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                                                                           HOLISTIC MANAGEMENT
                                                                   A WHOLE-FARM DECISION MAKING
      Appr i e Technol Tr
          opr at     ogy ansf f Rur Ar
                             er or al eas
                                                                           FRAMEWORK
                                                                              FUNDAMENTALS OF SUSTAINABLE AGRICULTURE
www.attra.ncat.org
   ATTRA is the national sustainable agriculture information center funded by the USDA’s Rural Business -- Cooperative Service.

  Abstract: This publication serves as an introduction to holistic management and provides resources for further
  information. Holistic Management is a decision making framework that assists farmers and others in
  establishing a long-term goal, a detailed financial plan, a biological plan for the landscape and a monitoring
  program to assess progress toward the goal. Holistic Management helps managers to ask the right questions and
  guides them in setting priorities. In holistic financial planning, profit is planned at the beginning of the year.
  This is in stark contrast to conventional financial planning where the net profit is often non-existent or a small
  amount left over once expenses are accounted for.

By Preston Sullivan
NCAT Agriculture Specialist — July 2001

Sustainable agriculture seeks in principle to
“sustain” economic viability, environmental
stewardship, and social responsibility. These three
tenets are to be embraced as one functional unit.
Decisions concerning a sustainable agriculture
should then enhance the environment and the
farmer’s economic situation and benefit the
regional society. Holistic Management gives us
a way to move forward on these three tenets. It
gives us a way to design agriculture to truly mimic
nature’s principles of sustainability. It gives us a
way to make decisions that automatically take into
account the society, the economics, and the
environment before they are made.                                               other skill. People who manage holistically can
                                                                                realize an improved quality of life and generate
What is Holistic Management?                                                    real wealth, while at the same time improving the
                                                                                land and community around them. They
Holistic Management is a simple decision-                                       develop the ability to ask the right questions and
making framework that can be learned like any                                   to confidently proceed toward the future they
                                                                                design for themselves. Holistic Management is
  Contents                                                                      for anyone who wants consistent profit from
  What is Holistic Management? ............................1                    agriculture, a high quality of life, and more time
  The Holistic Management Process........................2                      to enjoy it. In short, it’s a way to have fun, make
  Financial Planning ................................................2          money and conserve our natural resource base,
  The Landscape That Sustains Us..........................3                     all at the same time.
  Deciding Which Tools to Use ................................5
  Testing Decisions .................................................5
  Monitoring Our Decisions.....................................6
                                                                                Holistic Management is a process for sorting out
  Holistic Management-In Practice ..........................6                   and making sense of all the tools and choices that
  Training is Available.............................................8           face us each day. Once a person begins to
  References ..........................................................9        manage holistically, he or she learns what to say
                                                                                no to, and what to say yes to. Being a proactive


                                   IS A PROJECT OF THE NATIONAL CENTER FOR APPROPRIATE TECHNOLOGY
process, holistic managers learn how to move           Financial Planning
beyond crisis management and toward planned
prosperity. They are able to manage their              Holistic managers use a potent financial planning
finances wisely, have more time for enjoyment,         process that empowers them to make decisions
live life according to their values, and gain the      that are simultaneously good for the environ-
confidence of knowing that their decisions are         ment, the local community and the bottom line.
improving the environment and the community            The holistic financial plan provides a road map to
they live in—leading to a better world for their       help people navigate through their financial year,
grandchildren.                                         assured that the profit will be there at year’s end.
                                                        The financial plan allows managers to select
The Holistic Management Process                        enterprises that do not conflict with their values,
                                                       and then to plan a profit up front. Once the profit
As the name “holistic” implies, resources are          is planned from the expected income, expense
managed in whole units rather than as parts in         dollars are allocated sequentially where they will
isolation from their surroundings. In order to         do the most good.
have a clear description of what is being
managed, people begin by defining their whole.         Holistic financial planning differs from conven-
This definition involves a listing of all the          tional financial planning in several ways.
decision-makers involved in management, the            Conventional cash flow budgeting involves
resources they have to work with, and the money        estimating income from an enterprise, then
available. From there, a detailed holistic goal is     allocating expenses for capital investment,
developed. The holistic goal includes a values-        variable costs, and fixed costs. Attempts are
based quality of life statement, a listing of forms    made to keep costs below anticipated gross
of production that will make the quality of life       income by using past records and other
possible, and a description of how the land base       information and adjusting for cost trends. As
needs to be far into the future, in order to sustain   long as the expenses appear cost effective and the
the production.                                        plan predicts no cash shortages the bank won’t
                                                       cover, all should go well. Still, the results of cash
Defining the whole and writing a goal is a             flow planning often include considerable anxiety
powerful exercise. People who have written             towards year’s end over the profit margin. In
goals are much more likely to succeed than             many cases, the expenses nearly equal the
those who do not. Since the holistic goal is           planned gross income, producing very little
based on the deeper underlying values of the           profit (1). Usually there are plenty of excuses to
decision-makers, it empowers them to ask better        make up for the small margin—weather, markets,
questions, to ask the deeper questions, to ask         and pests. All too often we may take the attitude
appropriate questions from which they can              of, oh well, things will be better next year.
make better decisions. Some examples include:
“Why am I farming in the first place?” “What is        With holistic financial planning the projected
it that I’m trying to accomplish?” “What kind of       income is planned, then the desired profit is
world do I want for my grandchildren?”                 allocated at the outset, heavily affecting how the
Building a farm plan on these questions makes          remainder of the budget will be allocated.
for a powerful plan.                                   Planning a hefty profit before any expenses are
                                                       allocated is a key distinction. After profit is
The holistic goal remains the centerpiece of           planned, expenses are allocated into three
holistic management and is referred to constantly      categories: Wealth generating, Inescapable, and
when management decisions are being made.              Maintenance (W I M for short). Wealth generating
The goal is what drives the decision-making. But       expenses produce profit for the operation this
there’s more. In order to sustain a farm               year. Inescapable expenses must be paid
operation, profit must come from somewhere.            regardless (taxes, land payments, etc.), while
Most likely, at least some of the profit will come     maintenance expenses, though essential to the
from on-farm enterprises.                              business, do not produce profit this year.

                       // HOLISTIC MANAGEMENT                                                    Page 2
Overhead and variable categories are not used at          using conventional cash flow budgeting,
all because they don’t describe what the expenses         production is the goal, not profit. With holistic
within each category do for the enterprise. Once          financial planning, profit is the goal and
the holistic financial plan is written, it is monitored   production is the means of achieving it. That’s
monthly to stay on track toward the planned               why profit is allocated right off the top of
profit. Monthly monitoring allows deviations              anticipated income. Planning a hefty profit up
from plan to be caught early and corrected before         front forces the manager to overcome the three
there is serious financial trouble. The financial         tendencies that lead to low profit margins. From
planning process helps control three human                there, meeting necessary expenses after planning
tendencies that work against financial success: 1)        our profit requires creativity. How the profit is
the tendency to allow cost of production to rise to       used at the end of the year is unimportant, but the
the level of optimistically anticipated income, 2)        objective of holistic planning is to make sure there
the tendency to borrow heavily against the                will be a substantial profit at the end of the year.
optimistically anticipated income, 3) the tendency        Some of the key distinctions between holistic
to do little planning ahead of time on paper. Even        financial planning and the conventional cash flow
when planning is done                                     model that most farmers use are shown in Table 1.

