In previous decades, farmers only needed to know how to grow and sustain crops to be successful. Now, the ability to produce a product is a given in farming. With improved technology and communication, almost anyone can grow crops with a modicum of success. Standing out above the competition, however, takes much more work. Farmers now must possess growing power and business savvy to differentiate and remain relevant.
Business Skills and Leadership in Farming
Bringing business skills into the farming industry increases the complexity but also the rewards. Farmers can no longer only rely on their skills at cultivating crops. The following are just some of the areas farmers must learn to navigate to keep ahead of rival operations:
- Innovative finance administration
- Consumer research and marketing
- How to apply and use agricultural technology
- Risk management strategies
Risk management, in particular, is a multi-layered concept. Farmers must consider how to avoid risks as well as deal with them should they occur. For example, farmers can take several measures to prevent fires; however, failing to establish a system to manage the aftermath of a fire is foolhardy. Even with the best preventative measures in place, accidents can happen. That is why farmers need to incorporate a number of insurance policies to protect their farm. Failing to invest in insurance coverage can bankrupt a farmer and destroy his or her operation.
The time has come and gone where successful farmers only needed to be good at production. Farmers that fail to improve their business expertise will find themselves falling behind those that invest in marketing, technology, and more to protect their assets. Cline Wood can help struggling farmers navigate the changing landscape of the agriculture industry while putting safeguards in place to protect their farm. Contact us today to learn more.
This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.agribusiness blog, agribusiness insurance, agribusiness risk management, agribusiness skills, farming blog