{"id":1213,"date":"2020-06-08T16:16:27","date_gmt":"2020-06-08T21:16:27","guid":{"rendered":"http:\/\/www.encore-consultants.net\/StagingSite\/?p=1213"},"modified":"2020-06-08T16:16:27","modified_gmt":"2020-06-08T21:16:27","slug":"still-oppurtunities-in-2020","status":"publish","type":"post","link":"https:\/\/www.encore-consultants.net\/StagingSite\/still-oppurtunities-in-2020\/","title":{"rendered":"Still Oppurtunities in 2020"},"content":{"rendered":"\n\t

Executive Farmer Network Tactics and Takeaways\u00a0<\/strong><\/p>\n

Even with a poor farm economy many farms are doing more than just OK. There is a\u00a0big\u00a0spread between farm profitability even if on the outside they look the same. The most profitable farms are taking advantage of the current farm weakness to strengthen their farms in a couple key areas.\u00a0\u00a0<\/p>\n

Agriculture in the USA and Canada has been tough for several years and it is still unclear how the current recessions from the COVID virus will play out.\u00a0\u00a0Let\u2019s face it. Life and business\u00a0are\u00a0often unclear and sometimes a true crisis erupts,\u00a0like COVID,\u00a0that changes everything.\u00a0At least for a time.\u00a0\u00a0\u00a0\u00a0<\/p>\n

This Encore Insight covers\u00a0what some farms are doing today to set\u00a0themselves up for future success,\u00a0even with a murky outlook.\u00a0\u00a0<\/p>\n

Keep reading below for the most\u00a0<\/i>some common tactics<\/i>\u00a0that you can apply to your farm<\/i>.<\/i>\u00a0<\/p>\n

Know\u00a0<\/i><\/b>M<\/i><\/b>ore than\u00a0<\/i><\/b>T<\/i><\/b>heir<\/i><\/b>\u00a0<\/i><\/b>B<\/i><\/b>anker<\/i><\/b>s<\/i><\/b>:<\/i><\/b>\u00a0<\/p>\n

Farms that are poised for growth are not relying on their banker to tell them their financial position. These farmers intimately know their position and can explain it to their banker. Not the other way around.\u00a0These farms have a\u00a0solid grasp of their true financials with a focus on cash flow\u00a0and ROI. Bankers may like a balance sheet but understanding the hidden expenses and\u00a0where the\u00a0value is added to the bottom line is\u00a0more important.\u00a0Acquaint yourself with the\u00a0DuPont model<\/a>\u00a0to see\u00a0if\u00a0debt is helping or hurting you.\u00a0In summary\u00a0fully acquaint yourself with\u00a0how the money flows through the business\u00a0and it will put you in a better position to make your case to your banker.\u00a0\u00a0<\/p>\n

Pick<\/i><\/b>ing<\/i><\/b>\u00a0up\u00a0<\/i><\/b>the\u00a0<\/i><\/b>R<\/i><\/b>ight\u00a0<\/i><\/b>E<\/i><\/b>mployees<\/i><\/b>\u00a0and\u00a0<\/i><\/b>C<\/i><\/b>ut<\/i><\/b>ting<\/i><\/b>\u00a0<\/i><\/b>P<\/i><\/b>oor\u00a0<\/i><\/b>P<\/i><\/b>erformers<\/i><\/b>:<\/i><\/b>\u00a0<\/p>\n

Though the labor market is tight, there are more employees available\u00a0for\u00a0hire than at any time in recent memory.\u00a0Farms\u00a0that\u00a0already\u00a0have a process in place of finding, hiring,\u00a0and retaining employees\u00a0have a leg up. While these farms didn\u2019t anticipate the COVID crisis they are able to pick up employees because they already have\u00a0built the human resource framework. They\u00a0have spent time identifying potential prospects in the community. They have\u00a0already had conservations with these prospects such as, \u201cIf you are ever thinking of doing something else someday, give me a call and we will grab a cup of coffee.\u201d Those seeds that were planted several years ago are now bearing fruit as good employees are being\u00a0furloughed.\u00a0If you haven\u2019t started\u00a0looking\u00a0it still isn\u2019t too late to\u00a0create a short list of prospects and start a conversation.\u00a0\u00a0\u00a0<\/p>\n

Cut<\/i><\/b>ting<\/i><\/b>\u00a0the\u00a0<\/i><\/b>F<\/i><\/b>at but\u00a0<\/i><\/b>S<\/i><\/b>av<\/i><\/b>ing<\/i><\/b>\u00a0the\u00a0<\/i><\/b>M<\/i><\/b>uscle<\/i><\/b>:<\/i><\/b>\u00a0<\/p>\n