          Table 1. Distinctions between holistic financial planning and cash flow planning.
            Holistic                                Cash-flow
            profit is the goal                      production is the goal
            profit is planned first                 profit is what’s left over
            expenses put into W I M categories      expenses put in overhead and variable costs
            monthly monitoring to stay on track annual monitoring?

Figure 1 below shows a comparison between a               The Landscape That Sustains Us
cash-flow budget and a holistic budget for a dairy
farm in Ohio (2). Each budget used the same               Since we all depend directly on the landscape for
projected income; however, the cash-flow budget           our very existence (food, clothes, water, etc.), we
uses expense categories which in effect mask any          benefit greatly from gaining a complete
knowledge of where to cut expenses without                understanding of how the landscape functions.
affecting profit. Notice that no debt service is          The very essence of the term “holistic” is that
broken out and a shortfall of $26,000 is shown.           nature functions only in wholes, not in parts, and
                                                          that we will understand nature better when we
With the holistic budget, the expenses are put            manage it as a whole rather than as separate
into categories of wealth generating expenses,            parts. Holistic Management gives people a way
inescapable expenses, and maintenance expenses.           to make decisions that more accurately mirror the
Using these categories, one can easily see where          way nature functions (in wholes) and thereby
to cut expenses, while preserving our planned             ensure that our farming is truly sustainable over
profit and still meeting our debt obligations. The        time.
excess maintenance expenses of $26,000 will have
to be cut by creative means to preserve our profit        To better understand how nature functions, her
and still meet the debt obligation.                       basic processes need to be considered. Looking
                                                          closely, four basic processes can be found in all
There is much more to holistic financial planning         natural systems. First, water falls to earth as rain,
than has been introduced here. Some additional            filters through the soil and is either taken up by
aspects include managing debt, testing financial          plants or continues downward to become ground
decisions toward a well-defined goal, creating            water. When water is cycling effectively, floods
and using a livestock production worksheet to             are infrequent and of lower impact, water is
plan cattle buying and selling, and brainstorming         released slowly through underground flow into
new enterprises.                                          springs and streams, and erosion is virtually non-


                        // HOLISTIC MANAGEMENT                                                      Page 3
Cash-flow Budget

             Income...................................................................................................................150,000
             Operating Expenses.............................................................................................110,000
             Administrative Expenses....................................................................................62,000
             Capital Expenditures................................................................................................ 4,000
             Cash flow.................................................................................................................... <26,000>

             Holistic Budget

             Income...................................................................................................................150,000
             Debt Service ............................................................................................................... 36,000
             $ Available for Operations ...................................................................................... 114,000
                                  Less 25% profit .............................................................................. 28,500
                                  $ Available for Expenses ........................................................... 85,500
                                  Wealth generating expenses ..................................................9,100
                                  Inescapable expenses ................................................................. 3,400
                                  $ Available for Maintenance..................................................... 73,000
                                  Maintenance expenses ............................................................... 99,000
             Excess maintenance expenses to be cut .............................................................. 26,000
             Figure 1. Comparison of budgeting process in holistic & conventional management


existent. If on the other hand, bare soil is exposed                                       monoculture represent a simple level of diversity.
and plant density is low, most water runs off the                                          Monocultures are almost never present in nature.
landscape rapidly resulting in soil erosion, much                                          Monocultures require great energy expenditure,
less water entry into the soil, and severe and                                             either with fossil fuels or animal and human
more frequent flooding. So, an effective water                                             power to maintain. Weed invasion is nature’s
cycle is apparent in nature and essential to a                                             way of injecting diversity into monocultural
sustainable agriculture.                                                                   cropland. When biodiversity is increased, the
                                                                                           cost of pest control and fertilizer is decreased.
A second natural process we can observe in                                                 Crop rotation is the first step toward increasing
nature is the mineral cycle through the biological                                         biodiversity on the farm. It helps break weed
system. Minerals needed for biological growth                                              and pest life cycles and provides complementary
are constantly recycled from soil to plant to                                              fertilization to crops in sequence with each other.
animal and back to soil again. There is very little                                        Advancing from rotation to strip intercrops
waste in the natural mineral cycle. There is no                                            represents an even higher level of biodiversity.
need for fertilizer in nature, as all the fertility is                                     Strip intercrops of corn and soybeans or cotton
recycled again and again with very little loss.                                            and alfalfa are two examples. Increasing habitat
Ultimately, to be sustainable, we need to find                                             for more beneficial organisms with more borders,
ways to utilize the natural mineral cycle while                                            windbreaks, and special plantings for natural
minimizing our off-farm purchase of minerals.                                              enemies of pests represent even higher levels of
Farming practices that inhibit the natural mineral                                         biodiversity and stability. For more information
cycle, only reduce the sustainability of our farm.                                         on biodiversity, request the ATTRA publications
                                                                                           entitled Intercropping Principles and Production
A third natural process shows us that plant and                                            Practices and Farmscaping to Enhance Biological
animal communities strive toward high                                                      Control.
biodiversity. Not only is diversity high in the
numbers of species, but also the genetic diversity                                         The fourth natural process involves the flow of
within species, and a wide age structure of each                                           energy from the sun through the biological
population present. Greater diversity produces                                             system. The sun is the fuel driving the biology of
greater stability within the system. It also assures                                       our farm. Energy flows from the sun through the
minimal pest problems. Large expanses of                                                   ecosystem from one level to the next. Sunlight is


                              // HOLISTIC MANAGEMENT                                                                                                  Page 4
absorbed by the green plant, enabling it to grow.      include: fire, rest (non-disturbance or letting the
Plants are eaten by animals that are in turn eaten     land lay idle), grazing, animal impact (trampling
by predators which are eaten by even higher            the land with very high stock density for a short
predators. During each step, energy is being           time) and living organisms (naturally occurring
transferred from one level to the next. Energy is      plants and animals which can be harnessed to
transferred below ground through plant roots           our benefit). Three additional tools we may not
that eventually die. The dead roots become food        consider as tools are money, labor, and creativity.
for decomposer organisms. The waste and by-            These last three tools cannot be used alone but
products from the primary decomposers are              only in conjunction with other tools.
consumed by another set of secondary
decomposers. Finally the residue is broken down        Each of the above mentioned tools affects the
into plant available nutrients and soil humus. At      landscape depending on when and how they are
each step of the decomposition process, energy is      used and in what climatic region. For example,
either transferred from one organism to another        in moist regions with frequent rainfall, rest
or is lost as heat.                                    restores biodiversity to natural landscapes. In
                                                       dryer areas with seasonal rainfall, rest reduces
High energy flow is typified by a thick stand of       biodiversity. In those drier regions, animal
green plants covering the soil for as long a time      impact is most beneficial in restoring rangeland
as possible. Growing mixtures of two or more           health (1).
plant types increases the leaf area available to
capture sunlight. The volume of plants (tight          Many of the technology tools we often use can be
spacing) also enhances energy flow. By growing         replaced by living organisms in creative ways.
two or more crops per year, we can lengthen the        One example comes from a Canadian rancher
time that plants are in the field collecting solar     who solved his gopher problem by erecting hawk
energy. If soils are left bare, no sunlight is being   perches over his pastures. When the hawks
converted into energy. When energy flow is             patrolled the area regularly by using the perches,
reduced by periods when the soil is bare or            the gophers left in search of safer feeding areas.
without a crop, the decomposer organisms living
in the soil are on a starvation diet.                  Testing Decisions

