Developing A Mission Statement For Your Agricultural Business

Transcription

Developing a Mission Statement for YourAgricultural BusinessFact Sheet FS1172Cooperative ExtensionStephen Komar, Sussex County Agricultural AgentRobin Brumfield, Extension Specialist in Farm ManagementBrian Schilling, Extension Specialist in Agricultural PolicyOne of the most important and often overlookedcomponents of a successful farm business plan is theorganization’s mission statement. Every farmer hasa unique philosophy and set of circumstances whichsteer their business decisions, whether it is a productionmethod, such as organic farming, a specific commoditysuch as livestock or vegetable farming, or a targetmarket such as local or high-end consumers. Theseunique circumstances help to craft the focus andfuture direction of the business and provide the basicinformation that can ultimately help develop a viablefarm business plan.To develop the goals and standards needed for asuccessful enterprise, a farm business needs both awell thought out vision statement and a clear missionstatement. While a vision statement looks at the idealfuture of the operation identifying what the businessshould be, a mission statement speaks to the presentand clarifies core purpose of the business.The mission statement answers the question “Whatbusiness are we in and why?” It describes the broadgoals of the business. A mission statement should focusless on what activities happen on the farm and moreon what the business accomplishes for its customers,employees, and owners. Some key components of amission statement include: Why does the farm exist? What is its purpose? What do we do on the farm? Why do we do it? Who are the customers? What are the products, or services, provided?In a market-driven economy, a good mission statementdescribes what consumer need will be filled. How thefarm’s products and services will do this better than thecompetition is called the customer value proposition.This market-driven approach to business is differentfrom the production-driven approach taken by manyfarm managers in the past. Historically when timeswere less competitive, managers could produce highquality products and then find a market for them. Now,organizations must first identify a market need and thenproduce products or services that satisfy that need, at aprice customers are willing to pay while still returning aprofit to the business. A well written mission statementwill help to focus the organization and serve as a guidein how the company intends to achieve this goal.A mission statement should be short enough so peoplecan easily remember it. It should succinctly express toeveryone involved in the company the answers to thefollowing questions: What is the farm business’ purpose? What distinguishes our business from the others(what makes our farm business unique)? How can we beat or capitalize on the competition? Who are our target customers? What is my role in the business?In order for a mission statement to be effective, it mustbe a short concise statement that describes the corepurpose of a business. It is therefore important thateveryone with interest in the day-to-day operation orinterest in the success of the farm discuss the missionstatement. This input will not only ensure that allinvolved have an opportunity to share their ideas, itwill also provide a clear direction for the business andcan provide the basis for employee leadership andmanagement.Rutgers, The State University of New Jersey88 Lipman Drive, New Brunswick, NJ 08901-8525Phone: 848.932.5000

A well -written mission statement should not onlydescribe the type of farming operation thoroughly, itshould also clearly express the goals and motivationsof the farm business. If done correctly, a missionstatement will give customers and employees alikeclear expectations of your business while providingemployees clear objectives to meet these expectations.Below are some examples of mission statements:Description of Uncle Steve’s Farm: Uncle Steve’sfarm is located in beautiful Hunterdon County. Thefarming operation consists of beef cattle raised for saleto various customers in New Jersey. Steve is dedicatedto the ethical treatment of his animals and is a strongbeliever in organic production.Uncle Steve’s Farm Mission Statement: UncleSteve’s Farm is dedicated to raising animals in anenvironmentally sustainable fashion with the strictestattention to animal health and comfort. Thesepractices ensure a superior quality organically raisedbeef product for our customers and a picturesquehealthy environment for our neighbors.Description of Mrs. Greenjeans Greenhouses: Mrs.Greenjeans Greenhouse is a small greenhouse businesslocated in a fairly rural area in Anywhere, USA. MaryWilson, the manager and owner of the greenhouse,recently bought the business from Bill Smith whohad reduced production to only bedding plants in thespring. Mary plans to produce bedding plants, but toalso expand production to include poinsettias, hangingbaskets, perennials, and garden mums to have cropsalmost year-round. This will improve cash flow, keepcustomers coming back for products all year, and helpkeep the same employees most of the year. She willproduce her own plugs and rooted cuttings in thewinter so that she can ensure the top quality demandedby the retail garden center market.Mrs. Greenjeans Greenhouse’s Mission Statement:Mrs. Greenjeans Greenhouse produces and retailsunique high-quality greenhouse products to seriousgardeners within a 200-mile radius around Anywhere,USA. We pursue continued market penetration througha commitment to quality and value while ensuring agood working environment for our employees.Description of B & B Livestock Farm, LLC: B & BLivestock Farm, LLC is a small, family farm that hasbeen in operation in Lebanon Township, New Jerseysince 1991. They strive for quality and excellence andproduce NATURAL food and are committed to animalheath, food safety, and environmental stewardship.All of their farm animals are hormone free, steroidfree, antibiotic free, and raised in as stress-free anenvironment as possible. They sell all natural farmfresh brown eggs, natural grain fed beef, all naturalpork, free-range roasting chickens, and fresh turkeys forThanksgiving.Mission Statement: B & B Livestock Farm, LLC, is aquaint family -owned farm dedicated to recognizingour customers’ needs by producing healthy, superiorquality, all natural food for the local consumer. Ourhigh standards and commitment to cleanliness, animalhealth, and environmental stewardship allow for arelaxed, stress free environment for our animals andvisitors alike.Writing a Mission StatementThe following worksheet has been designed to helpyou develop a mission statement for your farm.Answer each question by selecting the answer(s) thatfits your personal views or describes your farmingoperation. After you have answered each question,develop a mission statement including as many wordsor phrases from the questions as you feel necessary tobest describe your operation. It is recommended thateach partner in the farm business answer the questionsseparately, then discuss with others in the business tofind areas of agreement or to discuss specific questions.Once the mission statement is developed, it should beused as a regular part of advertisements, shared withyour employees, customers, and suppliers and used as afoundation for your farm business plan.

