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    <title>Diversification</title>
    <link>https://www.drovers.com/topics/diversification</link>
    <description>Diversification</description>
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    <lastBuildDate>Fri, 16 May 2025 18:34:00 GMT</lastBuildDate>
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      <title>What to Know Before Hosting Weddings on Your Ranch</title>
      <link>https://www.drovers.com/news/education/what-know-hosting-weddings-your-ranch</link>
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        There is an increasing trend of consumers going back to their roots and connecting with where their food comes from. It’s even to the point where many are choosing to cross of the milestone of marriage on a ranch.&lt;br&gt;&lt;br&gt;While the happy couple embarks on their new journey, ranch owners earn additional income that can help manage risk, supplement the ranch or even bring an entire generation back to the family land. But what goes into hosting weddings on a ranch and is it truly lucrative?&lt;br&gt;&lt;br&gt;Jason Wrich and his wife are located on the western slope of Colorado and decided to take a leap into hosting weddings, retreats and family getaways in September of 2023.&lt;br&gt;&lt;br&gt;The Wrichs are high school sweethearts who live on the family homeplace and always wanted to buy the adjacent ranch. &lt;br&gt;&lt;br&gt;“When the commercial egg laying operations were looking into buying it, my wife said we just need to make something work and buy it,” Wrich says.&lt;br&gt;&lt;br&gt;That’s where hosting events and guests came into their business model.&lt;br&gt;&lt;br&gt;“The only way to cash flow the property is for us to utilize these additional revenue streams,” Wrich explains.&lt;br&gt;&lt;br&gt;Additional structures for weddings and short-term rentals were already present and the property was also in compliance with all local zoning regulations. &lt;br&gt;&lt;br&gt;“It was well suited for our plans,” he says. “We’ve just been doing updates to the buildings since.”&lt;br&gt;&lt;br&gt;The initial challenge that came from this decision was paying the mortgage with no income in the beginning months. Currently, the beef business supplements the event business, but the event business is scheduled to cash flow in 2025, which gets the Wrichs closer to their goal. &lt;br&gt;&lt;br&gt;“My goal is to get my wife out of her off-farm job because she has the vision and desire for this,” Wrich says. &lt;br&gt;&lt;br&gt;The event business could also be a way to bring their kids back to the ranch if they choose that path in the future.&lt;br&gt;&lt;br&gt;The success of this business has come through hard work, creating competitive advantage and leaving no resource unleveraged. The venue can host up to 250 people, has housing and camper hookups and is competitively priced with no upsells, resulting in people traveling five hours or more to begin their marriage on the ranch.&lt;br&gt;&lt;br&gt;There is no commercial kitchen on the ranch and it is in a remote area, but that hasn’t hindered bookings. People simply get creative with smokers, grills and the kitchens in the short-term rentals. Additionally, caterers and food trucks can show up ready to serve wedding guests a delicious meal.&lt;br&gt;&lt;br&gt;The self-serve farm store is also a guest favorite as it contains pre-made burger patties and beef cuts, pork, honey and other local staples. &lt;br&gt;&lt;br&gt;“This has been a great way to grow our beef business as well,” Wrich adds.&lt;br&gt;&lt;br&gt;Advertising for bookings has primarily come through word-of-mouth and the Wrichs’ own website. &lt;br&gt;&lt;br&gt;“We haven’t had a single wedding booking from venue websites,” Wrich says. &lt;br&gt;&lt;br&gt;Additionally, they’ve found value in hosting an open house for anyone to come and look at the venue or rentals.&lt;br&gt;&lt;br&gt;One consideration ranchers need to make before deciding to host weddings or guests is how much interaction with people they desire.&lt;br&gt;&lt;br&gt;“Many farmers and ranchers don’t like interacting with people all the time,” Wrich says. “Interacting with people is the main part of this business and you have to like it.” &lt;br&gt;&lt;br&gt;Time management and having the heart for it is also incredibly important. &lt;br&gt;&lt;br&gt;“I’m a milestone marker kind of guy, so to be a foundational portion of other people’s milestones is a blessing and we want to make their day as perfect as we can,” he says.&lt;br&gt;&lt;br&gt;Listen to full conversation 
    
        &lt;span class="LinkEnhancement"&gt;&lt;a class="Link" href="https://casualcattleconversations.podbean.com/e/jasonwrich/" target="_blank" rel="noopener"&gt;here&lt;/a&gt;&lt;/span&gt;
    
