Research reveals farmers who invest in strategic management practices see a 100% return on investment
Research reveals farmers who invest in strategic management ... GlobeNewswire
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The Relationship Between Strategic Management and Farm Success
OTTAWA, Sept. 25, 2023 (GLOBE NEWSWIRE) — Farm Management Canada in partnership with Agri-Food Management Excellence Inc. is pleased to announce the release of a new research report, titled “The Relationship Between Strategic Management and Farm Success.” This comprehensive study delves deep into the pivotal connection between business management practices and farm success to foster a transformative shift in the industry by catalyzing the widespread adoption of strategic management techniques among farmers.
Introduction
In today’s dynamic landscape, where conventional industries evolve at a relentless pace, most professionals, across sectors, mandate business degrees as a prerequisite for managerial roles. Yet, within agriculture, a stark contrast emerges.
Many dedicated farm operators initially embark on this journey driven by a passion for agriculture, not the intricacies of business management. Consequently, a wide spectrum of attitudes and varying levels of knowledge pertaining to the benefits of strategic management has emerged, painting a diverse canvas across the agricultural landscape.
Larry Martin, Principal of Agri-Food Management Excellence Inc. authored the report. Martin conducted an extensive literature review and interviewed business management experts.
Key Findings
- Improving strategic management can lead to a 100% return on investment
- Strategic managers tend to be consistently more successful regardless of size, location or type of enterprise
- Definitions of farm success go beyond profitability
Understanding Strategic Management
Strategic management refers to having a process in which measurable goals are established, a plan is put in place to achieve those goals, management continuously measures and evaluates performance against the goals and changes in the business environment, and the plan is revised to mitigate new risks that surface and/or to take advantage of new opportunities on the horizon.
“Our work proves a modest investment to improve managerial skills can have a significant impact on farm profitability and personal performance,” says Martin. “In actual fact, the results of this study are more modest than the real-world results we routinely see working with farmers across Canada.”
Most academic literature defines farm success by profits, which makes sense because profitability is easy to measure. In reality, farmers have many goals including work/life balance, improved family relationships, positive mental health and contributions to the community and environment. However, personal or non-economic goals are more easily achieved when a business is not under financial pressure – e.g. farmer mental health is more vulnerable when there is not enough income to service debt.
Conclusion
“Already, we see a number of Canadian farmers benefiting greatly from adopting strategic management processes, and hope these numbers will grow,” says Heather Watson, Executive Director of Farm Management Canada. “We are grateful for the work of Larry Martin in providing evidence-based research that further demonstrates the relationship between investing in business practices and farm success. This research further validates our belief that in an increasingly competitive and volatile business environment, farmers must think and act strategically to remain resilient and competitive.”
To read the Full Report, visit www.fmc-gac.com or www.agrifoodtraining.com
About Farm Management Canada
Farm Management Canada is a national, non-profit organization dedicated to increasing the awareness, appreciation, and adoption of proven business practices to establish a foundation for farm management success by providing and connecting producers with the business management resources and tools to assess performance and make sound business decisions.
About Agri-Food Management Excellence Inc.
Agri-Food Management Excellence (AME) is inspired by empowering people to realize their visions. We empower farmers, ranchers and other agribusiness professionals through leading edge courses delivered in an unconventional format. Our Canadian Total Excellence in Agricultural Management (CTEAM) program is Canada’s only national farm management learning program.
Contact Information
Heather Watson, Executive Director
Farm Management Canada
Heather.Watson@FMC-GAC.com
Jamie Anne Vaughan, Principal & Founder
Westwood Strategies/Communication Manager for Agri-Food Management Excellence
Hello@WestwoodStrategies.ca
SDGs, Targets, and Indicators
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SDG 1: No Poverty
- Target 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions.
- Indicator: The article mentions that profitability is easy to measure and is often used as a definition of farm success. This can be an indicator of poverty reduction as increased profitability can lead to improved financial conditions for farmers.
-
SDG 2: Zero Hunger
- Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists, and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets, and opportunities for value addition and non-farm employment.
- Indicator: The article mentions that improving strategic management can lead to a 100% return on investment. This can be an indicator of increased agricultural productivity and incomes for small-scale food producers.
-
SDG 3: Good Health and Well-being
- Target 3.4: By 2030, reduce by one-third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being.
- Indicator: The article mentions that personal or non-economic goals, such as positive mental health, are more easily achieved when a business is not under financial pressure. This can be an indicator of improved mental health and well-being for farmers.
-
SDG 8: Decent Work and Economic Growth
- Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation, including through a focus on high-value added and labor-intensive sectors.
- Indicator: The article mentions that strategic managers tend to be consistently more successful regardless of size, location, or type of enterprise. This can be an indicator of higher levels of economic productivity through the adoption of strategic management techniques.
-
SDG 12: Responsible Consumption and Production
- Target 12.6: Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle.
- Indicator: The article emphasizes the need for farmers to think and act strategically to remain resilient and competitive in an increasingly competitive and volatile business environment. This can be an indicator of the adoption of sustainable practices in agriculture.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | Target 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions. | The article mentions that profitability is easy to measure and is often used as a definition of farm success. This can be an indicator of poverty reduction as increased profitability can lead to improved financial conditions for farmers. |
| SDG 2: Zero Hunger | Target 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists, and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets, and opportunities for value addition and non-farm employment. | The article mentions that improving strategic management can lead to a 100% return on investment. This can be an indicator of increased agricultural productivity and incomes for small-scale food producers. |
| SDG 3: Good Health and Well-being | Target 3.4: By 2030, reduce by one-third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being. | The article mentions that personal or non-economic goals, such as positive mental health, are more easily achieved when a business is not under financial pressure. This can be an indicator of improved mental health and well-being for farmers. |
| SDG 8: Decent Work and Economic Growth | Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation, including through a focus on high-value added and labor-intensive sectors. | The article mentions that strategic managers tend to be consistently more successful regardless of size, location, or type of enterprise. This can be an indicator of higher levels of economic productivity through the adoption of strategic management techniques. |
| SDG 12: Responsible Consumption and Production | Target 12.6: Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle. | The article emphasizes the need for farmers to think and act strategically to remain resilient and competitive in an increasingly competitive and volatile business environment. This can be an indicator of the adoption of sustainable practices in agriculture. |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: globenewswire.com
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