For farmers who do not use a consultant a common question is – can a consultant really add some value to my business? Graeme Ogle, the manager of Farmax discusses how to choose a consultant and how to get the services that are appropriate for your business.

What do you really need?

In the late 1990’s I worked with AgResearch to market the Stockpol program to farmers. Stockpol is a reasonably complicated farm model (and is the core technology in Farmax). We considered the greatest hurdle was computer literacy. A farmer from Gisborne asked me one day as I handed him the disc – ‘So, you think this’ll do the trick for me?’ I said ‘yes’, but I wasn’t entirely comfortable with my answer. I should have said ‘Yes, provided you:

1.      Have an innovative idea you wish to test with this software;

2.      Have a reasonable knowledge of your current farm performance;

3.      Know the innovative idea can be practically implemented on your farm;

4.      Know how to analyse it with the software;

5.      Are comfortable this change will be taking you in the right direction.

 

If you could achieve each of these steps Stockpol certainly did ‘do the trick’. If not you were destined to many hours of failure. To offer a service with more reliable outcomes we made a decision to involve consultants in the Farmax service today. 

What can a consultant offer?

To get the most from a consultant a farmer needs to know how to use their services. Too often consultants are invited to look around the farm with an expectation that they will point out some issues that, once addressed, will lead to a more productive farm. This may have been the case 20 years ago when things were simple - more fertiliser, or a move into bull farming would unleash large increases in production.

“To get the most from a consultant a farmer needs to know how to use their services.”

Today the limitations are much harder to see. We know however that high performing farms have high performing farmers. Typically they:

• Have a good understanding of livestock;
• Are very good at prioritising their time;
• Are good at implementing things;
• Understand the main risks to their production system;
• Know when assistance is needed and have built great networks;
• Have staff who enjoy working for them;
• Are conscious of the need to have scale.

 
I have yet to find a successful farmer who has poor livestock – I think it’s a given. Some of the other points, while you might agree with them, are less obvious – who for example would admit their staff dislike working for them?

The point is when the consultant visits he should be just as interested in you and what your limiting factors are as he is about your pastures and livestock. He will after all be ultimately judged by how well you grow your business.

“The point is when the consultant visits he should be just as interested in you and what your limiting factors are as he is about your pastures and livestock.”

 

What sort of consultant do you need?

Clearly consultants are not all the same which is fortunate - Let’s discuss why. High performing farms are really about high performing farmers – that is, someone who regularly makes good decisions that take him in the right direction and always follows them through. Let’s use this simple statement as a framework for testing if a consultant might add some value.

Imagine it has been suggested you run a 1000 autumn born bulls and this will earn you $90,000 more a year. Which area would you find the most difficult?

• The innovative new idea;
• Being sure it is really worth it;
• Having confidence you can implement it;
• Knowing it will take you in the right direction given the priorities in your life;
• Generally feeling positive about it.

 
Not all farmers are bubbling with innovative new ideas but you may be equally skilled at inviting the right people home for a cuppa. Feeling comfortable they are providing accurate information for your unique situation is important. You’ll need to analyse this some how. If you dither for more information you may need someone you trust to give you a push.

“Not all farmers are bubbling with innovative new ideas but you may be equally skilled at inviting the right people home for a cuppa.”

If you are not confident you can implement it you may need a practical person who understands the important technical things to get it right. It may however be that your employees are unreliable and so you need someone who can help you develop skills and incentives to lift the performance of your team – a people person.

It might be a great idea but it will require a lot of work when you had hoped to be winding down a bit - and you think bulls are dangerous bloody things anyway. The option once implemented however, might help hire a full time manager and put some funds in your ‘winding down’ account. In this case you need someone who can listen really well to what you want to achieve then keep you true to your vision. This may be an older consultant who has seen people grappling with your type of situation and can help you better clarify your vision.

Or, if things seem pretty well lined up and you still don’t take the plunge? If so you might just not feel good about it.  You may need someone who will motivate you – make you feel good about getting on and making progress.

So, what is the value of a consultant?

A consultant can probably spot some technologies that can be injected into your business but what we’ve discussed is that this may not ultimately help. I have outlined below some business styles I see consultants work within:

• The Innovator – Is always scanning for new ideas. They are interested in large leaps rather than incremental improvements. They may not always be interested in practicalities;
   
  
• The Analyst – Very good at analysing if one option earns more than another and what the sensitivity is to the key variables. Produces a high quality report. May not always understand why you don’t simply choose the highest earning alternative;
   
  
• The Technician – Very good on the detail. Has a command of everything you need to know about implementing a change. Doesn’t necessarily understand what you want to achieve but understands what can be practically achieved on your farm;
   
  
• The Mentor – Wants to know about you. He’s interested in the farm but knows the importance of helping you discover a bit about yourself. He says things like ‘It’s interesting that you want me to analyse the bull option given you have said you hate bulls’. He is not so much interested in the detail.
   
  
• The Enthusiast – Very good at motivating you and making you feel good about your business. He can tell you what you’re doing wrong whilst making you feel great. May not be much interested in the detailed analyses.

 
I think there are combinations of these. A common and very effective one is the Innovator/Enthusiast – if you need someone to bring in new ideas he is your man. The Analyst/Technician will provide a high quality analysis and know how it has to be implemented.

How do I get the right consultant?

Too often farmers feel they have tried a consultant but the consultancy thing didn’t work. They may have chosen an Analyst and now own three excellent reports floating about in their bottom draw. What they really needed was a Mentor or an Enthusiast.

“Too often farmers feel they have tried a consultant but the consultancy thing didn’t work.”

I think you need to decide what the difficult step is for you in making change. It may be you only need a consultant from time to time, you may need different consultants at different phases in your life – or you may find a consultant that joins your team and finds ways to motivate you for the next 20 years.

Clearly trust and high quality analyses are key to this excellent working relationship.