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Presented by: Heather Watson, Executive Director Pacific Ag Show 2019
The 7 Practices of Canada’s Top Farmers
Making Dollars and Sense
Today's Journey
1. The 7 Practices Driving Farm Financial Success
2. The Power of Planning
3. Learning Opportunities, Resources and Support Available
Who and What are in your
Farm Management
Toolbox?
Fact:
The success of any farm enterprise, regardless of size,
geography, or commodity is directly related to the farm
business management skills and practices of the farm manager
How do we know this?
• Ground-breaking research – the first to establish a measurable link
between business practices and financial success that is nationally
representative and cross-commodity
• Management activities tested:
• Strategy, Planning, Communications
• Marketing, Supply Chain
• Financial Management, Benchmarking
• Human Resource Management
• Risk Management, Contingency Planning
• Animal Care, Environmental Management
• Training, Education, Use of Farm Advisors
Dollars and Sense Study
The research found
7 farm business management practices
that drive farm performance…
The 7 business management practices driving farm financial success:
1. Lifelong learning, skills development
2. Business decisions made using accurate financial data
3. Seeking the help of business advisors and consultants
4. Having a written business plan, following it, reviewing it annually
5. Knowing, monitoring your cost of production and what it means
for profit
6. Assessing risks and having a plan to manage and mitigate risk
7. Using a budget and financial plan to monitor financial position
and options
So…how are we doing?
1. Lifelong learning, skills development
2. Business decisions made using accurate financial data
3. Seeking the help of business advisors and consultants
4. Having a written business plan, following it, reviewing it
annually
5. Knowing, monitoring your cost of production and what
it means for profit
6. Assessing risks and having a plan to manage and mitigate
risk
7. Using a budget and financial plan to monitor financial
position and options
49%
32%
59%
26%
50%
32%
33%
What do we stand to gain?
Farm Business Management pays!
Actual
Value
Industry
Rating
Percent
Change
Asset TurnoverTop 25% 20% Moderate
100%Bottom 25% 9.7% Vulnerable
Gross Margin
Ratio
Top 25% 50% Moderate
155%Bottom 25% 19.6% Vulnerable
Return on
Assets
Top 25% 10% Strong
525%Bottom 25% 1.6% Vulnerable
That’s the difference between $100,000 and $16,000 profit.
It’s not just about the money…
CTEAM alumni were asked the impacts of the program…
Financial Impacts include: profit, debt management,
reduced costs
Business Impacts include: having a process for decision-
making, performance management and a network of experts
Personal Impacts include: confidence in management
decisions, the ability to prioritize, provide clearer direction,
and understand personal dynamics to better manage people
and communicate
It’s about the confidence that comes from preparedness
• Results revealed that there were significant financial impacts
(over 60% ranked ROI >50% after program costs)
• However, business impacts (ex. improved decision-making)
outranked financial impacts
• And, personal impacts (ex. confidence in decisions, the ability
to prioritize and better manage people) far outranked both
financial and business impacts
There is an immense opportunity to grow our capacity by investing in
farm business management
Proactive planning to best manage both what is…
IN the farmers’ control: OUTSIDE of the farmers’ control:
Management means being proactive: “An ounce of prevention is worth a pound of cure.”
Minimizing Threats, Taking Calculated Risks,
Seizing Opportunity!
Mitigating Negative Impact
Coping with Negative
Outcomes
Farm Business Management Insurance & Government Programs
Farm business management means…
• Taking a proactive approach to build the underlying
capacity to weather any storm and seize every
opportunity, positioning the farm for continued
success
• It boils down to having accurate, reliable data to
create a realistic picture of what’s possible and a plan
to guide you towards success
Let’s take a closer look at the 7 practices…
• When was the last time you assessed your skills
against the skills required to meet the current and
future needs of the farm?
• How about the skills of your farm team?
• Do you have job descriptions for all of these
positions, including core competencies and
experience requirements?
• Take the time to create a skills development plan as
part of the business plan
• Create a culture of lifelong learning to create the
space for new ideas and empower your team
Lifelong Learning, Skills Development
“When the human mind is stretched, it never returns to its original size —
similar to most new underpants.”
Do your Best, Hire the Rest
• Identify where you want to focus your energy and time, where you
need others to be supporting you
• Use professional farm business advisors (beyond your accountant,
lawyer and lender) to facilitate the process and keep you on track
• Personal coach
• Psychologist
• Marketing specialist
• Etc.
• A multi-disciplinary team working together for you
• Not just “the professionals” – consider peer advisors
• Are you using a recognized accounting system for your
farm?
• Is data entered in a timely manner by a qualified
person?
• Is data easily changeable (what-if scenarios) and ready
to review and analyze at a moment’s notice when
making business decisions for your farm?
Business Decisions via Accurate Financial Data
• While you may know if you’re making money, do you know
what’s making you money, what’s not?
• How many distinct businesses are you running?
• Have you prepared a budget for your farm, and the distinct
business entities within it?
• Do you review your budget and financial plan when making
business decisions?
• While assets are important for access to capital,
cash is still king to weather the storm and/or
seize opportunity
Budget, Monitor Your CoP, Financial Planning
• Uncertainty can lead to stress and poor decision-making
• Do you know what’s in your control? What’s outside of your
control?
• How prepared are you? Are you taking a comprehensive look
at risk and risk management (people, finance, markets,
production, policy, strategy) and the connections between
them?
• What measures could you put in place?
