Farming has always been hard work.
But today, large-scale agricultural operations aren’t just production-focused—they’re complex businesses operating in a dynamic, heavily regulated environment. Sophisticated growers across North Carolina are managing multi-generational landholdings, coordinating seasonal labor forces, navigating shifting market demands, and making multimillion-dollar decisions every year.
Unfortunately, far too few production operations deploy a strategic, multi-year approach to their businesses. Far more common is a year-to-year, paycheck-to-paycheck model—operating line (line of credit) to operating line. Long-term strategy, succession planning, and perhaps most importantly, taking care of the principals of the business often fall by the wayside.
Producers don’t need to be prisoners of that model. The model should serve the producer, not the other way around. That shift starts with a ground-up evaluation of the operation: analyzing the business entity structure, cataloging debt lines, projecting growth or contraction, and planning for future ownership.
Treat It Like the Business That It Is
Farming will always hold a nostalgic place in our cultural identity, as a state and as a nation. Certain truths persist: good soil yields good crops; weather reigns supreme. However, in terms of success metrics, farming is no longer what it used to be, especially at a large scale. And treating it like a traditional, small-scale farm can come at a cost.
High-scale production agriculture today functions much like any other major enterprise. Gone are the days when crop cultivation alone was enough. Legal and business matters—structure, contracts, regulatory compliance, and risk management—are no longer peripheral. They’re essential and should guide the management of the business.
Having skilled internal professionals, such as finance and operations experts, is increasingly key to success. Fortunately, North Carolina is seeing more of these professionals entering the agricultural space. While building out a team may seem foreign to some growers, the value in doing so is substantial.
Tend to Today, But Don’t Forget About Tomorrow
Agriculture’s relentless pace forces producers to stay heads-down on immediate demands: securing operating lines, planting, harvesting, storing, and selling. That pressure will never disappear. But those who carve out space for long-term planning, even amid day-to-day demands, are the ones best positioned to thrive.
Each operation’s strategic outlook will differ, but there are common questions worth asking:
- Where should the business be in five years—in size, scope, profitability, and ownership?
- What operating and long-term debt levels are needed to get there, and what are the risks?
- What market or policy shifts could affect the business, and how can those risks be mitigated?
- How should annual profits be reinvested—or conserved?
The goal: a clear plan of action with achievable goals as its hallmark. As agriculture has grown more complex, so too have the services available to producers. Finding professionals who can help build and execute this plan is critical; however, they must also understand the agricultural landscape.
Don’t Leave an Area Untended
There’s no one-size-fits-all checklist for agricultural success. But here’s a starting framework of issues every large-scale producer should routinely evaluate:
- Corporate Entity Selection and Business Structuring
- Farm Leases and Land Use Agreements
- Sales Contracts and Broker Arrangements
- Tax Deferral and Transaction Planning
- USDA and State Program Participation
- Insurance Coverage and Claims Management
- Labor and Employment Compliance
- Succession and Estate Planning
- Personal Financial Structuring
Conclusion
Agriculture has come a long way, and it continues to evolve. Success requires more than mastering the craft of farming. It demands a proactive business and legal strategy.
At Ward and Smith, our agribusiness attorneys partner with producers across North Carolina to help them build stronger, more resilient operations—now and for the next generation. If you’re ready to secure your farm’s future and navigate the legal complexities of today’s agricultural landscape with confidence, contact our team today to see how we can help your business thrive for years to come.