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      <pubDate>Fri, 16 May 2025 18:34:00 GMT</pubDate>
      <guid>https://www.drovers.com/news/education/what-know-hosting-weddings-your-ranch</guid>
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      <title>Texas Rancher Kimberly Ratcliff Trades the Big Apple for Community Beef Business</title>
      <link>https://www.drovers.com/news/beef-production/texas-rancher-kimberly-ratcliff-trades-big-apple-community-beef-business</link>
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        This is right where Kimberly Ratcliff was born to be, surveying the Bermuda grass and cattle of Caney Creek Ranch in Oakwood, Texas.&lt;br&gt;&lt;br&gt;“Just like life evolves, agriculture is evolving and I’m excited for this new evolution in agriculture,” Ratcliff said with a smile.&lt;br&gt;&lt;br&gt;The 2025 Top Producer Women in Ag Award winner says her journey back to the Texas Plains began with big dreams in the Big Apple.&lt;br&gt;&lt;br&gt;“I ended up going to college in New York City and I really thought New York City was what I wanted,” she says. “I really thought that was the lifestyle I wanted.”&lt;br&gt;&lt;br&gt;Working at Bloomberg in marketing and public relations she found herself being pulled back to commodities and her days growing up on the ranch.&lt;br&gt;&lt;br&gt;“That hit me hard because I realized I needed to go back home,” remembers Ratcliff. “I had enough knowledge of how these financial institutions work, but I don’t think the community understands how that affects them.”&lt;br&gt;&lt;br&gt;Her father and the ranch’s owner, Wesley, remembers the phone call following a recent visit.&lt;br&gt;&lt;br&gt;“When she got back [to New York], she said, I want to join you. I said, ‘No, no, no, no, no, no’,” he says. “I can’t pay you even close to what they’re paying up there. She said, ‘That’s not your problem.’”&lt;br&gt;&lt;br&gt;He also asked her about ranching and whether she understood that aspect of the business. Kimberly had a solution. She entered the Texas Christian University ranch management program and became the first African American to graduate. Then, she moved home and went to work.&lt;br&gt;&lt;br&gt;
    
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        &lt;br&gt;“I would get people driving up to the house and they wanted to put their eyes on me to see that I had really come home,” Ratcliff says. “People always say they want to come home, but they never do it.”&lt;br&gt;&lt;br&gt;“My daughter coming back here honestly, was not something that I was thrilled about,” Wesley said with a half-smile and twinkle in his eye. “She is kind of bossy and I had one boss already: her mama. Now I have two bosses.”&lt;br&gt;&lt;br&gt;Ratcliff started Ratcliff Premium Meats, a direct-to-consumer beef business, with a story to tell.&lt;br&gt;&lt;br&gt;“Being a woman in this industry and being a black woman, I think the No. 1 thing I have honestly is the best support system here in my community,” Ratcliff says. “They’re the ones pushing me.”&lt;br&gt;&lt;br&gt;“I’m happy to see her venture out and try to do something different,” Wesley says. “I would never get into the meat business, but she wanted to. I didn’t have a problem with her getting into it.”&lt;br&gt;&lt;br&gt;Today, it’s a family affair as she’s also getting help from her brothers.&lt;br&gt;&lt;br&gt;“In five years, my goal is to have my family - all of my family - working for us,” Ratcliff says.&lt;br&gt;&lt;br&gt;As demand grows, this family operation is expanding and helping more in their community.&lt;br&gt;&lt;br&gt;“In the ag community, I need cattle,” Ratcliff explains. “I need them to keep their land. I need them to have healthy cattle. I need them to have great grass and great soil. I need them to have all those things that will make me successful. So, how can I help them with their success?”&lt;br&gt;&lt;br&gt;She’s sharing that success with local and state food banks.&lt;br&gt;&lt;br&gt;“The first thing I support is my local food bank,” Ratcliff says. “Every week, every month, I make sure they are stocked with every protein I can provide. I don’t want them ever to have to worry about buying protein externally.”&lt;br&gt;&lt;br&gt;It’s that kind of heart for others that’s helping her honor this opportunity and her mother, who passed away from breast cancer in 2019.&lt;br&gt;&lt;br&gt;“She was just fighting because she saw the success that I was having and she wanted to be here to say, ‘I’m proud of you’,” says an emotional Ratcliff. “I know she’s still proud of me.”&lt;br&gt;&lt;br&gt;A mother who is proud of the work she’s done and difference she’s making in the lives around her.&lt;br&gt;&lt;br&gt;“This job is really taking us back to the root of what our culture is about,” Ratcliff says. “It started with the small and the large all working together to feed the world.”
    
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      <pubDate>Tue, 18 Feb 2025 18:31:24 GMT</pubDate>
      <guid>https://www.drovers.com/news/beef-production/texas-rancher-kimberly-ratcliff-trades-big-apple-community-beef-business</guid>
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      <title>How To Translate Generational Misunderstandings</title>
      <link>https://www.drovers.com/news/industry/how-translate-generational-misunderstandings</link>
      <description>&lt;div class="RichTextArticleBody RichTextBody"&gt;
    
        &lt;i data-stringify-type="italic"&gt;The week of June 10, Farm Journal is celebrating the &lt;/i&gt;&lt;i data-stringify-type="italic"&gt;
    
        &lt;span class="LinkEnhancement"&gt;&lt;a class="Link" href="https://www.agweb.com/next-gen-farming" target="_blank" rel="noopener"&gt;next generation&lt;/a&gt;&lt;/span&gt;
    
        &lt;/i&gt;&lt;i data-stringify-type="italic"&gt; of American agriculture. Our goal is to encourage you to plan for the future and cultivate multigenerational success through the transfer of skills and knowledge. Think tomorrow, act today to align your asset, resource and financial legacy.&lt;/i&gt;&lt;br&gt;&lt;br&gt;
    
