- Use
a "systems" approach to business
planning
- Have a written
business plan and use financial figures
to do their planning
- Project a
big vision, even an outrageous one
- Excel at expense
control and avoid over capitalization
- Market at
a premium price and are customer focused
- Understand
risk management and have value chains
- Are environmental
stewards
- Enjoy what
they are doing!
Diversification:
Ed
Mahoney of Michigan State University
urged farmers to diversify but said that
doesn't necessarily mean starting new businesses.
It can also mean sticking with the business
you're in but making improvements to business
systems. For those who wish to branch out
and have more businesses on their farm,
he had these ideas:
Clean up your old buildings and invite the
public.
On-farm recreation including snowmobiling
and paint ball.
Open a bed and breakfast, use it to introduce
and sell your farm products.
Rent out your farm or ranch.
Lease your seldom used equipment.
Teach others about farming (and charge for
it).
But, none of this is necessarily easy.
Mahoney pointed out two major issues: zoning
bylaws which can mean waiting years for
a permit to expand the use of your farm;
and making certain you have the help and
support of your spouse.
Food Safety:
Bryan
Walton, Vice President, Western Office
of the Canadian Council of Grocery Distributors,
told farmers that food safety needs to be
priority number one. He pointed out that
in a 2001 Ipsos Reid survey, 74 per cent
of Canadians said they were concerned about
food safety. He also differentiated between
food safety and food quality: "They
are not the same thing. Safety is first".
Thinking Big:
It's possible to be very successful even when the industry is plagued by problems.
Just ask Ron and Jessie Brar, owners of Evergreen
Herbs, a large greenhouse and vegetable
operation in Surrey, British Columbia. Both
are winners of Canada's Outstanding
Young Farmers Program with a business
that is increasing profits by 33 per cent
a year. They shared some of their secrets
of success:
Each division of the company has its own
manager responsible for profitability.
"I don't think of myself as a farmer.
I am an agriculture business person."
Hires farms in California to produce products
365 days a year.
Invites local chefs to try out products
and make recommendations.
Strong on packaging and branding - "baby"
and "teen" vegetables.
Niche products such as edible flowers.
Funded in part by the
