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Agriculture and AgriBusiness

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Me and my team

Producers are changing how they access advice and where they seek it.

At one time, a government extension specialist was a common sight on Canadian farms. Producers counted on these professionals for wise counsel in areas as diverse as production, finance and management.

In the last 15 years, the federal and most provincial governments have withdrawn from the business of extension and technology transfer. Over the same period, the complexity of issues faced by Canadian farms has increased. So where are producers going for advice?

“We’re in an industry where fewer farms own most of the assets and account for 80 per cent of production,” says Darrell Toma, principal with Toma & Bouma Management Consultants in Edmonton. “There is constant pressure to improve efficiency and become more competitive.”

Toma is an author of a comprehensive study on the Best Management Practices of Western Canada’s top producers, and has published a related guide and self-assessment checklist (www.bmpknowledge.com). Among the many factors that define tier-one managers, these producers stand out for their eagerness to seek outside advice. With extension people now on the sidelines, Toma sees producers finding new sources of brainpower.

Input and equipment suppliers. Agribusiness companies are aiming to establish themselves as trusted sources of technical and production information. They are also developing strong “supply chain” relationships.

Bankers and accountants. Apart from their traditional tax and financial reporting role, accountants have become the go-to source for advice on the new generation of government income support programs. “Bankers have also emerged as a source of information for producers when they’re making financial decisions and for overall financial planning issues,” says Toma.

Agronomic consultants. When governments cut extension programs, those who formerly delivered them found new ways to work with farmers. Many became consultants, providing ground-level advice on agronomic and crop planning issues. Western Canada’s larger consulting firms, such as Pike Management Group and Agri-Trend Agrology, now offer a growing suite of services to a client base that numbers in the thousands.

Internet service providers. Today’s farm websites are evolving from simple information tools to more sophisticated marketing and e-commerce sites. Watch for this trend to accelerate in the coming years. “The use of computers in agriculture is still low compared to other industries,” says Toma. “Many industries spend 5 to 10 per cent of their gross revenue on marketing, but agriculture is nowhere near this level.”

Strategic planning circles. Anecdotal evidence suggests that more farmers are holding periodic meetings with their advisory team to talk business strategy. Think of this as a farm version of the traditional corporate Board of Directors.

Family members. Toma also sees families developing their own management expertise from within. “It could be two brothers, father and son, husband and wife,” he says. “People are finding ways to build up their internal management resources and work as a team.”

With timely, accurate information now a key farm input, the ability to form and maintain advisory relationships will influence farm success. Toma’s advice? Look beyond your own backyard and use what he calls the 98 per cent solution: since no one has more than two per cent of the answers, independent ideas can help fill out the rest.

“Instead of just joining farm commodity groups, why not join your nearest Chamber of Commerce?” he asks. “To see the issues in new ways, go connect with people you normally wouldn’t.”

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04/01/2008 12:10:53