Some people might not think of farmers as business people; if you do not you are seriously mistaken. All farmers are all business people and manage all aspects of their farm just like any other business. Check this out!
Assets – All farmers have to manage assets just like any other business. They own land and maybe they even rent some other land for their operation. They own buildings just like any other business and have to manage the upkeep and maintenance of those buildings. They produce products (in the dairy farmers case – Milk), just like any other business produces either a service or a product.
Staff/Employees – I have been on many farms where they have both part-time and full-time employees. They have to abide by the same employee standards act as everyone else and pay WSIB, etc. Many farms have payroll just like any other business would have.
Productivity – Just like any other business, the business owner is concerned about productivity. They want the most out of their staff and product as much as anyone else. If one of their machines (in the case of the Dairy Farmer it would be a cow) is not producing/manufacturing enough product the dairy farm owner will try different methods to improve productivity, or get more milk from that cow!
Accounting – Just like any other business the farmer manages the income coming into the operation and the money going out or expenses. They track cash-flow just like any other business owner. They have to determine what their next capital investment or if hiring additional staff is going to be to the next move to move the business forward?
So, the next time you talk to a farmer or drive by a farm, take some time and appreciate the business knowledge that all these farm owners possess. It is always fascinating talking to a farm business owner.
If you are a farmer and want to add expertise to your farm insurance team, Absolute Insurance would be happy to advise you to make sure you are getting the best coverage and price. Call 1-877-941-2266 today.