Mission Statement Worksheet1) What type of farm business do you have?qLivestock farmSpeciesqGrain farmTypeqForage or hay farmTypeqVegetable farmTypeqNurseryTypeqGreenhouseTypeqTree fruitTypeqDiversified OperationDescribeqOther2) Describe features that make your products unique or better than the competition. Examples are:qRaw farm productqSemi-processedqBranded productqSuperior t mixqVarieties/new varietyqTypesqColorqShapeqOrganicqOthersqOthers3) Describe benefits to the consumer that make your products unique or better than the competition.Examples are:qLong-lastingqFragrantqSweetqSynthetic Pesticide-freeqOthersqOthersqOthers

4) Select the words or phrases that describe your farming lqHormone-freeqGrass-fedqBiodynamicqOther5) What words or phrases best describes the principles or values that guide your choice of farming l stewardshipqProfitableqFreshqHealthyqNaturalqRural heritageqEfficientqCommunity involvementqQualityqOther6) What words or phrases best describe how you sell your products/services?qCommunity Supported Agriculture (CSA)qDirect retail salesqWholesaleqFarmers market or tailgate marketqPick-your-ownqExperiential (agritourism or entertainment)qOther7) What words or phrases best describes your customer base?qLocal consumersqRetail outletsqRestaurantsqSpecialty crop consumerDescribeqEthnic marketsDescribe

qSpecialty crop consumerDescribeqEthnic marketsDescribeqOtherDescribeqOtherDescribe8) What words or phrases best describe what you want your farm to be known for?qFamily atmosphereqFreshnessqHumaneqFriendly serviceqHigh qualityqSuperior cturesqueqOtherBriefly describe what makes your farm unique?Develop a mission statement using the words or phrases that you selected above.ReferencesJohnson, D.M., and Hanson, J.C. Focusing Your Dreams: Creating a Mission Statement. Fact Sheet 668. Universityof Maryland.Woodruff, J.N. (2007). Develop a Useful Mission Statement for Your Agricultural Business. Ohio State University.Ehmke, C., Dobbins, C., Gray, A., Boehlje, M., and Miller, A. (2004). Developing Vission and Mission Statements.Purdue Extension. 2012 Rutgers, The State University of New Jersey. All rights reserved.For a comprehensive list of our publications visit www.njaes.rutgers.eduCooperating Agencies: January 2012Rutgers, The State University of New Jersey, U.S. Department of Agriculture, and County Boards of Chosen Freeholders. Rutgers Cooperative Extension, a unit of theRutgers New Jersey Agricultural Experiment Station, is an equal opportunity program provider and employer.Rutgers, The State University of New Jersey88 Lipman Drive, New Brunswick, NJ 08901-8525Phone: 848.932.5000

Mission Statement: B & B Livestock Farm, LLC, is a quaint family -owned farm dedicated to recognizing our customers' needs by producing healthy, superior- . D.M., and Hanson, J.C. Focusing Your Dreams: Creating a Mission Statement. Fact Sheet 668. University of Maryland. Woodruff, J.N. (2007). Develop a Useful Mission Statement for Your .