Why? Because we’re the best in the world, but we must keep investing if we want to stay on top.
The recent Rabobank rural confidence survey found farmer confidence in the broader agri economy is back at net-positive levels for the first time since 2021.
The positivity has been driven by higher commodity prices, falling interest rates and positive outlooks for dairy and beef prices, not to mention a government demonstrating it’s got farmers’ backs.
It seems the perfect storm that made rural life tough is passing.
But a little bit of light at the end of the tunnel can be a dangerous thing.
While they are and always will be the backbone of our economy, farmers must remember the seven most expensive words in business: “We have always done it that way.”
Like all other industries, consumer expectations, markets and climate are constantly evolving.
For our farmers to continue to compete in premium markets, we must stay at the forefront of change, leadership and innovation.
And, despite the national regime shifting from red and green to blue, we can’t take our eye off the ball when it comes to environmental issues.
With our agricultural sector responsible for more than 50% of New Zealand’s total gross emissions, our farmers are constantly challenged by the impacts of climate change.
At the same time, the threat of sustainability-related trade levers from international markets looms.
Reducing our emissions must continue to be a priority.
Investing, innovating and evolving while continuing to operate a multimillion-dollar business – it’s a tough ask.
Especially when often the general manager is also the chief executive and chair of the board (and probably the personal assistant and accounts payable officer too).
So, how do we do it?
While farming may run through our veins, like it’s run through my family’s for the past 108 years, that’s no longer enough to stay on top.
Investing in a level of independent governance is what our farmers need.
Be it through a board of directors, an advisory group or even through one-to-one mentoring – inviting independent thought into our agri sector is a vital step to secure our place as the world’s best.
What will it achieve?
Our farmers will be challenged and forced to view their business from a different lens.
Plans and strategies will be pulled apart and put back together.
If there isn’t a plan, they’ll be forced to make one.
Learning will happen. Connections will be made. Opportunities for innovation and growth will be discovered.
Will it be tough? Yes. But our farming sector is not alone.
Governance, succession planning and strategy execution are some of the biggest challenges facing businesses nationwide.
Research we’ve done in the business space with more than 1500 business leaders found 61% of them don’t have a plan.
Without a plan, they’re banking their future on wishful thinking.
It’s a risky move.
But this is changing. In the business sector, more companies – from SMEs to large organisations – are seeing the value that comes from independent thinking.
It’s more common today than ever before for a small business to have an advisory group or independent board to advise, guide and help business owners and managers get their heads out of the game so they can look to the future.
It’s time for our rural sector to follow suit.
My work often takes me across the ditch and when there I see a marked difference between Kiwi farmers and their Australian counterparts.
The Aussies seem to have a confidence that’s lacking here in New Zealand.
Call it cocky, but it’s a confidence I admire and which I’d love to see here in New Zealand.
It’s a confidence our farmers deserve.
Why?
Because Kiwi farmers are the best in the world.
Governance will make them more resilient.