Plan for Risk and Uncertainty
• Your plan is your roadmap to success and trusty side-kick when
stress runs high or times get tough and decision-making
becomes clouded
• Writing the plan down facilitates important conversations about
the future of the farm and everyone’s role within it
• The business plan is the most effective tool for uniting the farm
team around a vision as a guiding light to keep the farm
healthy for generations to come.
Have a Written Business Plan
Assess your business (January)
Take stock of your farm in the context of change.
Plan your future (February-March)
What is your vision? Mission? What are your priorities and
goals? How will you get there?
Implement and Monitor your plan (April-August)
Host a start-up meeting to discuss priority items, timelines and
goals to operationalize the plan and to guide your decision-
making.
Assess your performance (November)
Measure your progress towards achieving your business goals
over the past year and start to think about next year’s goals.
Like the seasons, business planning is a cycle:
• Where you want to focus your energy and time
• Where you need others supporting you
• What skills must be developed or hired into the operation
• Industry experts who can support you
Important Outcomes from Conducting a Business Assessment
BC Agri-Business Planning Program
• Webinars, Workshops, Conferences
• Publications
• Land-matching program
• One-on-one advisor coaching
• List of qualified business consultants
Funding and Support
• Cost-share funding for:– Advisory services
– Speaker and event support
• $5,000/individual or $30,000/groupVisit: www2.gov.bc.ca/gov/content/industry/agriculture-
seafood/programs/agri-business-planning-program
Some opportunities to build your farm business management skills
and network…
▪ Accessible from any mobile device or computer
▪ Audio, Video, Chat, Presentation, Podcast
▪ Over 200 archived presentations
▪ Use for lunch and learn sessions
www.Agriwebinar.com
Information at your fingertips.
Bringing top management experts to you –
anywhere at any time.
Agriwebinar®
Transition Planning Workshop for Farm Families
March 20 & 21, 2019 - Coast Langley City Hotel
Is your family farm in a state of transition?
Are you looking to start the succession conversation?
The Bridging the Gap Workshop welcomes farm families to work with Elaine and
Cedric to address some of the elephants in the room that are preventing or hindering
succession planning on the farm.
Day 1 is for the whole family!
Day 2 we encourage Young Farmers to
attend FCC Ignite while the rest stick
around to continue the conversation on
how to bring your kids into the farm
business.
Featuring:
Leading Management Experts | Bridging the Gap Forum
National Farm Management Resource Showcase
Join us December 2-4 in Fredericton, NB!
Meet fellow farm
management enthusiasts
from across Canada to
share insights and build
your farm business
network.
Everyone welcome –
farmers, advisors,
academics, industry
organizations and
government.
For young farmers…
Canadian Young Farmers Forum
www.CYFF.ca
Provincial Groups www.BCYF.ca
Annual Conference
App to stay connected
2019 National Conference April 5-7, Toronto
For young farmers…
Young Agrarians
www.youngagrarians.org
Farmer Blog | Workshops | Land-Linking | Mentorship
FEB 2, 2019: WINLAW, BC – Business 101 Workshop
+ Evening Potluck Social & Farmer Slideshows
To recognize young farmers… www.oyfcanada.com
2019 National Conference December 4-8, Fredericton
BC & Yukon Regional Event: March 13, 2019 - Abbotsford oyfbc.com
▪ Online Risk Management platform
▪ Identify, assess, prioritize risks and create management plans
• AgriHR Toolkit
• HR Policy
• Employee
Handbook
• Labour Market
Information
• Job Search Tool
www.cahrc-ccrha.ca
• Farm Safety Plan
• Online Learning
• Annual National Conference
• Farm Safety Week
www.casa-acsa.com
Next Level Management Programs, Learning Opportunities
Canadian Total Excellence in Agricultural Management
CANADA'S ONLY NATIONAL FARM MANAGEMENT TRAINING PROGRAM
▪ Specifically for Producers and Ranchers
▪ Use your Own Farm Data to Create your Strategic Plan
“For a number of years, we knew we wanted to
move forward, but we didn’t have a clear path of
where we wanted to go and how we can get there.
CTEAM has shon a light on the right path for us.”- Jason Lyons, CTEAM Graduate
Next Level Management Programs, Learning Opportunities
• The Executive Program for Agricultural Producers
(TEPAP)
• Leadershift leadership development program
• Strategic Coach www.strategiccoach.com
• Peer Advisory Groups
• Advisory Boards
• Farm Management Clubs
• Nuffield Canada - applications are due in April!
• National advisor listing by province and region
• Committed to continuous learning
• Hosts Farm Management Update, Succession Update
and other events for farm advisors
www.CAFANET.ca
Next Steps
✓ Conduct a farm business assessment to identify strengths, weaknesses and opportunities (get the whole farm team involved)
✓ Create an action plan to fill any gaps towards reaching your business goals (build this into your Plan)
✓ Identify and seek skills development training and/or advisory services
✓ Host regular farm business team meetings to track progress and maintain a management focus for your farm
Important: When you return home after this event, host a farm team meeting to share the learnings and insights gained. Demonstrate how investing in skills development is invaluable to the farm to endorse a culture of sharing insights and lifelong learning on the farm.
Heather Watson
Executive Director
Farm Management Canada
250 City Centre Avenue, Suite 300
Ottawa, Ontario
K1R 6K7
Tel: 1-888-232-3262 or (613) 237-9060
Email: [email protected]
www.fmc-gac.com
Thank you. Questions?
@FMC.GAC
@FMC_GAC
Watch us on YouTube
"Coming together is a beginning;
keeping together is progress;
working together is success." -Henry Ford
