Biggest work sector wearing too many hats
There are more than 2,000 farms encompassing more than 500,000 acres in Simcoe County, according to Warden Basil Clarke. That makes agriculture one of the biggest work sectors in the county, but Clarke says only 20 per cent of farm businesses are actually showing a profit.
He jokes, “That may be in part due to creative accounting on the part of the remaining 80 per cent for the benefit of the CRA (Canada Revenue Agency).”
Speaking to the recent AgKnowledge Forum presented by Nottawasaga Futures, Clark says farming is a way of life involving 24/7 dedication, and lots of challenges.
Nottawasaga Futures is an Alliston- based business development service, which, in cooperation with all levels of government, offers supports such as help with business plans, guidance on marketing plans and business expansion strategies, one- on-one coaching and mentoring, and assistance in securing financing. The AgKnowledge Forum was billed as a celebration of innovation and resilience in the farming community.
Marianne Edwards, Operations Manager of Sheldon Creek Dairy, told the more than 100 people in attendance that one of the biggest challenges facing farmers trying to diversify is that they tend to wear too many hats. Edwards farms with her sister, mother and father on a third generation family farm in Loretto. In 2012 they launched an on-site processing facility which now produces Sheldon Creek non- homogenized milk, yogurt and kefir, and co-packs for retailers including Farm Boy, Loblaws and Longos.
“At one point,” she says, “I was responsible for sales, marketing, HR and customer service. Refusing to let go of control and trust others stalls growth.” Today Sheldon Creek employs 42 people, with an additional six employees on the farm, and Edwards has relinquished many of the tasks that used to fill her days and kept her from focusing on the future.
Edwards says successful entrepreneurs and leaders don’t just work harder, they build systems and teams.
“Imagine what your business would look like if you focused only on what you do best, and hired people to do the rest,” she said. “The best owners hire experts, ask for help and do a lot of research to make informed decisions.
We recently hired a graphic designer to work on the launch of four new products. Everything is ready but the labels, and the products should have launched last year but I was designing the labels and I just didn’t get to it.”
“You are only as good as the team you are playing on,” according to Edwards, and planning for future success means figuring out how your role will evolve. “The biggest threat to the industry right now is human resources. You really have to get it right. We are constantly examining pay scales and benefits and examining each role to understand how much value it brings to the business.” In terms of succession planning, Edwards says it is critical to acknowledge that family may not always be the right fit.
“Our succession plan means our kids will have to apply for their jobs. If they are not the best fit, it will cost your business and your family,” she said.
She acknowledges that may sound a bit ruthless but says the next generation must get educated for the roles they want, and allowing them to take jobs they are not well suited for would do them a disservice. She concluded by saying it is incumbent on the current generation of farm operators to ensure they are planning ahead so their children do not inherit farms requiring massive investments to remain viable.
