BUILD LONGEVITY INTO EVERY
AREA OF YOUR OPERATION
LONG-TERM IOWA FARM BUSINESS GROWTH
STRATEGIES TO ENSURE YOUR FARM LEGACY
A lot of farmers see growth as a way to stay competitive and increase their profit. And it can be, if it’s done properly with Iowa agricultural business strategy and crop data.
Growing a well-run business can lead to more profit and increased stability. But sometimes, business owners try to grow from a shaky foundation, or they bite off more than they can chew. Their growth efforts can end up hurting more than helping.
Consider these common mistakes:
- Incurring so many costs in an expansion that profitability disappears and cash runs out
- Scaling in size before correcting inefficiencies, multiplying the impact
- Making new investments without a detailed understanding of current financial position
- Not planning for potential risks
- Failing to establish operational procedures and clear delegation of responsibilities
- Handing over an operation to under-prepared successors
These kinds of oversights can put businesses in dangerous positions, and in some cases even force them to shut down.
It’s important to take a measured and strategic approach to growth, building step-by-step from a solid foundation of profitability and efficiency. Growing your Iowa agricultural business doesn’t just mean adding more land. It also means developing better operational systems and crop data management practices.
It’s about implementing smart business strategies for your Iowa farm in each area that put you in the strongest possible position for long-term profitability and effective succession.
WHAT MAKES US DIFFERENT
TURNING DREAMS INTO PLANS: You have specific goals and needs. It’s important to look at where you are and where you want to be going. Our Iowa farm business strategy consultants assess the financial health of your operation and work with you to create a game plan for strengthening it over the course of your working life.
We also consider the more distant future: Who will be running your operation after you? What will their needs be? And how can we ensure a smooth transition to that next generation?
STRATEGY BY THE NUMBERS: Growing your farm business is much like growing your crop – to get the best results, you need complete information and the understanding to interpret it. It must start with knowing your cost of production per bushel and your ROI down to the acre.
This empowers you to accurately weigh the costs and risks of any decision against the potential gains. We’ll help you crunch the numbers and evaluate opportunities based on facts.
PROFITABILITY FIRST: More land means more crop, which means more overall revenue. Using sound profitability strategies at every stage of growth, more of that money can go in your pocket. For instance, increasing the scale of your farm can give you better bargaining power to lower your input costs and sell your grain at a higher price.
SYSTEMS APPROACH TO GROWTH: Systemizing your decision making and investment strategies based on hard data helps ensure you create a more sustainable operation. This puts you in a stronger position now, and it sets up the next generation for continued success.
PEOPLE POWER: Growing the health of your organization is just as important as growing the size. Your personal growth as a leader and the development of your management team can play major roles in the long-term success of your operation.
STRATEGIC LONG-TERM PLANNING
Do you feel like you’re caught in a cycle of working from season to season, just trying to get by? Have you considered where you want your operation to be 5 or 10 years from now?
A lot of growers we talk with feel stuck in survival mode, and they can hardly imagine having the luxury of creating a long-term plan.
But we can meet you where you are to deal with any urgent needs AND help you create a vision and roadmap for continued growth. We’ll examine how you can best leverage capital, and we’ll help you evaluate outside investments and non-traditional financing sources.
We’ll also assess any limitations in labor, management, or land base, and strategize the development of your equipment and facilities assets. The future is yours to create!
If you want to grow, you have to understand how lenders think. A lot of farmers have trouble adapting when things get tight like they are now. They try to kick the can down the line by getting another operating note or negotiating new terms, or both!
Most operators try to stay optimistic, but some rely too much on hope, while the strongest ones also run on clear knowledge of their financial limitations and capabilities. We help you understand where you sit financially and provide tools and support to stay on top of your books over the long haul.
FARM ACQUISITION AND DIVESTMENT
Land is the heart of a farm, and knowing when to add or divest acreage is key to long-term growth. This requires an understanding of historical trends combined with a clear picture of your business.
You’ll receive a complete analysis of your operation’s financial health as it relates to land decisions. We’ll also provide a summary of marketplace trends and outside influences of both short-term and long-term buy positions. And we’ll help you interpret this information and apply it to your unique situation.
Succession is about preserving your agricultural legacy. It means preparing the heirs who will become the next generation of operators and land stewards.
Having your financial affairs in order and your estate in a position to pass along provides a starting point. But it’s also important to make sure your successors will be able to take on the key operational components of the business, including crop production, finance, and grain marketing.
We’ll help you make sure nothing is overlooked and everything is spelled out, so you can rest assured your hard work will be carried forward.
FREQUENTLY ASKED QUESTIONS
This sounds complicated, and I don’t have time to figure it all out. I’ve survived this long without putting all the effort into it. Why go to all this trouble?
We know these business topics can seem daunting, which is why we partner with you to provide the expertise and walk with you step by step. We don’t question your ability to get by. We’re just here to help you do even better so you can have more money and a better quality of life.
My financial records are nobody’s business. Why should I trust you to look at them?
We know opening up your books can be uncomfortable. What clients tell us is that once they do, and we start to help them make better sense of their situation, they get a huge sense of relief. We invite you to check out what they have to say, and we’re happy to put you in touch with farmers we’ve partnered with so you can hear their experience straight from the horse’s mouth.
We don’t usually talk about money in our family, and when we have, it hasn’t gone well. How can we make sure everyone gets on board and feels like they’re getting a fair shake?
Farmers have told us that bringing in an outside, impartial advisor and focusing on the numbers has helped get everyone on the same page, working toward a common goal.
I’m already losing money. Why would I want to add to my expenses by hiring a consultant?
Like any investment, you have to decide if you believe it will yield a positive return. We’re here to make you money and ensure the long-term viability and growth of your farm, so a positive return for you is our entire mission! Our track record shows that we deliver. And if upfront cash is a concern, ask us about terms.