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        Communication between one generation to another can seem like talking a different language. &lt;br&gt;&lt;br&gt;“I suggest you approach looking at another generation with curiosity rather than judgment,” says Kim Lear of Inlay Insights. &lt;br&gt;&lt;br&gt;In her work, Lear shares generational theory insights and highlights how these are trends, not traits, but can inform better teamwork. &lt;br&gt;&lt;br&gt;
    
        &lt;h3&gt;Why It Matters Now&lt;/h3&gt;
    
        Taking a refreshed approach to understanding on-farm team members from other generations is top of mind as today there are four generations actively employed across our economy. &lt;br&gt;&lt;br&gt;When bringing more than one generation into leadership roles on the farm, it’s helpful to understand how to communicate.&lt;br&gt;&lt;br&gt;“Dates given for generations are just a starting point. Generational theory is taking formative events from our growing years and seeing how they shape the people who lived through it,” she explains &lt;br&gt;&lt;br&gt;A typical generation spans 15 to 18 years, and while general trends can be highlighted, Lear also notes there are exceptions. &lt;br&gt;&lt;br&gt;“There are individuals who sit between two generations, and those people can serve important roles communicating between the generations. They are generationally bilingual,” Lear says.&lt;br&gt;&lt;br&gt;&lt;table align="left" border="1" cellpadding="1" cellspacing="1" style="width: 360px;"&gt; &lt;thead&gt; &lt;tr&gt; &lt;th scope="col"&gt;3 Steps for Generations To Work Together&lt;/th&gt; &lt;/tr&gt; &lt;/thead&gt; &lt;tbody&gt; &lt;tr&gt; &lt;td&gt; “We are in a unique time where we have four generations in the workforce,” says Kim Lear. She suggests three steps to bring together a productive team. &lt;br&gt;&lt;br&gt; &lt;b&gt;1. &lt;/b&gt;Prioritize clarity over brevity in communication. &lt;br&gt;&lt;br&gt; &lt;b&gt;2. &lt;/b&gt;Instill respect as the foundation.&lt;br&gt;&lt;br&gt; &lt;b&gt;3. &lt;/b&gt;Deliver feedback in a way that motivates to improve rather than paralyze with fear. Give a clear path for the road to improvement with the tools to get where they &lt;br&gt; need to be. &lt;br&gt;&lt;br&gt; &lt;/td&gt; &lt;/tr&gt; &lt;/tbody&gt;&lt;/table&gt;
    
        &lt;h3&gt;We Are Getting Older&lt;/h3&gt;
    
        The scales are tilting toward an older society, and there are fewer members of the younger generations. &lt;br&gt;&lt;br&gt;“The story of aging is changing in America,” she says. “We have cliff diving birth rates and low immigration. Also, we are an ageist society.” &lt;br&gt;&lt;br&gt;Today 62 million adults ages 65 and older are living in the U.S., which is 18% of the population, according to the U.S. Census. In 30 years, 84 million adults ages 65 and older will make up an estimated 23% of the population.&lt;br&gt;&lt;br&gt;With the recognition of how our population is structured, and how your on-farm team members reflect their generational trends, you can evaluate your communication. &lt;br&gt;&lt;br&gt;
    
        &lt;h3&gt;Next Gen Insights&lt;/h3&gt;
    
        Lear shares trends about Generation X (birth years: 1965 to 1979), millennials (birth years: 1980 to 1994), and Generation Z (birth years: 1995 to 2012).&lt;br&gt;&lt;br&gt;Members of Generation X can exhibit fierce independence. For example, they can have an aversion to traditional sales tactics. &lt;br&gt;&lt;br&gt;“If a brand crosses them, they are hard to earn back as a customer,” she says. “It’s telling — the divorce rate doubled during the Gen X birth years.”&lt;br&gt;&lt;br&gt;As another data point, 55% of startup founders are Gen X. &lt;br&gt;&lt;br&gt;As for millennials, the rise of double income households really took off as millennials grew up. &lt;br&gt;&lt;br&gt;“Millennials are collaborative, empowered, networked, risk averse and in search of meaning,” she says. “But America has more single parent households than anywhere else in the world. It’s one way to understand why work-life balance is at the forefront of recruitment and retention.”&lt;br&gt;&lt;br&gt;For Generation Z, our present serves as the backdrop of their formative years. Already, Lear has seen how Gen X parents and Gen Z children have relationships rooted in friendship.&lt;br&gt;&lt;br&gt;“They are highly influential over each other’s decision-making. For example, Gen Z will bring job offers to their parents to vet,” she says. &lt;br&gt;&lt;br&gt;Lear continues with an example of how Generation Z makes decisions. &lt;br&gt;&lt;br&gt;“They are showing how they can abandon any obsession of convenience with an obsession of optimization,” she says. “For example, a regular stationary bike is convenient versus a Peloton is synched with stats and analytics. It’s the expectation of personalization and customization.”&lt;br&gt;&lt;br&gt;Lear gives an exercise to test your transgenerational communication. &lt;br&gt;&lt;br&gt;“Look at processes, procedures and norms. What are you holding on that is a sacred cow? And then ask your team to think about where can we focus on that’s more useful and more productive for us?” Lear outlines. “You’ll identify priorities and open up how our team talks to one another.” &lt;br&gt;&lt;br&gt;
    
