Wendland ag agronomy
Volume 2 • Issue 1 – 2013
Volume 2 • Issue 1 – 2013
WEndland WEndland Ag Ag Agronomy Agronomy
FOOD FOR THOUGHT Planning Ahead to Plan
Stu
Rasmussen
F
arm Business Planning is one of the most important and useful exercises involved in the development and the operation of a farm. Not only is this process key to success in helping to understand and articulate what your farm enterprise will look like, it is also important in building a farm development plan that is economically sustainable. It is also essential in obtaining the funding to operate, purchase land, equipment, and other necessary resources from lending institutions, investors, or grant-making agencies. Nowadays, Crop Input Planning has increased in importance as well and is something that needs to be planned early, not left to springtime. Another very important planning exercise in the operation and development of a farm business is Succession Planning. A Farm Business Plan is a business development map. Not only does it show your end destination, but it maps out your travel path. It sets out realistic goals and how your business will achieve these goals. Every business venture can benefit from the preparation of a carefully written business plan. The purpose of the business plan is to: 1. Help you think through the venture and ensure that you have considered all options and anticipat-
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ed any potential difficulties. 2. Serve as an operating guide as you turn your ideas into a viable business. 3. Aid in arranging strategic alliances and obtaining contracts. 4. Convince potential funding program managers, lenders and investors that the proposed venture has merit and that you are in control of the project. Crop Input Planning has really changed over the years as well. Gone are the days of dropping into your crop input retailer early in the spring and getting what you need. A lot of thought and discussion needs to happen early in order for farms to secure supply and make sure that they are taking advantage of pricing, logistics and supply incentives. From a fertilizer standpoint, farmers need to start thinking about the “next year” as early as July or August of the current year. With adequate storage on the farm, product can be put into place as early as yearend and throughout the winter months. The advantage of this is that some or all of the farms’ fertilizer requirements will be “onfarm” and ready to go. NH3 is a bit different but discussions and commitment should happen from early fall and into the early winter months to secure supply. Today, even early commitment on Crop Protection products has increased. Not everything can be committed to before the problem has been identified but a good portion of pests do not change and with the increased frequency of field visits with or without Agronomists, farmers know a good portion of the pests that
will be present in the coming year. A couple of advantages of securing your crop protection product needs early are guaranteeing supply and taking advantage of programming. Farm Succession planning is essential to the process of passing a farm on to the next generation as smoothly and successfully as possible. Today it is often difficult for children of farmers to take over the family farm. Farm equity is often the default retirement plan for farmers, so they need the money they have invested in it, and can’t simply give it to the next generation. And financing for the next generation wishing to buy the farm can be difficult in this era of high land values, and tight credit markets – not to mention the difficulty of beginning to make payments on a loan before ever bringing in a crop. In cases where there are multiple siblings, equitable distribution of inheritable assets can be an issue. Understanding rules related to taxes, land transfers, incorporation, etc. can be extremely important. And there are numerous interpersonal and values issues that often need to be dealt with in succession arrangements. Careful, well thought-out plans are very important in successful farming operations today. There are a lot of resources available to help plan on the farm. If you have any questions, want to discuss or need help finding the right resource, please contact your Wendland Ag representative. Have a great, safe and successful spring! “Plan” on contacting Wendland Ag for any of your needs…. Page 1