In thinking about running a successful farm operation, it’s often easier for most leaders to consider what needs to be done in shorter time frames. For example, it’s often encouraged to plan out your farm’s plans and goals for just the next year – especially right now, at the start of a new calendar year.

That’s not a bad thing, in and of itself. Having plans for the coming year is important, of course. But what about the farm’s larger strategy? How will your farm position itself competitively for the future? How will your farm win in the current ag operating environment and in upcoming years?

Winning on the farm

That’s an important question to ask and to get outside perspective on. Depending on your personality and leadership style, thinking long-term about your farm may be something you’re more or less naturally inclined to do. Working with an advisor for your farm on this can be a good place to start.

If you want your operation to thrive through the complexity and changes that the operating environment certainly has in store over the next 20-30 years – and beyond that, if you have a successor coming to lead the farm in the future – then creating a long-term strategy for winning is essential.

Set it up

Think through – and write out – your farm’s strategy to win long-term. Your farm’s unique win strategy will depend greatly on what type of operation you run, what businesses are involved, how you market your production, your current financial position, your plans for the future of the operation, and so on.

For example, if you run a primarily commodity crop operation, then your win strategy needs to involve some variation of becoming the lowest cost per unit producer – due to the commodity market situation you’re in.

If your farm involves specialty crop contracting, livestock production, ag or non-ag related side businesses, or any other form of business, you will want to tailor your win strategy appropriately to suit your unique businesses, markets, and revenue streams.

Looking forward

Your farm’s plan to win also must involve strategic planning about costs in a long-term way. How will your operation approach spending and investment back into the operation in a sustainable, competitive way? Creating a 5 or 10-year capital plan can help you plan for major capital investments and how and when you will allocate capital for major purchases, such as creating an equipment and building replacement plan.

While it’s impossible to anticipate every change that will happen in the wider ag operating environment or within your own operation, having a forward-looking, long-term win strategy can help your farm remain competitive as it moves into the next crop year – and beyond.

Thinking through and planning the best ways for your unique operation to compete, given the current operating circumstances and how they will shift and change over the coming years, is how top farms will win in those operating environments.

How are you navigating this market?

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.