&lt;/div&gt;</description>
      <pubDate>Tue, 18 Jun 2024 16:24:36 GMT</pubDate>
      <guid>https://www.drovers.com/news/industry/how-translate-generational-misunderstandings</guid>
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      <title>Want to Grow Your Farm? Ask These 10 Questions First</title>
      <link>https://www.drovers.com/news/education/want-grow-your-farm-ask-these-10-questions-first</link>
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        More than 50% of farmers intend to grow their operation, based on responses in Purdue’s February 2023 Ag Economy Barometer. &lt;br&gt;&lt;br&gt;
    
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        &lt;br&gt;&lt;br&gt;If you’re thinking about scaling your farm, Michael Langemeier, Purdue ag economist, says it’s important to first ask these questions.&lt;br&gt;&lt;br&gt;
    
        &lt;h3&gt;&lt;b&gt;1. Why should I grow my operation?&lt;/b&gt;&lt;/h3&gt;
    
        Before an operation expands, consider the vision and direction you want your farm to take.&lt;br&gt;&lt;br&gt;“Are you interested in a commodity-based approach or a differentiated product strategy? Commodities will focus on cost control while products will be centered around value-added production and above-average prices for your crops,” Langemeiers says. “Start here and consider how growth impacts your direction.”&lt;br&gt;&lt;br&gt;Once an approach is chosen, it’s time to decide which dominoes you want to play in the expansion game. &lt;br&gt;&lt;br&gt;
    
        &lt;h3&gt;&lt;b&gt;2. What ways I can grow my farm?&lt;/b&gt;&lt;/h3&gt;
    
        There are many ways to expand an operation: acquire land, new equipment and technology, upgrade facilities, etc. However, Langemeier says some producers need to think outside the box.&lt;br&gt;&lt;br&gt;“Don’t just think about what you currently do or have always done. This step is a good time to do some soul searching to consider where you want to be in five to 10 years. Do you want to be the same enterprise, or do you want to make changes?”&lt;br&gt;&lt;br&gt;Langemeier says this soul-searching step is especially important when someone is coming back to the farm.&lt;br&gt;&lt;br&gt;“We’re seeing that a lot of students who come from farms want to go back, and we have to look into whether there are opportunities there or not,” Langemeier says. “There’s always new interest and ideas that come with the transition back to the farm.”&lt;br&gt;&lt;br&gt;After establishing how you want to grow, consider your growth approach.&lt;br&gt;&lt;br&gt;
    
        &lt;h3&gt;&lt;b&gt;3. What should my growth approach look like?&lt;/b&gt;&lt;/h3&gt;
    
        A strengths, weaknesses, opportunities and threats (SWOT) analysis is a common growth approach in business. Langemeier says another way to think about SWOT is in terms of internal and external analysis.&lt;br&gt;&lt;br&gt;“Internal analysis means looking at key resources and capabilities of a team or operation,” Langemeier says. “Does someone possess a unique skill you can maximize? Take advantage of those unique skillsets.”&lt;br&gt;&lt;br&gt;Internal analysis mainly centers around strengths, but weaknesses play a role here, too. Are there areas in your operation that need professional development? Langemeier says this is the time to work on both.&lt;br&gt;&lt;br&gt;External analysis, on the other hand, examines economic and market trends.&lt;br&gt;&lt;br&gt;“The easiest example is in livestock; raising pasture pork, poultry or beef, or offering direct meat from a producer rather than a grocery store, are all growing trends,” Langemeier says. “If you have those opportunities, think about how they might fit into your operation.”&lt;br&gt;&lt;br&gt;While there’s more risk in external factors, Langemeier says “the risk can be worth the reward” for producers who understand what trends they can support.&lt;br&gt;&lt;br&gt;
    
        &lt;h3&gt;&lt;b&gt;4. How do I evaluate my farm’s growth ventures?&lt;/b&gt;&lt;/h3&gt;
    
        Now that the growth options are laid out, how does a producer choose which option to pursue?&lt;br&gt;These eight criteria can help:&lt;br&gt;• Strategic fit&lt;br&gt;• Expected returns&lt;br&gt;• Risk&lt;br&gt;• Capital required&lt;br&gt;• Cost and ease of entry and exit&lt;br&gt;• Value creation&lt;br&gt;• Managerial requirements&lt;br&gt;• Portfolio fit&lt;br&gt;&lt;br&gt;Strategic fit is one of the biggest points to consider, according to Langemeier.&lt;br&gt;&lt;br&gt;“A few years ago, many growers were interested in hemp production. I would ask them if hemp would require new machinery and if they were used to dealing with contracts,” he says. “If the answer was yes and no, then it probably wasn’t going to be a good fit.”&lt;br&gt;&lt;br&gt;He says ease of entry and exit is the second criteria he points farmers to.&lt;br&gt;&lt;br&gt;“If your farm were to pursue a new venture and it fails, would it mean you could lose the whole farm? Because there will be things that fail,” Langemeier says.&lt;br&gt;&lt;br&gt;If a specific venture requires a lot of capital, he says it is pivotal to explore how the investment could affect balance sheets in the long run.&lt;br&gt;&lt;br&gt;
    
        &lt;h3&gt;&lt;b&gt;5. What skills are needed to grow, especially in people returning to the farm?&lt;/b&gt;&lt;/h3&gt;
    
