| ||Successful farmers in Canada use seven business management practices that set them apart, according to a new study released today conducted jointly between Agri-food Management Institute (AMI) and Farm Management Canada (FMC). 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 advisors/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 report was presented to farmers, agricultural industry organizations, farm business advisors, accountants, economic development groups and others for their feedback on how to better engage the industry when it comes to farm business management.
"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," says FMC executive director, Heather Watson. "For years, industry has been hearing this, and now, we finally have the concrete data to back it."
Ipsos Agriculture and Animal Health's included over 600 farmers in the research. The study represents a cross-section of grain and oilseed, dairy, beef, hog, poultry and egg and horticultural producers from across the country. Ipsos invited participants from their database of more than 100,000 farm businesses.
"This study shows that paying close attention to the business side of their operations is critical to making a good living for farmers," says AMI's executive director, Alison Robertson. "And they don't have to do it alone - we have many resources to help farmers help themselves to greater success."
Hard copies of the report were distributed at the launch and it is now available on the FMC and AMI websites.
The 'Dollars and Sense' study grew out of research completed by both organizations. AMI previously published a baseline study that provided insights into farm business management activities, behaviours and attitudes in Ontario farmers. FMC produced a report on how to meet the business management needs of Canadian farmers using insights into domestic and international best practices.
Both organizations provide programs, workshops and other resources to help farmers make the best management decisions for their business.
Farm Management Canada
Agri-food Management Institute