A well-run farm depends on clear communication, defined responsibilities, and consistent decision-making; especially in family-run, multi-generational operations where many people share roles and long-standing habits. When authority isn’t clearly outlined, even well-intentioned team members can overstep boundaries or make decisions without proper oversight. Strong communication frameworks, like those discussed in Enhancing Inter-Generation Communication in Multi-Generational Farms, flow naturally with a well-written grant of authority, ensuring that all key people on the farm understand their role, limits, and decision-making power.
Have you ever had an employee or family member return from town with parts or supplies you didn’t want or authorize? Maybe a field hand signed for a big delivery when you weren’t present to verify the quantity and quality. Or perhaps a supervisor fired someone or promised an employee a raise. A worker posts something on Facebook that could be seen as less than flattering to your farm?
In most of these scenarios, everyone acted with good intentions—but the extent of each person’s authority wasn’t clear.
A grant of authority helps solve this problem. It:
It gives both the owner/GM and all team members confidence, transparency, and consistency across financial, personnel, and operational decisions.
Your grant of authority can be simple or very detailed, depending on your operation’s size and complexity. Typically developed/approved by the board or owners, it must be clearly communicated and reviewed with the team regularly. An annual review with adjustments as needed by the board/owners is a good practice.
You may also consider pairing this with financial guidelines like those described in SMART Goals for Your Farm Budget, especially since many authority decisions relate directly to expenditures and budgeting.
Common areas delegated within a grant of authority include:
While structure can vary, most grants of authority follow similar principles:
1. Define the lowest level of authority.
If a role has a certain authority, anyone above that role typically holds equal or greater authority—unless specified otherwise.
2. Outline deputizing or backup arrangements.
If a manager/supervisor is absent, the document should define who may take over certain duties and whether that person must be at the same or higher authority level.
3. Prevent personal benefits.
No one should be allowed to authorize a transaction that benefits them personally.
4. Prevent approving payments to supervisors.
This ensures internal accountability and separation of duties.
5. Set limits and conditions.
Define spending caps, categories of allowed expenses, and monthly or per-purchase limitations.
Example: An office manager may have a $500 limit, limited to the purchase of office supplies and authorize office equipment repairs.
Normally, the table is formatted into three basic areas: spending-type limits, people handling limits, and contracts & communication limits.
A clear chain of authority helps:
A wonderful but nuanced way to use this type of tool in the training of a recently promoted or a newly hired supervisor/manager is to reduce the normal “authority” of that position until that particular employee “proves” that he/she can handle that level of authority. Then, normally after an annual review, increase the limit to allow more authority to be given to the member (higher spending limits, expanded people managing duties, etc.).
This is particularly important for farms undergoing rapid growth and/or leadership changes or generational shifts. For reinforcement, you could reference the Operations Management case study, which highlights the power of clear processes and support in a growing farm operation.
A grant of authority is more than a document; it’s a governance tool that protects your farm, reduces stress, and ensures consistency in day-to-day decisions. Whether your team includes family, long-term employees, or seasonal/temporary workers, defining clear authority levels strengthens trust and minimizes mistakes.
If you're ready to create or refine your farm’s grant of authority, or want help aligning your operations, budgeting, and communication systems, UnCommon Farms is here to help. Contact us today to take the next step in strengthening your farm’s management structure.