Record Keeping in Farm Management

The purpose of this document is to discuss the importance of farm record keeping and provide producers with methods to start record keeping practices or improve their current procedures. Today’s complex world economy and the rapid pace of the farming industry makes it impossible for producers to manage a farm enterprise the way their parents did 30 years ago. Without a proper understanding of record keeping and its current and future implications, the farm operator will not make it very far in today’s business environment. Many farm operations are facing significant financial distress due to drought conditions across the state of South Dakota. This, coupled with a poor understanding of financial performance, generates serious problems for many producers, who may be facing farm business bankruptcy. Producers can do little about the drought, except taking precautionary measures and implementing water management techniques, but they can do a lot with respect to financial performance

Management Considerations Before Adding More Corn Acres

High cash prices for corn at the end of the 2006 growing season have more South Dakota farmers thinking about growing continuous corn or adding more corn acreage. There are both risks and benefits to any change in the enterprise mix, however, so you will need to examine all angles before growing corn on corn or adding more corn acres

Using the Balanced Scorecard for Ranch Planning and Management:Setting Strategy and Measuring Performance

The key to business success—whether operating a ranch or a Fortune 500 company—lies in management and planning. It’s the ability to have foresight, to carefully evaluate and choose appropriate new concepts and technologies, and to implement a well thought- out plan that complements all aspects of the business. The highly-respected former CEO and chairman of General Electric Jack Welch put it this way: Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion. How does that description apply to you? Are you a visionary business leader for your ranch enterprise? Or can you become one? This manual introduces the “Balanced Scorecard” developed by Dr. Robert Kaplan of the Harvard Business School and Dr. David Norton. The duo authored the book The Balanced Scorecard: Translating Strategy Into Action, and the scorecard format has been used by thousands of global companies and small businesses since the early 1990s when it was initially developed. While this concept may be relatively new to the ranching community, adopters of this approach to management include corporate icons like General Electric, DuPont, Ford Motor Company, IBM, and Walt Disney World. Using the scorecard, a manager can clearly see the things that need to be measured to “balance” different competing parts of the ranch. For example, rather than analyze financial records alone—which are only capable of telling of past events—this approach also takes into account things such as customer relationships, ranch processes, and investment in family members and employees’ learning and growth— all of which can have an impact on future business success. Central to the effectiveness of the Balanced Scorecard is viewing the business (your ranch) from these perspectives and then developing strategies and evaluating outcomes relative to each of those perspectives. By doing so, you can build a stronger base for your future sustainability. To that end, this manual offers a step-by step guide for the ranching industry to adopt the Balanced Scorecard and move toward managing for ranch business success

Strategic and Scenario Planning in Ranching: Managing Risk in Dynamic Times

ContentSteps Toward Success Stage 1: Charting the Course: Creating the Vision Step 1: Assess current situation and inventory of ranch resources Step 2: Conduct SWOT analysis Step 3: Establish a vision for the ranch business Stage 2: Determining Strategies to Achieve the Ranch’s Vision Step 4: GAP analysis Step 5: Alternative strategies to close the gap Stage 3: Scenario Planning for the Ranch Step 6: Describe multiple scenarios Step 7: Select and evaluate the most-probable Scenarios Stage 4: Merging Strategies and Scenario Planning Step 8: Determine strategies with the highest likelihood of success Stage 5: Putting the Plan Into Action and Measuring Success Step 9: Implementation of the strategic plan Step 10: Monitor performance with the Balanced Scorecard Conclusionase for Strategic Planning: Consider ethanol’s impact Appendi