        Taking stock of employees’ skillsets, this is the part where growers consider the strengths and weaknesses of human capital currently on the farm and those soon returning to it.&lt;br&gt;&lt;br&gt;“When someone’s thinking about coming back to the farm, that’s the time to assess the skills that are currently needed, and then try to encourage the younger person to garner some of those skills,” Langemeier says. “We might have the skills to expand our operation, but do we have the skills to start a new venture in a different enterprise? Think about it from all angles.”&lt;br&gt;&lt;br&gt;
    
        &lt;h3&gt;&lt;b&gt;6. How do I finance?&lt;/b&gt;&lt;/h3&gt;
    
        Are you willing to take on debt to expand? If so, how much debt are you willing to take on? Langemeier suggests looking at debt as enabling you to take advantage of an opportunity, not as a negative.&lt;br&gt;&lt;br&gt;“If you have 2,000 acres and are thinking about adding 1,000 acres, even if that’s leased ground, you’re still going to need more machinery and people. You probably don’t have that retained earnings, so you’re going to take on debt,” he says. “As long as you’re making a profit on those additional acres, and you can make the debt payment, it’s not a problem.”&lt;br&gt;&lt;br&gt;Langemeier warns that a small profit margin can quickly turn into an issue when a venture flops. He advises producers keep a somewhat equal balance of debt and projected venture profits.&lt;br&gt;&lt;br&gt;
    
        &lt;h3&gt;&lt;b&gt;7. What business models do I use to grow?&lt;/b&gt;&lt;/h3&gt;
    
        Expanding internal growth with retained earnings and debt is a typical business model for most operations, according to Langemeier. He says there’s a new trend in this arena.&lt;br&gt;&lt;br&gt;“I’ve seen a lot of production ag cases recently where a farm acquires assets from a retiring farm,” he says. “Not only do they farm the land, but they also buy the machinery, the bins and the whole farm. This really works for some operations.”&lt;br&gt;&lt;br&gt;Another model that’s becoming somewhat common is a joint venture. Agribusinesses use this model frequently, but Langemeier says more mid-sized operations are leaning toward this option.&lt;br&gt;&lt;br&gt;“One of the advantages of joint-venture contract turkey, laying or finishing operations, especially in the Corn Belt, is that there’s a partner with you,” Langemeier says. “It allows us to grow effectively.”&lt;br&gt;&lt;br&gt;Finding a partner to go-in on the venture isn’t always easy. However, Langemeier says producers often look in the wrong places.&lt;br&gt;&lt;br&gt;“Some farmers say they don’t have any outside investors, so I tell them to think about family or non-farm heirs. Pitch it as a way of investing in your business so that you don’t have to make them partners or an operating entity,” he says. “Land, for instance, could be an outstanding source of outside equity with non-farm heirs.”&lt;br&gt;&lt;br&gt;
    
        &lt;h3&gt;&lt;b&gt;8. How would an expansion impact my current operation?&lt;/b&gt;&lt;/h3&gt;
    
        When considering growth options, it’s vital to your growth success to consider how each option will impact the farm’s balance sheet and income statement. Langemeier suggests running three projected scenarios — worst, most likely and best case — through a spreadsheet or a software, like the 
    
        &lt;span class="LinkEnhancement"&gt;&lt;a class="Link" href="https://www.cffm.umn.edu" target="_blank" rel="noopener"&gt;University of Minnesota’s FINPACK system&lt;/a&gt;&lt;/span&gt;
    
        .&lt;br&gt;&lt;br&gt;If you choose to run the projections by hand, this is the process Langemeier suggests:&lt;br&gt;&lt;br&gt;a. Impacts on cash flow and balance sheet&lt;br&gt;&lt;br&gt;“A growth change will impact both — don’t just look at cash flow,” he says.&lt;br&gt;&lt;br&gt;b. Debt versus equity&lt;br&gt;&lt;br&gt;“Maybe the change will reduce your liquidity and increase your solvency too much,” he says. “If that’s the case, you can’t pursue that particular venture.”&lt;br&gt;&lt;br&gt;c. Time management&lt;br&gt;&lt;br&gt;“There are only so many hours in the day, and some of us sometimes work too much,” Langemeier says. “Say you’re going from conventional to organic, it’s going to be management intensive. Be realistic about what you and your team can handle.”&lt;br&gt;&lt;br&gt;
    
        &lt;h3&gt;&lt;b&gt;9. What challenges would an expansion create?&lt;/b&gt;&lt;/h3&gt;
    
        Construction delays, cash flow shortages, depleted working capital, short-term inefficiencies and management bottlenecks are often at play when starting a new venture, according to Langemeier. He advises producers to be proactive. &lt;br&gt;&lt;br&gt;“If a venture creates massive cash flow shortages and eats into your working capital, you need to have a plan to deal with those issues. If you don’t, it will lead you into other challenges, like inefficiencies, and you’ll end up with a failed venture,” he says. “Make sure you have a contingency plan.”&lt;br&gt;&lt;br&gt;
    
        &lt;h3&gt;&lt;b&gt;10. What is my sustainable growth rate?&lt;/b&gt;&lt;/h3&gt;
    
