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AGRICULTURE
Management Differences Between Farmers Download the fact sheet PDF Format
These managers tended to be "builders" who often started with very few assets to build up significant operations. Certain management practices and processes set these managers apart from the average and good managers. Decision making abilities of top managers were very strong.
They employed all available information and experiences in decision making. They kept comprehensive production and financial records, but more importantly, they used their records for important decisions regarding marketing, resource allocation, and enterprise mixes. This detailed and intimate understanding of their operations allowed them to be early adopters of new technology. Because of their thorough understanding of their costs and returns, they can quickly determine if a new machine or technology will be economically beneficial in their operations.
External information sources were also comprehensive. Top managers sought out information and established personal networks which they actively worked and nurtured. They tended to by-pass extension agents and salespersons and go directly to researchers and product managers. This constant scanning for new information consistently put them one step ahead of other managers.
Top managers were market oriented. They exhibited highly developed marketing skills in which a multitude of marketing channels were used, primarily those adding value or increasing the sale price of farm produce. Planning and business strategies included the ability to respond to market conditions and to recognize opportunities that fit with the current operation. New varieties and crops were constantly being evaluated to determine if more margin could be gained by a modification of an existing enterprise.
Top managers manage people. Most had 15 or more full-time employees. They used recommended practices, such as job descriptions, staff meetings, regular training and feedback, and some type of bonus or incentive system. Top managers not only were able to coordinate their people, machinery, and resources, they were also able to motivate their employees to perform well. This ability to manage people may be the most important characteristic in determining whether a farm manager will be able to successfully expand operations.
Lastly, top managers produced high valued products, received premiums for their products, or in some way added value to their products. Top managers are not at the mercy of the market, but seek out opportunities within the market.
Source: www.farmsuccession.com
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