When we modify any one of these natural                Decision making (choosing tools and how to use
processes (water cycle, mineral cycle, biodiver-       them) is handled in an organized fashion in
sity, and energy flow) we affect the others as         Holistic Management. Each decision is subjected
well—after all, they function as a whole. When         to several simple testing questions that enable the
we build our farm enterprises around these             decision-maker to see the likely effects of that
natural processes, we have a plan that will            decision on the whole. By quickly running a
sustain our family today and future generations        decision through the testing questions you get
tomorrow. After all, these are nature’s rules. The     some assurance that the decision will be sound
sooner we live by them rather than fighting them,      environmentally, economically, and socially.
the sooner we will produce a sustainable farm.
When we fight nature’s rules, we only hurt             There are seven tests but not all will apply to
ourselves in the end.                                  every decision. If information is lacking to
                                                       make the decision, the testing will catch it.
Deciding Which Tools to Use                            Testing forces the manager to consider much
                                                       more than just cost or gut feel. If the decision
The word “tools” is used broadly in holistic           fails one or more tests, the decision may be
management. Though we tend to think first of           modified and run back through the testing
technology in all its many forms when we think         guidelines again. After a second testing failure
of tools (include everything from hand tools to        the decision might be abandoned all together.
high tech computers), there are several other          After a person gains experience, the testing
tools available to us. The additional tools            questions become internalized. From that point

                       // HOLISTIC MANAGEMENT                                                  Page 5
on, appropriate testing guidelines automatically      The following is adapted from an article he
come to mind when faced with decisions.               published in the HRM Quarterly, Spring 1996: p.
                                                      3–4. Table 2 shows major changes and observa-
One way to look at testing decisions in this          tions before and after holistic management.
manner is to consider testing as the needle on a
compass and the holistic goal as the magnetic         Ranching is a biological process, not an industrial
north the compass is attracted to. All testing is     process (3). The objective is to promote life and
done toward the holistic goal. In fact, the first     turn it into dollars. Prior to managing holisti-
question a person should ask is: does this            cally, Davis was using many chemicals that kill
decision take me closer to my holistic goal? If the   life. Spraying for horn flies also killed the
answer is clearly no, then drop the decision. If      beneficial insects. When he stopped spraying,
the answer is yes or maybe, then test the decision    the number of horn flies went down. When the
further.                                              cattle were moved regularly, the horn fly larvae
                                                      that hatched from the cow manure were left
Monitoring Our Decisions                              behind where parasites could feed on the fly
                                                      larvae. Their horsefly problem also went away
Because nature is so complex that we can only         because the solitary wasps that feed on horseflies
begin to understand it, decisions affecting the       were able to increase their population without
landscape are assumed wrong and closely               the sprays. Working with nature causes many
monitored for early warning indicators of need        problems to be designed out of the system while
for change. For example, if range burning is used     at the same time reducing operating costs.
to increase the plant density, one would look at
the plant density later to determine if the effort    When Walt changed his calf-weaning program,
was successful. By assuming the decision is           the need for medications for stress induced by the
wrong, we humble ourselves to the great               weaning became unnecessary. Up until this time
complexity in nature, thus forcing us to monitor      Davis had looked to technology to fix problems.
to keep on track toward our holistic goal. If we      Taking a closer look at the root cause of this
assume our decision is right, we might not            problem led to a new way to wean the calves. He
monitor at all, or if we did, it would be only to     simply separated them from the mother cows
record the results. Once this new holistic            with an electric fence.
perspective is internalized and decisions are
made accordingly, things begin to change for the      At first the calves bawled for about 45 minutes,
better. Profits increase, the environment             then the mothers and calves laid out next to each
improves, and rural families prosper.                 other along opposite sides of the fence and were
                                                      happy. The stress was psychological, not from
Holistic Management—In Practice                       hunger that formerly made the calves sick. Since
                                                      starting to manage holistically, Walt prevents
Example # 1                                           most problems rather than solving them with
Oklahoma rancher Walt Davis realized a number         purchased inputs after they happen.
of benefits after he started managing holistically.

Table 2. The Walt Davis ranch before and after holistic management.

Before Holistic Management                                 After Holistic Management
Cost $378/cow                                              Cost $83/cow
Fall calving                                               Spring calving
Spraying for flies                                         Flies no longer a problem
Rotating cattle                                            Planned grazing
Terrible cattle performance                                Stopped fertilizing pasture
                                                           More pasture plant diversity
                                                           Stopped spraying

                       // HOLISTIC MANAGEMENT                                                 Page 6
The financial planning aspects of holistic          families pay a set amount at the start of the
management have allowed the Davises to remain       season for this weekly delivery. All the produce
profitable for over 15 years in a row. Even         is delivered within 24 hours of harvesting, which
through the tough years of 1988 with ¼ of normal    gives customers the ultimate in freshness.
rainfall, and 1989 with a short grass season and
1990 when 80% of the ranch went under water,        Another 55 people signed up for a weekly
the ranch was still profitable. The most progress   bouquet of flowers from the farm also. The
in the beginning came from a better understand-     financial planning helped Dave and Meg see the
ing of the ecosystem processes. This under-         optimum level of production that allows them to
standing led to long-term success. When the         control their own prices. They used the financial
Davises set their holistic goal, they had a clear   planning software to play “what-if” games with
picture of where they were going and what they      different levels of production. Seven years into
wanted. All their decisions were based on           operation they have more business than they can
pursuit of that holistic goal.                      handle.