        Calculating a sustainable growth rate means saying what a growth rate would be if retained earnings is the only money used, and then compare that to what a growth rate would be if only debt was used. Langemeier says this equation has other variables that often go unchecked.&lt;br&gt;&lt;br&gt;In the debt scenario, he says you have to think about the downside of debt — the chance of going bankrupt and variability. &lt;br&gt;&lt;br&gt;“Even if your operating cash flow is low, the lender still wants his payments,” Langmeier says. “You have to think about the coping strategies to make those debt payments even when corn is at $5, compared to $6.50. Make sure you run all the numbers imaginable.” &lt;br&gt;&lt;br&gt;
    
        &lt;h3&gt;&lt;b&gt;The Main First Step When Considering Expansion&lt;/b&gt;&lt;/h3&gt;
    
        With all 10 points in mind, Langemeier says the first stage of growth shouldn’t include producers running to formulate a 50-page business plan. He says step one starts with a conversation.&lt;br&gt;&lt;br&gt;“You should be having regular farm and family meetings, at least once a year, to brainstorm with your employees and family members about the things you could do differently on-farm, and allot time to consider continued improvement, opportunities and threats,” he says.&lt;br&gt;&lt;br&gt;According to Langemeier, these meetings will offer more than exploring growth; they will ensure farm, family and employee survival.&lt;br&gt; &lt;br&gt;&lt;br&gt;
    
&lt;/div&gt;</description>
      <pubDate>Wed, 17 May 2023 19:57:51 GMT</pubDate>
      <guid>https://www.drovers.com/news/education/want-grow-your-farm-ask-these-10-questions-first</guid>
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      <title>Beef-on-Dairy Continues to See Major Growth</title>
      <link>https://www.drovers.com/news/beef-production/beef-dairy-continues-see-major-growth</link>
      <description>&lt;div class="RichTextArticleBody RichTextBody"&gt;
    
        With the demand for beef up, more dairy producers are crossbreeding poor genetic or less productive cows with beef semen. This isn’t something new, as producers have increased beef genetics usage for various reasons. But over the past few years, dairy semen sales have idled while domestic beef sales have exploded.&lt;br&gt;&lt;br&gt;
    
        &lt;span class="LinkEnhancement"&gt;&lt;span class="Link"&gt;According to Larry Corah, professor emeritus with Kansas State University, dramatic change has unfolded on the beef-on-dairy world in the last five years. From 2017-2022, the beef-on-dairy cross calves have replaced 70% of the Holstein steers in the fed cattle harvest mix.&lt;/span&gt;&lt;/span&gt;
    
        &lt;br&gt;&lt;br&gt;“The main reason given is the dramatic increase in use of sexed semen by dairy producers,” he says.&lt;br&gt;&lt;br&gt;Corah says another big reason was due to three of the four major packers quit harvesting Holstein steers, devaluing the Holstein steer market value.&lt;br&gt;&lt;br&gt;Holstein bull calves sell for little compared to beef-on-dairy cross calves selling for four to six times more, up to $250, making this a new profit center for many dairies.&lt;br&gt;&lt;br&gt;“At feeder weight of about 500 to 600 lbs., the beef-on-dairy cross calf is about $12-15/cwt below a beef calf of the same weight, but the Holstein steer is $40/cwt below, according to data from Superior Livestock and Kansas State,” Corah says. “Economics drive change and it is easy to see why the use of beef genetics has been adopted so widely and rapidly by dairy operations.”&lt;br&gt;&lt;br&gt;
    
        &lt;h3&gt;&lt;b&gt;A Packer Perspective&lt;/b&gt;&lt;/h3&gt;
    
        Kim Herinckx is the vice president of food safety and quality for One World Beef, the largest scale slaughter processing facility in southern California. They prominently handle dairy or dairy influenced cattle and specialize in grain-fed Holsteins, Wagyu and beef-on-dairy dairy cross cattle. They are the second-largest exporter to Japan, Chile and China.&lt;br&gt;&lt;br&gt;Many feedlots that funnel into One World Beef are located within 80 miles, although some cattle come from Colorado, Kansas and Texas. Regardless of where the cattle originate, Herinckx says the communication between the packer and feedlot is constant, with daily communication and frequent site visits to ensure quality and data points.&lt;br&gt;&lt;br&gt;“The problem we’re running into is that some traditional feedlots get black cross animals in, and they are feeding them like a traditional black animal, and it simply doesn’t work,” she says.&lt;br&gt;&lt;br&gt;During meetings with the rendering division, Herinckx says one comment that has stuck with her, and she believes is a takeaway for every producer to remember is, “If you want value out of your byproducts, you have to stop treating them like a byproduct.”&lt;br&gt;&lt;br&gt;Creating a syncretistic relationship with the dairy producer can help develop a brand program, Herinckx notes, and helps it go from a byproduct to a go-to product. She says this is a fundamental shift and that dairy has always been the winner when it comes to addressing consumers’ demands.&lt;br&gt;&lt;br&gt;
    
