Does Your Ag Operation Need a CFO?

Does Your Ag Operation Need a CFO?
I’m KayDee Gilkey with the Northwest Farm and Ranch Report.

Often farmers and ranchers do what they have always done, whether hire a bookkeeper or CPA to assist with the farm books. Have you ever considered if your current level of financial acumen is adequate for your farm or ranch?

Dick Wittman is a well known ag consultant who specializes in helping family businesses move to that next level using financial information to make operational and strategic decisions. He says often it takes examining one’s business and assessing what roles are being done well and which need improvement. Frequently, it is in the area of finances that farmers and ranchers need additional assistance.

Wittman: “One good decision on optimizing a capital purchase or making a better decision on getting out of a enterprise that is not profitable could more than than pay for a CFO’s salary. So when people realize that kind of function in a business is not an expense but an investment; many times it allows the whole management team to function a better and higher level of decision making. They almost need to see the functions that a CFO really gets in to, and the negative consequences are when you are not doing those things well. Thats the thing that most people have a hard time articulating is, ‘What does it cost me to not have the right skill on my team. I can quantify that over and over and over.”

He suggests different approaches to funding a CFO level salary by finding like-minded non-competing farmers share a CFO and split their time and salary.

Go to wittmanconsulting.com for more information.

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