Summary of the report

Executive Summary
What this report is about
This report explores ways to build human capacity in agricultural industries by enhancing the effectiveness of the commercial agricultural consultant / rural enterprise manager client relationship.

It looks at the factors involved in maximising benefits to agricultural enterprises through the use of commercial consultants and the skills needed by consultants in their work. A handbook “Using Agricultural Consultants in your Farming Enterprise: A booklet for agricultural enterprise managers” is available for use by producers who engage consultants as part of their business management .

 Who is the report targeted at?

This report is targeted at producers, consultants and their organisations and rural research and development corporations and companies as they seek to maximise the application of R&D to individual rural enterprises.

Background
This study resulted from a recommendation made from a two year study of extension and education across Australia (Coutts et al, 2004). The report noted that…there is much to learn in terms of ‘what works and why’ in the relationship between client and consultant/mentor. This may be critical in the way learnings are integrated and used on a farm.

As a result of this recommendation, this project was commissioned to explore ways to highlight and enhance the value proposition of using consultants by landholders and (commercially) providing training for consultants (professional development) in people and mentoring skills.

Aims
This report focuses on agricultural (natural resource management) based private consultants who work one-on-one with producers to assist in enterprise decision-making. It is recognised that public-based extension officers and advisors employed by seed and chemical companies also work one-on-one with producers at times as well – and some of the guidance in this booklet will also have some relevance to these groups.

Methods used
The project used a combination of literature review, case studies and a web survey to explore the role of consultants and the consultant-client relationship and developed a booklet to guide the effective use of consultants in strengthening agricultural enterprises.

Case studies involved selecting consultants (7) and producers (10) who use consultants across a range of industries to provide in-depth insights and to inform the broader survey process. In most cases, the producers who were selected for interview were also the clients of the consultants interviewed. The web survey was sent to consultants through formal consultant organisational networks. There were 35 respondents across a wide range of industries and states.

Key findings
The key findings of this study are as follows:

• There is a wide range of private consulting being undertaken in rural Australia. Most consultants to agricultural enterprises focus on business and technology management with some inroads into marketing, human resources and succession. Roles ranged from the provision of advice, to facilitating change and providing training.
• There is an increasing use of private agricultural consultants across Australia and across industries – There are in excess of 1300 consultants. Consultants are looking to broaden their base and attract new clients.
• Primarily, producers use private consultants because they can provide a professional external opinion on management decisions on agricultural enterprises. Independence was valued.
• Informal marketing through word of mouth and networking are the major ways in which consultants and clients connect with each other. There appeared to be general reluctance to advertise more proactively although there were some examples of web sites, newsletters and advertisements.
• Consultants charged their clients in a range of ways – from flat rates, to cost per hour or service, to costs based on farm or herd size (or a combination of these). Costs depended on the type of industry and service being provided. There appeared to be some scope for individual negotiation and review.
• The client characteristics that maximised the value of consultants’ time and expertise centred around the client being clear about their goals and expectations and a high level of involvement in the consultant’s activities.
• Few consultant-client relationships were formalised in writing – although there was regular review of services being provided. Consultants largely provided a second opinion and sounding board to assist producers in making decisions- rather than making decisions for them. Producers felt that being clear about their expectations of the client was an important element in a good relationship.
• Although there was a strong need for continual updating of technical and business skills, consultants also identified a high level of need for increased inter-personal skills. Professional organisations appeared to be the major source of consultant training outside of ‘on the job’ learning. There was a preference for short training schools or workshops in the consultant’s region if training was being sought, although a number were open to distance learning opportunities.
• Consultants identified their most important professional need was for potential clients to be better informed about what they have to offer. Networks and sharing with other professionals was also identified as a major need.
• Resistance to paying for advice was perceived to be the main barrier to more producers using clients.

There is a lot of evidence gathering that agricultural consultants are becoming an increasing force in supporting managers of agricultural enterprises across Australia and that they play a critical role in assisting managers to integrate wider learnings into their specific farming system.

The profession, however, largely relies on the informal advisory approach that is the legacy of the public extension system - few consultants appear to have formal written agreements with their clients and there is a reliance on informal networks and recommendations in reaching potential clients.

Recommendations

1. Steps should be taken to educate agricultural enterprise managers across Australia about the potential benefits of using consultants, how to use their inputs most effectively and how to locate consultants appropriate to their needs and businesses. This should be a key role for professional organisations supporting consultants as well as Research and Development Corporations and Companies who have a vested interest in having R&D results effectively integrated into individual farming enterprises.
2. Action should be taken by professional organisations for consultants in conjunction with Rural Training Organisations and Universities to more effectively link agricultural consultants with training providers to meet the range of training needs identified. This should include interpersonal skills as well as business and technical skills. Training providers should be encouraged to look to a variety of delivery modes – but in particular to focus on short regionally based workshops or training events.
3. Training for consultants and their organisations should also include how to improve the public relations and marketing side of the profession and individual consultants/groups.
4. Organisations such as the Australasian Pacific Extension Network (APEN) in conjunction with professional consultant organisations could be supported in providing specific networking meetings and opportunities for sharing between agricultural consultants.
5. Further research is needed in longitudinal case studies looking at successful client-customer relationships and how this has influenced and shaped decision-making on the farm.

A booklet to guide rural enterprise managers in effectively use.

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Last updated: November 2006
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http://www.rirdc.gov.au/reports/HCC/07-073sum.htm