Management

Leadership Is Costing You More Than You Think

Thu, 05 Mar 2026 13:19:08 GMT

When deciding how to make ranches more profitable, there is often one overlooked area of improvement — leadership. Strong leadership on ranches impacts profitability through improved employee retention, continued learning and more confident decision-making. Tom and Terryn Drieling are true examples of how investing in leadership builds a more profitable ranch and an enjoyable lifestyle.

“I think it’s our role as ranch managers to provide an opportunity for the next generation. It’s our responsibility for everybody to have an opportunity regardless of what their background is,” explains Tom.

He has managed a unit of a ranch in the Nebraska Sandhills for more than 10 years, and Terryn works as seasonal help in addition to operating her own business, which helps people in rural communities improve their own lifestyles and leadership skills.

“I think that having good leadership is so important because it kind of sets the tone for the rest of the crew,” says Terryn. “If you have somebody in the leadership role that can create a good work environment and bring everybody together, you’re going to have a more enjoyable workplace and improved production and efficiency.”

Tom has been very intentional about improving his own leadership skills, and the results are clear to both his crew and general manager.

He shares, “The work I was doing for myself was extravagant enough that my boss saw it. We saw that in profitability, the motivation of our guys, the production of our herds and the way we interacted with the other units.”

He is a big believer in utilizing continuing education opportunities to improve leadership, but making the decision to do introspective leadership work is what has made the biggest difference.

“When we first started here and Tom took over the unit manager position, there was definitely some communication hangups,” shares Terryn. “But over the years, Tom has really done a great job of being introspective and doing some inner work, and learning different ways to communicate with people.”

He spent time learning not only which communication styles work best for him but also those he works with on the ranch.

She says, “Watching that transformation has been really cool…the culture has shifted and now everyone else is starting to do the work too. It’s fun when we crew up.”

While impactful, this wasn’t an overnight shift. It took time and lots of effort.

Tom says, “Now I’m kind of working on my tone and my delivery when I communicate, and I’m not going to lie to you, it’s taken time, it’s taken a ton of work.”

Improving leadership on operations starts with you and doing a self-audit of sorts.

“In stockmanship, the first thing that we need to have to handle our cattle in a low-stress manner is self-awareness. We need to be aware of our energy and what that is conveying to our animals,” explains Terryn. “The second thing is social awareness. We need to be aware of what our animals are telling us. And animals are really good at reflecting things back to us…start there.”

Animals can tell you if you came into a situation with big energy, angry, anxious or calm.

Terryn says, “And then you can take it back to your human-to-human interactions and you can see how people respond to you and reflect back and see what’s going on inside of you and use that as information to improve your own leadership.”

During this process, it’s important to remember that nobody gets it right all the time. We are humans.

“You’re not going to have perfect communication all the time. What’s important is repair,” says Terryn. “If you come into a situation and it doesn’t go well, you can always go back and say, ‘Hey, I am really sorry. I came in really hot and I’m sure that did not feel good.’”

In situations where leadership from employers feels lacking, remember to lead up!

She shares, “You can kind of foster some of that leadership within yourself by asking the right questions, opening lines of communication and providing positivity in a slew of negativity. Because I really do believe in the stockmanship phrase, ‘good movement draws good movement,’ and good movement starts with us.”

As Tom reflects on the benefits he’s seen from improving his own leadership skills, he encourages others to invest in their employees and genuinely care about their well-being.

He says, “Always be continuing education. Invest in yourself, invest in your employees. I don’t think enough credit is given to the guys that are operational. I think they get taken for granted. Invest in those people.”

Employees have lives outside of work, and that can’t be forgotten.

He says, “I want my guys to come home at the end of the day, 100% healthy. They have their own lives… I want to do everything I can to leave those guys to do their job, but supply them with the ability and the tools to know I have their back. If you need something, call me. If you need a direction, call me. If you need a tool, call me.”

Transparency in communication also can’t be overlooked.

“Try to be transparent in as many things as you can, but attitude is everything and the tone that you come to work with and the tone that you interact with your employees sets the entire tone for your company as a culture,” Tom shares.

Remember, good ranch leadership doesn’t just impact today’s generation, it impacts the ones to come too.

Tom says, “I think it’s our duty as leaders and ranch managers or production agricultural people to help the next generation be more qualified for our roles than what we are. They’re going to have to provide more with less.”

Listen to the full conversation on the Casual Cattle Conversations podcast .

Overcome the No. 1 Challenge in Passing Down Your Family Farm

Mon, 30 Jun 2025 19:38:38 GMT

Between now and 2048, about $124 trillion is expected to exchange hands from older to younger generations in the U.S., according to Cerulli Associates, a Boston-based market research firm.

For perspective, that dollar amount is approximately five times the size of the 2023 U.S. Gross Domestic Product (GDP), which totaled $27.72 trillion.

How will farmers fit into what many people are calling the “Great Wealth Exchange” over the next two decades? Much of it is specific to land, according to the American Farmland Trust (AFT). It predicts 300 million acres of U.S. agricultural land will change hands in the next 20 years.

Based on $5,000 an acre for farm ground, Paul Neiffer, the Farm CPA, estimates that would be a transfer of between $1.5 trillion and $2 trillion in land from older farmers to younger generations.

“If you throw in rangeland, that’s another trillion, so $3 to $4 trillion at most is where I think we’re at,” Neiffer says.

The Reason Succession Often Fails

A common issue is that while 69% of farmers plan to transfer their operation to a younger family member, only 23% have a plan , according to AgAmerica Lending LLC.

But the No. 1 issue that trips up people in the succession planning process is most people – farmers included – focus more on the mechanics involved in transferring assets than on keeping their family relationships intact.

That’s according to Amy Castoro, CEO and president of The Williams Group, a family coaching and consulting organization. Her firm does relationship planning to help family members make sure they’re still speaking to each other after the wealth transfers.

Many times, she says, the friction in the transfer of wealth has little to do with money and material goods and a whole lot more to do with whether the family members involved felt loved.

A Formula For Success

The Williams Group did a 20-year field study and from that developed a formula for how people need to focus their time and energy in the succession process.

The company recommends spending:
60% of your time on building family trust and developing good communication practices;

25% preparing your heirs to take over the operation, laying the business and fiscal groundwork for the farm to continue under their leadership;

10% of your time getting on the same page about your family’s values and having a family mission;

5% of your time on the estate planning mechanics, the nuts and bolts of how the assets will transfer.

In addition, The Williams Group advises that you work with your heirs to:

Strike a balance between control and collaboration.
Embrace the next generation’s perspectives.
Bolster intergenerational solidarity.
Embed high-trust behaviors.
Co-design standards for readiness.

Start The Plan Sooner, Not Later

If you want to see your farm succeed with the next generation of family members, make sure you have the right structure in place – and set it up sooner than later. Don’t put it off, Neiffer advises.

Once you have a plan in place, you have a tool you can modify to fit what your family and farm need over time.

“Having a plan in place can help alleviate stress, even if things change down the road,” Neiffer says. “Keep in mind that farming is a dynamic business and your plan needs to be, too.”

Your next read: Big Questions Remain For Next Gen Farmers

3 Steps To Honestly Evaluate Your Farm's Performance

Thu, 27 Mar 2025 20:01:20 GMT

You’re only ever in three stages of life:

As good as you think you are
Better than you think you are
Worse than you think you are

Most of the time it’s No. 3. “But, Shay, my feelings!” Settle down, this isn’t to make you feel bad about yourself. It’s to reflect on how you’re treating yourself.

Step 1
The first step is expectations and goal management. Your perception of how well you are doing is probably dictated by the ability to achieve your expectations. Do your expectations only live in your head? Then you need to write them down. People who write down their goals are 80% more likely to achieve them. Then you need to evaluate, are these realistic expectations?

Step 2
The second step is prioritizing. You can only improve what you measure, and you shouldn’t measure what you aren’t willing to manage. Whether it is time management, work-life balance, profitability projections, marketing plans or yield goals, if you don’t measure how you’re doing, how will you ever improve? On the other hand, why are you worried about the markets if you aren’t going to forward market? Does stressing about the price of fuel matter if you’re going to keep the grain cart tractor idling all day at $175 per engine hour anyway? Prioritize what matters and measure it diligently.

Step 3
The third step is being honest with yourself. It’s important to look at each aspect of your business and rate yourself. You can come up with your own metrics, but it might look something like this.

Are my financial reporting mechanisms in order: cash flow, balance sheet, accounting system, tax preparation, etc.?
How would my team rate my leadership and engagement over the past 90 days?
Am I communicating effectively to landowners, team members and stakeholders?
Are opportunities being fairly assessed for economic progress and determination of alignment with our business?
Is my equipment maintenance plan what it should be and am I doing the work in a timely manner?
Am I taking care of my personal health and family obligations, as well as prioritizing the things that really matter to me in life?

Design your own metrics for business success. Honestly, my scores are pretty darn low in a lot of these categories right now, but it is an important metric for me to track and implement changes where I can to steer the ship in the right direction.

Set your expectations appropriately and get them on paper. Prioritize what needs to be done and spend less time doing what you aren’t willing to change. Be honest with yourself and assess how your farm is performing.

As you read this, are you as good as you think you are, better than you think you are, or worse than you think you are?

Mastering Life’s Challenges: Saddle Up and Charge Forward

Tue, 11 Feb 2025 21:40:33 GMT

Two years after he started bronc riding in the rodeo, Zach Arend hadn’t made to the 8 second mark—he’d only left the arena with broken bones and covered in dust.

But with focus and fortitude, he went on to become a two-time state champion in Nebraska, and today he shares how those experiences empower business leaders.
He’ll share lessons from the rodeo arena at the Top Producer Summit in Kansas City, Feb. 17 to 19.

In his speaking, he gives three steps for entrepreneurs and business owners:

Get your eyes on the bronc
Raise high and lift.
Put people in the arena.

“For two years, I hit the ground, broke bones, and got back up and dusted myself off,” he says. “What’s important for a bigger and brighter future is that you learn how to show up differently. It’s about our relationship with struggle.”

He wants to equip everyone to get the most out of every opportunity and create the outcomes you want in life.

“These are uncertain times, but when do we not live in uncertainty. There has never been a year that isn’t a wild ride in life,” he says. “Rather than come from a place of fear, come from a place of possibility and opportunity.”

Join Arend for more actionable insights at the 2025 Top Producer Summit. Registration is still open.

“You have the opportunity to saddle your own horse and take on life’s challenges,” he says.

Heads Up: Corporate Transparency Act Still in Limbo

Fri, 27 Dec 2024 19:49:00 GMT

The ongoing legal battle over the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) reporting requirements has seen significant developments in the past month:

Dec. 3: A nationwide injunction against the CTA was issued by the U.S. District Court for the Eastern District of Texas.
Dec. 23: The Fifth Circuit Court of Appeals stayed the injunction, reinstating the CTA.
Dec. 26: The Fifth Circuit vacated its earlier stay, potentially reinstating the injunction.

