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How resilient is your farm operation?

Finance first: Model resilient thinking, plan to pivot and create flexible solutions to help your farm survive and thrive.

Darren Frye, CEO

September 4, 2024

3 Min Read
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Here’s something I’ve noticed that top farm leaders and their operations have in common: The ability to quickly and flexibly move to new solutions when the circumstances call for it.

Basically, it’s the quality of resilience. On resilient farm operations, when something unexpected happens, the leaders don’t stay locked down in any negativity or anxiety there might be around that issue or the idea of change. Instead, they choose to pivot and adapt – in an agile way – to a new or different idea.

The most resilient farm leaders didn’t become that way because they never faced any major challenges or obstacles within their farms. Rather, they honed this skill because they chose to view the obstacle as an opportunity to problem-solve in new ways for their operation.

Moving forward

These farm leaders are often the first ones to say that they don’t know everything – that they don’t “have it all figured out.” They’re usually quick to note that they often may not know exactly what to do in a given situation to help solve a problem or overcome an obstacle.

But they also don’t ever let that stop them. They work to determine the best available path forward for their farm in whatever scenario they find themselves. Sometimes that means taking a small step toward a particular new course of action, and then another and another. They might adapt their plan as they move forward and learn new information – and that’s key.

The best farm leaders out there want their operations to succeed in the long term, which is the bottom line. Challenges that they’re encountering right now are always viewed in light of that bigger picture end-goal. Building greater resilience into the operation must be a top priority for farm leaders who want their farms to thrive into the future.

Do two things

How can you build more resilience and resilient thinking into yourself, others in your farm, and your operation itself? Here are two ideas.

  1. Especially in parts of your operation that are impacted by swiftly changing conditions – whether that’s the weather, the markets, or anything else – scenario planning is one way to build greater resilience into your operation.

Scenario planning is helpful in a couple different ways – one being that the action of thinking through multiple different scenarios and then planning what you’ll decide to do if those circumstances come to light helps you be more prepared for whatever happens. Your brain has already run through and prepared for various options, so you can be more comfortable when approaching the situation.

  1. When you as the farm leader model resilient thinking and actions in your day-to-day leadership, you’re presenting that behavior as the standard and norm within your operation. As they say, “more is caught than taught,” and it flows out to your employees and everyone else involved on the farm.

You can also take your future leader and key employees verbally through your thought process when building scenario plans, for example. That way, they can hear exactly how you think through different scenarios and create flexible solutions for each possibility.

Many farmers find that getting some third-party perspective from market advisors helps ease their minds. Market advisors 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. Learn more about our market advisor programs and offerings at www.waterstreetag.com.

About the Author

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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