Example # 2                                         Example # 3
The following discussion is adapted from            The following is adapted from “Learning
“Building the Soil First—a successful organic       Success” by Ann Adams, published in Holistic
farm” published in Holistic Management Quarterly,   Management In Practice, July 1998. p. 6–7.
April 1998. p. 4–5.
                                                    Robert and Cheryl Cosner and their three
Dave Washburn and Meg Anderson,organic              children operate an 800-acre ranch in the south
vegetable farmers of Stillwater, Minnesota, were    central part of Washington. They first learned
an urban couple with a dream of becoming            about holistic management in 1984. It wasn’t
organic farmers. Both had careers in Minnea-        until 1989 that they took their first introductory
polis when they quit their corporate jobs and       course and wrote their first holistic plan. They
bought a 35-acre farm in Stillwater. They           raise registered Angus cattle but have recently
quickly ran into financial challenges and could     started running 40 ewes with their 75 head of
see no way to recoup their initial investment.      cattle with plans to venture into art-quality wool.
Two years into their farming operations they        Since managing holistically they are more able to
took a course in Holistic Management. Holistic      see the options open to them and are more
Management made sense to them immediately.          patient in letting those options unfold.
Through using the decision-making process
they could see clearly which tools were really      The impetus to investigate Holistic Management
needed, and that most of the tools on their         coincided with the breakup of a ranching
“wish list” were not needed at all. They quickly    partnership. The dissolution left them operating
learned that marketing and pricing were key to      in crisis mode and without adequate machinery.
their success. Washburn and Anderson find
they can meet their labor needs with local          This situation required them to use their
college graduates who want to go into farming.      creativity. Misfortune actually forced them out of
They also hire Hmong workers (Asian hill tribe      conventional thinking mode and slowed down
immigrants) and provide them with land to           their decision making. By looking at a problem
grow gardens for their own use. When they           from a number of angles, they eventually got
have decisions to make, they sit down and test      more information or understanding about the
them towards their holistic goal. It takes about    larger issues surrounding the problem. “You
5 minutes to come to agreement without any          have to keep being open,” says Robert. “Change
arguments (4).                                      comes in small steps unless you have an instant
                                                    paradigm shift” (5). Two questions they continue
As of 1998 they serve 250 local families that       to ask themselves are “How can we solve this
receive weekly seasonal vegetables through their    problem for free?” and, “What is the least
community supported agriculture operation. The      expensive way of getting it done?”


                      // HOLISTIC MANAGEMENT                                                 Page 7
Asking the right kind of questions led them to        •   live life according to one’s values,
create a holistic financial plan. They needed         •   test decisions to see if they conflict with the
some after-tax profit and to pay off their                desired lifestyle,
operating loan free and clear so they could build     •   monitor decisions to stay on track toward a
their own line of credit. Paying off their loan           desired lifestyle,
became the focus of the financial plan. This focus    •   understand the effect of decisions on the
helped them to make more decisions holistically.          landscape.
Though they wanted to get out of the hay-cutting
business, they decided to continue to cut hay         Students leave the decision making class with
until the debt was paid off. Within 5 years, it was   their own values-based holistic goal. There is
paid off. They were pleased at how well the           ample opportunity to practice the decision-
financial planning gave them a target to shoot for    making skills in class with the instructor’s aid.
and a way to judge their progress. When their         The holistic goal provides a descriptive road
banker learned of their financial plan he was so      map to the future and a guidepost to decision
impressed that he discussed the possibility of the    making for the people who are managing the
Cosners teaching holistic financial planning to       whole.
some of the banker’s other customers. After that,
the Cosners realized that their concerns about        Holistic Financial Planning
finances drew them more deeply into practicing        In financial planning you will learn: the business
holistic management. “The financial planning          of agriculture, why some farmers fail to make a
was a tool that helped us get past the crisis and     profit, how to select enterprises which are
on to the next stage.”                                profitable, how to plan a profit and produce it
                                                      rather than striving for production only, how to
Training is Available                                 allocate expense dollars where they do the most
                                                      good, how to produce a list of potential enter-
With rare exceptions, most holistic managers take     prises in 20 minutes and pick out the most
training from a certified educator in a classroom     profitable ones which do not conflict with your
setting. The Savory Center for Holistic Manage-       values. The financial planning class utilizes
ment in Albuquerque, New Mexico (6), certifies a      many of the decision-making skills learned
limited number of educators who have under-           earlier to make financial decisions.
gone specific training in helping others learn to
practice holistic management.                         Holistic Biological, Grazing, and Land Planning
                                                      In this class, people learn how to manage
Certified educators are located throughout the        landscapes holistically. You develop skills to
world and can also provide technical assistance       create a detailed land plan that includes not only
when necessary. These educators are committed         the crop and livestock arrangements but also
to practicing holistic management in their own        wildlife and recreational needs and the quality of
lives, seek out opportunities for staying current     life defined in the holistic goal. You learn how to
with the latest developments in holistic manage-      manage your landscape in tune with nature’s
ment, and maintain high standards of ethical          principles, which assures sustainability. You get
conduct in their work. The coursework each            practice in monitoring rangeland, grassland, and
educator offers varies somewhat but generally         cropland for indicators of how well nature’s
falls into the following headings:                    principles are working on your land. The grazing
                                                      and land plan complement the financial plan to
Holistic Decision Making                              assure economic, social, and environmental
                                                      sustainability.
In the introductory course one learns how to:
• make sense out of all the choices faced daily,      For More Information
• move from crisis management to planned              Contact the Savory Center for Holistic Manage-
    prosperity,                                       ment for more information and a referral to a
• create more time to enjoy life,                     certified educator in your area or a local network

                       // HOLISTIC MANAGEMENT                                                   Page 8
(see reference #6). Or visit their web page at:                   References:
www.holisticmanagement.org Holistic
management was first developed by Allan                           1)       Savory, Allan with Jody Butterfield. 1999.
Savory who wrote the book Holistic Resource                                Holistic Management—A New Framework for
Management, published in 1988. Since that time                             Decision Making. Island Press. Covelo, CA.
                                                                           550 p. Available from the Center (ref. # 6).
the book has been updated and the title now is
simply: Holistic Management. The Savory Center                     2)      Butterfield, Jody. 1994. Struggling to generate
for Holistic Management, which Savory founded                              wealth. HRM Quarterly. Fall. p. 4–5.
in 1985, offers training in holistic management
through its network of certified educators across                 3)       Davis, Walt. 1996. When values run your
the US and several foreign countries. The Savory                           ranch. HRM Quarterly. Spring. p. 3-4.
Center, staffed by 9 dedicated individuals,
operates under the non-profit status. Addition-                   4)       Halpin, Sandra. 1998. Building the soil first—
ally, they supply many useful materials to holistic                        a successful small organic farm. Holistic Man-
managers and educators.                                                    agement Quarterly. April. p. 4–5.

                                                                  5)       Adams, Ann. 1998. Learning success.
Summary                                                                    Holistic Management in Practice. July 1998.
                                                                           p. 6–7.
In summary, the holistic decision–making
process incorporates values-based goal setting,                   6)       Allan Savory Center for Holistic Management
the appropriate use of tools, financial planning,                          1010 Tijeras, N.W.
land planning, biological planning, and careful                            Albuquerque, NM 87102
monitoring of effects. All these aspects are                               505-842-5252
managed as a whole unit. The benefits are                                  800-654-3619
higher quality of life, financial stability,
consistent profitability, and the confidence of
knowing that your decisions are improving the
environment and the community you live in. It                     By Preston Sullivan
provides people with a means to make decisions                    NCAT Agriculture Specilaist
that more accurately mirror the way nature
functions (in wholes), and thereby ensure that
our civilization is truly sustainable over time.                  July 2001




 IP154

  The ATTRA Project is operated by the National Center for Appropriate Technology under a grant from the Rural
  Business-Cooperative Service, U.S. Department of Agriculture. These organizations do not recommend or endorse
  products, companies, or individuals. ATTRA is located in the Ozark Mountains at the University of Arkansas in
  Fayetteville at P.O. Box 3657, Fayetteville, AR 72702. ATTRA staff members prefer to receive requests for
  information about sustainable agriculture via the toll-free number 800-346-9140.




