Successful farmers in Canada use seven business management practices that set them apart, according to a newly released study commissioned by Agri-Food Management Institute and Farm Management Canada. The Dollars and Sense report listed the top seven practices that drive farm financial success:
- Never stop learning;
- Make business decisions using accurate financial data;
- Seek the help of business advisers/consultants;
- Have a written business plan, follow it, and review it annually;
- Know and monitor your cost of production and what it means for your profits;
- Assess risks and have a plan to manage and mitigate risk;
- Use a budget and financial plan to monitor financial position and options.
“The research says that no matter how big or small your operation is, what you produce or where you farm in Canada, investing in farm business management will drive your success,” said Heather Watson, executive director of Farm Management Canada.
“For years, industry has been hearing this, and now, we finally have the concrete data to back it.”
The agricultural division of market research firm Ipsos surveyed more than 600 farmers as part of the study. Those surveyed were from a cross-section of the grain and oilseed, dairy, beef, hog, poultry and egg, and horticultural sectors from across the country.
The Dollars and Sense report can be found at fmc-gac.com.