What Does This Mean for Farmers?
The if and when regarding BOI reporting is unknown, but should the CTA be upheld, here’s what we know.

Corporations, limited liability companies (LLCs), limited partnerships (LP) or any entities created by filing a document with a secretary of state must file online reports to the Financial Crimes Enforcement Network (FINCen) , disclosing information about the beneficial owners of the entities. The following information is required:

legal name
current street address
the state in charge of its filing requirements
taxpayer identification number

As of Dec. 27, entities in existence before Jan. 1, 2024, now have until Jan. 13, 2025, to make their first BOI report. However, the Jan. 13 deadline might change based on court outcomes. Entities created or registered in 2024 have 90 days from creation to get their first reports filed.

Conflicting rulings make it difficult for entities to determine next steps. A final decision is expected soon, but the timeline remains unpredictable.

In the meantime, monitor legal and regulatory updates closely, and prepare for compliance by drafting BOI reports to ensure readiness if the CTA is upheld.

Tax Turbulence: How Sunsetting Provisions Could Change Your Bottom Line

Thu, 19 Dec 2024 15:04:41 GMT

With 30 tax provisions set to expire at the end of 2025, the tax liabilities for family farms could increase at a time America’s farm families can ill afford any additional hits to the budget. Uncertainty surrounds the 2017 Tax Cuts and Jobs Act (TCJA) and American Rescue Plan Act (ARPA)–especially as a new administration is in route to the White House.

“The cost of the TCJA is significantly higher than was originally estimated in 2017. The newest estimate we’ve seen is that a full extension of the TCJA is going to cost $7.75 trillion through 2035,” says Pinion’s Beth Swanson. “With the budget reconciliation process and the expected cost, we’re worried that Congress is going to have to pick and choose which provisions of the TCJA are going to get extended next.”

According to research from USDA ERS, the impact of these expiring federal income tax provisions would increase tax liabilities for farm households by almost 9 billion. That’s a $2,200, or 12%, average increase per farm.

Increase in tax liabilities resulting from expiring Tax Cuts and Jobs Act (TCJA) provisions that would increase tax rates, decrease deductions, and restore personal exemptions.

(USDA, Economic Research Service and USDA, National Agricultural Statistics Service, 2018–2021 Agricultural Resource Management Survey)

Broken down by farm size, that looks like:

Low sales farms: Tax increase of about $700
Moderate sales farms: Tax increase of about $2,300
Very large farms: Tax increase of nearly $28,000

“Interestingly, in percentage terms, moderate sales farms are expected to have the greatest increase in tax liabilities at about 16%,” says Tia McDonald, USDA ERS. “They’re in an in-between area where they’re not quite getting some of the exemptions that higher income folks can take advantage of like bonus depreciation and even 179.

Farm CPA and Top Producer columnist Paul Neiffer adds, “Another part of it is the percentage increase of going from a 12% tax bracket to a 15% tax bracket. A lot of those moderate-income farmers also have 2, 3 or 4 kids that, under the current rules, qualify for the $2,000 tax credit, which is going to drop down to a $1,000 tax credit.”

As far as which provisions are the most important for farmers and ranchers, McDonald says the biggest impact will come from be provisions providing reduced individual income tax rates, an increased standard deduction, a cap on state and local tax deductions, and the elimination of the personal exemption, which would create an increase in total tax liability of $4.5 billion for all farm households.

“The reason for that is that it touches almost every farm household. So, the reach is quite broad,” she explains.

The Qualified Business Income Deduction
The second most important provision set to expire that McDonald lists is the qualified business income deduction, which provides farm households with positive business income a deduction equal to 20% of their qualified business income.

“Approximately 40% of low sales farms to almost 80% of very large farms receive that qualified business income deduction,” McDonald says.

Estimated Impact of Expiring QBI Deduction

(USDA, Economic Research Service and USDA, National Agricultural Statistics Service, 2018–2021 Agricultural Resource Management Survey)

Referring to the results of a recent survey, Kent Bacus of National Cattlemen’s Beef Association (NCBA) says even though this deduction hasn’t been around long, it’s been valuable to producers.

“As far as the 199A qualified business income deduction, with that being relatively new, we still had over half of the [1,200] respondents who have used it, and they’ve considered a very important tool,” Bacus says. “I think that’s something that we want to see continue in the next package.”

Child Tax Credit and Bonus Depreciation
McDonald says additional provisions, such as the child tax credit, the estate tax exemption, alternative minimum tax provisions and bonus depreciation, will likely have less of an impact on tax liabilities overall.

“Those are really targeted toward higher income farm households, so they don’t have quite the reach,” she explains.

Swanson, however, says the loss of bonus depreciation would still be notable for many.

“For bonus depreciation, sunsetting is a concern – especially because Section 179 isn’t really a one-for-one trade. With commodities that are heavier on equipment, producers tend to use bonus depreciation year after year,” Swanson says. “It’s more than just a timing difference. The loss of bonus depreciation will be a significant annual effect to many of the farmers that we work with [at Pinion].”

This is echoed by the results of NCBA’s survey as well.

“When you look at Section 179 and bonus depreciation, one of the key things we ask is, ‘If these tools weren’t available, how would that impact you?’,” Bacus says. “What we found is without access to these tools, about 25% to 30% of the respondents would have had to pay an additional $20,000 in taxes.”

The Timeline
Once the new administration is in place, Bacus believes we can expect Congress to act quickly.

“We have new leadership in the Senate and new leadership in the administration. They’re going to try to prioritize a couple of key things that will be important to the new administration, and a couple of those are going to be border security and taxes.” Bacus explains. “We’re looking for a lot of movement in those first 100 days.”

But Swanson says it’s possible that movement may not be focused on extending these provisions in the beginning.

“We are worried about President-elect Trump’s varied tax commitments and the distraction those might provide to getting the TCJA extended,” Swanson says. “I think the best thing we can do is wait and see. We will hope that the legislative process goes fairly quickly and Congress is able to avoid all of those distractions that may prevent us from getting TCJA expansion done.

Once these provisions are in focus, Bacus believes there are a few avenues it could take.

“With those tight margins in the House and the Senate, you are going to have to have some kind of bipartisan package that comes together. The big question is, are they going to update the tax code? Are they just going to extend it? Or will we potentially see a default if all these efforts fail,” Bacus says. “I think it’s unlikely that the efforts have failed, but the aggressive timeline that’s been proposed is always subject to the minutia and the swamp nature of Washington. That tends to slow things down.”

Neiffer expects an extension with a few key changes.

“I don’t think we’re going to see a permanent TCJA,” Neiffer says. “We’re going to see another three to five or five to seven years. Some of the provisions may become permanent and some will disappear. And you’re going to see some new ones come into effect.”

Your Next Read: Will the Tax Cuts and Jobs Act Get a Second Life?

USDA: Family Farms Still Dominate A Majority of U.S. Farms

Fri, 13 Dec 2024 15:43:01 GMT

Here are eight takeaways illustrating the landscape of U.S. farm productivity and financial resources.

Released on Dec. 10, USDA-ERS published its 2024 edition of America’s Farms and Ranches at a Glance . This publication, which pulls from survey data collected at the end of 2023, aims to give a snapshot of the U.S. farm economy.

Takeaway 1: In total, family farms accounted for about 96% of total farms and 83% of total production in 2023.

A big part of the study breaks down different characteristics of farms by type. The first differentiation is between family farms and non-family farms. Per the USDA, a family farm is a farm in which the majority of the business is owned by an operator and/or any individual related by blood, marriage, or adoption, including relatives who do not live in the operator’s household.

Among family farms, farms are divided by farm size measured by gross cash farm income (GCFI).

Most U.S. farms (86%) are small family farms (GCFI less than $350,000); these farms operate on 41% of U.S. agricultural land and account for 17% of the total value of production
Midsize family farms (GCFI between $350,000 and $999,999) accounted for 18% of agricultural land and 18% of the total value of production.
Large-scale family farms (GCFI of $1,000,000 or more) accounted for 48% of the total value of production and 31% of agricultural land in 2023.
GCFI includes sales of crops and livestock, government payments, other farm related income, and fees received by operators from production contracts.

Takeaway 2: Large-scale family farms dominate the production of many selected commodities

Large-scale family farms accounted for the majority of the value of cash grains and soybeans (52%), cotton (71%), dairy (77%), and specialty crops (59%) production
Small family farms produced 45% of the value of hay and 46% of the total value of U.S. poultry and egg output
22% of the value of beef production occurred on small family farms, while 39% occurred on large-scale family farms. Small family farms often have cow-calf operations, while large-scale family farms are more likely to operate feedlots
Compared with 2022, nonfamily farms comprised a larger share of the value of production, with their value of beef production increasing from 11% in 2022 to 26% in 2023.

Takeaway 3: Small family farms and non-family farms are potentially more financially vulnerable.

The data in this report was collected when net cash income was above the 10-year average. USDA measures financial performance by operating profit margin (OPM), with a noted high-risk zone of less than 10 OPM.

In 2023, between 52 and 85% of small family farms, depending on the farm type (retirement, off-farm occupation, low sales, moderate sales), had an OPM in the high-risk zone.
Around 53% of nonfamily farms had an OPM in the high-risk zone.

Takeaway 4: Use of credit and loans is an important resource for all farms.

The share of farms (28%) using credit in 2023 was lower than the previous 10-year average of 31%.
Within every type of farm, on average, 80% or more of debt came from traditional lending sources, including the Farm Credit System, USDA, FSA, and commercial banks, compared with trade credit or other sources.

Takeaway 5: Less than one-quarter of farms use government payment programs.

The percentage of farms receiving government payments ranged from 21% for small family farms to 44% for midsize and large family farms.
Small family farms received 76% of all payments from USDA’s Conservation Reserve Program (CRP)
41% of all USDA, Natural Resources Conservation Service (NRCS) working lands program payments were received by small family farms, which includes Environmental Quality Incentives Program (EQIP) and Conservation Stewardship Program (CSP).
Midsized and large-scale family farms accounted for 66% of the total value of production and received 71% of countercyclical-type payments, which include Agricultural Risk Coverage (ARC) and Price Loss Coverage (PLC) and 61% of all other payments, which include Dairy Margin Coverage, agricultural disaster, and ad-hoc payments

Takeaway 6: 16% of farms participated in federal crop insurance programs. This is a slight increase from 14% in 2022.

66% of farms producing row crops (cotton, corn, soybeans, wheat, peanuts, rice, or sorghum) purchased Federal crop insurance.
17% of farms growing specialty crops, such as fruits, vegetables, and nursery crops, and 12% of farms producing livestock purchased Federal crop insurance.

Takeaway 7: Many farms rely on off-farm income.

Most (85%) of all U.S. farm households earned the majority of their total household income from off-farm sources
52% of family farm households had negative farming income
Overall, 42% of farm households have income below the US median in 2023.

Takeaway 8: New insights on unpriced stored grain highlight the risk management tool.

