CALGARY, ALTA. (RFD-TV) — Farming can be an isolating business, but structured peer groups offer producers an opportunity to compare financial performance, share management challenges, and learn from others. A new survey of Canadian farmers, however, finds that only 11 percent participate in these groups, with privacy concerns among the biggest barriers.
Shaun Haney, host of RealAg Radio, joined Market Day Report to discuss the survey findings, the financial and personal benefits of peer groups and how organizers can build trust among participating farmers.
Privacy Concerns Keep Farmers From Participating
In his interview with RFD-TV, Haney said 40 percent of farmers surveyed cited privacy as a reason for not joining a structured peer group.
Sharing financial statements, cash flow, machinery debt, and land rental costs can make producers uncomfortable, particularly when other participants operate in the same local market.
Haney said farmers may worry that information shared among peers could eventually be used against them in business decisions or competition for land.
He suggested organizing groups across broader geographic areas so participants are less likely to compete directly with one another.
He also said successful groups take time to build trust, with participants becoming more comfortable sharing both business challenges and personal experiences.
Benchmarking Can Reveal Opportunities
One of the biggest benefits of peer groups is the ability to compare financial and operational performance with other farm businesses.
Haney said benchmarking can help producers evaluate balance sheets, fixed costs, and other areas of farm management.
He pointed to research showing that only about one-third of North American farmers fully understand their true fixed cost per acre, suggesting there is room for producers to improve their financial knowledge.
While 14 percent of farmers surveyed questioned the return on investment of participating in a peer group, Haney said the benefits can extend beyond measurable financial results.
Farmers and ranchers often have few people outside their immediate families with whom they can discuss difficult business decisions. A peer group can provide an opportunity to get advice, hear how others have handled similar situations, and gain another perspective before making major decisions.
Geography and Professional Facilitation Matter
Haney said organizing peer groups across state or provincial lines can help ease concerns about local competition and information sharing.
Producers may have different management practices based on geography, but there can still be valuable lessons in comparing how other farmers approach similar business challenges.
He also emphasized the importance of having a professional facilitator. More than half of the participating farmers surveyed said they saw value in having a third party guide the group.
A facilitator can keep discussions focused, establish an agenda, and make sure participants are getting value from the time they invest.
Haney said confidentiality is another important part of building trust. Participants need to feel comfortable sharing information with the understanding that what is discussed within the group stays there.
Building Trust Takes Participation
Haney said the success of a peer group ultimately depends on the willingness of its members to participate openly.
He pointed to feedback from peer group organizers who emphasized the importance of creating an environment where farmers feel comfortable discussing both successes and challenges.
“You get out of it what you put into it,” Haney said.
For producers hesitant to share financial details with other farmers, Haney also suggested considering peer groups for entrepreneurs outside agriculture. Those groups may offer business management insights, even if they do not provide the same agricultural benchmarking opportunities.
LEARN MORE: www.realagriculture.com
