People often ask what you can learn from people who have been farming for years, but have you ever asked what you can learn from first generation farmers?
Last month, I had the opportunity to meet Dan and Amy Hodges and tour their first-generation blueberry farm near Bristol in southern Georgia. Dan and Amy are novice blueberry farmers who affectionately call their farm Wrigley Fields, after their 9-year-old English Cocker Spaniel, Wrigley.
The labor, economics and agronomy of blueberries in the South are very different from those of corn or soybeans here in the Midwest or wheat here in the Plains, but the best management practices for successful farming are largely the same regardless of the farm's location or crop produced.
I can think of only a handful of first-generation farmers, but they all have one thing in common: they care deeply about the business of farming.
To manage your farm like a business, consider these six key areas of focus:
Strategic planning
During a tour of the farm, Dan Hodges shared with me his clear goals: “By 2025, we want to have 400 acres under farming with a minimum average yield. This will help us reach the total revenue goals we have set for the operation.”
No matter what kind of business you're in, it's important to set goals and clearly define where you want to go, says Ron Hanson, Ph.D., Harlan Professor Emeritus of Agricultural Business at the University of Nebraska-Lincoln. Don’t put off succession planning He states: “A goal without a deadline is just a dream.”
Financial Planning
My grandfather was a first-generation farmer who started the family farm from the ground up. Today, the huge amount of capital required to start a new farm is a major hurdle for many young aspiring farmers.
Every first-generation farmer I know has some kind of plan for raising capital, whether that be from family, friends, business partners, lenders, retiring farmers, etc. The Hodges presented their business plan to potential lenders and found people willing to work with them on their journey to grow their blueberry field from 17 acres to 400 acres by the end of 2025.
“There's a huge opportunity to help farmers understand their economic situation,” Dan said.
Knowing the financial numbers that matter is good business sense, and first-generation farmers can't afford to neglect it. As Peter Drucker famously said, “You can't manage what you can't measure.”
Management and Leadership
Like many of the farmers I work with, Dan and Amy are family-oriented entrepreneurs: “If I want to go to my son's college baseball game, I want to know that the farm can operate without me,” he says.
Unfortunately, we all know that if something happens to a family patriarch before the management and leadership roles have been handed over, there will be negative repercussions. With that in mind, Dan and Amy are already planning the transition to the second generation.
In this case, Wrigley Fields has a manager in charge of the day-to-day operations, and Dan and Amy's top priority is to identify the next generation of leaders within the family and determine how to further engage them and prepare them to take over in the future.
Human Resources and Labor
Dan comes from a car sales background, so he understands the importance of having quality, reliable people to rely on. With blueberries, this may be even more important because the timing of fertilizer application has a big impact on the quality of the harvested fruit.
While many farmers struggle to find reliable labor, first-generation farmers seem to be open to thinking outside the box and looking at things differently. More farmers are open to building some kind of business partnership, a way to essentially give their employees some kind of benefit rather than just feeling like a hired laborer. The Hodges are even building housing for their employees on their farm to differentiate themselves from other blueberry farmers.
Succession planning
Perhaps one reason it's easier for first-generation farmers to run their farms like a business is because the family sentiment of generations of farming hasn't yet translated into the business. But succession planning is important in both first-generation and multigenerational businesses. Dan understands this, but doesn't necessarily want to mandate that his kids work on a farm or at a car dealership unless that's what they really want to do.
It's a conversation they've begun as they sort through what the next generation of management, leadership and ownership will look like.Strong communication is another key component of healthy family and business relationships.
crisis management
Blueberries, like any other agricultural product, have risks like frost, bird attacks, etc. But as an industry, one of the biggest risks blueberry growers face is imported fruit.
Whether it's protecting against internal risks within your farm or ignoring external factors that may threaten your entire industry, risk management is key. Recognizing risk and acting to mitigate it is the hallmark of a successful business owner.
I believe the agriculture industry will always attract new farmers, my concern is whether they will have the financial wherewithal and focus on key best management practices like those shared by Dan and Amy.
Downey has been consulting farmers, landowners and their advisors for nearly 25 years. He is an ag business coach and transition consultant. Uncommon FarmContact Mike [email protected].
