By Blake Jackson
Successful farm operations require more than production expertise. According to Robert Guinn, CEO of FCS Financial, who has spent more than 30 years working with Missouri farm families, successful producers often approach farming as business executives and rely on trusted advisors to help guide their decisions.
Guinn compares these advisors to a board of directors. While farmers remain responsible for making final decisions, experienced professionals can provide financial insights, technical knowledge, and alternative perspectives.
Strong leaders seek advice from knowledgeable people and carefully consider their recommendations when planning the future of their businesses.
Moving From Farm Operator to Business Leader
Farmers naturally devote much of their time to daily operations, including planting, harvesting, and livestock management. However, running a sustainable agricultural business also requires long-term planning.
A farm business leader must evaluate future goals, financial performance, potential challenges, and opportunities for growth. Balancing daily responsibilities with strategic planning helps producers make informed decisions that support their operations over time.
Creating a Reliable Advisory Team
A well-rounded network of professionals can help farmers address different business needs. Agronomists, agricultural retailers, livestock specialists, and extension professionals provide production guidance. Accountants and certified public accountants assist with budgeting, cash flow, and tax planning.
Marketing consultants, crop insurance specialists, and risk management professionals help producers protect their financial returns. Agricultural lenders evaluate balance sheets, liquidity, profitability, and repayment capacity, while attorneys provide guidance on business structures, estate planning, and succession.
Choosing the Right Partners
Farmers should begin by identifying areas where they lack experience or need additional support. Recommendations from other producers can help identify potential advisors, but interviewing several candidates is important.
Effective partners communicate clearly, explain complicated issues in understandable terms, and establish relationships built on trust. Advisors should make business decisions easier to evaluate rather than create unnecessary confusion.
Maintaining Open Communication
Transparency and regular communication are essential to effective partnerships. Advisors need accurate financial information and a complete understanding of farm operations to provide useful recommendations.
Producers should maintain contact with their accountants, lenders, and other specialists throughout the year rather than waiting for tax deadlines, financial emergencies, or major problems. Early discussions can help identify risks and prepare for changing business conditions.
Family members and business partners also play an important role. Regular farm business meetings with clear agendas can keep everyone aligned on financial goals, operational priorities, and succession plans. Separating family discussions from formal business decisions can improve communication and accountability.
Ultimately, building a dependable advisory network does not remove the farmer's responsibility for making decisions. Instead, it provides the knowledge, perspective, and confidence needed to manage risks, pursue opportunities, and build a stronger agricultural business for the future.
Photo Credit: gettyimages-shotbydave
Categories: Missouri, Business, General