&lt;/div&gt;</description>
      <pubDate>Fri, 20 Jan 2023 16:02:11 GMT</pubDate>
      <guid>https://www.drovers.com/news/beef-production/beef-dairy-continues-see-major-growth</guid>
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      <title>Cargill Goes Tech With Plan to Nurture New Wave of Food Startups</title>
      <link>https://www.drovers.com/news/cargill-goes-tech-plan-nurture-new-wave-food-startups</link>
      <description>&lt;div class="RichTextArticleBody RichTextBody"&gt;
    
        (Bloomberg) -- Long synonymous with the buying and selling of U.S. grain, agricultural giant Cargill Inc. is taking a page out of Silicon Valley’s playbook with a startup accelerator that it hopes will identify important new food technologies.&lt;br&gt;&lt;br&gt; Techstars Farm to Fork Accelerator is a partnership involving Cargill, water and hygiene technology company Ecolab Inc. and venture-capital firm Techstars. The initiative will focus on food security and safety, and will begin accepting applications next month. The first class of 10 startups will go to Cargill’s hometown of Minneapolis next summer and spend 13 weeks building their businesses and raising capital.&lt;br&gt;&lt;br&gt; “We’re 152 years old and you don’t get that way without the courage to disrupt yourself,” Justin Kershaw, Cargill’s chief information officer, said in a telephone interview. “This is going to be disruptive and we want to be in the mix there and creating the disruption internally and externally.”&lt;br&gt;&lt;br&gt; Agricultural technology is a burgeoning part of the food and farming industries, as farmers and corporations wrestle with how to feed the world’s growing population in a sustainable way. Early-stage investment in so-called agrifood technology was $4.4 billion in the first half of 2017, up 6 percent from a year earlier, according to AgFunder, a San Francisco-based firm that connects investors with agricultural startups.&lt;br&gt;&lt;br&gt; &lt;b&gt;Worldwide Interest&lt;/b&gt;&lt;br&gt;&lt;br&gt; For Cargill, the accelerator is another step in its evolution into less traditional and potentially higher-value areas. One of the world’s largest private companies, it has been overhauling its business after posting a rare quarterly loss in 2015.&lt;br&gt;&lt;br&gt; The accelerator, which will operate for three years, is expecting applicants from around the world, said Brett Brohl, its managing director.&lt;br&gt;&lt;br&gt; “How do you feed the world in 30 years in a sustainable way?” he said in a telephone interview. “When there’s big problems and there’s big opportunity, entrepreneurs tend to be the one’s that figure out how to solve those problems.”&lt;br&gt;&lt;br&gt; &lt;br&gt;&lt;br&gt; ©2017 Bloomberg L.P.&lt;br&gt;&lt;br&gt; 
    
&lt;/div&gt;</description>
      <pubDate>Thu, 22 Sep 2022 02:34:37 GMT</pubDate>
      <guid>https://www.drovers.com/news/cargill-goes-tech-plan-nurture-new-wave-food-startups</guid>
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      <title>Have You Considered Hunting Leases as an Added Enterprise?</title>
      <link>https://www.drovers.com/news/beef-production/have-you-considered-hunting-leases-added-enterprise</link>
      <description>&lt;div class="RichTextArticleBody RichTextBody"&gt;
    
        Landowners seeking additional income options for their operation might consider leasing out their land for wildlife activities. The potential income can be considerable. Leases could be for hunting, fishing or birding.&lt;br&gt;&lt;br&gt;Written hunting leases are the key to how your enterprise will be ran and how profitable it may be. A hunting lease is an agreement between the landowner (lessor) and hunters (lessees) that grants the hunter access rights for hunting game animals (and other specified activities) on your property for a specified time period. Hunters usually pay an agreed-upon dollar amount per acre or per hunter.&lt;br&gt;&lt;br&gt;Leases can fall into two basic categories:&lt;br&gt;&lt;br&gt;&lt;ul&gt;&lt;li&gt;short-term (for a particular season, deer, turkey, pheasant, quail, trapping)&lt;/li&gt;&lt;li&gt; long-term (one year or more for one or more species).&lt;/li&gt;&lt;/ul&gt;The type of lease you offer depends upon the type of wildlife you have on your land, how hunting may affect the daily operation of your farm or ranch and what services you are offering the renter.&lt;br&gt;&lt;br&gt;Things you should consider when adding hunting to your farming or ranching enterprise include:&lt;br&gt;&lt;br&gt;● Are you willing to let more people on your operation?&lt;br&gt;&lt;br&gt;● Are you willing to manage for wildlife as part of your operation?&lt;br&gt;&lt;br&gt;● What are your long-term objectives and sustainability goals for your natural resource base?&lt;br&gt;&lt;br&gt;● Are you willing to find the resources necessary to get the enterprise up and running?&lt;br&gt;&lt;br&gt;● Is the leasing program compatible with your other land management objectives?&lt;br&gt;&lt;br&gt;
    
        &lt;h3&gt;Structuring Hunting Lease Price&lt;/h3&gt;
    
        &lt;h3&gt; &lt;/h3&gt;
    
