No matter the size of your farming operation – whether it’s a sole proprietorship or a large-scale production operation – it is important to clearly define roles and responsibilities among those involved.
In a small operation, there may be one or two family members or colleagues handling the important roles. The farm size will dictate how the roles will be divided among individuals.
There are several key roles on a farm including:
- Business/Financial management: Consistent maintenance and review of farm financial records is a key role for a farm operation. Complete and accurate financials records will assist any sized farm operation in the decision-making process for all aspects of farming given the capital-intensive nature of agriculture.
- Production management: Who is in charge of the cropping, equipment, and livestock as well as the farming itself? There is a significant amount of care and decisions that go into the inputs being used for the particular year as well as the development of a farm plan.
- Marketing management: How are you going to market your agricultural products to get the most profit with what’s available? There are marketing tools to help manage the market and prices being offered, as well as risk management options, which can all be covered by this important role in the farming operation.
- Household management: Whether you’re a sole proprietorship or a large entity, it’s important to determine the role of who’s managing the household and how that’s managed along with the needs of the farm operation. While this isn’t always talked about, it’s an important piece of the puzzle to ensure success, especially in a small farming operation.
Why is it important to clarify roles?
Efficiency: Farms operate under tight schedules and with seasonal demands. When each person knows exactly what tasks he or she is responsible for, work can proceed smoothly without confusion or overlap. This helps in maximizing productivity and using resources effectively.
Accountability: Clear roles ensure each individual knows what they are accountable for. This accountability fosters a sense of ownership and encourages everyone to perform their tasks to the best of their abilities. It also makes it easier to identify and address any issues that may arise.
Coordination: Agriculture often involves complex processes that require coordination among various tasks and departments (such as planting, harvesting, animal care and maintenance). Defined roles enable better coordination between different teams or individuals, ensuring activities are synchronized and goals are achieved efficiently.
Specialization: It’s important to clarify the roles on your farm in order to best leverage where the strengths are on your team. When you identify those strengths, you can then dedicate that individual to a specific role in order to get consistent, efficient results from that activity. For instance, some children leave the farm to obtain a college education or work off farm. When they return, it’s important to leverage the skills they developed to help better the farm as a whole.
Succession Planning: On family farms or those aiming for long-term sustainability, clearly defined roles also aid in succession planning. It ensures that future generations or new team members understand their roles and responsibilities, facilitating smooth transitions and continuity in farm operations.
For example, some family farms have children who seek a college education, and some even gain off-farm work experience. When the time is right for succession to take place, these children have a desire to come back to the farm and be part of the farm operation.
Once they return, the farm might have someone with a finance background, equipment background and even agronomy or animal science background. The family can make moves to expand the farm to accommodate the children as up-and-coming owners, and in doing so, the children bring back skills sets that help the farm move the needle forward.
What happens if you don’t clarify roles?
Timing is crucial on a farm. If a role isn’t clearly identified, you may miss out on the right time to make decisions that have to be made quickly and timely throughout the farm season. If the roles are not clearly defined, things can become inconsistent, inefficient and you may miss important opportunities crucial to a farm operation.
Production agriculture has become more and more volatile as margins are compressed in the farm economy. Being efficient is crucial in these roles. Since farming has changed so much over the past few decades, you need to get ahead of trends and changes to be efficient and profitable.
In short, clear roles and responsibilities on a farm are essential for optimizing productivity, fostering accountability and enabling effective coordination and specialization among team members. This organizational clarity is fundamental to the overall success and sustainability of agricultural operations.
Beyond the roles of the farm employees are the roles of the farm team you rely on for expertise and consultation. GreenStone's century of farm and financial experience brings a valued perspective to your team!
This blog was originally published in Michigan Farm News.
