Small and medium size agribusinesses now experience significant challenges from the local level all the way up to the global stage. They must stretch to meet the growing demand to feed the global population while adhering to unforgiving emissions regulations. This means trying to grow more food on less land to reduce their ecological footprint. To understand these challenges better, CASE IH conducted a survey at the Ag Connect Expo to find out farmers’ biggest concerns. By learning about farmers’ diverse needs, the agriculture industry is better able to innovate and develop technological solutions. Some of the biggest challenges farmers face include:
- Meeting the worldwide need for food. As economies boom and populations proliferate, it is becoming harder for farmers to keep up with production demands.
- Managing the dearth of land. With less land available, prices are skyrocketing. Farmers need more land to keep up with global demands for food, but purchasing the property is cost prohibitive.
- Mandates and regulations. The government issues new regulations in an effort to improve safety and reduce the effect of farming on the environment. However, this means farmers must be ready to pivot and change business operations without disrupting production or increasing costs.
Other concerns farmers identified included the stability of global markets as well as the advancement and use of bio-based fuels. When asked which of the above concerns will affect their farming operation in the immediate future, government regulations was the top response. Nearly one-third of farmers anticipate that government regulations will affect their business in the next year. Tied for the second top issue, about one-quarter of farmers named the lack of land and resulting price increases as well as the instabilities of the global marketplace as their next biggest concerns.
Despite these challenges, an astounding 89% of farmers expect their operation to expand within the next five years. If you anticipate that your farming operation will grow in the near future, you will need to address the above concerns in order to succeed. Part of business planning is identifying and managing risks that can prevent your farm’s success. Contact the experts at Cline Wood to learn how we can help you reduce risk on your farm.
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 challenges, agribusiness news, agribusiness risk