Grainswest - Fall 2024

Fall 2024 Grains West 28 A VALUABLE INVESTMENT The planning should be tackled by farmers for their own benefit, said Heather Watson, executive director of FMC. The national organization acts as a service for farmers that draws upon the resources of many industry groups, businesses and governments. She noted a plan can act as a communication tool that spells out shared goals and direction. “It is a fantastic tool for engaging with other members of the farm team and family by coming together in meaningful discussions about the future of the farm and everyone’s role within it,” said Watson. Such plans may help farmers expect the unexpected and guide decision- making amid overwhelming situations. “Research from Farm Management Canada shows that having a farm business plan is associated with increased profitability, confidence in decision-making, family and farm team harmony and peace of mind,” said Watson. A well-crafted business plan can act as a guide during turbulent times, offering a structured approach to the management of unforeseen challenges and to ensure all team members are aligned with the farm’s vision and goals. “When stress runs high or decision-making becomes clouded or a new risk or opportunity surfaces, your business plan provides a reference point to play out alternative paths forward.” Corey Henderson, a business advisor with Farm Credit Canada (FCC), emphasized it is important to document clear objectives in a business plan. “A lot of farms get sidetracked from what they were trying to achieve because they didn’t have that North Star to follow,” said Henderson. Without a concrete plan, it’s easy for farmers to lose sight of their original goals amid the myriad of daily tasks and unexpected events. “A farm business plan can be that check for farmers. Every so often you go back to it, and you say, ‘Is this still where we want to be,’ and, ‘What’s standing in our way?’” ESSENTIAL COMPONENTS Plans should encompass essential elements such as goals, strategic priorities, mission and vision. It should also provide a brief history of the farm and list key members along with their roles and responsibilities. According to Watson, a farmer should think critically about what’s important to their operation. “A farm business plan can include an in-depth analysis around strengths, weaknesses, opportunities and threats [SWOT] to the farm. Details on production, market and financial performance along with a farm budget may also be useful,” she said. Henderson emphasized a farmer gets the best results from a plan that focuses on what’s most important to that farm. And don’t feel the need to adhere strictly to a given template. “Leave it blank if it doesn’t work for you,” he advised. “I’d rather have a half-completed business plan than no business plan at all. “Farmers should focus on what they’re aiming for and where they’re headed.” Financial projections or budgets are also crucial, and a SWOT analysis can be very important to see how farmers can take advantage of opportunities. Jamie Christie is a fourth-generation farmer and managing partner of Arn’s Brae Farms, a 5,000-acre mixed farm near Trochu. In 2016, he completed the Canadian Total Excellence in Agricultural Management (CTEAM) program offered by Agri-Food Management Excellence. It offers structured guidance for strategic business plan development. As part of a 30-farmer cohort, he learned from his peers as he built his own plan. He has since updated it every two years. For ongoing feedback, he shares each iteration with family members and farm advisors. Christie feels the effort put into a business plan directly correlates to FEATURE “Research from Farm Management Canada shows that having a farm business plan is associated with increased profitability, confidence in decision- making, family and farm team harmony and peace of mind.” —Heather Watson