Farmers Urged to Build Management Teams

WINNIPEG - Jan 20/05 - SNS -- Farmers to assume a management role in their businesses and build teams to take care of critical segments of the business such as production, marketing and finance.

"The business of agriculture is so complex today and requires so many decisions at various levels it is impossible to do everything yourself," says Bill Dorgan Vice President of Pricewaterhouse Coopers in Calgary. Dorgan spent time in the crop inputs industry in all three Prairie Provinces before assuming his current position.

"Farming has changed a lot in the past few years," he says, "and it is a matter of learning to trust someone else with the decisions."

His recommendation is that the farmer of today concentrate on the business decisions and build a team of specialists for the production side of the operation and long term planning.

Dorgan realizes this is not an easy step and acknowledges it will not be a quick process as farmers build confidence in the individuals around them.

The first step in managing the farm as a business is establishing a business plan. A step Dorgan says that cannot be overemphasized.

"The Business Plan is something that he can take to his banker or any one else involved in the operation, including his wife." he says, "It also helps the individual understand what he wants to do and how he will achieve it."

Dorgan says one of the most common reasons given for not having a farm business plan is the changing conditions of agriculture, but he says, that is the exact reason to have a plan.

"If you get 20 inches of rain on your white beans you know that you have to do something else other than the original plan." he says, "But you have to have an original to change from."

Having the objectives of the operation clearly spelled out increase the possibility of achieving them, and by knowing the objectives it is easier to develop a path to the goal.

"It helps you keep your eye on the ball," he says, "you have to focus, now when things change you can adjust but still reach the objectives."

Dorgan recommends that farmers view their operation as a corporation that has a Chief Executive Officer, Financial Officer and Research and Development department.

"Farmers today have to make a lot of decisions and their time is best spent making the right decisions of the most important questions. It's not just about growing stuff, it's about marketing and the costs of production."