Purchase With Purpose

Tax Planning: Don’t Let the Snowball Roll Out of Control

Mon, 10 Nov 2025 16:46:46 GMT

The past several years have been profitable for cattle producers.

“Cow-calf operations are amid a period of unprecedented high incomes — something that crop farmers experienced back in 2012 and again in 2022,” says Tina Barrett, Nebraska Farm Business Inc. executive director, in a recent UNL Beef Watch article. “Strong income years are a blessing, but they also bring challenges: larger tax bills, pressure to spend on prepaid expenses and the temptation to push income forward or load up on depreciable purchases. There are some lessons that we can learn from the peaks of crop profitability that will hopefully avoid some of the pitfalls that come with a downturn that is inevitably ahead.”

Early, proactive tax planning is one of the most valuable tools producers have today.

“Getting to your tax preparer sooner will allow you more time to make the adjustments that are right for your operation,” she says. “Oftentimes, if you have just a few weeks to move a lot of income around, panic or quick decisions can turn into decisions you wish you hadn’t made.”

Smart Spending vs. Quick Spending

“The most common mistake I see is year-end panic spending,” she says.

A producer says: “If I buy this piece of equipment, I’ll save on taxes.” But let’s step back and do the math.

“If you spend $100,000 just to save $30,000 in taxes, you still spent $70,000 you did not need to,” she explains. “It often makes more sense to have that $70,000 available to pay down debt, and shore up liquidity for the next downturn.”

Debt reduction cannot happen without taxable income, especially when that debt is carryover operating or land debt.

“To have money to pay principal (a non-deductible expense), your taxable income must be higher than your non-farm expenses, income taxes and principal payments for the year,” she says. “If it is not, you will have to borrow more money from your operating note to pay for your expenses.”

Buying assets or breeding livestock should be a business decision first and a tax decision second.

“When the order flips, that snowball of debt, depreciation and future tax problems starts rolling, and it can grow faster than you think,” she says.

Using Depreciation Wisely

Accelerated depreciation can be an excellent tool, but it needs to be used with caution.

Barrett says producers have two options to accelerate depreciation: Section 179 and Bonus (or Special) Depreciation.

Both of these provisions received updates with the One Big Beautiful Bill Act passed in July of 2025. The bill enhanced Section 179 limits and made 100% bonus depreciation permanent.

Section 179: For 2025, producers can expense up to $2.5 million of qualifying purchases, with a phase-out starting at $4 million. That includes equipment, breeding livestock and certain improvements. It does not include multi-purpose farm buildings such as a machine shed.
Bonus Depreciation: Bonus depreciation allows you to deduct 100% of the purchase price of almost all new or used farm assets in the year of purchase with no limit. This option includes pretty much all asset purchases including multi-purpose farm buildings.

“The key difference between these two options is flexibility,” she explains. “Section 179 allows you to elect in through a dollar for dollar method. You can choose any dollar amount up to the limits that you want to use. With bonus depreciation, you must elect out by asset life class (e.g., all seven-year assets) not just individual purchases. That makes it an all-or-nothing choice for each category.”

Between these two tools, most farm assets can be written off in the year they are acquired.

“That’s powerful,” she says. “But it also means you can run out of depreciation when you need it most. Stretching deductions across multiple years often makes more long-term sense, especially when you are financing the purchase. In future years when you need to make principal payments, you won’t have a deduction to offset that cash outlay. If you are paying for capital purchases with cash or recognizing gain on the sale of a traded asset, then using accelerated depreciation makes sense.”

Prepaying Expenses

Another common tax strategy is prepaying expenses. IRS Publication 225 (the Farmer’s Tax Guide) allows prepaying certain ordinary farm expenses if they meet the following guidelines.

The expense must be for a specific quantity (e.g. 500 gallons of fuel, 50 tons of hay).
It must be for a business purpose, not just to reduce taxes.
The prepayment must not be a mere deposit — it must be for an actual purchase, not just money held on account.

“Feed, seed, fertilizer, chemicals, fuel and vet supplies are examples that may qualify,” she says. “Prepaying can be a good tool when used deliberately, but don’t prepay just for the sake of lowering taxes if it strains your cash flow.”

Be sure to consider the impact operating interest rates have on these decisions. With higher rates, the cost of carrying prepaid expenses can be significant and could be more than the actual tax savings.

