In times of tight margins, every purchase must have a purpose with ROI top of mind. As you optimize your equipment, crop inputs, farmland and business intellect for the year ahead, take the time to plan your work, and then you work your plan.
Feeling the weight of a down market isn’t lost on Jeff Havens. As an entrepreneur and motivational speaker, his entire business disappeared in the wake of the COVID-19 outbreak.
“I had contracts for six or nine months and financially was set to have one of my best years,” Havens recalls.
He had to reinvent himself and his business as cash flow dried up.
“One of the advantages agriculture has is that it’s a relatively slow and stable sales cycle,” Havens says. “It’s not an industry like fashion where things change every week or month. That affords you time to think about what you could do differently.”
1. Think Beyond Commodity
Havens says innovation can take many shapes and recommends looking beyond the often-miniature margins of commodity production.
“If all you’re doing is selling a commodity crop, then you’re basically just beholden to the whims of the market,” he says. “Are there other ways to take more control of your business, to set your own prices (i.e. a corn maze, pumpkin patch or U-pick) in order to get beyond straight commodity margins.”
2. Fail Small
Trying something new or testing an idea doesn’t have to be all or nothing. Havens recommends starting small rather than risking the entire operation. There’s no reason to plant an entire farm in a new crop or completely move to a different production system when it can be done slowly.
“None of us want to make a big mistake, and we certainly don’t want to make mistakes that are catastrophic,” Havens says. “Take what you consider to be an acceptable risk, and ask yourself what is the worst thing that can happen if I try this? If the worst thing that happens is you don’t have a farm, or you have to sell your farm, then that’s maybe not a risk you should take. If the worst thing that happens is you lose 10% next year, if that’s survivable, then that’s a risk you can certainly consider.”
3. Harvest Good Opinions
Not all advice is equal. Some people chirp about everything, while others take a measured approach to offering input. Havens says find a trusted voice or two and forget the rest.
“Be very intentional about whose opinions you care about,” he says. “You don’t have to take their opinions, but it’s good to have a couple of people in your corner to say, I’m with you on this journey.”
4. Embrace Openness
Above all, talk to others and be open about your situation. In this self-motivated, self-driven lifestyle, farmers tend to solve problems alone and in a stoic fashion. Havens says, it’s okay to share and be open.
“There’s not a single person on the planet who doesn’t occasionally need the help and support of the people around them,” he explains. “The person you share it with isn’t mad at you. They’re there to support you. It can be a relief compared to keeping it all bottled up inside.”
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