wrapped up.

Three steps

  1. Get 2022 financial data as solidified as possible. Having your financial information for 2022 ready now isn’t helpful only for your tax accountant and lenders – it’s helpful to you as the leader of your farm business. Getting those numbers early on – well before the end of December – can help you make better plans and decisions for crop year 2023. This is because you know exactly where your farm stands, can take a look at different metrics and benchmarks for your operation, and make good input purchasing decisions and end of year marketing decisions.

  2. Start creating good projections for 2023. Now you can take your 2022 information with an understanding of where your operation is at, and work with your advisors to set up some solid projections for the 2023 crop year. As you look ahead at 2023, consider whether you have any plans to make major capital purchases in the coming year. Will you potentially be buying land, making major equipment purchases, or upgrading buildings? Talk with your advisor about any metrics that you can work to improve in the coming year to help make your operation even more successful.

  3. Set up strong business and marketing plans. Next, using your 2022 financial information and your 2023 projections, generate business goals for your operation for the upcoming year. Make sure your goals are measurable and specific – that way you can track the progress and break larger goals down into smaller pieces. Once you’ve decided on business goals for the year, make sure to also work with your market advisor to create flexible marketing plans that will move along with your operation into the coming year. Your marketing goals and plans should be tailored to your unique operation and what you have planned for the upcoming year – and years – and what you want your farm to look like in the future.
     

Get perspective on the market

One aspect of the farm that requires clear definition of what success looks like is the farm’s marketing – and many farmers say that grain marketing isn’t their favorite thing to spend time on. Yet grain marketing is one of the top business drivers impacting the level of success that the farm operation can experience.

Farmers have also found that working with 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.waterstreetconsulting.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

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