An Inside Look at FamilyFarms Group (part two)

The strategy is to help farmers enhance profit and reduce risk by pooling resources and acreage over a wide geography. The goal is to help families continue farming in the face of consolidation threats.

That seems simple enough. But Allen Lash himself admits the group has been very guarded about its progress since inception four years ago, leading to misinformation.

"Growth at all costs? That's not true," says Lash, who says each farm "team" establishes its own growth model.  In fact, some of the farmer members choose not to expand at all. On average, farmer members say they hope to expand 17% annually based on expected needs, such as desire to add new family members or employees.

Another myth is that farmers lose control of their operation. In fact, members make their own farm decisions. Some members are also invested in the company itself.

"Family is the focus," says Paul Burton, a Rushville, Ill., farmer and member. "I don't think there's anyone here whose purpose is to get rich or take out their neighbor. We were looking, as a family, to create a legacy."

Burton says he's had opportunities to bid on land and was confident he could win the bid. But for cultural, local reasons, he sometimes withdrew. "FamilyFarms does not make those decisions for me," he says. "FamilyFarms does not tell us what to grow or how to farm. The truth is we make every decision, but we are better informed and we are making better decisions as a result of FamilyFarms."

While the company's goal is to add members, some farmer teams have been asked to leave and some have left on their own accord. "The romance of change is sometimes bigger than the reality of change," says Lash. "Sometimes the people who leave just found it too difficult to change."

Consolidation threat

Lash says FFG is all about preserving family legacy. "If I could fix it so we did not lose another family farm in America, I would do it," he says.

Even so, consolidation is a real threat to those legacies, he adds. "I don't think individual farmers can get big enough by themselves," he says. "I think they have to go to these systems. And FFG is a very sophisticated peer group system that is dealing with tomorrow's issues today. These guys will be better equipped to deal with all kinds of business issues five years from now."

Potential members must pay a membership fee and go through a process, like coming to work at a company. Members agree to implement processes and systems through ongoing training provided by staff members at FFG.  In exchange for help on how to implement systems, technology and financial accountability, FamilyFarms asks its teams to standardize in certain areas. The expected result is your business will run more smoothly and be in better shape to grow in future, thus giving you options for adding family members to the management team.

"I joined because there was a playbook to follow to improve our business," says Rob Richards, who farms near Greenwood, Ind., just outside of Indianapolis. "We have coaches to help us through, and access to other farmers who have been through situations before."

And that's one more discovery Bryce and I made during our trip to Brighton. While the peer group is all about business, it also builds friendships and trust. When Burton needed an extra semi-truck to get through harvest, Richards offered one – at no charge.

"We know each other and know each other's families," says Burton. "With FamilyFarms, your friends are there to help you."