Amid the pressures to ensure survival, produce sustainable food, adhere to regulations, and mitigate climate change impacts, the future of farming businesses is under scrutiny. We met Nuffield Scholar, Peter Craven who, as part of his scholarship, explored the future of the farming business landscape and looked at how families can unite in business to evolve their priorities to protect themselves for the future by introducing a family charter.
Farming is in Peter’s DNA; he was born into the 4th generation of a farming family in South Lincolnshire. After he graduated from university with a degree in agribusiness management, he returned home to manage the family farm. He gained first-hand experience of the struggles a family farming business can face when managing family relations alongside the added challenges of loss of subsidies, market volatility, extreme weather conditions, labour shortages and rising input costs.
Peter said: “I wanted to focus on the people part of business, particularly our families and how we interact. The world is based on relationships with other people, and I wanted to understand how the people in the best family businesses operate. Managing a family business involves strategic planning, effective management practices, a mindset of continuous improvement, and a commitment to innovation. To do this, the family must come together, work together, discuss together, and make plans together.
“It is more important than ever to have harmonious inter-generational relationships to manage the business values and its legacy for the future. Central to success is the cultivation of family relationships, collaborative decision-making, and future planning together which can be seen as a departure from conventional agricultural education.
“It is crucial to recognise that family dynamics underpin prosperity, and the role of trust is built through open, honest, and fair communication. Drawing from the best family businesses, a common thread emerges - the Family Constitution or Charter. This living document outlines the ‘why’ behind the family business, integrating history, values, and the founder's vision. It provides a framework for decision-making, roles, responsibilities, finances, and conflict resolution.
“Having an open dialogue enables the family to develop a strategy for the future which can often be a complex landscape for rural businesses to navigate through. There should be a combined effort to adapt to change so that the business can evolve, thrive, and survive in an ever-changing and challenging environment.”
Peter visited 100 families in business, 15 countries and 4 continents to explore how the family, business and ownership can adapt and work together and learn lessons from mistakes which have been made by many other businesses over the years.
What was clear was that open and effective communication helps a family business work better together. Peter added: “By introducing a family charter, everyone in the business agrees to a set of rules which act as a road map for the future direction of the business. The Charter highlights the business owner's aspirations and helps align all family members' thoughts, providing structure and accountability and a plan going forward with timelines and milestones. With this in place, the business can evolve and adjust its strategies to provide sustained success for the future.
From those he met, he created some principles of greatness which had been demonstrated by those who had managed to find success as a family business. These included:
Vision and Purpose
Define a clear and inspiring vision for the future of your family farming business.
Leadership and Culture
Develop strong leadership within your family and business, with clear roles and responsibilities.
Strategic Planning
Create a comprehensive strategic plan, outlining short- and long-term goals and identifying strategies, tactics, and timelines to achieve them.
Continuous Learning
Stay informed and current regarding the latest agricultural practices, technology, and sustainability developments.
Operational Excellence
Focus on operational efficiency by optimising processes, adopting best practices and regularly reviewing and improving your production methods, supply chain management, and distribution processes.
Innovation and Diversification
Explore new crops, products, or services that align with market demands and consumer preferences.
Customer-centred approach
Understand your customers’ needs and preferences and provide exceptional customer service.
Financial Management
Maintain a solid financial foundation by managing your costs of production and regularly reviewing your financial performance.
Sustainability and environmental responsibility
Adopt sustainable farming practices that minimise environmental impact.
Collaboration and networking
Stay connected. Engage with other farmers, industry groups and organisations.
Adaptability
Adapt to changing market conditions as well as regulatory changes and technological advancements.
Peter concluded: “In these difficult times, it is important to develop strategies that enhance the sustainability and success of the people, the individual farms, and the industry. Family harmony will play a vital role in the future of UK agriculture, a sector that, for the most part, is run by family businesses. Only by securing a great future for UK farming family businesses can we ensure future national food security in an uncertain global economy.”
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