                          // HOLISTIC MANAGEMENT                                                                  Page 9
Notes:
               Notes:




// HOLISTIC MANAGEMENT   Page 10
Feedback
1. Does this publication provide the information you were looking for?
   How could it be improved?




2. Do you know a farmer who is implementing techniques discussed in
   this publication? Can you provide their address and phone number?




3. Do you know of any related research that would add to the informa-
   tion presented here?




4. Do you know a good related website not listed in this publication?




5. Please add any other information, or comments that you wish to share.




           // HOLISTIC MANAGEMENT                                 Page 11
Fayetteville, AR 72702
                                      PO Box 3657
                                      NCAT/ATTRA




––––––––––––––––––––––––––––––––––––––––––––––– FOLD –––––––––––––––––––––––––––––––––––––––––––––




                        Thank You
              FOR YOUR VALUABLE FEEDBACK




                      // HOLISTIC MANAGEMENT                                             Page 12

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Holistic Management: A Whole-Farm Decision Making Framework

  • 1. 800-346-9140 HOLISTIC MANAGEMENT A WHOLE-FARM DECISION MAKING Appr i e Technol Tr opr at ogy ansf f Rur Ar er or al eas FRAMEWORK FUNDAMENTALS OF SUSTAINABLE AGRICULTURE www.attra.ncat.org ATTRA is the national sustainable agriculture information center funded by the USDA’s Rural Business -- Cooperative Service. Abstract: This publication serves as an introduction to holistic management and provides resources for further information. Holistic Management is a decision making framework that assists farmers and others in establishing a long-term goal, a detailed financial plan, a biological plan for the landscape and a monitoring program to assess progress toward the goal. Holistic Management helps managers to ask the right questions and guides them in setting priorities. In holistic financial planning, profit is planned at the beginning of the year. This is in stark contrast to conventional financial planning where the net profit is often non-existent or a small amount left over once expenses are accounted for. By Preston Sullivan NCAT Agriculture Specialist — July 2001 Sustainable agriculture seeks in principle to “sustain” economic viability, environmental stewardship, and social responsibility. These three tenets are to be embraced as one functional unit. Decisions concerning a sustainable agriculture should then enhance the environment and the farmer’s economic situation and benefit the regional society. Holistic Management gives us a way to move forward on these three tenets. It gives us a way to design agriculture to truly mimic nature’s principles of sustainability. It gives us a way to make decisions that automatically take into account the society, the economics, and the environment before they are made. other skill. People who manage holistically can realize an improved quality of life and generate What is Holistic Management? real wealth, while at the same time improving the land and community around them. They Holistic Management is a simple decision- develop the ability to ask the right questions and making framework that can be learned like any to confidently proceed toward the future they design for themselves. Holistic Management is Contents for anyone who wants consistent profit from What is Holistic Management? ............................1 agriculture, a high quality of life, and more time The Holistic Management Process........................2 to enjoy it. In short, it’s a way to have fun, make Financial Planning ................................................2 money and conserve our natural resource base, The Landscape That Sustains Us..........................3 all at the same time. Deciding Which Tools to Use ................................5 Testing Decisions .................................................5 Monitoring Our Decisions.....................................6 Holistic Management is a process for sorting out Holistic Management-In Practice ..........................6 and making sense of all the tools and choices that Training is Available.............................................8 face us each day. Once a person begins to References ..........................................................9 manage holistically, he or she learns what to say no to, and what to say yes to. Being a proactive IS A PROJECT OF THE NATIONAL CENTER FOR APPROPRIATE TECHNOLOGY
  • 2. process, holistic managers learn how to move Financial Planning beyond crisis management and toward planned prosperity. They are able to manage their Holistic managers use a potent financial planning finances wisely, have more time for enjoyment, process that empowers them to make decisions live life according to their values, and gain the that are simultaneously good for the environ- confidence of knowing that their decisions are ment, the local community and the bottom line. improving the environment and the community The holistic financial plan provides a road map to they live in—leading to a better world for their help people navigate through their financial year, grandchildren. assured that the profit will be there at year’s end. The financial plan allows managers to select The Holistic Management Process enterprises that do not conflict with their values, and then to plan a profit up front. Once the profit As the name “holistic” implies, resources are is planned from the expected income, expense managed in whole units rather than as parts in dollars are allocated sequentially where they will isolation from their surroundings. In order to do the most good. have a clear description of what is being managed, people begin by defining their whole. Holistic financial planning differs from conven- This definition involves a listing of all the tional financial planning in several ways. decision-makers involved in management, the Conventional cash flow budgeting involves resources they have to work with, and the money estimating income from an enterprise, then available. From there, a detailed holistic goal is allocating expenses for capital investment, developed. The holistic goal includes a values- variable costs, and fixed costs. Attempts are based quality of life statement, a listing of forms made to keep costs below anticipated gross of production that will make the quality of life income by using past records and other possible, and a description of how the land base information and adjusting for cost trends. As needs to be far into the future, in order to sustain long as the expenses appear cost effective and the the production. plan predicts no cash shortages the bank won’t cover, all should go well. Still, the results of cash Defining the whole and writing a goal is a flow planning often include considerable anxiety powerful exercise. People who have written towards year’s end over the profit margin. In goals are much more likely to succeed than many cases, the expenses nearly equal the those who do not. Since the holistic goal is planned gross income, producing very little based on the deeper underlying values of the profit (1). Usually there are plenty of excuses to decision-makers, it empowers them to ask better make up for the small margin—weather, markets, questions, to ask the deeper questions, to ask and pests. All too often we may take the attitude appropriate questions from which they can of, oh well, things will be better next year. make better decisions. Some examples include: “Why am I farming in the first place?” “What is With holistic financial planning the projected it that I’m trying to accomplish?” “What kind of income is planned, then the desired profit is world do I want for my grandchildren?” allocated at the outset, heavily affecting how the Building a farm plan on these questions makes remainder of the budget will be allocated. for a powerful plan. Planning a hefty profit before any expenses are allocated is a key distinction. After profit is The holistic goal remains the centerpiece of planned, expenses are allocated into three holistic management and is referred to constantly categories: Wealth generating, Inescapable, and when management decisions are being made. Maintenance (W I M for short). Wealth generating The goal is what drives the decision-making. But expenses produce profit for the operation this there’s more. In order to sustain a farm year. Inescapable expenses must be paid operation, profit must come from somewhere. regardless (taxes, land payments, etc.), while Most likely, at least some of the profit will come maintenance expenses, though essential to the from on-farm enterprises. business, do not produce profit this year. // HOLISTIC MANAGEMENT Page 2
