20 Our Advertisers Appreciate Your Business Better Farming | January 2024 RICHARD KAMCHEN Richard Kamchen is a veteran agricultural freelance writer based in Winnipeg, Man. – others take action, and this is where we see farmers taking a more strategic approach to farm management,” Watson says. Gerencser hopes it doesn’t take a major reversal in fortunes to force the hands of farmers to adopt better management practices, because such momentous challenges could have widespread destabilizing effects. “Especially in Western Canada, we need a strong ag industry,” he says “If things turn so severe that the entire industry is struggling, and that’s what it takes to force the bottom half of farm managers to adopt better practices – let’s not wish for that. That’s bad for everybody.” What Gerencser anticipates, however, is the next bear cycle squeezing profits and having an effect similar to BSE 20 years ago. “BSE forced a lot of average or less than average cattle producers out of the market. A prolonged bear cycle will do the same thing to grain farmers.” Separating the herd Producers best positioned to ride out coming storms are those who saw the benefits of good management skills, and adopted those practices to accelerate their profits during the last 15 years. “That’s what’s really separating the herd right now,” Gerencser says. Watson adds that Canada’s leading farmers are treating their farms like a business, and in turn are experiencing increased profitability, confidence in decision-making, greater farm team harmony – leading to successful farm transitions to the next generation – and reduced levels of stress and anxiety. “Implementing change requires the right resources, and this may be one of the reasons we often see farmers with larger operations treating their farm like a business. They may have more resources at their disposal to hire additional support in managing their farm business,” she says. But it’s not just the big farm operators who’ve changed, Gerencser insists. It can look that way because successful farms have been able to invest and grow their operations. He says there are plenty of 2,000 to 3,000-acre farms out west that are run like corporations, with a management approach very similar to those of large farms, with the main differences likely being smaller overheads and debt. Their smaller size, however, also permits their owners to continue living the “farm lifestyle.” “But they view the operation of the business with management-first practices. Profit is an expectation and they are incredibly successful,” Gerencser says. “I don’t think it’s a size thing; it really truly is a mindset.” BF THE BUSINESS APPROACH
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