Future-oriented view helps with winter business planning

An important part of your role as the CEO of your farm is to consider and then plan for what the farm is going to need in order to thrive in the future. The best time to start making 2024 plans is right now.

Ask The Question

One way to start thinking about this now, before making any specific plans, is to first think about what farming — in general — is going to be like in the future.

Think about the type or types of farming that your operation currently does. Ask: What will that type of farming be like in 20 years?

A couple things to think about as you answer that question are the trends and changes that farming is already seeing impact the industry. What do you think will continue to be impactful and maybe even pick up speed into the next 20 years?

List them all out and then put them in order of importance or level of impact on your operation’s success. The greater the impact, the higher that one needs to be on your list.

Many of these changes and trends are probably already taking shape in agriculture already. Which ones do you think will be the most impactful?

Which can your farm best leverage in a positive way to improve your operation’s level of success? And which will be absolutely vital in order for your operation to continue thriving in 20 years?

Make The Plans

Once you’ve thought all of this through deeply, you can pivot toward how you will use it to make future plans for your operation. The further out the time interval, the less detailed the plan will likely be.

The key is having a general direction for where you see your farm headed regarding the future ag operating environment.

You can work to get more descriptive and detailed in writing your overarching business plans and goals for the next five years.

When creating these plans, it’s very helpful to have already thought through where you think agriculture is headed overall in the next 20 years and the types of major changes that will impact it.

Use that knowledge to consider what your farm will specifically need to be doing in the next five years in order to position your business well for future success.

Then you can create clear business plans this winter, including a plan of major goals for the next five years, and your business plan for the next crop year.

3 Items To Check Off Now

1. Check in with your bookkeeper. Ask if there’s anything else they need from you or from others in order to have detailed reports ready. Then help clear the path for them to get that information in a timely way. This will ultimately benefit everyone.

2. Spend some time on your own or with farming partners. Set up time for yourself and the other leaders in your operation, if any, to get together and talk about the upcoming year. Discuss what went well this past year, what changes were made or tried out, as well as big-picture plans for 2024. Getting on the same page with your fellow farm leaders will help chart the course when it’s time to work on detailed business, financial and marketing plans for 2024.

3. Schedule meetings with your advisers and lenders. Make sure you have meetings scheduled with your farm’s financial advisers, market advisers, tax preparer and your lenders. Arranging meetings now can help ensure you get the information and advice you need in the most timely manner for 2024 planning.

How Are You Navigating This Market?

One area that many farmers have found benefit from bringing on a third-party adviser is around marketing. Farmers have found that getting some third-party perspective from our market advisers has helped ease their minds.

The advisers help farmer clients with planning and execution around marketing decisions and help keep them up to speed on the current rapidly-changing grain market situation — and how it impacts their operation.

Get a free two-week trial of our marketing information service, MarketView Basic. Your free trial includes regular audio and video updates, technical analysis, recommendations and more.

Learn more about our market adviser programs and offerings at www.waterstreetag.com.