For the first time, the study asked about unpriced stored corn, soybeans and wheat.

The largest volumes were in post-harvest months.
The average share of total stocks as of December 2023 that was unpriced was 38.6% for corn, 32.9% for soybeans, and 20.4% for wheat
Unpriced off farm storage is less commonly used

Click here for the full report from USDA-ERS

This South Dakota Rancher Is Prepared To Seize Each Opportunity

Thu, 05 Dec 2024 13:30:00 GMT

South Dakota farmer and rancher Christine Hamilton doesn’t point to one person or one particular event that has brought Christiansen Land and Cattle (CLC) success. But rather, she credits systems for outfitting her team to be prepared to seize each opportunity.

“Everything is a system with lots of moving parts. We try to find leverage in the system to make things better. I believe in choosing the right people and empowering them because talented people appreciate the opportunity to make the daily decisions to move forward on a task,” Hamilton says.

Rooted in her on-farm upbringing alongside a strong entrepreneurial streak passed from generation to generation, Hamilton constantly surveys the landscape and prepares her farm and ranch for its next plateau of success. Due to her achievements in farm management and excellence in leadership, Christiansen Land and Cattle was recognized as the 2024 Top Producer of the Year, an award sponsored by BASF, Case IH and Rabo AgriFinance.

With an unassuming pursuit of excellence, Hamilton leads the team driven by the pursuit of doing things in a better way but not for the sake of being the best.

While she has taken on a number of leadership roles on and off the farm, Hamilton says some of her greatest sense of achievement comes from leading from the background and not being the one in front. In that way, she’s a bit of a reluctant Top Producer of the Year — instead she wants the spotlight on what the team has achieved together.

Today, the core team includes her husband Eddie Hamilton; Shawn Reis, livestock manager; Matt Huizenga, crops manager; and Christie Rasmussen, accounting manager.

“Personally, I’ve learned I don’t have to have a big family in the business in order to have a work family,” she says. “Our team effort is the result of values created by the work family, striving for excellence and acting with integrity. They show up every day and do the work to make us successful; they aim for the fences and they value the process of improving.”

She says there is an important detail in the success at CLC — it’s not the job that is done but rather how that job is done.

“Each of our decision time frames is straight forward — planting, weed control, harvesting, purchasing. When a team has the latitude within those decisions to do it their way, the best way, it’s more fulfilling,” she says.

As leader, she says the greatest achievement is in the relationships among the team and the extended relationships out into the community. For her role, she aims to be an enabler of such success. Hamilton has offered her time as a mentor and encourages her team to step up to expand their own opportunities as well.

“We tend to think of businesses as task oriented,” she says. “People would be surprised to learn how much time I spend talking with other people.”

2024 Top Producer of the Year Christine Hamilton

(Alexis Nicole Photography)

Journey Back Home
“I always knew the business was larger than any one person,” she says.

Hamilton has had her own trajectory from learning tasks to being given responsibility to taking on stewardship. As a child, she worked alongside her parents and at 8 years old would help by pushing the button to start the leg at the grain elevator. Then she’d ride on horseback with her father twice a day to sort and check cows. At the age of 21, her parents gifted her some property to manage.

Hamilton left the farm first to attend boarding school for high school. She stayed on the East Coast to complete her degree in philosophy from Smith College, which was then followed up with an MBA focused on entrepreneurship from the University of Arizona. After her father passed away, and when her mother needed more hands-on help managing the business, she returned 20 years later full time. As their only child, Hamilton was the sole heir after her mother’s passing in 2001, which began an eight-year process of settling the estate in courts.

“The agricultural land we owned had appreciated significantly during the time my parents had owned it, which resulted in estate tax challenges,” Hamilton says. “It was imperative we find a way to assimilate the estate taxes in order to continue the business. Among other tools, the 6166 tax provision was used to spread out the payments.”

She also worked with a team to direct efforts to sell, buy and therefore rearrange land holdings better suited for the operation.

“After my mother passed away, my immediate goals for the farm and ranch were personal,” Hamilton says. “It was about succeeding with the transition in management and ownership from my mother to me, one generation to the next. I was afraid of failure — and probably success, too.”

She says the duration and intensity of this series of events began to intertwine her personal and work identities.

“From 1993 onward, the farm and ranch became a core part of my work and identity, as those of us who are in agriculture as a lifestyle business know all too well,” she says. “My goals for the farm and ranch evolved, as well. I began to see that the farm and ranch continuity depended on more than just me.”

2024 Top Producer of the Year Christine Hamilton and team

(Alexis Nicole Photography)

Key Performance Metrics
With the farm and ranch structure ironed out, Hamilton set to work to refine its operation and optimize its performance.

When Hamilton met her future husband, he was serving on the Farm Financial Standards Council (FFSC), and this organization not only was a gathering of bankers, accountants, academia and consultants but was also a key driver to bring activity-based accounting guidelines for production agriculture.

To build a firm foundation of understanding the business of the farm, Hamilton brought in Steve Hofing of Centrec, who became a valued team member and mentor.

“Centrec has been a part of the management team since 1999, acting as our CFO and performing many tasks from risk analysis, assisting in capital purchases, to modeling various scenarios and other services,” Hamilton says.

CLC became an early adopter of activity-based accounting, a practice they continue to expand on the farm today in the decision-making process.

“We collaborated with the software company Centerpoint, now owned by Red Wing, and we have incorporated it into the way we operate and measure our results,” she says. “We have developed cost and activity centers with monthly meetings with managers to know our direct costs. We farm on the land we enjoy the appreciation of, but the challenge is to get returns on the operation.”

2024 Top Producer of the Year Christine Hamilton

(Alexis Nicole Photography)

A Pioneer Spirit
With the processes in place to ensure CLC performance tracking and reaching goals, Hamilton has been able to turn her attention to interests off the farm.

Her entrepreneurial spirit can not be tamped down. It could be a credit to a lineage of strong female business owners going back to her grandmother who took on ownership of a general store in the wake of her own brother’s murder by cattle rustlers.

Any stumblings have stoked the fire in her to continue to try to help build something else in a better way. Hamilton shares an example of a seed treatment business she invested in and mortgaged part of her farm holdings to become involved.

“I clearly remember getting to the end of the funds available and not being any closer in any way to pay them back — I had a pit in my stomach about wasting that money,” she says. “It motivated me to get my MBA.”

While she says it might have been her biggest failure in business, it refocused her efforts to become a better entrepreneur. She went on to start four companies: a gourmet meat store, a hay production company, a dairy development startup and a wholesale meat company.

The wholesale meat company is still in operation today: Dakota Packing, Inc., based in Las Vegas.

Hamilton believes diversification is a way to spread risk, grow the whole business and take lessons learned from one area and be able to apply them to another.

She helped start South Dakota Ag Producer Ventures, which was an investment entity for producers to invest in startup projects.

“Diversification definitely brings something to the table — ag asset portfolios can be improved with some diversification,” she says. “My husband, Eddie, and I also have additional business interests.”

As a couple, the Hamiltons helped start SAB Bio, a publicly traded biotech company based in South Dakota. Its technology aims to address infectious diseases, diabetes and some oncology targets by creating human polyclonal antibodies in bovine blood using genetic manipulation.

“We’re fortunate to be able to build on the foundation of Christiansen Land and Cattle to explore innovation in biotech and in a wholesale beef business in Las Vegas,” she says. “Several boards we serve on provide a window into innovations and the challenges of additional businesses and nonprofits. We find that diverse interests inform our values and enable us to gain insights into our own business.”

Hamilton currently serves on a second board for a publicly traded company, Titan Machinery, the largest Case IH dealership network. She currently sits on the boards of the Farm Foundation and Padlock Ranch Board. In the past, she’s served on the board for South Dakota State University Foundation, Federal Reserve Bank of the Ninth District, and the South Dakota State Game, Fish and Parks Department Commission.

In The Community
One of the business goals for Christine Hamilton is for Christiansen Land and Cattle to be engaged in its community. As such, CLC supports several local area food banks and volunteer fire departments, along with school fundraisers.

“We have also asked each of our CLC team to recommend a local nonprofit, and we have donated to the chosen organizations in their individual names,” Hamilton says.

In 2001, Hamilton created a 501(c)(3) organization. Named for her family last names: the Matson Halverson Christiansen Hamilton Foundation focuses on creating opportunities and supporting economic development and community vitality in rural South Dakota. The first initiative supported non-traditional students as they pursued their RN degrees.

“The thinking was that healthcare is an economic driver in rural areas, and local residents who want to pursue additional education can have the choice to pursue nursing,” Hamilton says. “That choice will enable them to work locally and also elevates the quality of opportunities in the area.”

2024 Top Producer of the Year Christine Hamilton

(Alexis Nicole Photography)

Continuous Improvement
With her various roles on and off the farm, no week is the same as the next. However, her intentionality in helping her team always remains the same.

“My goals now for CLC are around how CLC can be an example of thoughtful management that contributes positively to the people who work here, the soil/land health and the community, all while being a solid business with reasonable and consistent returns,” she says.

In 2015, she started the process to develop a sustainability management plan, which took a full look at the business with agronomy and livestock management consultants.

“Through a series of annual meetings that involve the entire management team, we have created a living document that represents the goals and considerations of all the stakeholders of the business,” she says. “This includes the community perspective and thinking about how CLC gives back to the community.”

The team just completed its meeting for 2024, but they don’t call it the sustainability management plan any more — now it’s the continuous improvement plan.

“Of course, there has to be sustainability in everything,” Hamilton contends. “Continuous improvement says it better.”

The meeting includes all business division managers as well as Ag To Go, which are the farm’s agronomic consultants. The meeting lasts about a day and a half, and they go over areas of improvement for the next year. As such, 2025’s list includes: riparian buffers, tree plantings, nutrient management inefficiencies, and soil erosion and control programs.

Hamilton says the biggest motivator for her in business is seeking out the potential for continuous improvement — it helps serve her natural sense of curiosity.

“What we’ve built and how we’ve found success have been offshoots of curiosity and momentum,” she says.

No one knows better than you that the future of your farm depends on balancing practices and profits that sustain your land, resources and family . The stakes are evolving based on weather patterns, technology, market demand and more. What actions are you taking to remain resilient?

Registration Open Now for USDA’s 101st Agricultural Outlook Forum

Thu, 31 Oct 2024 20:12:01 GMT

Registration opened for the United States Department of Agriculture (USDA)'s 101^st Agricultural Outlook Forum Oct. 31 announced the agency. The hybrid event titled, “Meeting Tomorrow’s Challenges, Today,” will be held in person at the Crystal City Gateway Marriott on Feb. 27-28, 2025, in Arlington, Va. In addition, all Forum sessions being livestreamed on a virtual platform.

USDA Chief Economist Seth Meyer will offer a presentation on the 2025 outlook for the U.S. agricultural economy and trade. The Forum program will also include a panel of distinguished guest speakers, alongside 30 breakout sessions organized by USDA agencies that will explore a wide range of current issues.

