Dakota Farmer

Bottom Line: Benefits are easy to find with involvement in this management program.

May 17, 2021

4 Min Read
Farmer and financial adviser
PERSONALIZED PROGRAM: The ND Farm Management Education program allows producers personalized insight of their breakeven points, efficiencies and marketing strategies. fatihhoca /Getty Images

Why hire an agronomist to improve soil health? Why hire a diesel technician to work on your broken-down combine in the middle of harvest? These questions could be considered just as important as asking yourself, “Why participate in a program that can help guide quality management decisions?”

I am just one of 15 instructors with the North Dakota Farm Management Education Program. I work out of the Wahpeton location, with an office on campus at North Dakota State College of Science, servicing producers on both sides of the river. My husband, Tyler, farms alongside his dad, raising corn, soybeans, wheat and sugarbeets. As a farm management instructor and a farmer’s wife, I see firsthand the many benefits derived from participating in a program like what North Dakota has to offer.

Personal assistance

The program is not a one-size-fits-all type. Every operation is unique, as well as every operator. I work with a range of clients in size, as well as knowledge base. Some producers are just getting started in their career, and our main goal is to set up an efficient and accurate record-keeping system with them.

Other producers are in the middle of their career, or nearing the end of their careers and already have their record-keeping system. These participants might benefit more from a management perspective. Through enterprise analysis that we complete together, these more experienced producers might find corn is the most profitable crop on their farm, and ask themselves some questions. How do we capitalize on this? Do capital investments make sense? Will it help my operation become more efficient and profitable?

I have helped clients make many decisions for their operation, including those that affect cash flow. For example, hiring full-time labor when you have only had seasonal help is a big decision, and it needs to make sense from not only a logical standpoint but also fiscally.

I often talk about opportunity cost: If you hire someone full time, you now have given yourself the opportunity for more family time, or maybe you spend more hours generating income from custom work while your full-time hired hand fixes equipment. What makes sense? What are your goals? What makes you happy?

Clients tell me they appreciate the third-party, or neutral-party, view when it comes to putting year-end financial statements together. Almost every client has a good working relationship with their banker, but they still like to have another set of eyes review their numbers and financial position. On the flip side, I know bankers really appreciate their customers’ participation in a Farm Management Education Program because it saves them time during renewal season, and they know the extra steps we take to analyze data and observe what the ratios are indicating.

Seeing benefits

My husband and I find many benefits from the program. We are constantly updating our cash flow throughout the year as we incur expenses so that we are well aware of our breakeven price per crop. I always encourage clients to do the same. Not only do we as producers benefit from services of the program, but I know our banker appreciates the time we take in putting our year-end financials together as well as our next year’s projections. Our accountant values the profit and loss report we give him from QuickBooks, rather than numbers written on a napkin.

Not only do you receive one-on-one instruction and direction, but also you have the opportunity to build your network. You might meet other neighbors and friends who also participate in the program, or industry professionals through various events hosted by your local program. These might include informal marketing meetings discussing strategy, or more formal events where a marketing specialist or other specialist is brought in to talk about their field of work. These are typically free to anyone involved with their local farm management program.

The North Dakota Farm Management Education Programs are designed to provide education to farm owners and operators, or persons interested in farming. The purpose of each program is to assist clients in meeting their business and personal goals. Get in touch with your local instructor today to see what your program can do for you.

The North Dakota Farm Management Education Program provides lifelong learning opportunities in economic and financial management for persons involved in the farming and ranching business. Visit www.ndfarmmanagement.com, Facebook @NDFarmManagementEducation, or contact Craig Kleven, state supervisor for agricultural education, at [email protected] or 701-328-3162 for more information. The ND Farm Management Education Program is sponsored by the North Dakota Department of Career and Technical Education.

Wulfekuhle is a farm management instructor at North Dakota State College of Science.

Source: North Dakota Department of Career and Technical Education, which is responsible for the information provided and is wholly owned by the source. Informa Business Media and its subsidiaries aren't responsible for any of the content contained in this information asset.

 

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