Managing Change in Your Farm Business

This guide offers valuable information and advice on various strategies open to farmers who either wish or need to go through a process of change. Whether that is expansion or improving farm performance, or downsizing and retirement. There is also information describing the various methods of farming from leasing and contract farming to share farming and FBPs.

Foreword

The business environment for farming continues to present challenges for the foreseeable future. While some farm businesses are making good returns, others are struggling to make sufficient profit and cash surplus to re-invest for the long term. This cannot continue for an indefinite period.

There are, however, many routes forward for farm businesses and this guide has been compiled to highlight the various options available. These include:

• improving existing farm business performance,
• expanding the farm business,
• adding value to your farm outputs,
• ‘downsizing’ the farm business.

In addition, we take a look at the planning and financial implications of leaving farming altogether, as well as highlighting the options available to ‘newcomer’ farmers who want to consider opportunities as the industry restructures.

Case study examples are used throughout the guide to help you determine which is the best way forward for you and to provide support when you are deciding on a route for your business.

Contents

1. Setting business objectives
   1.1 Setting objectives
   1.2 Conflicting objectives
   1.3 Achieving your objectives
2. Methods of farming land
   2.1 Leasing land
   2.2 Contract farming
   2.3 Share farming
   2.4 Farm business partnerships
   2.5 Farm management advice
3. Improving performance 
   3.1 Benchmarking 
   3.2 Technical improvement
   3.3 Marketing produce 
   3.4 Cost reduction   
   3.5 Managerial skills   
   3.6 Case study - arable and pigs 
4. Expanding an existing farm business   
   4.1 Expansion strategy  
   4.2 How to make sure expansion leads to extra profit   
   4.3 Improving economies of scale through joint ventures 
   4.4 Case studies 
5. Downsizing a farm business  
   5.1 Routes to downsizing 
   5.2 Case study 
6. Adding value to farm business produce
   6.1 Alternative approaches to marketing
   6.2 Target marketing
   6.3 How to maximise product values
   6.4 Putting target marketing into practice
   6.5 Skills required
   6.6 Case studies
7. Withdrawing from farming 
   7.1 Reasons for leaving farming   
   7.2 Leave farming and retire
   7.3 Alternative employment after farming
   7.4 Leave farming but continue with a farm-based business  
   7.5 Case studies
8. Issues for new owners of rural property
   8.1 Investing in land
   8.2 Farming the land
   8.3 Case study
9. Starting a new farm business
   9.1 Business planning
   9.2 Tendering and bidding 
   9.3 Other issues  
   9.4 Case study