More than 100 experts from government, industry, and academia will provide insights on key topics such as commodity and food price forecasts, farm income, U.S. and global agricultural trade, the future of biofuels, climate change strategies, and advancements in biotechnology. The in-person event will also feature exhibit booths by different USDA agencies, providing attendees with information about recent USDA-funded innovations and the Department’s key programs and activities.

The Agricultural Outlook Forum (AOF) is USDA’s largest annual gathering attracting more than 1,800 people in person and upwards of 5,000 virtual participants from the U.S. and around the globe. Producers, processors, policymakers, government officials, and non-governmental organizations attend this annual event.

Future Leaders Program

Applications are available for the Future Leaders in Agriculture Program, which selects 20 undergraduate and graduate students in agriculture-related studies (15 undergraduate students and five graduate students) for a weeklong trip to Washington, D.C. During their visit, students take part in a USDA briefing, discuss career opportunities with agriculture leaders in academia, government, and industry, attend the forum, and tour the nation’s capital. Winners receive free registration, transportation, and lodging. Apply today for the program.

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Ways to Improve Profitability and Productivity for Cattle Producers

Thu, 31 Oct 2024 17:52:56 GMT

Profitability and productivity, they are two things ranchers always want more of, right? After interviewing more than a hundred guests on the Casual Cattle Conversations podcast and being boots on the ground for family ranches my whole life, I’ve picked up on patterns and strategies that are imperative to improving both profitability and productivity.

First, it is important to know the relationship between the two. Ranchers know the meaning of ‘time is money’ all too well but is increased productivity directly correlated to increased profits? I would argue they are not directly related unless you are being productive in the right areas. For example, feeding cattle is a necessary task that is always on the list during the winter months for many people. However, is your time better spent on other areas of the business like refining your marketing plan, building customer relationships, increasing days spent grazing or gaining a better understanding of your finances? More details on this to come but I find it important to understand what the relationship between profit and productivity can and cannot look like depending on where your time is being spent.

Increasing profitability is a topic you see in every issue of any newsletter, publication and many podcasts. Cattle producers run on tight margins and many work to defy the old saying that ranchers are only profitable one out of every ten years. By far, the most common piece of advice I’ve heard and witnessed when it comes to profit is knowing your numbers. Knowing your numbers isn’t just being prepared for tax season. It is knowing where you stand today so you can make accurate decisions. If no one on your operation is interested in and capable of managing the finances, then hire it out to someone who is. You wouldn’t think twice about asking a veterinarian or nutritionist for advice, so why would you question the outsourcing of your books?

Knowing your numbers shows you where you stand today but if you don’t know where you want to go, how can you confidently make any decision about your operation? The goal setting system that works well for our family farm and my business is the one, five and ten year outlook. Sit down with your family or business partners and write down what you want the ranch to look like in ten years. What does this look and feel like financially? Who is on the operation? In what areas do you excel? Why do you want it to look this way?

Next, write down where you want the ranch to be in five years. Are the goals you have set for five years stepping stones to your ten year goals? For example, if your ten-year goal is to have an alternative revenue stream that brings in an additional $30,000 of profit then your five-year goal could be to have the business plan developed or even implement phase one of this business.

Once you have the five and ten your goals complete, look at the next twelve months. What do you want the ranch and life to look like in one year? What actions are you going to take in the next twelve months that are in line with your five- and ten-year plans. Break these down into the simplest actions and designate which month is the deadline. For example, if you want to create a more profitable marketing plan the first step might be to contact your sale barn representative to learn who has been buying your calves. Step two might be contacting past buyers to learn the strengths and weakness of your calves after they leave your ranch. This exact goal setting outline goes into more detail in the Move Your Ranch Forward goal-setting book on my website for those interested in starting today.

You might be saying, come on Shaye this is all basic stuff. What about cutting inputs and cattle marketing and other actions? Truth be told, increasing profits is dependent on the individual operation. Once you know your numbers, where you stand today and where you want to go; those other practices and decisions will fall into place for you if they are in line with your goals and numbers.

Productivity is what will help you get from Point A to Point B faster and probably reduce some stress along the way. There are ample tools and technologies that can be implemented to increase productivity but none of these matters if you have poor communication. Communication is the number one driver or killer of productivity. I know this because my lack of communication has decreased productivity. On the flip side, when everyone communicates our productivity increases drastically on our diversified operation. Some argue there is no sense in planning so far ahead when things always. I say it is better to have a plan and change it than to have no plan at all. During the fall months many families are balancing harvest, cattle work, hay hauling, fall grazing and the work schedules of family members with additional careers. One strategy I’ve used for years is to share a rough idea of what my week looks like on Sunday night. This way everyone knows when I am available to help or if it would be beneficial for me to move some meetings. Flexibility with scheduling must work both ways. Additionally, we try to connect daily about who will be available to help and who is doing which tasks on the farm for the day.

Outside of communicating about schedules, working on giving clear instructions and gauging how well you communicate is equally as important. If you feel like people aren’t listening to you or notice a lot of miscommunications; ask the people you work with how you can improve your communication. Ask them if there would be a more effective way to communicate with them. Treat it like a workplace. Chances are everyone can do something to improve how they communicate.

After communication, start looking at automating, delegating, eliminating and reducing to increase your productivity. Look into different software to help with cattle and financial records. Make a list of all the things you do in a day and put stars by which ones make money or move the ranch forward. Can you delegate other tasks or reduce how much time you spend performing them? Are there tasks you can completely eliminate? You might not be able to make all these changes today and that is to be expected. If you want to do it in the future, put it on your goal list. One unexpected way I freed up time in my schedule was by reducing screen time. I set limits for how much time per day can be spent on certain apps and I even deleted a few off my phone. Turning off notifications for email and social media has also been impactful.

Increasing your profitability and productivity is truly a set of simple actions. Take the time to be honesty with yourself about where your operation stands today and where you want it to stand in the future. If you are committed to these goals, the rest will fall into place.

https://www.casualcattleconversations.com/casual-cattle-conversations-podcast-shownotes/s3auin6o1au9tgy69yzgdayve3usfq

Recognizing Economic Risk on the Ranch

Mon, 21 Oct 2024 20:20:30 GMT

One of the primary overarching economic risks that many cattle ranchers face without realizing it, is that the economic production model that is currently in place for their operation will not consistently be profitable over the long term.

It may be that since the ranch was put together the competitive advantage or circumstances that facilitated profitability changed. Over several decades, input costs for equipment, fuel, fertilizer, and labor have all increased significantly. The dollars received for cattle sold has not increased at the same rate. Therefore, a ranch production system that economically was profitable in the past may no longer be so. The increasing costs associated with operating under the ranch’s historic production model aren’t being matched with the same level of increase in revenue from cattle being marketed. The ranch may be losing money and subsidizing the business with equity, unpaid labor and off ranch income.

For commodity businesses, the value of products and services produced over the long term tends to move toward breakeven. This is especially true if there are not significant barriers for people to enter or exit from that business. If there is the opportunity to make money, and there is the freedom to do so, people will enter the business and increase the supply of the product or service that is profitable. As there is an increase in supply to the market of the product or service, eventually prices will fall. When the fall in prices causes those producing the product to have a loss, they will either decrease their cost of production, reduce the amount of the product they produce or exit the business. This is consistently seen with cattle and other commodity production cycles.

The role of the cattle cycle in a production model
Think of the long-term cattle cycle. When cattle prices are high and cow-calf producers are making money, there is the incentive to produce more calves. When raising calves is profitable, existing and new cow-calf producers will often either buy bred cows or retain more replacement heifers which further reduces the supply of cows and calves going to market. This reduced supply to the market further supports higher prices. Eventually, the heifers retained produce calves, cattle supply increases and market prices go down. When prices go down far enough that cow-calf production isn’t profitable for most producers, there is a selling down of cow herd inventories by ranchers with less equity and higher cost of production to meet financial obligations and some of these producers go out of business. As a result of people exiting the business and a subsequent reduction in cow numbers, fewer cattle are available to the market and prices rise once again.

Therefore, especially in commodity-based businesses, businesses that are continually finding ways to improve their production model, discovering ways to be more efficient, more productive or add value to the products and services they produce are consistently profitable. Ranchers that are not profitable will eventually either exit the business or subsidize the businesses with equity or outside income. An unprofitable economic production model is ultimately a threat to the long-term success of the ranch business.

Questioning a ranch production model
Continually asking questions and being willing to address and make changes will help to ensure the ranch business is economically viable now and in the future.

What are the economics and costs of production for your operation?
What are the economics associated with that production model?
Is the model continually being reviewed and improved to deliver a product at a price that is consistently profitable?
What threats are there currently to the model and what may be threats in the future?
Where are opportunities to change, simplify, or grow in ways that would enhance product value or improve economic efficiency?

The process of evaluating a ranch economic production model can be daunting, a bit unnerving and humbling. Especially when that analysis reveals an economic model that is consistently unprofitable. However, the process can also reveal opportunities to make changes that will help improve business viability and accomplish ownership goals and objectives. The risk of not assessing the economics of the business and just continuing to do what always has been done, “hoping things will work out,” is in fact a decision. It’s a decision to ignore the possibility of opportunities that could improve profitability. It’s a decision that may in fact destine the business to decline and eventual end.

Schedule some time to look at the ranch economic model
Consider the economic value of all the assets and inputs that are being utilized in the ranch operation. Where is value being generated? Where are costs occurring? If market value was paid for the grass grazed, the labor used and the capital investment made in cattle and equipment, would the operation be economically profitable? How many years out of ten would it be so? The opportune time to make changes to the economic model of a ranch is when times are good. When cattle prices are high and cash is available, there are often more options available and some margin to make a transformation to the ranch business.

Surprising Ways You Can Make A Big Impact On The Farm

Mon, 30 Sep 2024 17:56:18 GMT

Everyone brings a unique set of skills and passions to the family farm - but what if the biggest value you can add actually comes from a career off the farm?

Sam Beveridge, an experienced commodity trader, joins Rena Striegel and Ron Rabo on the Ag Inspo podcast to share how his contribution to his family’s sixth-generation operation might look untraditional.

“My strongest contribution back to the farm is being a voice, a sound of leadership that can say ‘here’s what I’m seeing across the farmers I talk to. Here’s what is working, here’s what is not, and here are some of the loopholes to be cautious of’,” he says.

Beveridge’s family farms land in the sandhills of Nebraska along with running a cow-calf operation. He explains that in his case, he best thing for the farm was for his brother to run the day-to-day operations while he provides insights from an office setting.

“Where do you fit best in the family operation? It could be ‘the guy in the office’, and that’s a valuable understanding to have,” Beveridge says. “In a traditional farm or ranch environment, your role is to return and be the physical labor. But I’m a pretty good trader, and the financial trading aspect outweighs any labor aspect I could provide. My value per hour is better sitting in the environment I am today and allowing my brother to rise up and be the leader in his space.”

