Conducting a SWOT Analysis of Your Agricultural Business

Strengths and Weaknesses
The first two sections of the SWOT analysis usually examine the internal workings of your farm business. These issues or items are usually within the control of the business owners. One example could be future management of the business. Is there a next generation owner/manager who has the interest in the business and the ability to manage the complexities of the business? Another example could be the financial position of the business. Does the farm business have too much debt held as short term?
Here are some sample questions that can be asked to assist in determining your business’ strengths and weaknesses.

Opportunities and Threats
The second part of the SWOT analysis requires you to look outside your business at issues that you cannot control but can manage to enhance or reduce their impact on your business. An example for a livestock producer could be the development of the neighboring farm into single-family housing units. Here are some sample questions that can be asked to assist in determining opportunities and threats to your business.

Who Should You Involve?
Generally speaking, the people most directly involved with the business should participate. This would include family members employed in the business and hired employees. Input from outside advisors, such as your attorney, banker, Extension educator, or accountant, may also be helpful as they may see your farm from a different perspective.
Depending on the type of farm you have, asking customers their opinions can prove useful. Asking spouses, even if they are not employed in the business, for their opinions and perspective is critical. Involving them may provide a different view and help the business achieve its goals. Intentionally not involving spouses can do more harm to the family and the business.

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