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Where and How Do Farm Managers Get Useful Information?

The right information at the right time can mean success or failure for the farm manager. While this dictum may seem simple, it is complex and requires the farm manager's continual investment of time and money.

Farm managers make decisions. Good farm managers make good decisions. And good decisions are based on relevant information and logical analysis.

When economic, political, and social conditions change rapidly (as they do today), risk from the wrong move or from failure to move is great. Information that can help the farm manager stay abreast of these changes is of great value.

Types of Information

Many types of information are useful and essential to managing a farm business. Two major categories are internal and general application information.

Each farm business system possesses certain unique internal information. No two farm businesses are exactly alike. The quality and condition of a farm's resources the land, buildings, machinery, livestock will differ from one farm to the next. The most unique resource is often farm management (often, a husband-wife team) with a particular set of talents and experience.

Internal information about the farm business can best be captured by a good farm recordkeeping system. It is used in developing production budgets necessary for management decisionmaking.

General application information is that vast amount of information produced by both public and private sources. General application information has a bearing on the outcome of decisions that farm managers must make. Since farm units differ, the kind and amount of information needed for each farm differs. The type, location, and size of farm, ages of the owners, goals of the families, enterprises involved, restrictions on resources, as well as numerous other characteristics are important in determining the farm manager's kind of information gathering system that is, the kind of information that is of greatest value and the best way to obtain this information.

Information Sources Change

over the past few decades, there has been a shift in the sources of information available for farm managers. Following World War H, publicly financed institutions were the predominant source of new information discovery (research) and education (Extension teaching). Gradually, private businesses spent more and more money on research and development. Privately-funded research has been aimed at developing useful products that can be sold to consumers at a profit. Education programs (advertising) have distributed information to encourage specific action, usually by a targeted group.

The media are very important in providing information to farm managers. Farmers read farm magazines, as well as reports about new production technology and its adaptation to specific farms. In recent years, the trend has been toward more specialized publications rather than general ones.

Radio and newspapers continue to play a major role in reporting market news, as volume of sales and trading prices can be reported quickly and efficiently. Radio and television are the dominant channels for conveying immediate weather information. While newspapers and magazines carry articles on long-range weather forecasts, farm managers make minimal use of this information in managing their farm businesses.

During the past decade or so, an increasing number of specialized newsletters have appeared. Marketing letters have been very popular. Public issues, farm policy, and international affairs also are subjects that can be communicated via newsletters to a specially targeted audience.

Research conducted in the late 1970's ranked the following information in terms of value to the farmer and listed the most important source.

Information for Change

Before a change can occur, the manager must become aware of the potential change. Farm managers can ]cam of these potential changes by reading a farm magazine, watching television, or seeing a demonstration at a fair or show. Continual exposure to the potential change may stimulate a spark of interest and cause the manager to look into the matter. Inquiries may be made of trusted sources of information to appraise what the outcome of change would be in the manager's situation. The advantages and disadvantages would be weighed. When the potential change appears to offer definite advantages, it will be tried on a small scale if possible. If the manager likes the results, it may be tried on a larger scale and finally completely adopted or rejected.

Information must be understood by the manager if it is to be useful. The way the information is received and its source affect the understanding. Research indicates that the age, level of education attained, and amount of income of managers influence which sources of information have the greatest credibility. Institutions and businesses build their credibility by continuing to deliver the results they promised.

As information sources become more complex, albeit more complete and accurate, the sources require specialized training and equipment for use. As commercial farms have grown in size and as farm technology has become more complex, it has become more feasible to hire specialized consultants to perform certain functions that farm managers formerly did themselves.

The advent of the computer has opened up a new world of information distribution and retrieval. A survey of midwestern farmers indicates that 9.4 percent owned computers but only 5 percent used them to any significant degree in managing their farms. In some cases, the computer helps the farm manager to make better decisions, but certainly not in all cases. While it is possible to access large quantities of data, this will not guarantee better decisions. It is possible to become so inundated with data that the manager becomes bogged down and is unable to make good decisions.

Tailor Your Information System

Every farm manager must collect, store, and interpret information to use in making decisions for the farm business.

The following steps may serve as a useful guide:

1. Keep a good set of records on your farm business. Keeping financial records for taxes is a start, but you also need to record quantities, yields, and prices so you can build reliable enterprise budgets. Help may be available in your State from the Cooperative Extension Service.

2. Subscribe to a large number of publications. Do not limit yourself to publications in your field. Good ideas can come from lots of places.

3. Prepare, in writing, a long-range plan for your farming operation. The plan should cover a period of 10 years. Annual adjustment may be needed as conditions change. Be sure you have clearly stated your goals and your family's goals. Seek assistance if necessary in preparing the production plan, marketing plan, and financial plan.

4. Identify areas where you need personal improvement. Select one area to work on a year. Take advantage of courses available. Remember you are making an investment in your future management capacity.

5. Become active in organizations or activities important to your farming interests. Your association with managers of similar businesses will be a source of ideas to stimulate your thinking and broaden your perspective.

6. Build a network of business confidants. Knowing where you can get sound advice on matters important to your farm business is of utmost importance. Do not wait for a crisis. Some good possibilities are County Extension Agents, Area and State Extension Specialists, attorneys, accountants, co-op field workers, farm organization representatives, input suppliers, and marketing firms.

Proper Fit

A good information gathering system, like a good pair of shoes, must fit the manager or it will not get used. Data collected and unused are wasted. Data that are misinterpreted may be highly dangerous to the health of the farm business. Sophisticated computerized data collection and analysis systems can be a real boon to farm managers if they can use the systems; if they are not used, the systems are an expensive frustration. Most new techniques require an investment of time and money in learning new skills to use the equipment and operating methods effectively.

A successful farm manager must continue to grow on the job. A good information system not only makes this possible but is a major force in causing it to happen.

Tom Brown, Professor Emeritus of Agricultural Economics, University of Missouri, Columbia, MO.