  • 3. Overhead and variable categories are not used at using conventional cash flow budgeting, all because they don’t describe what the expenses production is the goal, not profit. With holistic within each category do for the enterprise. Once financial planning, profit is the goal and the holistic financial plan is written, it is monitored production is the means of achieving it. That’s monthly to stay on track toward the planned why profit is allocated right off the top of profit. Monthly monitoring allows deviations anticipated income. Planning a hefty profit up from plan to be caught early and corrected before front forces the manager to overcome the three there is serious financial trouble. The financial tendencies that lead to low profit margins. From planning process helps control three human there, meeting necessary expenses after planning tendencies that work against financial success: 1) our profit requires creativity. How the profit is the tendency to allow cost of production to rise to used at the end of the year is unimportant, but the the level of optimistically anticipated income, 2) objective of holistic planning is to make sure there the tendency to borrow heavily against the will be a substantial profit at the end of the year. optimistically anticipated income, 3) the tendency Some of the key distinctions between holistic to do little planning ahead of time on paper. Even financial planning and the conventional cash flow when planning is done model that most farmers use are shown in Table 1. Table 1. Distinctions between holistic financial planning and cash flow planning. Holistic Cash-flow profit is the goal production is the goal profit is planned first profit is what’s left over expenses put into W I M categories expenses put in overhead and variable costs monthly monitoring to stay on track annual monitoring? Figure 1 below shows a comparison between a The Landscape That Sustains Us cash-flow budget and a holistic budget for a dairy farm in Ohio (2). Each budget used the same Since we all depend directly on the landscape for projected income; however, the cash-flow budget our very existence (food, clothes, water, etc.), we uses expense categories which in effect mask any benefit greatly from gaining a complete knowledge of where to cut expenses without understanding of how the landscape functions. affecting profit. Notice that no debt service is The very essence of the term “holistic” is that broken out and a shortfall of $26,000 is shown. nature functions only in wholes, not in parts, and that we will understand nature better when we With the holistic budget, the expenses are put manage it as a whole rather than as separate into categories of wealth generating expenses, parts. Holistic Management gives people a way inescapable expenses, and maintenance expenses. to make decisions that more accurately mirror the Using these categories, one can easily see where way nature functions (in wholes) and thereby to cut expenses, while preserving our planned ensure that our farming is truly sustainable over profit and still meeting our debt obligations. The time. excess maintenance expenses of $26,000 will have to be cut by creative means to preserve our profit To better understand how nature functions, her and still meet the debt obligation. basic processes need to be considered. Looking closely, four basic processes can be found in all There is much more to holistic financial planning natural systems. First, water falls to earth as rain, than has been introduced here. Some additional filters through the soil and is either taken up by aspects include managing debt, testing financial plants or continues downward to become ground decisions toward a well-defined goal, creating water. When water is cycling effectively, floods and using a livestock production worksheet to are infrequent and of lower impact, water is plan cattle buying and selling, and brainstorming released slowly through underground flow into new enterprises. springs and streams, and erosion is virtually non- // HOLISTIC MANAGEMENT Page 3
  • 4. Cash-flow Budget Income...................................................................................................................150,000 Operating Expenses.............................................................................................110,000 Administrative Expenses....................................................................................62,000 Capital Expenditures................................................................................................ 4,000 Cash flow.................................................................................................................... <26,000> Holistic Budget Income...................................................................................................................150,000 Debt Service ............................................................................................................... 36,000 $ Available for Operations ...................................................................................... 114,000 Less 25% profit .............................................................................. 28,500 $ Available for Expenses ........................................................... 85,500 Wealth generating expenses ..................................................9,100 Inescapable expenses ................................................................. 3,400 $ Available for Maintenance..................................................... 73,000 Maintenance expenses ............................................................... 99,000 Excess maintenance expenses to be cut .............................................................. 26,000 Figure 1. Comparison of budgeting process in holistic & conventional management existent. If on the other hand, bare soil is exposed monoculture represent a simple level of diversity. and plant density is low, most water runs off the Monocultures are almost never present in nature. landscape rapidly resulting in soil erosion, much Monocultures require great energy expenditure, less water entry into the soil, and severe and either with fossil fuels or animal and human more frequent flooding. So, an effective water power to maintain. Weed invasion is nature’s cycle is apparent in nature and essential to a way of injecting diversity into monocultural sustainable agriculture. cropland. When biodiversity is increased, the cost of pest control and fertilizer is decreased. A second natural process we can observe in Crop rotation is the first step toward increasing nature is the mineral cycle through the biological biodiversity on the farm. It helps break weed system. Minerals needed for biological growth and pest life cycles and provides complementary are constantly recycled from soil to plant to fertilization to crops in sequence with each other. animal and back to soil again. There is very little Advancing from rotation to strip intercrops waste in the natural mineral cycle. There is no represents an even higher level of biodiversity. need for fertilizer in nature, as all the fertility is Strip intercrops of corn and soybeans or cotton recycled again and again with very little loss. and alfalfa are two examples. Increasing habitat Ultimately, to be sustainable, we need to find for more beneficial organisms with more borders, ways to utilize the natural mineral cycle while windbreaks, and special plantings for natural minimizing our off-farm purchase of minerals. enemies of pests represent even higher levels of Farming practices that inhibit the natural mineral biodiversity and stability. For more information cycle, only reduce the sustainability of our farm. on biodiversity, request the ATTRA publications entitled Intercropping Principles and Production A third natural process shows us that plant and Practices and Farmscaping to Enhance Biological animal communities strive toward high Control. biodiversity. Not only is diversity high in the numbers of species, but also the genetic diversity The fourth natural process involves the flow of within species, and a wide age structure of each energy from the sun through the biological population present. Greater diversity produces system. The sun is the fuel driving the biology of greater stability within the system. It also assures our farm. Energy flows from the sun through the minimal pest problems. Large expanses of ecosystem from one level to the next. Sunlight is // HOLISTIC MANAGEMENT Page 4
