The activity of every farm assumes its profitability of operation, both socially and individually, without harming the environment. Farming activity is carried out over the long term and all activities should be planned according to a structured, well thought-out, long-term farm strategy.
In order to follow the chosen strategy, a plan is needed to enable profitable production by indicating specific activities over time. This plan must include an estimate of the costs and income of the planned activities, and it must be communicable and verifiable; it is a demonstration of the causal sequence of events that must occur in order for the set objectives to be properly realised.
A farm is an enterprise that, in addition to its food production function, has financial tasks that are the basis of its sustainable operation, as well as the farmer’s income and the wages of those employed. An additional feature of such an enterprise is the necessary compatibility of its activities with the biological and climatic conditions as well as the social and environmental environment – production mostly takes place in open spaces, in the vicinity of water, forests, settlements, etc. Therefore, the management of the farm is complex and requires the resolution of many conflicts. It is possible to reduce the level of complication and avoid conflict situations by developing a viable and consistent farm management plan that takes into account real needs and conditions. The internal as well as the external flow of information concerning the farm, and the clear assignment of responsibilities to employees for the achievement of objectives are essential for success.
The agricultural production process is heavily dependent on unpredictable weather patterns and market volatility. Emerging risks must be taken into account, as specific risks, in the farm strategy and organisation of its work. It is therefore necessary to consciously prepare the management and production processes, the appropriate technical equipment and the competence of the people employed, for the occurrence of possible adverse events. The farm strategy must also take into account the protection of the people working on the farm against accidents and the adverse effects of work on their health, as well as the personal and professional development of the employees.
Read more about the business plan in Area 3: Financial sustainability.