Achieving Farm Business Success in Turbulent Times
by Kindra Gordon for Angus Productions Inc.
NASHVILLE, Tenn. (Feb. 1, 2012) — Bob Milligan, a Cornell University professor emeritus of economics, challenged Cattlemen’s College attendees to imagine what the beef industry, agriculture in general, and the U.S. economy will look like in 2042 — 30 years from now. Milligan spoke Feb. 1 to a large contingent of cattle producers and college students attending the 2012 Cattle Industry Convention in Nashville, Tenn.
While no one has a crystal ball to the future, Milligan, who is today a consultant to various sectors of the ag industry, said he anticipates change will continue — and at an increasingly accelerated rate.
Of agriculture, Milligan said, “We are seeing an increase in variability. I refer to it as turbulence.”
How has that changed the way today’s farm and ranch operators must manage? Milligan said it has put an increased sense of urgency on everything, but that can often create feelings of stress, pessimism and anxiety.
To alleviate those stressors — and address the urgency necessary to deal with turbulence in the marketplace, Milligan said leadership is required. Referencing a quote from the founder and CEO of Tires Plus, Milligan told producers: “Stop managing by the seat of your pants.”
Specifically, Milligan shared that to turn negative urgency into positive urgency three things are required:
- Focus on what is important. “Your focus needs to be razor sharp,” said Milligan.
- Be proactive. “View change as an opportunity instead of a loss,” he emphasized.
- Instill in everyone a desire to win. Milligan discussed the traditional “culture” in agriculture, which centers on talking about hard work, low pay and the difficult economy. He said a new culture must emerge — one that focuses on consumer needs, opportunities and being proactive. Milligan said that shift starts with the outlook of the business leader and is then conveyed to the business team of family members and/or employees.
Milligan emphasized that in every business someone needs to roll out of bed every day thinking about the future of the business.
“You can still do the day-to-day work, but planning future strategy has to be an ongoing process as well," Milligan said. "It can no longer be something you do a couple times of year with your banker.”
Milligan encouraged producers to transition their mind-set from that of an operations manager to being the chief executive officer. As the CEO of their business, farm and ranch, operators must think about factors that affect them from the external environment so they can capitalize on opportunities and not be blindsided by the turbulence in the marketplace, Milligan concluded.
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