  • 5. absorbed by the green plant, enabling it to grow. include: fire, rest (non-disturbance or letting the Plants are eaten by animals that are in turn eaten land lay idle), grazing, animal impact (trampling by predators which are eaten by even higher the land with very high stock density for a short predators. During each step, energy is being time) and living organisms (naturally occurring transferred from one level to the next. Energy is plants and animals which can be harnessed to transferred below ground through plant roots our benefit). Three additional tools we may not that eventually die. The dead roots become food consider as tools are money, labor, and creativity. for decomposer organisms. The waste and by- These last three tools cannot be used alone but products from the primary decomposers are only in conjunction with other tools. consumed by another set of secondary decomposers. Finally the residue is broken down Each of the above mentioned tools affects the into plant available nutrients and soil humus. At landscape depending on when and how they are each step of the decomposition process, energy is used and in what climatic region. For example, either transferred from one organism to another in moist regions with frequent rainfall, rest or is lost as heat. restores biodiversity to natural landscapes. In dryer areas with seasonal rainfall, rest reduces High energy flow is typified by a thick stand of biodiversity. In those drier regions, animal green plants covering the soil for as long a time impact is most beneficial in restoring rangeland as possible. Growing mixtures of two or more health (1). plant types increases the leaf area available to capture sunlight. The volume of plants (tight Many of the technology tools we often use can be spacing) also enhances energy flow. By growing replaced by living organisms in creative ways. two or more crops per year, we can lengthen the One example comes from a Canadian rancher time that plants are in the field collecting solar who solved his gopher problem by erecting hawk energy. If soils are left bare, no sunlight is being perches over his pastures. When the hawks converted into energy. When energy flow is patrolled the area regularly by using the perches, reduced by periods when the soil is bare or the gophers left in search of safer feeding areas. without a crop, the decomposer organisms living in the soil are on a starvation diet. Testing Decisions When we modify any one of these natural Decision making (choosing tools and how to use processes (water cycle, mineral cycle, biodiver- them) is handled in an organized fashion in sity, and energy flow) we affect the others as Holistic Management. Each decision is subjected well—after all, they function as a whole. When to several simple testing questions that enable the we build our farm enterprises around these decision-maker to see the likely effects of that natural processes, we have a plan that will decision on the whole. By quickly running a sustain our family today and future generations decision through the testing questions you get tomorrow. After all, these are nature’s rules. The some assurance that the decision will be sound sooner we live by them rather than fighting them, environmentally, economically, and socially. the sooner we will produce a sustainable farm. When we fight nature’s rules, we only hurt There are seven tests but not all will apply to ourselves in the end. every decision. If information is lacking to make the decision, the testing will catch it. Deciding Which Tools to Use Testing forces the manager to consider much more than just cost or gut feel. If the decision The word “tools” is used broadly in holistic fails one or more tests, the decision may be management. Though we tend to think first of modified and run back through the testing technology in all its many forms when we think guidelines again. After a second testing failure of tools (include everything from hand tools to the decision might be abandoned all together. high tech computers), there are several other After a person gains experience, the testing tools available to us. The additional tools questions become internalized. From that point // HOLISTIC MANAGEMENT Page 5
  • 6. on, appropriate testing guidelines automatically The following is adapted from an article he come to mind when faced with decisions. published in the HRM Quarterly, Spring 1996: p. 3–4. Table 2 shows major changes and observa- One way to look at testing decisions in this tions before and after holistic management. manner is to consider testing as the needle on a compass and the holistic goal as the magnetic Ranching is a biological process, not an industrial north the compass is attracted to. All testing is process (3). The objective is to promote life and done toward the holistic goal. In fact, the first turn it into dollars. Prior to managing holisti- question a person should ask is: does this cally, Davis was using many chemicals that kill decision take me closer to my holistic goal? If the life. Spraying for horn flies also killed the answer is clearly no, then drop the decision. If beneficial insects. When he stopped spraying, the answer is yes or maybe, then test the decision the number of horn flies went down. When the further. cattle were moved regularly, the horn fly larvae that hatched from the cow manure were left Monitoring Our Decisions behind where parasites could feed on the fly larvae. Their horsefly problem also went away Because nature is so complex that we can only because the solitary wasps that feed on horseflies begin to understand it, decisions affecting the were able to increase their population without landscape are assumed wrong and closely the sprays. Working with nature causes many monitored for early warning indicators of need problems to be designed out of the system while for change. For example, if range burning is used at the same time reducing operating costs. to increase the plant density, one would look at the plant density later to determine if the effort When Walt changed his calf-weaning program, was successful. By assuming the decision is the need for medications for stress induced by the wrong, we humble ourselves to the great weaning became unnecessary. Up until this time complexity in nature, thus forcing us to monitor Davis had looked to technology to fix problems. to keep on track toward our holistic goal. If we Taking a closer look at the root cause of this assume our decision is right, we might not problem led to a new way to wean the calves. He monitor at all, or if we did, it would be only to simply separated them from the mother cows record the results. Once this new holistic with an electric fence. perspective is internalized and decisions are made accordingly, things begin to change for the At first the calves bawled for about 45 minutes, better. Profits increase, the environment then the mothers and calves laid out next to each improves, and rural families prosper. other along opposite sides of the fence and were happy. The stress was psychological, not from Holistic Management—In Practice hunger that formerly made the calves sick. Since starting to manage holistically, Walt prevents Example # 1 most problems rather than solving them with Oklahoma rancher Walt Davis realized a number purchased inputs after they happen. of benefits after he started managing holistically. Table 2. The Walt Davis ranch before and after holistic management. Before Holistic Management After Holistic Management Cost $378/cow Cost $83/cow Fall calving Spring calving Spraying for flies Flies no longer a problem Rotating cattle Planned grazing Terrible cattle performance Stopped fertilizing pasture More pasture plant diversity Stopped spraying // HOLISTIC MANAGEMENT Page 6
  • 7. The financial planning aspects of holistic families pay a set amount at the start of the management have allowed the Davises to remain season for this weekly delivery. All the produce profitable for over 15 years in a row. Even is delivered within 24 hours of harvesting, which through the tough years of 1988 with ¼ of normal gives customers the ultimate in freshness. rainfall, and 1989 with a short grass season and 1990 when 80% of the ranch went under water, Another 55 people signed up for a weekly the ranch was still profitable. The most progress bouquet of flowers from the farm also. The in the beginning came from a better understand- financial planning helped Dave and Meg see the ing of the ecosystem processes. This under- optimum level of production that allows them to standing led to long-term success. When the control their own prices. They used the financial Davises set their holistic goal, they had a clear planning software to play “what-if” games with picture of where they were going and what they different levels of production. Seven years into wanted. All their decisions were based on operation they have more business than they can pursuit of that holistic goal. handle. Example # 2 Example # 3 The following discussion is adapted from The following is adapted from “Learning “Building the Soil First—a successful organic Success” by Ann Adams, published in Holistic farm” published in Holistic Management Quarterly, Management In Practice, July 1998. p. 6–7. April 1998. p. 4–5. Robert and Cheryl Cosner and their three Dave Washburn and Meg Anderson,organic children operate an 800-acre ranch in the south vegetable farmers of Stillwater, Minnesota, were central part of Washington. They first learned an urban couple with a dream of becoming about holistic management in 1984. It wasn’t organic farmers. Both had careers in Minnea- until 1989 that they took their first introductory polis when they quit their corporate jobs and course and wrote their first holistic plan. They bought a 35-acre farm in Stillwater. They raise registered Angus cattle but have recently quickly ran into financial challenges and could started running 40 ewes with their 75 head of see no way to recoup their initial investment. cattle with plans to venture into art-quality wool. Two years into their farming operations they Since managing holistically they are more