If you are considering a change to your farm business, it can feel like you are starting a new journey. You have cows to milk, fields to prepare, seeds to plant, and a future to plan. But, just like a road trip needs a map, your farm needs a plan, too. That’s where a destination statement comes in. Mission and vision statements help you with communicating the farm’s purpose and gives owners and employees their guiding star for the business. The destination statement can be seen as a bridge that helps your farm go from mission and vision to action planning and goal setting. It helps with grounding the mission and vision into measurable steps. Let’s explore why having a clear plan is important and how creating a simple destination statement can be your farm’s GPS for success.
A destination statement is a way to describe the way your farm will look and operate at a future point in time. A good time frame to consider is three to five years. A destination statement is a way to take your vision for your farm and build into it your measurement of success. As you review your personal and business values and the vision you’ve crafted for your farm, you and your farm partners should ask the question:
“What does success look like for our farm in 3-5 years?”
The answers to this question should focus on what and not the how. You should take the opportunity to work on your strategies and action plan after you’ve developed a clear direction with your destination statement. The answers might be:
- The next generation is fully integrated into the farm operation
- The farm income has increased by 10%
- Milk quality has improved by 25%
- Our labor turnover has decreased by 30%
- We have at least one weekend a month that we can leave the farm
- We have a retirement and estate plan that allows us to travel and know who will own our assets after we’re gone
An example of a farm destination statement might be:
Kirkpatrick Family Farms will find $100,000 net annual income to provide an opportunity for the next generation to return to the farm business. By 2028 it will reduce expenses, increase income, and develop a management skill building plan for the next generation. This will be accomplished by improving financial analysis, strategic thinking and communication skills for all farm partners and managers.
This destination statement can be broken down into its parts:
Who
Kirkpatrick Family Farms
Will do what?
find $100,000 new annual income
Why
to provide an opportunity for the next generation to return to the farm
By when
By 2028
How
it will reduce expenses, increase income, and develop a management skill building plan
For who
for the next generation
Through what means
improving financial analysis, strategic thinking and communication skills for all farm partners and managers
Your destination statement should be just that – yours. While this example had a clear financial goal, it also incorporates communication and skill building into the how and through what means sections. Your destination statement may focus on reducing the time spent working so that you can have more free time. This may mean your destination statement involves reducing your operation’s size, rather than expanding it. You and your farm partners may choose to focus on environmental and sustainability goals for the next three years. The destination statement is based on your values, vision, and goals.
The details of the destination statement should be reality tested. In the Kirkpatrick Family Farm example, there may need to be more financial analysis to determine if $100,000 is the right number. As you research your measures of success you may want to have trusted advisors, like your veterinarian, feed consultant, lender, attorney, or Extension educator review them and provide feedback.
As you develop the future for your farm, the destination statement becomes your compass, guiding you towards success. The three to five-year timeframe provides a point in time to aim for, allowing you to turn your vision into measurable success. By focusing on the “what” rather than the “how,” you lay the groundwork for an action plan that aligns with your values and goals. Take inspiration from the Kirkpatrick Family Farms example, recognizing that your destination statement is yours. It might revolve around financial goals, like theirs, or prioritize areas such as work-life balance, environmental stewardship, or sustainability. Remember, the destination statement isn’t set in stone – it’s a living guide that will need periodic reality checks and adjustments. So, as you and your farm partners think over, “What does success look like for our farm in 3-5 years?” let your answers pave the way for a future that helps you reduce your stress and reach your goals.
References:
https://corporater.com/resources/creating-clarity-with-a-strategic-destination-statement/
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