Part 2: American Farm Bureau Federation on the Importance of a Business Plan

In part two of this two-part series with American Farm Bureau Federation Economist, Bernt Nelson- he says 88% of farms in America are family-owned and operated, fostering a unique relationship. And he says even in tough economic times, leadership begins at the farm level.

“We got to look at leadership from a family farm perspective. And the leaders in that space have to be able to make decisions quickly and efficiently. They need to do it with courage in these hard times, having the hard to do it when time arises. And I think a lot of these things start with developing a marketing plan. You know, it takes that leadership to develop the marketing plan, to look at your costs associated with production, to look at what you need in your break evens in order to make good decisions, marketing plans change, and so they have to be dynamic in nature, and it takes that leadership to assemble that another crucial aspect is the relationship of a farmer with their lender.

Another crucial aspect is the relationship of a farmer with their lender.

“We talk about a loan officer and the relationship of a bank. Those lenders make credit decisions, which you know us in agriculture, we can rely heavily on credit at times, but that lender is also a business partner. They succeed when the farmer succeeds.”

Nelson says, While many farmers have a marketing plan in mind, it's essential to write it down. A written plan serves as a valuable record-keeping tool, allowing farmers to review past decisions and make more informed choices in the future.