As farm incomes have continued to fall over the past three years, our advisors are seeing a common thread among the farms that have been successful despite the downturn.

It might seem as if it must be something like a bunch of inherited ground or an endless supply of cash from a wealthy family member. But it’s not. In fact, it’s something that every farm leader and operation has direct power and control over. It’s the decisions being made on that farm – and how they ultimately impact the financial state and success of the operation.

Making good choices
As I’ve written before in this blog, the farm operation, in its current state, is the sum of all the decisions the leaders have made – nothing more, nothing less. The farms that are thriving even in the face of this downturn in ag are a clear demonstration of that fact.

They’ve committed to following through on the tough decisions that had to be made. They focused on efficiency and continually getting better at what they do. Most of all, they keep the farm’s overall goals front and center, all the time. They know their farm’s numbers and where they’re at and use them in their decision-making. They work with trusted advisors for perspective and ideas as they make decisions.

These farmers are lifelong students of the business of farming – and of their own operations. They’ve dedicated themselves to farming for the long haul and are willing to do what it takes to get through the tougher times in a smart way. It’s not without some figurative bumps and bruises along the way, of course, but it’s paired with the desire to learn from everything they encounter.

A successful farm
I believe that their commitment to building their competency – in leading their operation, in financial savvy, in creating strong business relationships – is largely why they will be successful in the long run. I also think that the way they work through and make decisions for their operations – and, most of all, why they make the decisions that they do – will largely determine the farm’s level of success.

Even decisions that don’t seem to have an immediate or direct impact on the farm’s bottom line still make a difference. The sum of every decision makes the operation what it is, as a whole. All decisions need to be considered and treated as important.

Think about your goals for your operation. Consider where you’re at now and the decisions that have brought you to this point in time. What are some ways you might refine or set up a decision-making process for your operation? What do you need to think about as you approach any major decisions on the horizon?

Who else needs to be involved in a particular decision? Who can you turn to for another perspective or additional ideas? Do you have trusted advisors to talk with as you work through a decision? Commit to being the type of farm leader who takes control of the decisions on the farm – not one who lets the outcomes of decisions ultimately control them and the operation.

Read the current issue of the Smart Series publication, bringing business ideas for today’s farm leader. This issue includes perspectives on what to do when a landlord asks for higher rent, how to find the right new employee, a farm business checklist for the spring season, and more. Get your free online issue here.

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