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Grand Rapids, MI | Christian
I think you are thinking along the right lines. IMHO farms are going to need to start to think about working together much more. Look to your left at your suppliers, what kind of market power do they have? Look to your right at your customers what kind of market power do they have? Look at your own farm, what kind of market power do you have? Where do you think the excess profits will go if there are any?
You farm is definately of a size that you could be more efficient with equipment covering more acres. Don't only think of equipment, land, and physical labor though. Look at the big picture. How much time do you spend doing management? Can you get better returns to your time doing better management, or more physical labor. Partner youself with people where you can use your strengths to improve the business and use their strengths to complement yours.
Just another word though. You can never be too careful to set expectations and WRITE THEM DOWN! Many of the partnerships I have seen fail is because the partners didn't have the same expectations. You may think you know what the other partners are saying until you need to write it down. Getting things in writing is not easy, and you likley will want professional help, but in the end you will understand each other much better. This needs to include from the start an exit strategy...some say a partnership is like a marriage, which is true in many ways. The one big difference to me is I believe a marriage should be forever, but a partnership is for as long as it is good for all the partners. | |
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Farming Partnerships
