Starting the Farm Planning Process
The beginning of the planning process is often perceived as a “touchy–feely” sort of thing that most farmers hesitate to become involved in. However it’s a very important step towards making a plan work and people need to get over their hesitations, take a deep breath and work through this process.
A number of farmers have commented to me at the end of their plan that while they were reluctant to start their Plan with this “Fuzzy” stuff, on reflection it was one of the most valuable parts of the whole exercise for them.
What is Farm Planning?
Put simply, Planning is a process of working out in advance what you intend to do.
The importance of having a business plan was highlighted in the inaugural edition of the Price Waterhouse Business Barometer (May, 2007). The report is based on a survey of 750 businesses with turnover in the range $10 million to $100 million. In respect of business planning the report noted:
The Price Waterhouse Coopers Report
“A sizeable minority (40 percent) had no formal business plan and most employed an ad-hoc approach to managing information technology. Those businesses that did use a formal business plan set more realistic short and medium-term targets and achieved better sales and profits than those that did not.”
In an on-going farm management situation, planning can be either tactical planning on a seasonal basis or day-to-day planning, otherwise described as operational planning. However, both these levels of planning are controlled by primary strategic planning, otherwise known as long term planning.
Planning for the long-term
In my experience, farmers generally plan long term and much of their thinking in regard to their property is intergenerational. Most farmers subscribe to the philosophy that they want to pass on their farm to the next generation in a better condition than they received it and it is this long term strategy which drives much of their shorter term decision making.
Unfortunately it’s often hard to think long term when you are under immediate pressure from creditors or your bank manager to face immediate issues.
People in the conservation movement have an apt saying that:
“It’s hard to be green when you’re in the red!!”
Most land resource-related decisions are longer term in nature; matters such as changes of land use from stock to cropping or from dairying to horticulture are major planning decisions that affect your lives for a long time.
Getting this change process right is a matter of good strategic planning although often short term operational or tactical planning can have a disproportionate impact on longer term strategy, particularly where aspects of the land resource are in delicate balance.
An example of this would be the clearing of vegetative cover for a crop at the start of a recognised drought cycle, where your short-term need is for extra feed for your stock but you run the real risk that baring the land may accelerate the risk of wind erosion which would run counter to your long-term strategy of protecting your land against loss of your topsoil asset.
Planning is a cyclical process
Planning is more a cyclical process than just a straight line from vision to outcome. Planning is also a process that needs to be regularly revisited and fine-tuned in the same way that you drive a car.
You need to “keep your hand on the wheel” of management and be prepared to make those continuous small changes which cumulatively keep your farm vehicle “on the road” rather than heading off into the scrub or over a cliff.
I know that farmers often find this strategic planning stuff hard to talk about with others and many would prefer to hand-crutch a thousand ewes than stop to think about these sorts of things let alone discuss them with the rest of the family.
I recall the story of a rich and successful businessman who was travelling through the Australian Outback when he realised that he didn’t quite know where he was. He saw a local farmer, doing some fence repairs and pulled up in his late model Mercedes and said politely, “I say, old chap, you couldn’t tell me how far it is to Bourke along this road?”
“Nope” replied the farmer. “Well then, how far am I from Dubbo?” the businessman asked. “Don’t know!” said the farmer.
“You’re not a very bright chap then, are you?” the exasperated businessman said.
“Nope,” the farmer commented, “but then again, I ain’t lost!!”
Involving all the Key Players
Once you can see the need for good farm planning, then you can easily understand the value of good information. However, like most processes of change, the first step is generally the hardest.
You also need to ensure that all the key players are involved in this initial planning process.
I can recall some families that I have dealt with over the years who have a very strong family bond and healthy relationships where, when I arrived to start the farm planning process with a discussions on values, aims and objectives, I was confronted by the whole family, not just the person in the leadership role, but his wife and two children, his brother and his wife and two further children and both sets of grandparents as well.
Luckily they had a very large dining room table because everyone was treated with respect and had equal say on the future direction of the farm and they all listened to everyone’s views and contributed to the Farm Plan. It was an initially daunting but eventually very interesting few hours for me, trying to strike a middle course between a whole range of views of their future.
However, I’m sure this situation is not the norm but I tend to ensure that, if possible, the whole immediate family is involved in this discussion as its outcomes often affect the direction of everyone’s lives.
