Dr. Val FarmerDr.Val
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Rural Mental Health & Family Relationships

What Kind Of Farm Manager Are You?

January 19, 2004

The management style of farmers discloses their goals and the way they approach them. It's reflected in how they organize, delegate and interact with their family, partners and employees.

Many factors influence a farmer's style: outlook, attitude, age, health, family needs, economic conditions, or the presence or absence of retirement goals. Also the ages, gender and interest in farming by their adult children are other influences which determine what management style a farmer adopts. Here are some common management styles.

- Run and Gun. The operator who practices this style is known as a high flyer, scrambler or plunger. A plunger always tries the latest innovation, fad or promotion. "My father would try anything and 95 percent of it failed," said a South Dakota rancher. Another one talks of his flying years during the 70s. "The only thing I didn't turn down was my collar."

Quick and impulsive, the high flyer makes seat-of-the-pants judgments and puts down his or her bets early. This type of manager craves excitement and bounces back from setbacks.

As a group, these managers try to dig themselves out of financial holes with "quick fix" schemes. But they don't learn from mistakes. With the thin profit margins in agriculture since the mid 80's, weather crises, and globalization of trade, there may not be many of this kind left.

- Seat-of-pants. This type of manager is impulsive, reactive and fails to plan ahead. They communicate poorly with others and seem to be primarily in a catch up mode. They may understand the basics in farming but many times their disorganized approach results in wheel-spinning, poor judgment, and working at cross purposes.

How do they survive in an economic environment that rewards paying attention to detail, timely plantings and harvesting, and big picture planning and execution? They are probably traditional farmers who have high motivation and commitment to farming and get by while gradually using up their equity.

- Innovative. An innovative farmer is often called a "good operator." He or she actively develops the resources of his farm without taking unnecessary risks.

Innovators look over the fence line at the practices of the "run and gun" type and adopt what works. They are early adopters and trend setters. They study alternatives before making decisions and often test new ideas on a small scale. As a group, they keep their emotions at bay.

Innovators understand the importance of good records in management and are astute financial managers who use debt prudently. They are good with land too. They know the productive capacity of their farm and don't sacrifice the long term good for short term goals.

Innovators also make the transition from hands on agronomists and producers to being good managers of people so they can farm on a larger scale and manage their own personal stress load. They understand the importance of teamwork and recognize the value of other people’s ideas and contributions.

- Traditional. Traditional farmers take fewer chances. Profits and innovations don't interest them as much as being able to farm and pass down land to their children. As a group, they are cost conscious and cautious about debt. They take their time with decisions - too slowly their adult children who farm with them might say. They show the force of character to stick by their convictions and not be stampeded into foolish or impulsive decisions.

Traditional farmers often diversify their operations with labor intensive enterprises. The solution to difficult problems is by putting in more hours and working hard. They often have the reputation of being "hard workers" in their community.

These traditional farmers center their lives around the farm. They aren’t much for joining or having a wide range of interests. Their management edge comes from their knowledge of the farm and tried and proven farming practices. By persistence and thrift, they avoid the ups and downs of the economy.

But work overload can lead to health and stress problems. Traditional farmers may drive themselves and others too hard. Family members might chafe and be frustrated by this go slow strategy. Traditional farmers with a lack of outside interests may not prepare for retirement or share management responsibilities. They tend to stall the transition of farm management from one generation to the next.

- Coasting. This is a legitimate strategy for farmers not under any pressure to develop their enterprises. Many farmers coast once their land is paid for. They become active again when some new pressure arises. One of the pressures that shift a farmer into an active mode is the need to expand the farm to accommodate the needs and goals of the next generation.

Other farmers are relatively inactive because their chief aim is just to live on a farm and raise their family there. They often have small operations and off-farm income. They don't manage for great progress but for stability.

There are some farmers who are relatively well off because of an inheritance and are content to "sit" with their management style. It usually takes adverse circumstances to dictate if and when they move into active management.

Timing is a factor. Each farmer develops a style with which he or she feels most comfortable. Most styles fall between the innovative and the traditional. And they shift over time, for in farming there is a time for caution and a time to take advantage of opportunities, a time for intensity and a time for calm.