Rural Industries Research & Development Corporation

Research Compendium 1993 - 1994

Research Project

FARM MANAGEMENT 500

Objectives

• To improve the adoption of effective farm business management and promote farm and family viability.
• To provide skills enhancement programs through forty business management groups designed to accelerate learning from, and sharing information with, farmer peers, scientists, agribusiness, consultants and policy makers.
• To create a funding and resource partnership between farmers, agribusiness and RIRDC and evaluate this approach to non-government funded extension.

Background

Leading farmers were concerned about the delivery of extension services in the late eighties. There had been a noticeable withdrawal of government services of a direct face-to-face nature. At the same time emerging, intensive, broadacre farming systems were causing grower concern.

Research

The project was evaluated by John Cary, The University of Melbourne, School of Agriculture and Forestry. The purpose of the evaluation was to assess the impact of the project on participating farmers' management behaviour and outlook.

Outcomes

Between 1992 and 1994 the number of business indicators used by Farm Management 500 members increased significantly. There was increased and more sophisticated use of analyses and indicators for judging the success of farm businesses; and there was a significant increase in members' use of computers in the farm business. More than three quarters of members considered computers to be very useful or essential in their farm business.

Farm Management 500 members were less conservative, had much stronger disposition towards planning, and a greater sense of control in management-decision making than other Australian farmers in the agricultural and grazing industries.

Business Management Practices. Members are now very actively monitoring:

• preparation of budgets and monitoring flow;
• reviewing estate plans on a regular basis; and
• taking soil samples/tissue tests and conducting nutrient audits.

Computers in Business. Ownership of computers is increasing with 72% of members using them in farm/business planning. Software is being used for financial, farm and family management. Farm Management 500 is pro-active in creating, testing and recommending relevant business planning software.

Business Planning. Members' assessment of their abilities to undertake management planning tasks vary and they are using a wide range of indicators by which members judge the economic health of their farming business.

Implications

By most standards, Farm Management 500 has been a very successful model of management extension and farmer education. It should not be assumed that such a program is easily replicated. The development of the project involved multiple commercial sponsorships. It was not possible to convince the farmer members to assume full financial ownership. Strong project leadership and a group of 15 independent consultants to work as a team is also a unique achievement.

If government is serious about the development of sustainable broadacre farming they will have to focus on skills enhancement for families at the sharp end of agriculture. Improved farm business management will lead to improved profitability and the ability to fund sustainable development.

RIRDC Project No: FM-1A

RESEARCHER: Neil Clark

ORGANISATION: Farm Management 500 Pty Ltd

PHONE: 054 41 4821

Last updated: 10 October 1996
Copyright © RIRDC
Index of RIRDC Projects URL
http://www.rirdc.gov.au/pub/compendium/93-94/index-b.html