Business models vary from farm to farm, said Alan Miller, a farm business management specialist in Purdue's Department of Agricultural Economics. Miller will speak about business models in a session during the 24th Annual Farming Together Workshop. The workshop takes place Jan. 30-31, in Stewart Center on Purdue's West Lafayette, Ind., campus.
Farming Together is intended to prepare farmers for grooming a son, daughter or associate to take over the farm. Those future farm operators also are encouraged to attend.
Miller's session on business models is titled, "Different Ways to Share Ownership and Management."
"There are some classic ways people go about bringing somebody into the family farm operation," said Miller, the workshop coordinator. "One of those is known as the spin-off method, where the individual that's coming into the operation spins off an activity of their own from the existing operation. Most of the time they use resources from the parents or somebody else to accomplish that, but they do have some separation from the operation itself.
"There are other types of arrangements where farmers and their children or partners simply combine resources. Those structures are quite different in implications for developing the next generation of manager, transfers of property and whether or not they will use some kind of business entity, such as a corporation or a limited liability company. There is lot to consider. The key question to ask is, what are the different individuals who are going to be involved in the operation bringing to the table?"
Miller will lead another workshop session titled, "Developing a Management Succession Plan." He said it is becoming more common for farmers to set up business arrangements, so that the farm remains viable after they retire. In many cases, those arrangements are with friends or neighbors, he said.
"We're seeing more multi-operator farms," Miller said. "One of the advantages of multi-operator farm businesses is that you have the opportunity to specialize according to your particular talents, as well as your interests.
"That can make a difference in how much you enjoy your farming career. There may be somebody in the operation particularly talented in working with machinery. Somebody else may be talented at things like marketing or keeping records."
The Farming Together Workshop runs from 9 a.m. to about 8 p.m. Jan. 30 and 8 a.m. to 12:15 p.m. Jan. 31. Other speakers and their topics include:
Workshop registration is $55 per farm through Jan. 12. After that date registration increases to $70 per farm. Enrollment is limited to about 50 people.
A Farming Together Workshop registration form and brochure is available on the workshop Web site, located at http://www.agecon.purdue.edu/extension/programs/farm_together.asp. Additional information also is available by contacting Miller at (765) 494-4203 or by e-mail at firstname.lastname@example.org, or Dobbins at (765) 494-9041 or by e-mail at email@example.com.