It isn’t always going to be easy for everyone to carve out their individual role, and he shares it’s been a process of countless trial and error for his family to get to the point they are today.

“You’re better when you have the people who are really good at what they’re doing staying focused in those spaces,” Beveridge says. “There are other people who love what you don’t and they’ll put their blood, sweat and tears into it because that’s what they want to do.”

The Ag Inspo podcast uncovers the stories that inspire, empower and drive change. Hosts Rena Striegel and Rob Rabo explore the journeys of farmers, entrepreneurs and leaders who are making a difference. To hear more, click here .

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Meet AGwagon: The American Truck Built By Farmers, For Farmers

Fri, 20 Sep 2024 21:06:19 GMT

There are many distinct varieties of trucks — fire trucks, garbage trucks, tow trucks and cement trucks, for example — but oddly enough, there has never been a pickup truck 100% purposely-built for farmers and ranchers, until now.

Certified Agriculture Dealerships (CAD) has teamed up with Fox Factory Performance Vehicles to create AGwagon pickup truck aftermarket kits. The kits convert off-the-factory-line trucks into rugged and tough, back 40 devouring, farm equipment hauling beasts.

Before the AGwagon, most farmers upgraded and ruggedized trucks with cash out-of-pocket. That can get expensive. Original equipment manufacturer-installed front ends, for example, are not built to withstand the pounding that driving fields and hauling equipment and other heavy loads everyday places on a pickup. Many farmers end up replacing a farm truck’s worn out front end every other year or so, according to CAD reps.

AGwagon offers Ultra HD front bumper with winch mount and grille protection, along with premium fog lights and a front bumper light cannon upgrade.

(Matthew J. Grassi)

Now, farmers can finance and order a purposely built AGwagon through CAD’s 200-plus dealer network, and it shows up ready to take an absolute pounding from day one, from the beefed up front end to the ultra-heavy-duty back bumper.

There are several pre-configured options and features to choose from, starting at $30,000 for a basic tier of upgrades and topping out at around $50,000 for the top-of-the-line package. Farmers can also order ala carte to pick and choose the features that best fit their intended use.

The kits are brand agnostic (it just needs to be a new domestic truck and over half a ton) and assembled in the USA at Fox Factories’ Trussville, Ala., plant.

The AGwagon kits were built off feedback from a panel of 14 farmers and ranchers. The features that made the final cut are mainly centered around making trucks more durable and rugged, as well as adding in high performance and comfort features. Notably, there is an option to install a ruggedized Starlink Internet terminal on top of the cab for on-the-go connectivity, and there is an integrated two-way radio system available.

“What CAD and Fox Factory were able to do with AGwagon is what I personally don’t see enough of in the ag sector, and that is going to the farmers first, and to the ranchers first, and finding out from them what they need for a pickup truck to be more functional,” says farmer Jeff O’Connor.

O’Connor raises soybeans in northeast Illinois (Kankakee to be exact) and he participated in the farmer panel. Having reviewed the first AGwagon prototype, O’Connor likes the stepped-up durability, internet connectivity and LED lighting add-ons that will help farmers working long days.

“I’ve still got a 79-year-old dad — who’s soon to be 80 — helping me,” O’Connor states. “I’m upgrading lights in our shed just so it has better lighting for safety. You hate to lose skilled labor because they can’t see where their feet are going. So I am glad to see they really made [lighting] a major, major part of the truck and its ability to serve the operator.”

CAD hosted an unveiling of its prototype model, built onto a Ford Super Duty pickup, in Columbus, Ohio, last week. Speaking to reporters, CEO Pat Driscoll highlighted how the company worked alongside farmers to bring their feedback to life.

“They said ‘give me a heavy-duty front end that will hold up for years’, and that’s what we have here,” he says. “Easy bed access was also at the top of the list. That’s why you see the fold-away steps on the side, because none of us are getting younger and we need a little help. One of the other things they wanted was high intensity, 360-degree LED lighting because work doesn’t stop when it’s dark. This truck gives you 360-degrees of LED lighting for as long as you need it.”

For those curious, the AGwagon name was picked because the truck “captures the defining characteristics of the original AGwagon aerial application plane — reliability, longevity and capability,” Driscoll says.

Special financing is available, and all AGwagons include a three-year, 36,000-mile warranty on all installed components. Learn more about the AGwagon’s features and multiple upgrade packages at agwagon.com .

The AGwagon will only be available from Certified Agriculture Dealerships. To locate your nearest CAD, head over to AgTruckTrader.com .

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How Do You Know When Agriculture Is In A Recession?

Thu, 12 Sep 2024 15:40:52 GMT

Agriculture can sometimes act as a buffer during broader economic recessions, as demand for essential food items tends to remain relatively stable. However, when multiple indicators align, it can signal a recession in the agricultural sector.

According to analysts and economists, pay particular attention to the following:

Declining farm income. A significant drop in net farm income is a major sign. For example, USDA forecasts another major decline in farm income for 2024, on top of the big decline in 2023. That would be the largest ever two-year decline.
Sharply declining commodity prices. Weak prices for major crops and livestock products can indicate economic trouble for farmers. Crop prices have seen sharply declining prices, with the meat sector showing continued strength.
Elevated input prices costs. When input costs such as fertilizer, fuel and labor remain elevated while commodity prices fall, it squeezes farm profitability.
Reduced agricultural exports. Slowing exports and a growing trade deficit in agriculture can signal economic challenges. USDA forecasts the third straight year of a U.S. ag trade deficit , with the fiscal year 2025 at $42.5 billion.
Debt vs. cash flow. Increasing farm debt relative to cash flow combined with higher borrowing costs due to interest rate increases can strain farm finances.
Weakening credit conditions. Lower repayment rates on farm loans and increased loan renewals/extensions can indicate financial stress.
Declining demand for agricultural products. Reduced consumer spending on discretionary food items during broader economic recessions can impact certain agricultural sectors.
Falling farmland values. Higher interest rates and lower farm profitability can lead to downward pressure on land prices .
Increased inventory levels. Growing stockpiles of crops and livestock products can spur further price declines.
Widespread financial stress. When a large number of farmers across different regions and commodity sectors experience financial difficulties simultaneously it can point to an industry-wide recession.

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New Study Looks At The Relationship Between Farmers And Their Advisors

Thu, 12 Sep 2024 15:40:51 GMT

Purdue University’s Center for Food and Agricultural Business has released a new study that takes a look at the relationship between farmers and ag professionals.

Participants were asked to report the size of their farm and the frequency of their interactions with advisors such as agronomists, nutritionists, sales reps, processors and lenders. Local ag professionals were found to be the most common resources of not only supplies and services, but also knowledge.

Farmers’ interaction with agribusiness representative over the previous year by farm size

(Purdue University Center for Food and Agricultural Business)

Sales Representatives
The study found producers interact less with sales reps from manufacturers than they do with ones from dealers and retailers. Dealer/retailer sales reps also work less with smaller operations (under $300,000 in yearly revenue), with just 37% reporting interactions. That’s compared to 52% of large operations (over $5 million in yearly revenue) and 42% of commercial operations ($1 million to $5 million in yearly revenue.)

Looking at this information, the study’s authors, Scott Downey and Masie Keshavarz, suggest agribusinesses should prioritize strong sales teams and relationships with these reps to ensure effective supply and service distribution.

Agronomists
Over 80% of row crop farmer-participants shared they work with agronomists. However, smaller operations were less likely to have agronomist interactions – only 43%. That’s compared to 84% of large operations and 81% of commercial ones.

Downey and Keshavarz again conclude this is an area for agribusinesses to invest in and promote.

Nutritionists
Work with dealer/retailer nutritionists is perhaps the most divided between large and small operations. Only half of the livestock producers who participated in the study reported working with a dealer/retailer nutritionist. But at the same time, 48% of livestock producers said they use independent nutritionists in another survey question.

Downey and Keshavarz suspect commercial and large operations hire independent nutritionists and are therefore less likely to work with those at the local dealer or retailer. They recommend agribusinesses provide more customized or independent consulting options to meet the needs of larger farms.

Lenders
Work with ag lenders and loan officers was not largely influenced by an operation’s size, as each group reported frequent interactions. The authors say this emphasizes the importance of offering robust financial support and advisory services to help farmers manage their operations effectively.

Processors
Small farms reported the most processor interactions – 72% compared to 31% for large operations.

Downey and Keshavarz encourage agribusinesses to explore opportunities to enhance processing services tailored to small farms to support their unique needs.

Find the full report here . Purdue’s next study on farmer buying behavior is scheduled for January.

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The 3 Biggest Updates to USDA's Farm Loan Programs You Need to Know

Thu, 12 Sep 2024 15:40:27 GMT

With commodity prices down and farm returns expected to significantly decline , USDA’s Farm Service Agency (FSA) has released three major changes to its farm loan programs in an effort to increase the opportunities farmers and ranchers have to be financially viable.

“The analysis of what has gone into these rule changes is nothing short of tremendous,” says Zach Ducheneaux, FSA administrator. “Our team has poured over hundreds of thousands of loans in our portfolio and really identified some things that FSA can, should, and with this rule, will be doing better to support our producers and their economic viability in the countryside.”

The three most notable policy changes, which will go into effect on Sept. 25, include:

1. A new, low-interest installment set-aside program for financially distressed borrowers
According to Ducheneaux, this program was modeled after the Disaster Set-Aside program, but the difference is a borrower doesn’t have to be affected by a declared natural disaster in order to qualify. However, it’s important to note producers must be in FSA’s portfolio by the time these updates go into effect in order to be eligible.

“Oftentimes, what the producer needs is just a little breathing room,” Ducheneaux says. “We have the ability to do that for producers that are in our portfolio as of Sept. 25.”

The program essentially allows eligible, financially distressed borrowers to defer up to one annual loan installment per qualified loan at a reduced rate.

“When we set that payment aside, instead of accruing interest at the already established rate, it’s going to accrue interest at 1/8 of a percent,” Ducheneaux explains. “We’re really setting aside a payment, and it’s not going to balloon on you in a way it jeopardizes your operation as you’re coming to the end of that term.”

2. Access to flexible repayment terms
Some of these more flexible terms include smaller interest-only payments and longer loan terms. The idea behind this change is to allow producers to increase their working capital and give them the ability to save for education and retirement.

“Having a retirement fund built into this can help ease that generational transfer and help enable us to recruit young farmers and ranchers back to the farm,” Ducheneaux says. “Because FSA can make adjustments to our terms, it might help them step out of that job they’ve got in the town 40 miles away for health insurance and pay for that for their family on their own terms.”

He adds that the concern this could add more interest to the loan over time is valid, the point is to increase available cash flow for the operation.

3. Reduced additional loan security requirements
This update reduces the collateral requirements for direct loans from requiring available security equal to 150% of the loan amount down to 125%. One of FSA’s main goals with this change is to reduce the frequency borrowers need to use their personal residence as additional collateral for a farm loan.