        ● &lt;b&gt;Breakeven (including labor costs) + 10%&lt;/b&gt; - The lease price is based on management and cost associated with the lease operation plus 10% to cover unforeseen costs and the need for the lease to cover operational costs and land taxes.&lt;br&gt;&lt;br&gt;● &lt;b&gt;Habitat Valuation&lt;/b&gt; - The lease price is determined from a subjective rating of the quality and quantity of wildlife habitat available. For example, if the wildlife and population have been managed to provide high populations of wildlife and better than average-hunting opportunities, the value of the lease may be higher, or if the lessee wants to limit or keep out other hunters that the property could reasonably sustain, they may have to pay a premium price for that.&lt;br&gt;&lt;br&gt;●&lt;b&gt; Baseline plus Value-added&lt;/b&gt; - Charge a base price per acre plus charges on improvements made, amenities or services provided.&lt;br&gt;&lt;br&gt;● &lt;b&gt;Competitive Pricing&lt;/b&gt; - Base the lease price on the going rate of other leases in the area or lease prices charged elsewhere for similar access, services, and amenities provided.&lt;br&gt;&lt;br&gt;● &lt;b&gt;Sealed Bid&lt;/b&gt; - Similar to timber sales in that you develop a description of the hunting lease, what it offers, and a request for sealed bids. This can be done via advertising or by directly contacting interested individuals or sportsmen groups.&lt;br&gt;&lt;br&gt;Preparing a hunting lease is not a do-it-yourself job. A well-drafted hunting lease limits your liability exposure should hunting accidents occur. A poorly drafted lease leaves you open to personal injury liability. Visit with your insurance professional and attorney before deciding whether to engage in any type of commercial hunting operation.&lt;br&gt;&lt;br&gt;Regarding rented land, the tenant should seek the landlord’s permission before leasing the hunting rights to the leased land. Hunting on leased land exposes the landowner to some potential liability, even if the tenant is doing the leasing. So, landlords should consult with their attorney and insurance advisor if the tenant approaches the landlord regarding a hunting lease enterprise. In discussing these issues with the landlord, the tenant should be receptive to the landlord’s wishes. Common sense tells us that if the tenant’s actions go against the landlord’s wishes, the tenant is not likely to have the lease renewed.&lt;br&gt;&lt;br&gt;
    
&lt;/div&gt;</description>
      <pubDate>Tue, 20 Sep 2022 18:19:24 GMT</pubDate>
      <guid>https://www.drovers.com/news/beef-production/have-you-considered-hunting-leases-added-enterprise</guid>
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      <title>Manure Opens Doors for Family Farm to Expand</title>
      <link>https://www.drovers.com/news/manure-opens-doors-family-farm-expand</link>
      <description>&lt;div class="RichTextArticleBody RichTextBody"&gt;
    
        Get a load of this—manure and its improved management provided one family with the opportunity to diversify and create a new business. Zimmerman Manufacturing started with the simple goal to use manure nutrients better and turned it into a business that supports their family as well as multiple families in their community.&lt;br&gt;&lt;br&gt;Raymond Zimmerman, Cantril, Iowa, first started creating equipment in partnership with a local machinery dealer in his area. In 2013, he created the Contour King Swivel for a way to inject manure faster, smarter and better placed than products without the attachment he created.&lt;br&gt;&lt;br&gt;“The manure industry has a lot of room for improvement, but it’s growing fast,” Raymond says. “Today it’s important to have the right kind of equipment and we feel we’re filling a need with something no one else has.”&lt;br&gt;&lt;br&gt;His dive into the machinery market has opened new doors for corn, soybean, cattle and hog farmers in southern Iowa. The business started in partnership with a local dealer who sold the attachment. Today they have dealers from the Midwest to the East Coast. His son now manages the family farm while Raymond focuses on growing the machinery leg of the business, including new tools that are tested on their farm.&lt;br&gt;&lt;br&gt;In 2018, his nephew Raymond Clair Zimmerman joined full-time after the company became a stand-alone business in 2017. They added multiple selling channels and new products including the Red Viper Manure injector, equipped with the Contour King Swivel and a strip-till machine. The company now employs 14 people and has 20 dealers across the U.S. that sell its manure and tillage equipment.&lt;br&gt;&lt;br&gt;
    
        
    
        &lt;br&gt;&lt;i&gt;Red Viper Manure Injector C: Zimmerman Manufacturing&lt;/i&gt;&lt;br&gt;&lt;br&gt;The Contour King Swivel – the first attachment they created and the pride of the company’s current lineup has been sold coast to coast, and in Canada. Dairy and heavy animal confinement operations tend to be some of their biggest customers. The tool helps farmers spread manure more efficiently and get nitrogen from the manure into the soil where it can be used by the plant.&lt;br&gt;&lt;br&gt;“With former injection tools, the injectors were very rigid and often broke in the dirt because they couldn’t handle a lot of stress,” says Raymond Claire. “We went to the drawing board and said we could do something better. Each row can swivel out to the side, and it straightens back out and follows contours.”&lt;br&gt;&lt;br&gt;Their system allows applicators to apply up to 20,000 gallons per acre and because it’s injected it results in very low odor. With each new product, they said farmers or dealers reached out to them to describe a need, and they worked with their engineer to find a solution.&lt;br&gt;&lt;br&gt; &lt;br&gt;&lt;br&gt;
    
&lt;/div&gt;</description>
      <pubDate>Fri, 13 Nov 2020 02:31:05 GMT</pubDate>
      <guid>https://www.drovers.com/news/manure-opens-doors-family-farm-expand</guid>
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