Many farm families are facing financial uncertainties due to low prices, decreases in the tobacco quota, and several weather-related disasters. They are faced with making important decisions which will shape the future of their farm operations. Strategic Planning is an excellent tool for creating a broad plan for the future. It permits key participants of the operation to reach a common understanding about what they want to do in the next 3-5 years, and how they want to do it. The results of strategic planning could lead to new enterprises, major capital investments, or perhaps even an exit from farming. Strategic Planning permits farm families to make more profits, in the long run by, defining in measurable terms what is more important for the farm operation; allocating resources more efficiently; and anticipating problems and taking steps to eliminate them. The planning should be initiated by the operator/manager of the farm operation. There are eight steps in strategic planning:

1. Define the Mission
2. Establish Objectives
3. Asses the External Environment
4. Asses the Strengths and Weaknesses
5. Identify Opportunities and Threats
6. Develop and Evaluate Alternative Strategies
7. Select a Strategy
8. Implement the Strategy

Strategic Planning should not be viewed as a formidable task resulting in detailed plans. It is essential that all individuals involved in managing the farm understand where the farm is going, how it plans to get there, and what problems or opportunities lie ahead.

E-mail address: Nelson_Brownlee@ncsu.edu

Mailing address:
P. O. Box 2280
Lumberton, NC 28359-2280

Phone: 910-671-3276
Fax: 910-671-6278

Date Created 5/11/00.
Date Revised 5/11/00.