“If you think back to 40 years ago, some of the most heart-wrenching stories you hear are when you’re losing the family home,” Ducheneaux says. “With this rule, if we do not need it to get to a one-to-one security position, we will not take the primary residence as additional security.”

In addition, FSA will release liens on collateral the borrower initially provided as additional security after establishing a history of on-time payments.

Additional improvements include streamlining and automating the Farm Loan Program process with a loan assistance tool, online loan application, online repayment feature and a simplified direct loan paper application.

“We think these changes to the terms are really transformative,” Ducheneaux says. “Any of these three provisions on their own would be a great transformation, but taken as a collective, this really signals a new day in ag finance, where FSA is going to position itself as the leader and the example for how our friends in the lending community might consider doing this.”

Ducheneaux explains a robust training process on the changes is underway for FSA employees and asks for patience and grace as the team comes to understand the new tools they have.

4 Quick Succession Planning Tips With Attorney Jim Angell

Mon, 26 Aug 2024 15:53:26 GMT

A farm’s succession plan is complex. And with ever-changing laws and family dynamics, it can be hard to make sure everything gets taken care of in the process. Kansas attorney Jim Angell recently joined the Top Producer podcast to share four things you should consider for your operation’s transition.

1. Trusts For Gifting
The IRS Lifetime Gift Tax Exemption is currently $13.6 million, but there’s speculation that limit could be cut in half in 2026. If you’re going to be gifting a considerable amount before the end of next year, there are two types of trusts he recommends putting in place.

“We might use an entity, an LLC or Limited Partnership, and do some transfer gifting on that,” Angell says. “Or, we could use what’s called an Intentially Defective Trust. That allows you to maintain the income at the first level, freeze the assets and pass those on to the next generation. We use that quite a bit.”

2. Include Your CPA
Angell says your CPA is a more valuable asset in this process than you may think.

“One of the first things I do is if I don’t have the CPA in the first meeting, I make darn sure the CPA is in the second meeting,” he says. “The clients are out there grinding, surviving, and doing what they do best on the farm. The CPA professionals have a much better understanding [of the overall finances] generally, and so we rely on them very heavily in doing the advanced tax planning.”

3. There’s No Such Thing As One Size Fits All Succession Planning
It’s important to remember fair isn’t always equal, especially in situations with on-farm and off-farm children.

“We’ve got to find a way to keep the farm intact and transition it potentially to to the farming child, but at the same time be fair to the remaining heirs,” Angell says. “That farming child may end up with more equity, but they’re going to end up with a bigger challenge of the debt, worrying about drought, making the operation work, taking the risk and taking the lower return. So, when you really step back and look at it, if you’re looking at it economically, some of these children that are getting less value after the estate is fully settled are really better off in the short run.”

4. Set Up Protection From Unintended Beneficiaries
In some situations, a parent will remarry after the other passes away. Angell says it’s important to make sure this doesn’t have an unfortunate outcome for the farm children.

“Most estate plans, especially the larger ones, are going to need some protections built in there for at least a certain portion of those assets being held in an irrevocable trust upon the first death,” he says. “We try to push a pre-nuptual agreement and get the kids involved in for when dad does decide to remarry. Those situations can potentially tear families apart and the farm apart.”

Hear more from Angell on the Top Producer podcast

How To Translate Generational Misunderstandings

Tue, 18 Jun 2024 16:24:36 GMT

The week of June 10, Farm Journal is celebrating the next generation 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.

Communication between one generation to another can seem like talking a different language.

“I suggest you approach looking at another generation with curiosity rather than judgment,” says Kim Lear of Inlay Insights.

In her work, Lear shares generational theory insights and highlights how these are trends, not traits, but can inform better teamwork.

Why It Matters Now

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.

When bringing more than one generation into leadership roles on the farm, it’s helpful to understand how to communicate.

“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

A typical generation spans 15 to 18 years, and while general trends can be highlighted, Lear also notes there are exceptions.

“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.

3 Steps for Generations To Work Together
“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. 1. Prioritize clarity over brevity in communication. 2. Instill respect as the foundation. 3. 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 need to be.

3 Steps for Generations To Work Together

“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.

1. Prioritize clarity over brevity in communication.

2. Instill respect as the foundation.

3. 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
need to be.

We Are Getting Older

The scales are tilting toward an older society, and there are fewer members of the younger generations.

“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.”

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.

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.

Next Gen Insights

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).

Members of Generation X can exhibit fierce independence. For example, they can have an aversion to traditional sales tactics.

“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.”

As another data point, 55% of startup founders are Gen X.

As for millennials, the rise of double income households really took off as millennials grew up.

“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.”

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.

“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.

Lear continues with an example of how Generation Z makes decisions.

“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.”

Lear gives an exercise to test your transgenerational communication.

“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.”

Now Is A Great Time to Make Sure Your Farm Can Survive

Wed, 12 Jun 2024 00:40:01 GMT

Identifying goals and assigning priorities builds a bridge from one generation to the next, says Rena Striegel with Transition Point Business Advisors, a farm succession planning consultant with 20 years of experience.

Especially with the current farm economic conditions and outlook, Striegel advises farmers to keep at it when it comes to planning, strategy, banker relationships and evaluating capital expenditures.

“It’s time to double down on what you can to pivot quickly when you have to,” she says. “Now is a great time to make sure the farm can survive. The farm business has to be made sturdy and stable before it can be shared with anyone else.”

Striegel expects the next downturn in agriculture to test the resiliency of farm businesses and the people in them.

“These times don’t care if you are personally worried,” she says. “It does reveal the need for a heavy dose of open and honest communication.”

Striegel encourages the next generation of on-farm leaders to do some self-reflection. How are you showing up on the farm? Do your actions meet up with your goals?

“If your father expects you to be on the farm, on time, demonstrating skills with a certain attitude, that’s how you need to show up,” she says. “How do you show up and does it align with what you want? You must be truthful about your priorities.”

From her consulting, she’s seen how the generation raised with social media is lacking previously engrained people skills.

“Emerging leaders need to be encouraged to evolve and have the right tools. For example, we aren’t teaching negotiation like we used to,” she says.

She highlights that expectations of work-life balance need to be assessed with the needs of the business and the priorities of its stakeholders.

“If you want to run the farm, but in the next breath say you want time off to go to all of the baseball games, it’s not that those two things can’t happen, but it’s about how you meet expectations and talk about what is important to you,” she says.

Patience might be the key component in your succession planning journey.

“It’s not easy for the next generation farmer to slow down and be patient,” she says. “But we are facing a downturn in the ag economy, and the older generations have lived through real trauma. If you dismiss the lessons they are sharing, it makes them even more anxious about turning over the reigns. If you aren’t willing to listen, you are showing you aren’t willing to learn from them.”

Want more insights to plan for the future and be a leader in your field? Sign up to receive Farm Journal newsletters.

Time To Transition: How to Get Out of The Way, Without Going Away

Tue, 11 Jun 2024 17:49:00 GMT

Today’s farm CEO transition is different than the last generation.

Dick Wittman, who has been consulting in family business management, finance, and process improvement areas for decades, says one of the top challenges facing on-farm leaders today is how to get out of the way, without totally going away.

“Forty years ago, the business was the farm operator’s primary asset. When business owners reached retirement age, they sold the business to a successor and that often became their retirement security. Successors often took on the business investment risk and took over the management decisions and debt service at the same time,” he says.

Today, the size and scale of farm operations have changed the dynamic.

“Our farms are multimillion-dollar businesses that are larger and more complex because of the significant capital required to have a viable business. It’s rarely practical to sell a 100% interest in the farm business on credit or even give the business away as an integral part of the retirement process.” Instead, , transition of ownership and transition of management are occurring over different time cycles.

“Owners have an opportunity , as they approach retirement age to move from CEO to board chair and mentor,” Wittman says. “I see many farm CEOs with a lot left to offer the business. They have a healthy love of the business and want to find substance in what they can do. The board chair/mentor role gives them a new way to think about how to extend their career with the farm.”

Recommended Reading: To explore this idea of how to expand your career on the on-farm, Dick Wittman recommends “The Second Mountain” by David Brooks.

The role of farm board chairman could include:

Policy review and refinement
Investment analysis
Strategic planning
Hiring, coaching, mentoring successors
Performance review and feedback
Assisting and advising successors in day-to-day operations (but not telling them what to do)

Wittman has walked this journey on his family’s diversified Idaho farm since 2017. At that time, he daughter Cori Wittman Stitt took on the role of CEO, and Wittman became the board chair and transition mentor.

Here are lessons the incoming and outgoing leaders have learned in the process:

Be patient. You can’t develop successful future leaders unless you give them latitude to make their own plans on their own timetable.
Avoid micromanaging. Going from being the leader for years to now being a helper is challenging, but it’s required to step back and truly just be a helper.
Clear and Enforced Policies are still important . But the new leaders need freedom to revise policies that fit their value systems and work/life balance goals – so policies in the next generation may not look the same as the previous generation followed.
Transition can be done in degrees. The chairman can retain responsibility for some operational duties that successors are not ready to put on their plate. But the outgoing leader needs to divest the core management responsibilities. Technical areas can be an exception.

“It’s rewarding to be able to be in business with your family,” Wittman says. “We are a family in business together. And if we are committed to running this business professionally, we can make transitions for the CEO to board chair work and still enjoy family relations.”

Wittman shares his overriding rule: for transitions to be successful, there must be alignment of expectations – that can extend to values, decision roles, clear structure and policies, and commitment to open record sharing and professional communication.

“If handled improperly, transition events can be the death of your business. Or it can strengthen your business and clearly outline who you are and where you want to go,” he says. “I believe that good process will ultimately reflect in good long-term results.”

5 Next Gen Farmers Share Perspective On What's To Come For Agriculture

Mon, 10 Jun 2024 16:05:02 GMT

The week of June 10, Farm Journal is celebrating the next generation 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.

(Farm Journal)

Cody Goodknight
Chattanooga, Okla.

“My dad taught me to be above average — never be complacent. Now is the time to figure out what you are passionate about, whether it be in crops and/or livestock, and what you can do to stand out. The time of being an average farmer is a recipe to go broke. You need do everything you can do to be above average and do what you can to set yourself apart. Otherwise you are going to be a middle of the road farmer, and that’s a recipe to go broke.”

(Farm Journal)

Chase Dewitz
Steele, N.D.

“A lot of farmers are wrapped up in the farm; everything is about the farm. They don’t have any other outside investments, and they don’t have any lifestyle outside farm. I have been involved in a number of other things financially outside of the farm, and that helps drive you to get your mind on something else you’re involved in that you’re not seeing or working with every single day. I think that’s where the emotion gets so wrapped up in farming. Most farmers are farming 24 hours a day. Everything in their head is about that farm and farming. Then, that ties up all the emotion in and about the farm. You’ve got to be able to let go of that and take emotion out of the business of farming.”

