We’ve identified several common characteristics with our most successful farmers and here we look at those attributes and why they contribute to the effective operation of top businesses.

Top farmers are in tune with what’s happening

You could call it having their thumb on the pulse or being in touch with their gut feeling. In short, they’re good at noticing and acting on subtle changes. They have this awareness both on-farm and within the industry.

They understand the importance of trusting those around them

If you want to grow, you have to be able to trust people. Many struggle to lead a team and can’t get past the “I’m the owner and I have one or two staff” mind-set.

Train them in how you like things done, then trust that they’ll do it.

• Create a safe and efficient culture.
• Take a holistic approach to employee conditions. That means providing pastoral care and encouraging open, honest feedback.
• Run your business with mana – be fair, consistent, firm, generous and successful.

They’re good at making decisions

This follows on from the first two points. Having their “thumb on the pulse” means top farmers tend to be good decision makers. Even a bad choice is often better than stalling on a decision and then having little to no input into the outcome. As they say, no decision is still a decision.

• Be bold but not reckless.
• Build your team of trusted advisors and use them to enable informed decision making.
• Take ownership of your decisions.

They understand their why – their passion.

Inspirational author Simon Sinek will tell you that everyone who cares to look can see WHAT you do, and in many instances HOW you do it – but no one but you knows WHY you do what you do. Most farmers aren’t short on passion – family, land, animals, dogs, way of life, experiences for kids etc – which is likely a big part of their WHY.

Top performers often have a broader context – it often looks far beyond their farm gate and at the bigger picture.  It encompasses the industry as a whole, the people and the product as well as a strong sense of guardianship or kaitiakitanga.

They know their numbers

Top farmers understand profit. That means keeping a close eye on your business-specific KPIs and benchmarks, allowing identification of areas that can perform better.

Profit is made up of three components – production, sales and cost control.  Every action taken in business has an impact on your bottom line. Conscious decisions protect profits, so the result is a plan, not an uncontrolled outcome.

It’s important to understand your balance sheet and appreciate that it’s a long game.  Wealth creation comes from capital growth as well as retained profits.  What can you do to improve the value of your business? Get out of bed thinking “how can I make money” not “how can I save money”. 

They’ve built up their personal and on-farm resilience

Resiliency can broadly be viewed as three prongs in the world of farming: 

Financial: Can you weather the storm? Have you built a business with a strong balance sheet that can handle the volatility of farming business cycles, with a downturn every seven to eight years on average?

Mental: How well do you cope with adversity?  Do you have tools in your toolbox to be able to deal with the highs and lows that come with farming?  Do you have a support network?

Farming system: Is your farming system flexible? Do you have summer cropping regimes? What have you got up your sleeve to deal with adverse weather events?

Other traits that help lead to success

• Be self-aware – Know your own strengths and weaknesses as a farmer, an employer and a businessperson.
• Surround yourself with the right people – generally those who are helpful, motivating, inquisitive and knowledgeable, and who challenge your thinking.
• Be receptive to advice.
• Remember that you can only control the controllables.
• Don’t follow the pack.
• Accept mistakes, don’t expect perfection.
• Share information.
• Build your community and cement your place in it.
• Sustainable management –be aware of your social licence to operate. To keep supplying product worldwide, we need to ensure that we’re as clean and efficient as possible, that we don’t pay below the minimum wage and that our suppliers operate fairly and sustainably. You could call it operating with a social and environmental conscience.

Remember that 80% of your results will come from 20% of your effort – nail that and don’t lose sleep over the rest. Invest your remaining time and effort turning another aspect of your farm into something productive.

The best leaders recognise their weaknesses and fill the gaps with other resources. That includes seeking advice from agribusiness specialists – build your team of trusted advisors.

It is better for the industry as a whole if everyone does well, so lifting others up, being open to learning and sharing knowledge are core concepts to remember.

Our advisors tailor services to your needs, with a range of agribusiness solutions covering accounting and tax compliance, governance and business growth, succession planning and structuring, and more. Contact us today to discuss how we can help.