Scaling up the farmer

Australian farming businesses are continually expanding to manage declining terms of trade and the increasing cost of production. Like many small businesses, the family farm has traditionally remained profitable and sustainable through commitment to the business and its daily operations by the owner-operator. 

Increasing the size of a family farm business (both in terms of hectare size and employee numbers) often comes with an acceptance of reduced efficiencies, given the farm owner-operator can no longer carry the entire workload, and employees do not necessarily have the same commitment to, or investment in, the family business.

When a scale shift occurs, certain structures must be in place for the business to remain efficient and profitable. 

When a business is “scaled up” how can the farmer be scaled along with it?

During the 2020 Nuffield Global Focus Program, Professor Bill Malcolm from the University of Melbourne articulated two points that resonated deeply with me. 

The first statement noted "The best corporate operation is one that operates like a family farm, and the best family farms operate like corporates."

Malcolm also suggested "For corporate farming operations to succeed, they need to re-create the incentives of the family farmer for the corporate manager."

This report considers the systems, processes, people and business models that may assist family farm businesses to survive and prosper as they expand beyond the physical work capabilities of the owner-operator, or as businesses evolve by necessity through illness, age, succession or the need for a new work-life balance.