One of the main advantages they bring is the ability to leverage diverse expertise while retaining control over decision-making. Farming isn’t just about production; it’s about strategic management, sustainability, and adapting to market demands. An advisory board, composed of professionals with varied experiences across agriculture, finance, marketing or environmental sciences, can provide invaluable insights. 

“An advisory board is really a sounding board, allowing you as a farmer to discuss your ideas, strategies or concerns in a supportive environment. The range of perspectives can lead to innovative solutions and approaches that you might not have considered independently,” says Baker Tilly Staples Rodway Taranaki consultant and former director Marise James, who is an experienced board member.

A board's role can extend beyond advice; it can foster collaboration and open dialogue. You can present your business’s challenges and aspirations, receiving feedback that helps refine strategies. For instance, if you’re contemplating diversifying stock, crops or land, an advisory board can offer insights into market trends, consumer preferences, and help assess potential risks. This empowers you to think critically and strategically about your farming operations. 

“An advisory board does not make decisions for you; rather, it enhances the decision-making process. This ensures that you remain the boss of your operations, making final decisions with the insights and recommendations provided,” says Baker Tilly Staples Rodway Taranaki director Kylie Cronin. 

A board can also boost your confidence in your decision-making abilities. Having experienced professionals in your corner can reduce the pressure of making important choices alone. This can be especially beneficial during times of uncertainty.

Given many farms are family-owned and operated, an advisory board can also be a valuable resource for succession planning. 

“I’ve seen a board help a farming enterprise manage a succession plan that allowed two siblings to exit the family business, feeling they had been treated fairly and appropriately, with the remaining two siblings able to implement a successful strategy to fund that exit,” says Marise. 

As the next generation prepares to take over, an advisory board can ensure that knowledge, expertise and strategic vision are passed down effectively and everyone is treated fairly. Likewise, it can help identify potential leaders within the family and provide guidance on navigating the complexities of farm assets, employees, budgets, investments and future plans.

With the sector being heavily regulated, having access to legal or compliance experts on a board can also mitigate risks and ensure that your business adheres to ever-changing standards. This proactive approach can save time and resources. Lenders also take comfort from the presence of an effective advisory board.

How to appoint an advisory board 

Appointing an advisory board involves key steps to ensure you select individuals who will provide valuable expertise and guidance. They are:

Define your needs and objectives

• Assess your goals: Identify what you want to achieve with the advisory board. This might include improving farm management, increasing profitability, navigating regulatory changes, strengthening your banking relationships and developing proactive risk management strategies.
• Determine expertise required: Decide on the areas of expertise needed, such as farm management, finance, strategic planning, marketing, environmental/sustainability, or legal matters.

Create a clear advisory board role description

• Responsibilities: Outline what you expect board members to do, including meeting frequency, areas of focus, and any specific projects or challenges.
• Expectations: Define the level of commitment and involvement required, such as attending meetings or providing strategic advice.
• Be clear about the authority to make decisions and the decision-making process.

Identify and recruit potential members

• Industry contacts: Reach out to your network and industry associations for recommendations on potential advisors.
• Professional networks: Look for experts through professional organisations, agricultural extension services or business networks.
• Diverse skills: Ensure you have a mix of skills and perspectives. For example, having a financial expert, a farm management expert and a risk specialist can cover a range of needs.

Evaluate candidates

• Experience and expertise: Review the candidates’ background, qualifications, and experience relevant to your farm's needs.
• Reputation and fit: Assess their reputation in the industry and whether their values and vision align with your business goals.
• Interviews: Conduct interviews to gauge their interest, understanding of your business and how they might contribute to your advisory board.

Formally appoint members

• Offer roles: Extend formal invitations to selected candidates, clearly outlining roles, responsibilities and terms of involvement.
• Legal and financial aspects: Consider drafting formal agreements or contracts that specify compensation, confidentiality, term of appointment and other legal considerations.

Establish processes and meetings

• Set up meetings: Schedule regular meetings (e.g., quarterly or biannually) and establish an agenda to ensure productive discussions.
• Develop an annual work plan to provide a framework for effective strategic and tactical decision-making.
• Communication channels: Create effective communication channels for ongoing advice and updates between meetings.

Review and evaluate performance

• Feedback: Regularly seek feedback from board members and assess the impact of their advice on your business.
• Adjustments: Be open to making changes if needed, whether it’s adjusting the board’s composition or frequency of meetings.

Legal and compliance considerations

• Compliance: Ensure that the board's activities comply with New Zealand's laws and regulations, including any agricultural or business-related rules.
• Documentation: Keep thorough records of meetings, decisions and any agreements made.

By following these steps, you can build a strong advisory board that provides valuable insights and supports the growth and success of your farming business. If you would like to discuss this further, please contact one of our agribusiness advisors across Taranaki, Tauranga, Waikato or Hawke’s Bay.