Grainswest - Fall 2024

Fall 2024 grainswest.com 29 the outcome. “You get out of it what you put into it,” he said. “Commitment to completing and regularly revisiting the plan brings the most benefits. It’s a living document that needs to be actively used. We wrote down our goals, and revisiting them helps us stay on track and figure out how to achieve them.” By including these critical components, a farmer can create a robust business plan that serves as a roadmap and allows them to manage risk and seize opportunity. OVERCOMING HESITATIONS Many farmers hesitate to create a plan because they perceive it to be a time-consuming task that doesn’t immediately pay off. “A lot of farmers look at example farm business plans and think, ‘This is going to take me a lot of time, and I’m not willing to spend that time right now,’” said Henderson. Farm Management Canada research reveals the primary reason farmers do not create a business plan is the belief they are already succeeding without one. This raises the question of how each farmer defines success, which may hinge on profitability, stress level or family harmony. Additional reasons for not having a business plan include a lack of time or uncertainty about where to start, and farmers often struggle to get team members on board with the planning process. “A lack of effective communication and communication skills is a significant barrier to engaging in more formal farm business management activities like planning,” said Watson. “This is particularly true for women and young farmers.” Both Watson and Henderson agree it’s crucial a farmer regularly revisit a business plan once it is created. Henderson advises farmers to review it at least twice a year—once in the fall to compare seasonal outcomes and again in the spring prior to seeding. “Feeling prepared before challenges arise is key to keeping everything running smoothly,” he said. Christie consistently reviews his farm business plan at various intervals depending on the goal. “I try to review it quarterly,” he said. “Opportunities are presenting themselves faster and faster, so when they do we ask if they fit within our goals or if they limit us from doing something else.” ADVICE TO FARMERS When writing a plan, it’s important to tailor it to your own needs. The plan should benefit the farmer more than anyone else. “A perfect business plan that they’re never going to look at really doesn’t work,” said Henderson. He emphasized a plan should be practical and useful for the farmer. “If you’re writing the business plan to appease somebody else, you’re probably not going to use it. It’s probably something you complete and then put in a drawer and never look at again.” Henderson advised that if keeping the plan short and to the point makes it more useful, then go for it. “Maybe there’s less information, but more meaningful information. Ultimately, PLAN FOR THE FUTURE Related to business planning, in late 2023, FCC introduced a free online Will and Estate Pre- Planning Tool designed for Canadian farmers. With it, the user can evaluate their current estate planning status to reveal gaps and identify areas that require attention. FCC business advisor Corey Henderson stressed the value of such preparation. “Many farms face significant risks,” he said. “By having powers of attorney and wills in place, you ensure business continuity and fulfil estate desires. A lot of people feel confident about their estate plan until they realize there’s more to consider.” It’s about peace of mind, said Henderson. FCC encourages farmers to use the tool as a starting point to secure the legacy of their farm and ensure a smooth transition of assets. it’s more about what is going to work for that operation and that producer.” Watson said the biggest mistake farmers make is not writing it down. “Too often, farmers like to keep their plans in their heads. The problem is, nobody else knows the plan and can feel disconnected, compromising dedication and engagement in the farm’s path ahead. This is also detrimental to farm transition planning and engaging future generations.” ACCESSIBLE RESOURCES Online resources are a good place to start the business plan development process. The FCC website offers a planning bundle as well as articles, podcasts and videos on the importance of the process. The organization also offers business advisors and relationship managers who can assist in the process. “Start by looking at samples of other farm business plans and templates to build your own,” said Watson who also cited templates from specialized programs such as CTEAM. “Don’t hesitate to ask for help. We know farmers are busy, so if business planning isn’t your thing, hire an expert to guide you and keep things moving.”