In my last post, I suggested you view succession planning as not a cost but rather a return on investment. I can share many examples of how good planning saved people from making costly mistakes—and created additional value in many intangible ways.
This article prompted an email from a reader who said the same can be said for a positive farm culture. On family farms, we often focus on hard assets: acres, machinery, livestock and grain bins. But one of the most overlooked and undervalued assets is culture, the way people feel about working together, solving problems and planning for the future. While culture might seem intangible, its financial impact is anything but.
What I have since learned is a positive workplace culture is a powerful driver of profitability, performance, and peace of mind. Maintaining a good culture:
Reduces turnover
A stable workforce saves you thousands of dollars. Finding and keeping good people is harder than ever in agriculture. When your farm fosters a culture of respect, clarity and shared purpose, people stick around.
The average cost to replace a farm employee—including downtime, recruiting and retraining—can range from $10,000 to $30,000 per person. If your culture helps you retain just three more employees each year, that could save your operation $30,000 to $90,000 annually. And for leadership positions or specialized roles, the cost can be even higher.
A strong culture is your best retention strategy.
Boosts productivity
When employees feel valued and connected to a shared mission, they work harder and smarter. Research from Gallup shows that engaged employees are 17% more productive.
Let’s say your farm’s annual gross output is around $1 million. A 5% increase in productivity through better teamwork and morale could generate an additional $50,000 to your gross margin.
On a farm, productivity isn’t just about hours worked. It’s about problem-solving, adaptability and doing the little things right. Culture drives all of that.
Lowers absenteeism
The cost of one missed day on the farm can mean delayed work, lost efficiency or create a need to hire temporary help. A poor culture leads to stress, burnout and more sick days.
If you can reduce absenteeism by just 2 days per employee per year—and those days cost the farm an average of $250 per day—you’re saving $500 per person annually. On a 20-person operation, that’s $10,000 in avoided costs.
More importantly, you’re creating a place where people want to show up and contribute every day.
Protects customer and landowner relationships
In ag, your reputation is everything. Landowners, vendors, and customers often choose partners based not just on price, but on values and trust.
When your farm has a strong internal culture, it spills over into external relationships.
Employees who are treated well treat others well.
A loyal landowner who feels respected may renew leases year after year.
A satisfied customer may bring you referrals.
These relationships can be worth tens of thousands of dollars over time.
Reduces risk
Toxic culture can create liability from harassment complaints to unsafe behaviors. A single legal issue could cost you $50,000 to $100,000 in legal fees and lost time.
Farms with clear expectations, respectful communication and proactive leadership reduce these risks. Good culture is good insurance.
Drives innovation and transition planning
Family farms that encourage open communication and generational collaboration are more likely to succeed in transition planning. When the culture invites input and values each voice, it becomes easier to pass on leadership and keep the business alive for the next generation.
Good culture also fosters innovation. Teams that trust each other are more likely to try new cropping methods, implement technology, or diversify income streams. All of these grow long-term profitability.
Culture is a strategic investment
Many farms invest in equipment, infrastructure, or consultants to improve profitability. But culture delivers ROI across every area of the business: labor, risk, performance, and legacy.
Start with simple changes:
- Clarify roles and expectations.
- Encourage honest feedback and listening.
- Recognize contributions and celebrate wins.
- Model leadership that values people, not just performance.
Over time, those small steps will build a resilient, high-trust culture that pays dividends for years to come—both financially and relationally.
What do you think a positive culture is worth to your farm?
Downey has been consulting with farmers, landowners and their advisors for nearly 25 years. He is a farm business coach and the succession planning lead at UnCommon Farms. Reach Mike at mdowney@uncommonfarms.com.