You can apply for The Top Producer Next Gen Award

(Farm Journal)

Maggie Holub
Scribner, Neb.

“One goal I have in the year ahead is diversification and to keep my small town main street vibrant. I’ve purchased our local fitness center in Scribner, Neb., and plan to renovate, add group fitness classes, and make it a wellness community attraction.”

(Farm Journal)

Matt Splitter
Sterling, Kan.

“As a young business owner, we are a modern family living in a dying culture. Agriculture as an industry isn’t dying, but I’ve been a pallbearer more times than I’ve been a groomsman. I’ve been to probably three times more funerals than I’ve been to weddings in my life. The average age of my landowners is in their 70s. We are around more aging folks than growing families. It affects how we manage our business relationships. It has also shaped a reality of death. So as a young family ourselves, and as young business owners, we have to think about how we can be the type of family we want to be when their aren’t a lot of people just like us or in the same stage of life as we are. And we are trying to reinvest in our community and, when we can, recruit new team members to move in.”

(Farm Journal)

Janna Splitter
Sterling, Kan.

“We’ve shifted how we speak about our operation. It’s about framing our farm in a way that doesn’t put us in a box. When you say you farm, people automatically have an impression of what that means in their perspective. So now when we’re having conversations, we introduce ourselves as: We operate a small business. Then they’ll almost always ask what is our business, and we can share a bit more. It’s not to bury the lead, but it is a small shift in the way we can change public perception of what we do. In reality, running a farm is a small business that faces many of the same challenges like all businesses do. This is one way we can highlight that.”

Do you qualify for the Top Producer Next Gen Award?

Want more insights to plan for the future and be a leader in your field? Sign up to receive Farm Journal newsletters.

Vision Meets Fortitude In This Next Gen Cattleman

Wed, 10 Jan 2024 20:31:29 GMT

Mental toughness is not inherited. It is not given. It’s learned, practiced and performed. For Trey Wasserburger of North Platte, Neb., a seedstock cattle breeder and co-founder of Sustainable Beef, LLC, mental toughness is a pillar of his daily life.

(Farm Journal)

As an entrepreneur, Wasserburger has spoken on global stages about agriculture and beef production, building a name for his family and business that’s recognized across the cattle industry. Wasserburger’s grit and determination lead him to be named the 2023 Top Producer Horizon Award winner.

From a young age, Wasserburger knew he wanted to be involved in the cattle business. However, being the youngest son and grandson in a large family, there was no room for him to return to his family’s ranch.

“At the time, I always just kind of had a chip on my shoulder,” he explains, upset about his situation and his opportunity to do what he loved.

However, as Wasserburger looks back at his younger self he says, “I wish today that 22-year-old Trey would work for me. I’d tell him to stop concentrating on being upset about your situation and use it for motivation to create a better life.”

Wasserburger explains how he never doubted his ability to work, to handle tough times and pursue his goals.

“I think it’s the way my parents, my dad especially, mentally trained us to be able to handle adversity at a young age,” he says.

When the Bank Called on His Note

Wasserburger recalls the fall of 2016 when as a young rancher, his grit carried him several hours to his bank’s headquarters.

“I had to, with my hat in my hand, by myself, ride the damn elevator up to the boss. They were pulling my note. It was over,” Wasserburger remembers. “I said, ‘You have to help me get out of this.’ I gave him my keys and said, ‘If you don’t want to help me, here you go, this is yours. You can have it and my business. I’m going somewhere else.’ And they said, ‘Pick those keys up and get out there and get to work.’”

And that’s just what he did.

When I drove back, I had never been more motivated. It’s the ability to have the highest highs and lowest lows in six hours; it’s mental fortitude,” Wasserburger says.

(Farm Journal)

Door of Opportunity Opens

Only two months later, Wasserburger and his wife, Dayna, were presented with an opportunity of a lifetime — to buy Rishel Ranch, an operating seedstock and purebred Angus ranch near North Platte, Neb. For the Wasserburgers, it was their last shot. After many conversations, Bill and Barb Rishel sold their ranch and its assets to the family. Despite never owning a registered cowherd or running a seedstock business, the Wasserburgers dove in head first.

Unique Road to Succession

For Bill and Barb Rishel, finding the right people or entity to take over the business was of highest importance. While a dispersal sale may have maximized the value of the assets of Rishel Ranch, for the couple, it was never about the money.
“We felt like there was more value in the herd we had put together and where they were at the point in time to accomplish a lot more in the right hands,” Bill Rishel says. “So we had decided that if, at some point, maybe we could find a young couple who would want to take the thing over.”
Rishel adds, they never once thought the transition might not work or meet the expectations of what they as a couple had wanted. However, to the Rishels good fortune, crossing paths with the Wasserburgers could not have been more perfect.
Never having met Trey Wasserburger, a mutual contact who was a banker, whom Rishel trusted explicitly, encouraged him to reach out. Following their initial conversations and as more time went on, Rishel says he could tell how connecting with the Wasserburgers was a good fit.
Today, Rishel believes the Wasserburgers have a special passion for the seedstock and purebred cattle business, influenced by their previous experiences in cattle feeding and commercial cow-calf operations.
“They have totally captured what our philosophy and vision was for that herd of cattle,” Bill says. “Barb and I could not be more happy.”

“I’m trying to figure this out every day,” Wasserburger adds. “And I’m going to do things a little unorthodox, because I don’t have a dad here, or my grandpa here, telling me how to do this or saying, ‘That’s the way we’ve always done it.’ Mine is ‘I’ve never done this before. How am I going to do this?’”

Mentors across the beef supply chain have provided invaluable advice, he adds.

Recalibrating His Compass

Early in his career, Wasserburger says, “If it made money, I did it.” At that time, his work revolved around his dreams and the life he wanted, with selfish intentions.

However, by age 25, Wasserburger’s mindset changed. He realized his life and work were for a purpose much greater than himself; it’s for his wife, family and their future.

Describing himself as loyal, passionate and committed, Wasserburger emits these qualities both on the ranch and with his family. Working side by side with Dayna, he acknowledges her value as a supportive wife, mother and business partner.

“We complement each other,” he adds. “She’s good at all the things I’m not,” — including the registration paperwork for 1,300 cows and expanding the outreach with social media marketing.

Additionally, he explains how all decisions are made with his family in mind. While he might have gotten into the industry for selfish reasons, his family’s happiness and future serve as his compass.

(Farm Journal)

Intensity Brings New Focus

While a family man at heart, Wasserburger adds how he still brushes off his “killer mentality” sometimes when times get tough and odds seem to be stacked against him.

Specifically, when the COVID-19 pandemic caused issues across the global supply chain, Wasserburger remembers the downstream effect on the U.S. cattle industry. Cattle processing slowed, and many cattle feeders faced a time when packers weren’t buying, finished cattle had nowhere to go, yet feed costs continued to add up. TD Angus at Rishel Ranch was no exception.

Fueled by Wasserburger’s mental fortitude, the road to Sustainable Beef, LLC — a beef packing plant to be built within his own community — began to take shape.

For Wasserburger, Sustainable Beef, LLC, made sense, adding more packing capacity to the supply chain in the long term, serving as a local processing outlet for his cattle, and providing opportunities for his family and community for years to come. With a desire to serve the cattle industry from “conception to consumer,” this packing plant means his goal will become a reality.

Currently under construction, Sustainable Beef, LLC is on track to be operational by 2025. Forecast to turn $1 billion annually, the plant might be the fix to the closing of local schools and businesses, Wasserburger adds.

However, following Walmart Inc.’s investment in the plant, negativity flowed from numerous newspapers and social media. Rather than being disheartened by the nay-sayers, Wasserburger uses it as motivation to keep moving forward. As one example, he keeps an article in his office published in a national news source that he says he is nearly halfway through debunking and proving the writer wrong. It’s a consistent reminder to be mentally tough and committed to the long term, he adds.

(Farm Journal)

Decisions Made With The Long term In Mind

It’s not an overnight fix, and with the downturn expected in the cattle cycle, it’s very possible the plant will start operating at a time where packer margins are limited.

“Get comfortable with being uncomfortable,” Wasserburger remembers being told growing up by his father and uncle JD Wasserburger, which has helped carry him through the unknowns.

Wasserburger acknowledges his business is not immune to inflation or rise in interest rates, which has challenged his mental toughness once again.

“I’m running 300 more head of cows and operating is up 30%, at least, so it’s damn tight. I mean, we’ve had to cinch up around here on a lot of things. Not cut corners, but just be sure we’re getting a little creative out here,” Wasserburger explains.

There’s not always clear-cut answers to the daily challenges, but he remains committed and leans on his unwavering passion to continue pushing the envelope on all aspects of his business.

With many irons in the fire, mental toughness continues to influence his success.

Wasserburger says, “I don’t quit. I won’t quit when I’m tired — I’ll quit when it’s done.”

(Farm Journal)

A Day In the Life of Trey

Wasserburger starts every morning doing something he hates — taking out the trash. Recalling a David Goggins podcast he had once listened to, there are psychological benefits to starting the day doing a despised task to condition mental toughness and as motivation knowing the worst job is done for the day.
The most used application on his phone is Spotify. “I enjoy music of all kinds. You might hear [Disney’s] Mulan, for my kids, then AC/DC and everything in between. Machine Gun Kelly might pop up or Casey Donahew,” Wasserburger jokes. He also listens to podcasts, including “The Joe Rogan Experience,” “The Jordan B Peterson Podcast” and “Jocko Podcast on Leadership and Discipline with Jocko Willink.” He publishes his podcast, “The Most of the Best,” for ag entrepreneurs.
His family prioritizes time together. “We firmly believe the family needs to eat together every night, so we make that a point,” Wasserburger says. “It might be at 6:30 or it might be at 9 p.m., but [Dayna] lets me know dinner’s ready. We try to do that; that’s one of my father’s rules.” Additionally, the couple includes their children as much as possible, whether it’s checking cows or preparing for sale day.

Single Best Tool To Predict Peak Performance

Thu, 31 Aug 2023 14:26:53 GMT

It’s a commonly held goal to hire good employees and keep those great team members onboard.

Dave Mitchell thinks there is one–the job description.

“The single most important tool to predict peak performance is a very well developed job description,” he says.

Mitchell founded The Leadership Difference after two decades in corporate HR management. While working with companies of all industries across the country, he’s developed metrics to measure peak performance.

“Go blow the dust off your job description book, or maybe first make sure you have job descriptions,” he says. “The next step is to update those job descriptions with necessary legal considerations. And third, make sure those job descriptions are good for the roles.”

Mitchell says he defines “good” job descriptions as those that aren’t just what the job does, but explain to the degree the employee is expected to do it.

“If you provide that level of detail, you’ve got a recruiting tool, a training tool, a performance appraisal tool, and an alignment tool. It makes one What if there was one tool to focus on using to achieve the best recruitment and retention? document serve multiple purposes and makes sure you have everything covered,” he says.

