Why Do Few Producers Plan?

Although strategic planning can greatly improve communication and vision of a farm business and helps emphasize efforts in areas of importance or need, many producers do not plan. These reasons may include, but are not limited to:

1) Resources are limited
2) Future is uncertain and risky
3) Planning is not easy
4) May aggravate conflicts within family
5) Who should make decisions
6) Which goals should have priority
7) May make producers feel vulnerable
8) No one has all the answers
9) May not be able to gather or interpret all the information

The primary reason for not setting up a plan is probably the ability to set aside time. Some may say they can not afford to take the time, but successful business will say you can not afford not to take the time. It is a question of prioritizing what one feels is important and will help move the farm operation forward in the future.

Producers must remember that these plans are not carved in stone, but that they are a vehicle for calculated change. Strategic plans are crucial to every producer’s future. Knowing the strengths and weaknesses of your business allows you to match your strengths to available opportunities. This planning may not have a clear starting or stopping point. You should look 5, 10, 20 or more years into the future. As you do this formalize the process where you do the following in an organized manner.

1) Examine the current situation
2) Specify both farm and family goals
3) Identify and Implement Alternatives
4) Establish a record and analysis system
5) Monitor progress

Strategic planning, if implemented properly, involves a mechanism to adjust to changes while working towards defined goals. The plan anticipates that the farm operation will be modified as necessary to accomplish both farm and family goals. Simply discussing the future and potential changes in the business environment is not enough – making strategic planning an effective contributor to your overall business strategy involves putting it on paper.