At some point, most farmers realize they want to take their operation to the next level. That might happen when they want their farm to grow, or when the next generation is coming back to the farm, or for any other reason.

Think about other farms – whether in your area or not – that have a reputation of being very ‘professional.’ They don’t cut corners. Everyone in the operation knows the standards – and they’re committed to upholding them. Others outside of the operation have expectations of what it’s like to work or near that farm because they’ve seen how they act and what they’re committed to.

Over time, a reputation develops in the community when a farm is a ‘professional’ operation. That can make a big difference in a number of areas, particularly the overall success of your farm, landlord relationships and even your farm’s level of safety.

Processes and procedures

Having consistent ways that tasks are accomplished on the farm is typically the result of putting processes and procedures in place. For example, there are certain ways that the equipment is operated and cared for. Everyone on the farm knows and executes this, not only because it’s clearly described in a document, such as an employee guidebook, but it’s played out every day by all the stakeholders – from owners to employees.

Safety procedures are some of the most important to put in place as well. Making your farm a safer place to work isn’t just common sense, it’s good business sense too. It’s especially important to have clear procedures for the tasks with the most potential risk – with absolute clarity around safety issues to help reduce risk.

Processes and procedures help many businesses run more consistently – and they can become a great advantage when used in a farm operation. The operational results of the farm can become more consistent, helping the farm run even more professionally.

Financial management

The farm leader who wants to make the operation more professional runs the farm business by the numbers. That means knowing the farm’s numbers – throughout the year, as things change. The leader also has selected and tracks key metrics or ratios for the operation – that are meaningful to their particular operation.

When it’s time to meet with the banker, this farmer isn’t anxious. He’s been updating his lender throughout the year to help tell the story of what’s going on in his operation.

He can speak the financial ‘language’ that his lender understands – and they use that language in their meetings. He brings detailed financial information about his operation to the lender and can explain what’s happening. He’s ready to make business decisions for his operation based on financial reality, even if it might be tough to make them.

Relationships

Everyone that the farm comes in contact with – whether through the farm’s owners or employees – has an experience where they feel they were dealt with professionally. Area landlords all know this operation by name – they’re talked about for how well they treat their landlords. Neighbors know they’re respected because of the careful way employees treat their ground too.

The farm leader looks to others that he has a business relationship with – vendors, dealers, lenders and others – as advisors for his farm. He wants their professional opinion. He looks to them to help educate him about their particular area of expertise so he can apply the knowledge to make his operation better.

This happens when you work with other professional advisors for the farm – finance advisors, tax specialists, ag risk advisors and others – having them walk alongside of you as you up your farm’s game. These farmers view their advisors as an advantage in helping improve the operation day by day.

The opinions of the author are not necessarily those of Farm Futures or Farm Progress.