Double E Grain Corporation: Where To From Here?

It was mid-January 2011 and Elmer Enns, sole owner of Double E Grain Corporation, a 6600-acre farm in Saskatchewan, Canada, was reflecting on the past year, during which he had completed the canola harvest ahead of schedule. Helped by strong commodity prices, Double E had experienced successive years of prosperity (as shown by the financial statements in the case). Elmer, in his mid-50s, was optimistic about the industry and content with the current state of his operation. Despite being the sole owner of Double E, Elmer understood that he was not the only stakeholder to consider in planning for the future. His five-year plan was made more complex by his joint-venture partner, Jim Flath; Chad, a farmer with whom Elmer worked closely; and Elmer’s son Matt. Elmer also had to consider changing industry dynamics, including global food demand, and what resources he had available if the circumstances at Double E were to change. He had been in the business of farming long enough to know that lengthy periods without change were fortunate and rare. External changes (such as volatile commodity prices or the elimination of the wheat board) or internal changes (such as Jim or Matt’s evolving interests or Chad’s growing business) could have a drastic impact on Double E. In the face of many potential and unknown challenges, Elmer sat down to begin the complex task of envisioning where his farm would be in five years, both operationally and financially.

The specific use for this case is in an executive program whose participants are farmers running large farms. The case could be used in an undergraduate or MBA business or agriculture economics course. There are three objectives behind this case:<ul><li>To get participants to think strategically about where their own farms might be in five years and what might be the key issues to tackle. The case is used to help participants develop a framework for strategically thinking about their own farms.</li><li>To set participants up for a role play where they have to get commitment from key stakeholders to the strategy/vision (supplementary role-play materials available).</li><li>To push participants to prepare cash flow projections, since in farming cash flows are very uneven over the year (B case being developed).</li></ul>The case can be used over three classes: the first focusing on strategy development; the second on gaining commitment; and the third on projecting cash flows.

• Agriculture
• Managing Multiple Stakeholders
• Financial Statement Analysis
• Family Succession
• Family Business
• Strategic Planning
• Canada