Hear more from Mitchell in The Scoop Podcast:

What Makes a Good Farm Manager?

Thu, 01 Jun 2023 20:57:42 GMT

Managing a farming operation is a balancing act on all levels. The role of farm manager can become more complex when working with family, especially in the busy seasons.

To make the job easier, researchers at Purdue University find farm managers who prioritize growth in knowledge, experience and collaboration are best positioned to buffer relationships and increase output.

Here is a rundown of how each of the three skills interact with one another for success on the farm.

1. Knowledge

Managing farm risk is a time-consuming job, but it needs to be done. Purdue researchers say the best way to stay up to date in managing risk is through courses, reading and discussion. They suggest putting a focus on learnable risk.

“Learnable risks possess uncertainty because we haven’t learned all there is to know about the subject,” the researchers wrote. “It’s in the best interest of a farm to mitigate learnable risks through accumulation of knowledge as rapidly as possible.”

An understanding of production strategies, technology advancements and ways to reduce inputs are important and often prioritized, but researchers suggest producers focus instead on these specific upstream and downstream ideas:

• Sourcing inputs
• Input price factors
• Potential supply limitations/market disruptions
• Diversifying buyer pool

According to Purdue, knowledge in these areas is a major contributor to holding a key position in the ag industry, and incorporating the knowledge will offer a definite advantage over competitors.

2. Experience

Established producers have advantages over producers who are new to the industry; they have an idea of the time of year to plant, fertilizer, treat and market products. They also have the benefit of lower costs, according to Michael Porter, professor at the Harvard Business School.

Porter says new operations, with no experience, will have inherently higher costs than established farms. New farms will bear heavy startup losses from below- or near-cost pricing to gain the experience and profits that established farms already possess.

For new producers to find success, Purdue says they need to gain experience rapidly and effectively. Researchers suggest new producers gain farm work experience and participate in internships and mentor programs.

3. Collaboration

According to Purdue, there are two types of collaboration that producers need to consider: Peer and competitor. They say this is the only way for progress.

“There’s a false premise that in order to maintain a competitive advantage in the market, strategies and innovations should not be shared,” Purdue says. “Secrecy is likely not what’s best for your operation, nor the ag industry as a whole.”

To maintain collaboration, researchers suggest producers listen to constructive criticism, such as:
• Critiques from an outside perspective
• Alternative innovation ideas
• Improved strategies

Collaboration and constructive criticism are especially important in ag’s technology arena. Studies indicate technology adoption is dependent on collaboration.

“Farmers with more risk averse tendencies often begin using technologies long after others have switched,” Purdue’s researchers say. “As new technologies continue to emerge, collaboration will increase in importance.”

Researchers find encouraging frequent networking and collaboration can help prevent producers from lagging behind the industry’s set standards and fuel more efficient ag production.

Want to Grow Your Farm? Ask These 10 Questions First

Wed, 17 May 2023 19:57:51 GMT

More than 50% of farmers intend to grow their operation, based on responses in Purdue’s February 2023 Ag Economy Barometer.

(Farm Journal)

If you’re thinking about scaling your farm, Michael Langemeier, Purdue ag economist, says it’s important to first ask these questions.

1. Why should I grow my operation?

Before an operation expands, consider the vision and direction you want your farm to take.

“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.”

Once an approach is chosen, it’s time to decide which dominoes you want to play in the expansion game.

2. What ways I can grow my farm?

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.

“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?”

Langemeier says this soul-searching step is especially important when someone is coming back to the farm.

“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.”

After establishing how you want to grow, consider your growth approach.

3. What should my growth approach look like?

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.

“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.”

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.

External analysis, on the other hand, examines economic and market trends.

“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.”

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.

4. How do I evaluate my farm’s growth ventures?

Now that the growth options are laid out, how does a producer choose which option to pursue?
These eight criteria can help:
• Strategic fit
• Expected returns
• Risk
• Capital required
• Cost and ease of entry and exit
• Value creation
• Managerial requirements
• Portfolio fit

Strategic fit is one of the biggest points to consider, according to Langemeier.

“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.”

He says ease of entry and exit is the second criteria he points farmers to.

“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.

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.

5. What skills are needed to grow, especially in people returning to the farm?

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.

“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.”

6. How do I finance?

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.

“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.”

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.

7. What business models do I use to grow?

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.

“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.”

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.

“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.”

Finding a partner to go-in on the venture isn’t always easy. However, Langemeier says producers often look in the wrong places.

“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.”

8. How would an expansion impact my current operation?

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 University of Minnesota’s FINPACK system .

If you choose to run the projections by hand, this is the process Langemeier suggests:

a. Impacts on cash flow and balance sheet

“A growth change will impact both — don’t just look at cash flow,” he says.

b. Debt versus equity

“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.”

c. Time management

“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.”

9. What challenges would an expansion create?

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.

“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.”

10. What is my sustainable growth rate?

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.

In the debt scenario, he says you have to think about the downside of debt — the chance of going bankrupt and variability.

“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.”

The Main First Step When Considering Expansion

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.

“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.

According to Langemeier, these meetings will offer more than exploring growth; they will ensure farm, family and employee survival.

Continuous Learning That Works for Cattle Producers

Wed, 14 Dec 2022 17:26:19 GMT

Question of the Week: What’s one thing you want to learn in Quarter 1 of 2023?

As cattle producers, we can learn something new every day. We are boots on the ground most days out of the year and working with a complex system too! However, it is important to pick specific topics to learn about that are in line with our goals and will move our operations forward in addition to our daily learning from trial by error and hands-on experiences.

So, think about this upcoming January through March period. What is something you can learn in Quarter 1 that will help make Quarter 2 go smoother? Break it down into what will you be doing in quarter two and think about what challenges you faced last year in April, May and June.

Planning ahead will help keep you moving forward and eliminate some last-minute stress that could arise otherwise.

Continuous Learning that Works for Cattle Producers

Jennifer Hill joins the Casual Cattle Conversations podcast to discuss her experiences with continuous learning programs and why she chooses to be a lifelong learner in the beef industry. Jen and her husband Logan recently relocated their ranch from Colorado to Nebraska. As you can about imagine, this created many learning opportunities for them as they couldn’t do everything like they used to. They are in a new environment that offers new opportunities as well as new challenges. Jennifer recognized the importance of maintaining a mindset of continuous learning early on as she used to be a teacher before being full-time on their cattle operation.

Jen says it is important for us to continue learning, because the beef industry is always changing. It is easy for us to do things a certain way, because that is how our dads and grandpas did it. But, that doesn’t make it the best option. Taking the time to discover all options available for different management practices will save you time and money in the long run.

Jen stays up to date on beef industry news and best practices through podcasts, newsletters, visiting with industry experts and participating in the RancherMind program. She has found methods that work for her and allow her to learn wherever she is at without having to leave the ranch.

By staying true to her love for learning and recognizing the need to stay on top of industry news, Jen and Logan have been able to impact their bottom line by switching up how they sell cull cows and implementing a backgrounding segment to their current operation. These are big steps that all stemmed from taking small actions to engage in readily available resources.

Continuous learning for cattle producers can be easy, fun and rewarding. All it takes is a small step in the right direction to get your momentum started and it is well worth it in the long run. Who knows, one podcast, newsletter or conversation could end up saving you hundreds or thousands of dollars just by opening your phone and listening to others.

BeefTalk: Labor, Facilities and Equipment are Big Beef Expenses

Fri, 23 Sep 2022 21:29:27 GMT

Cow-calf producers need to work smarter, not harder.
By: Kris Ringwall, Beef Specialist, NDSU Extension Service

Do you want to invest in labor, facilities and equipment to deliver the feed?

The answer to this question should determine the bull turnout date, which sets the date when the third trimester of pregnancy starts, which determines the calving date. The third trimester and subsequent calving marks the most nutritionally demanding period in the annual cycle of meeting the needs of the cow.

Another question: Should bull turnout set calving time to better match the environment?

Because labor, facilities and equipment are fiscally resource-heavy, the Dickinson Research Extension Center, in 2012, decided to take the jump and place cows on pasture to calve. This decision allows the cow to eat for herself the copious amounts of daily feed she requires at calving and during lactation, and opens December, January and early February as a time to save money by grazing crop aftermath, residual corn forage, cover crops and other residual forage.

This decision has the potential to lower winter feed costs significantly.

Historically, the center turned bulls out June 1 or thereabouts for March/April calving. The average date that the third mature cow calved was typically March 15 and the typical average calving date was March 29.

Since 2012, the center has delayed the turnout of the bulls to Aug. 1 or thereabouts. The average date that the third mature cow calved during those years was May 7 and the average calving date was May 25. This significantly changed labor, facility usage and equipment needs.

The date the third mature cow calves is a typical date used to say the calving season has begun officially. So, given this backdrop, the beef business is a relatively traditional business with extensive roots in the ground, which anchors the business to the land. Land is relatively stable and constant, and change within the business often is limited.

Within beef operations, new concepts can be generated fairly quickly. Once a fairly critical eye is applied to the newness, one finds most of the change is variable inputs to the operation. These new variable inputs are generally cost-effective, each in its own right, and the new items generally are applied within established, seasoned production systems.

In other words, the base operation is constant. Bulls are bought, cows are bred, calves are born, calves grow and calves are sold. The cycle is repetitious.

What’s the point? Looking down the road, the future is gray: lower prices and increased costs, without an incremental decrease in costs, along with an incremental increase in outputs. Despite stability, the dollar pressure remains.

What can a cow-calf producer do? Several things come to the table fairly quickly during the discussion; labor, facilities and equipment surface repeatedly.

Labor costs need to be lowered. In some cases, the owner, manager and general labor are separate people; in other situations, those positions are one person. So working smarter, not harder, is the key.

Facilities are expensive. Cow-calf operations need to be less dependent on facilities and equipment. Not only will initial investment take dollars, but subsequent depreciation of these facilities and equipment is real, and someone has to ante up the dollars. Unfortunately, investment in facilities and equipment often coincides with high prices, and subsequent depreciation costs often occur as prices lower. Beef production needs to be “lean and mean.”

Survival in the cow-calf business may mean shifting the traditional mode of operation and re-focusing on the elimination of high-input time periods, thus the thoughts regarding bull turnout and calving. Again, bull turnout should match the nutritional phases of a cow: early lactation, lactation and first trimester of pregnancy, second trimester of pregnancy and third trimester of pregnancy.

When the calves are weaned and the cows are nonlactating and still in the second trimester of pregnancy, cow management should be at its simplest. This is the time the cows can rough it, thus the discussion of calving time.

The three months before calving and the months immediately following calving are the most demanding nutritionally. Should not bull turnout be set to minimize the amount of labor and facilities by calving the cows when pasture is available rather than hauling the feed to the cows?

I do understand that this is not a simple question. Every operation is slightly different, and every location has different demands. But no one wants to lose money and certainly not place the cow-calf enterprise in fiscal jeopardy. Bull turnout when?

May you find all your ear tags.