Many farms are cutting waste in areas that are easy\u00a0to purchase. What they aren\u2019t cutting are\u00a0items\u00a0that are not easily bought.\u00a0For\u00a0example,\u00a0it\u2019s easy to cut down on\u00a0parts inventory, household expenses, sell\u00a0under-used equipment\u00a0and delay\u00a0new\u00a0equipment purchases.\u00a0 All of these\u00a0tactics\u00a0lower overhead expenses.\u00a0Those\u00a0cut\u00a0items\u00a0are quickly replaced when the farm economy turns around\u00a0because you can easily purchase them. What isn\u2019t easily replaced\u00a0are quality employees so\u00a0many farms aren\u2019t cutting employees, employee compensation or benefits.\u00a0In summary,\u00a0farms are\u00a0cutting\u00a0all other\u00a0overhead,\u00a0but\u00a0they\u00a0aren\u2019t cutting\u00a0employees\u00a0or benefits.\u00a0<\/p>\n

\u00a0<\/p>\n

Multi-<\/i><\/b>Y<\/i><\/b>ear\u00a0<\/i><\/b>S<\/i><\/b>trategic\u00a0<\/i><\/b>E<\/i><\/b>xecution:<\/i><\/b>\u00a0<\/p>\n

These farms typically spend less time than others trying to find the last possible tweak for increasing production.\u00a0Instead\u00a0they spend\u00a0more time on crafting\u00a0a solid strategic planning process\u00a0along with\u00a0consistent\u00a0execution.\u00a0These farms don\u2019t know the future any\u00a0more than anyone else,\u00a0but they have a\u00a0crystal-clear\u00a0picture and a written plan\u00a0of where they are headed in the next 3-7 years.\u00a0\u00a0<\/p>\n

Not only that but they\u00a0also\u00a0have business processes that support them making the time to work ON their business and not only IN their business.\u00a0Lack of time to focus is one theme we hear\u00a0as a reason why farms are losing traction. It takes a good process of delegation, the right\u00a0employees,\u00a0and owner meeting structure to consistently execute on those long-term plans.\u00a0\u00a0<\/p>\n

Succession\u00a0planning,\u00a0farm growth, and off farm business ventures\u00a0all need time working ON the business.\u00a0Many farms have these supporting elements\u00a0in place\u00a0and so are able to\u00a0move faster toward their goals.\u00a0Production advances are easily copied but the farms have found few of their competitors have solid\u00a0strategic plans.\u00a0This gives the farms a competitive local advantage over those who\u00a0don\u2019t plan.\u00a0\u00a0<\/p>\n

\u00a0<\/p>\n

Summary<\/i><\/b>\u00a0<\/p>\n

Farms that are part of our Executive Farmer Network are using tactics that are often different from their local peers. Have they always looked at their business in a different light or did they learn this as part of peer learning? It\u2019s probably a little of both. Good things happen when progressive farmers get together to spur each other on while swapping the best business practices. While the farmers are currently using these tactics for today\u2019s environment, they tend to have a\u00a0certain\u00a0philosophy of business all the time.\u00a0<\/p>\n

These farmers realize their future success isn\u2019t based on luck, weather or the markets. It\u2019s about how well they run their business in times of plenty, as a business, so they are ready when tough times come. They are not afraid to challenge their own beliefs or have others challenge their thinking. They have an open mind to the business of farming and are often stronger because of it.\u00a0\u00a0<\/p>\n

Do you still have questions? If you do, just drop us a line at\u00a0tim.schaefer@encore-consultants.net<\/a>. If you\u00a0don\u2019t\u00a0want to miss an issue of Encore Insights send me an email.\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Executive Farmer Network Tactics and Takeaways\u00a0 Even with a poor farm economy many farms are doing more than just OK. There is a\u00a0big\u00a0spread between farm profitability even if on the outside they look the same. The most profitable farms are taking advantage of the current farm weakness to strengthen their farms in a couple key…<\/p>\n","protected":false},"author":1,"featured_media":922,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[23],"tags":[],"yoast_head":"\nStill Oppurtunities in 2020 - Encore Consultants<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.encore-consultants.net\/StagingSite\/still-oppurtunities-in-2020\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Still Oppurtunities in 2020 - Encore Consultants\" \/>\n<meta property=\"og:description\" content=\"Executive Farmer Network Tactics and Takeaways\u00a0 Even with a poor farm economy many farms are doing more than just OK. 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