able to took a course in Holistic Management. Holistic see the options open to them and are more Management made sense to them immediately. patient in letting those options unfold. Through using the decision-making process they could see clearly which tools were really The impetus to investigate Holistic Management needed, and that most of the tools on their coincided with the breakup of a ranching “wish list” were not needed at all. They quickly partnership. The dissolution left them operating learned that marketing and pricing were key to in crisis mode and without adequate machinery. their success. Washburn and Anderson find they can meet their labor needs with local This situation required them to use their college graduates who want to go into farming. creativity. Misfortune actually forced them out of They also hire Hmong workers (Asian hill tribe conventional thinking mode and slowed down immigrants) and provide them with land to their decision making. By looking at a problem grow gardens for their own use. When they from a number of angles, they eventually got have decisions to make, they sit down and test more information or understanding about the them towards their holistic goal. It takes about larger issues surrounding the problem. “You 5 minutes to come to agreement without any have to keep being open,” says Robert. “Change arguments (4). comes in small steps unless you have an instant paradigm shift” (5). Two questions they continue As of 1998 they serve 250 local families that to ask themselves are “How can we solve this receive weekly seasonal vegetables through their problem for free?” and, “What is the least community supported agriculture operation. The expensive way of getting it done?” // HOLISTIC MANAGEMENT Page 7
  • 8. Asking the right kind of questions led them to • live life according to one’s values, create a holistic financial plan. They needed • test decisions to see if they conflict with the some after-tax profit and to pay off their desired lifestyle, operating loan free and clear so they could build • monitor decisions to stay on track toward a their own line of credit. Paying off their loan desired lifestyle, became the focus of the financial plan. This focus • understand the effect of decisions on the helped them to make more decisions holistically. landscape. Though they wanted to get out of the hay-cutting business, they decided to continue to cut hay Students leave the decision making class with until the debt was paid off. Within 5 years, it was their own values-based holistic goal. There is paid off. They were pleased at how well the ample opportunity to practice the decision- financial planning gave them a target to shoot for making skills in class with the instructor’s aid. and a way to judge their progress. When their The holistic goal provides a descriptive road banker learned of their financial plan he was so map to the future and a guidepost to decision impressed that he discussed the possibility of the making for the people who are managing the Cosners teaching holistic financial planning to whole. some of the banker’s other customers. After that, the Cosners realized that their concerns about Holistic Financial Planning finances drew them more deeply into practicing In financial planning you will learn: the business holistic management. “The financial planning of agriculture, why some farmers fail to make a was a tool that helped us get past the crisis and profit, how to select enterprises which are on to the next stage.” profitable, how to plan a profit and produce it rather than striving for production only, how to Training is Available allocate expense dollars where they do the most good, how to produce a list of potential enter- With rare exceptions, most holistic managers take prises in 20 minutes and pick out the most training from a certified educator in a classroom profitable ones which do not conflict with your setting. The Savory Center for Holistic Manage- values. The financial planning class utilizes ment in Albuquerque, New Mexico (6), certifies a many of the decision-making skills learned limited number of educators who have under- earlier to make financial decisions. gone specific training in helping others learn to practice holistic management. Holistic Biological, Grazing, and Land Planning In this class, people learn how to manage Certified educators are located throughout the landscapes holistically. You develop skills to world and can also provide technical assistance create a detailed land plan that includes not only when necessary. These educators are committed the crop and livestock arrangements but also to practicing holistic management in their own wildlife and recreational needs and the quality of lives, seek out opportunities for staying current life defined in the holistic goal. You learn how to with the latest developments in holistic manage- manage your landscape in tune with nature’s ment, and maintain high standards of ethical principles, which assures sustainability. You get conduct in their work. The coursework each practice in monitoring rangeland, grassland, and educator offers varies somewhat but generally cropland for indicators of how well nature’s falls into the following headings: principles are working on your land. The grazing and land plan complement the financial plan to Holistic Decision Making assure economic, social, and environmental sustainability. In the introductory course one learns how to: • make sense out of all the choices faced daily, For More Information • move from crisis management to planned Contact the Savory Center for Holistic Manage- prosperity, ment for more information and a referral to a • create more time to enjoy life, certified educator in your area or a local network // HOLISTIC MANAGEMENT Page 8
  • 9. (see reference #6). Or visit their web page at: References: www.holisticmanagement.org Holistic management was first developed by Allan 1) Savory, Allan with Jody Butterfield. 1999. Savory who wrote the book Holistic Resource Holistic Management—A New Framework for Management, published in 1988. Since that time Decision Making. Island Press. Covelo, CA. 550 p. Available from the Center (ref. # 6). the book has been updated and the title now is simply: Holistic Management. The Savory Center 2) Butterfield, Jody. 1994. Struggling to generate for Holistic Management, which Savory founded wealth. HRM Quarterly. Fall. p. 4–5. in 1985, offers training in holistic management through its network of certified educators across 3) Davis, Walt. 1996. When values run your the US and several foreign countries. The Savory ranch. HRM Quarterly. Spring. p. 3-4. Center, staffed by 9 dedicated individuals, operates under the non-profit status. Addition- 4) Halpin, Sandra. 1998. Building the soil first— ally, they supply many useful materials to holistic a successful small organic farm. Holistic Man- managers and educators. agement Quarterly. April. p. 4–5. 5) Adams, Ann. 1998. Learning success. Summary Holistic Management in Practice. July 1998. p. 6–7. In summary, the holistic decision–making process incorporates values-based goal setting, 6) Allan Savory Center for Holistic Management the appropriate use of tools, financial planning, 1010 Tijeras, N.W. land planning, biological planning, and careful Albuquerque, NM 87102 monitoring of effects. All these aspects are 505-842-5252 managed as a whole unit. The benefits are 800-654-3619 higher quality of life, financial stability, consistent profitability, and the confidence of knowing that your decisions are improving the environment and the community you live in. It By Preston Sullivan provides people with a means to make decisions NCAT Agriculture Specilaist that more accurately mirror the way nature functions (in wholes), and thereby ensure that our civilization is truly sustainable over time. July 2001 IP154 The ATTRA Project is operated by the National Center for Appropriate Technology under a grant from the Rural Business-Cooperative Service, U.S. Department of Agriculture. These organizations do not recommend or endorse products, companies, or individuals. ATTRA is located in the Ozark Mountains at the University of Arkansas in Fayetteville at P.O. Box 3657, Fayetteville, AR 72702. ATTRA staff members prefer to receive requests for information about sustainable agriculture via the toll-free number 800-346-9140. // HOLISTIC MANAGEMENT Page 9
  • 10. Notes: Notes: // HOLISTIC MANAGEMENT Page 10
  • 11. Feedback 1. Does this publication provide the information you were looking for? How could it be improved? 2. Do you know a farmer who is implementing techniques discussed in this publication? Can you provide their address and phone number? 3. Do you know of any related research that would add to the informa- tion presented here? 4. Do you know a good related website not listed in this publication? 5. Please add any other information, or comments that you wish to share. // HOLISTIC MANAGEMENT Page 11
  • 12. Fayetteville, AR 72702 PO Box 3657 NCAT/ATTRA ––––––––––––––––––––––––––––––––––––––––––––––– FOLD ––––––––––––––––––––––––––––––––––––––––––––– Thank You FOR YOUR VALUABLE FEEDBACK // HOLISTIC MANAGEMENT Page 12