BUSINESS SUCCESS: WHAT FACTORS REALLY MATTER?

producers are constantly developing alternative strategies, plans, and options for the future. The
less successful producers generally don’t think about the future beyond the current year. When
asked about alternative strategies to analyze with a FARM Assistance projection, the producers
with the fewest ideas tend to be less successful. In general, the producers that have several long-
range plans they want analyzed are more financially successful.

Financial success can be measured in a number of ways. The method provided in this
analysis attempts quantify the projected success of a farm or ranch. The objective analysis
supports the traditional thinking that efficiency, profitability, and a manageable debt level have
the most influence in determining financial success. These three factors were determined to have
the largest correlation to projected success. Through empirical experience, the farm
management qualities most indicative of success are in-depth knowledge of the operation and a
forward thinking approach to farm management.

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