Someone said if you want to be skinny, look at what skinny people do and emulate that. If you want to be a millionaire, study the habits of wealthy people rather than broke people. Likewise, if you want to be successful at farming a good practice would be to look at what profitable farmers do and strive to do the same. Here are 5 things that some of the successful farmers I have run into have in common.
Successful farmers…
- Begin with the end in mind. One of Steven Covey’s 7 habits of highly successful people is also a habit of highly successful farmers. Producers who understand who their customers are and strive to produce a product that fills a need in the market will be infinitely more successful than those who take a “produce it and they will come” approach. This is true whether you are growing a few rows of strawberries to sell at a farmers market or 1,000 acres of row crops.
- Plan for the worst, hope for the best, and prepare to be surprised. In agriculture no two years are the same and weather, insects, diseases, etc. can devastate yields and evaporate profits. Wise producers develop a financial plan that includes estimated incomes and expenses for different scenarios. For instance what if we expect to sell our weaned calves for $2.25/lb and the market falls to $1.50 (which happened this season) or what if we expect corn to yield 175 bu. /acre but drought reduces the yield to 125 bu. /acre? While we can’t change the weather or the market price, we can plan for different circumstances and try to maintain a strong capital reserve for when lean years come.
- Never stop learning. Henry Ford is credited with saying “If you always do what you’ve always done, you will always get what you’ve always got.” While some things are fine to do year after year, being willing to learn and try new technology or different ways of doing things is critical to long term success in agriculture. Some of the latest and greatest Ag technology from 50 years ago can only be found in abandoned barns or museums today. What technology we are using today will be obsolete in a few years and will we be willing to adapt?
- Don’t forget the basics. While being willing to adapt and try new things is necessary, there are some things that have been proven to work time and time again. Proven fertility programs along with sound varieties will allow producers to make it through challenging years and help enhance profits during good times. One of the most basic operations on the farm is soil testing. By using and following soil tests, the optimum amount of fertility can be employed for maximum economic yields.
- Keep records. I know a farmer who today could not only tell you what day she planted sweet corn in 1995, she could also tell you what she ate for lunch that day. While your record keeping system might not need to be that detailed, having some means of keeping track of production and financial trends over time is a fundamental part of the farming operation. Good records can distinguish between enterprises or profit centers that are making money and those that are not.
Whether you are thinking of getting started in agriculture or have been farming for years there is always something to learn and looking at those who do it right is a good place to start. The University of Tennessee Extension office is also available to provide real life solutions to many of the issues farmers face on a daily basis. You can find us at 125 Gordonsville Highway in Carthage or online at smith.tennessee.edu.
