Growth mindset: Seeding success through farm modernization

As Canadian farms have become larger and more complex, many are adopting modern business practices. Today’s farmers need strong planning and management skills, just like leaders in any major industry. By using these modern techniques, farmers are working more efficiently, adapting to challenges, and achieving lasting success. 

In the Prairies, the average farm size grew 47 percent from 1991 to 2021, according to data from Statistics Canada. Randy Johner, a grain farmer in southern Saskatchewan, was part of this generational transformation. 

“In my dad’s day farming was a way of life, and that was a great way to grow up,” he recalls. “When I started working with my dad, we had 1,000 acres; but I wanted to expand. So, the mentality that farming is a lifestyle had to change.” 

Johner Farms now spans 41,000 acres. “We’ve had to professionalize. You can’t run it as a way of life. It has to be run as a business.” 

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Steve Tomtene, who owns and operates Tomtene Seed Farm southeast of Prince Albert, Saskatchewan, reached the same conclusion about his large operation. 

“Back in the 1980s, it was okay to know a little about a lot of different things and then figure the rest out. Today, with a business of our scope that involves a number of employees, you need to know where you should apply your energy and resources, and decide what you can do and what you can’t,” he says. “Then outsource the areas that need attention.” 

The modern landscape

In Canada, the stakes to professionalize the operations of growing farms couldn’t be higher. Our agri-food sector is one of our most promising economic engines, generating 7 percent of the national GDP. Exciting new opportunities are opening up because of our access to technologies like smart crop monitoring and autonomous farming machinery that could allow Canada to answer the growing global demand for food. 

Adopting a CEO mentality, as Johner and Tomtene have, can go a long way in boosting a modern farm’s performance. But running a large, multi-faceted business can make it hard  to spot the tipping point: When is the right time to professionalize management, what does that look like, and what’s the value? 

When a farm seeks outside counsel, it could be for professional services like bookkeeping or for strategic advice on growth. A consultant might look over the data and suggest ways to simplify an operation. For example, if a farm has been doing business one way for the last 25 years, but the data suggests certain crops have been most profitable, the farmer could renew a focus on those, instead of trying to chase the market here and there.  

One strategic move Johner made was to hire a marketing company that they use as a sounding board. They discuss what’s happening in the world, in the markets, and with the weather in order to decide on a go-forward strategy for when to sell their grain and when to buy fertilizer inputs.  

Setting up for success

Canadian farms take significantly more capital and expertise to run than in previous generations. Over the last 20 years in Canada, the price of farmland has quadrupled and farm values have risen by more than 20 percent.  

Farmers are motivated to grow at different points, often when an adult son or daughter joins the farm and brings in new expertise and a desire to farm more acres. To access capital at reasonable rates, these operations need solid reporting practices and good financial statements. If they neglect the paperwork side of their operation, they may miss out on expansion opportunities. 

For Tomtene, the professionalism tipping point came in 2015. He and his wife were running Tomtene Seed Farm in partnership with his sister and her husband. Both couples had growing children, and it was time to start planning for if and how the next generation might get involved. 

“It became evident to me that we needed to make an intentional effort to create some structure. So, I took some time to develop a policy manual, which gave us governance on how we want to operate, what it takes to be a part of this organization. What kind of people do we need? What kind of characteristics are we looking for? How can somebody get in, how can somebody get out?,” he says.  

Several years later, the family successfully navigated what could have been a tricky transition: one couple exited the business, and his son and daughter-in-law bought in. 

Of that governance document, he says: “That allowed our farm to go to the next level. It helped set expectations, and expectations were agreed to before we were faced with any difficult decisions.” 

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As Canadian farms continue to expand in scale and complexity, the need for professional management has never been clearer. Embracing a business-oriented mindset, investing in governance, and seeking expert advice are essential steps to unlocking new opportunities and ensuring smooth transitions across generations.  

For today’s farmers, the path forward is clear: pursue professional development, establish robust operational structures, and leverage technology to remain competitive. By taking these actions, Canada’s agricultural sector can meet the demands of a changing world and secure its place as a global leader in food production. The future of farming holds tremendous promise for those willing to evolve.