“Planning prepaid expenses with a business first, tax decision second mentality can save your operation money in the long term,” she summarizes.

Balancing Debt and Cash Flow

High-income years bring the temptation of borrowing money to “buy down” taxes.

She encourages producers to remember debt payments don’t go away just because income is lower next year (or three years from now).

“If you finance $200,000 in new purchases to save taxes today, you’ve committed to making those principal and interest payments for years to come,” she says.

That’s where liquidity and cash flow planning becomes critical. Having strong cash reserves gives you options when markets soften, interest rates rise or other things out of your control impact the operation.

“Paying down debt in good years may not feel as exciting as driving home new equipment, but it often leaves your operation in a far stronger position,” she says. “This has to be one of the biggest lessons we can take from crop operations. The high profit years led to increased spending and debt. When margins got tight, those debt payments were still waiting to be paid.”

High-income years are opportunities to build lasting strength into a farm or ranch.

“By planning early, spending wisely and using depreciation and prepay strategies with care, you can lower your tax bill without creating tomorrow’s snowball problem,” she says. “Smart tax planning keeps that snowball from gaining speed and size. Done wrong, it can crash into your operation. Done right, it can melt into opportunities that keep you stronger for the long haul.”

She stresses the goal isn’t just to reduce taxes, it’s to keep your ranch resilient, flexible and ready for whatever the cattle markets bring next.

Now is the Time for Beef Producers to Invest with Purpose

Fri, 10 Oct 2025 13:08:32 GMT

No two cattle operations are the same. With the recent record-breaking cattle prices, many cow-calf producers are considering how to reinvest in their business and capitalize on the market’s current momentum.

In a recent University of Nebraska Beef Watch article , Aaron Berger, Nebraska Extension livestock educator, shares options producers should consider before spending.

“Cow-calf producers are looking at the potential for exceptional levels of income for 2025 due to high calf prices,” he explains. “This income will give many cow-calf producers the opportunity to invest capital back into the operation in ways that can prepare them for future success.”

Two ideas he shared were:

Contemplate adding a scale
Evaluate working and loading facilities

Berger says producers who do not have a scale should consider investing in one.

“Being able to accurately know the weights of cattle has management and marketing benefits,” he explains.

He also encourages producers to consider if facility upgrades could provide a safer environment and better working experience for cattle and the people who are handling them.

Pay Down Debt, Consider Record Keeping

Likewise, a recent Kansas State University Beef Cattle Institute Cattle Chat podcast focused on options for producers to consider with the current profit potential this fall.

“Eliminating as much debt as possible is crucial,” encourages K-State veterinarian Todd Gunderson. “Operating debt-free is a significant blessing for ranchers when possible.”

Record keeping, while not directly profitable, can play a major role in identifying ways to improve margins. Good records are often the foundation for more informed and profitable decision-making.

“Investing just a few hundred dollars in a disciplined record-keeping approach can provide valuable insights into operational performance,” adds K-State agricultural economist Dustin Pendell.

K-State veterinarian Bob Larson emphasizes the relationship between improving forage utilization and economic efficiency, encouraging producers to look at long-term investments in such cost-saving strategies as cross-fencing and water improvements.
In summary, don’t make a hasty decision just because you have some savings in the bank. Spend time to come up with a plan for strategic purchases and investments to position your cow herd for future profitability and success.

Your Next Read: Producer Purchasing Decisions: What Matters Today

The Surge of Technology Adoption and Data-Driven Decision-Making

Fri, 10 Oct 2025 11:05:03 GMT

Producers are increasingly embracing new technologies, with adoption of drones, AI systems and genomic tools. The industry is moving toward more data-driven decision-making and precision agriculture practices.

South Dakota cattleman Ken Odde says: “The industry’s future will be defined by technological integration, data-driven decision-making and the ability to adapt to changing economic landscapes.”

He says technology is the most transformative force in the beef industry. He points out emerging technologies like 701X tracking tags will be game changers, allowing ranchers to monitor bull health, movement and breeding activity remotely. These innovations address critical challenges like labor shortages and provide unprecedented insights into herd management.

“We don’t have enough labor, and these technologies fit perfectly into that challenge,” Odde adds.

He predicts artificial intelligence and machine learning will dramatically reshape the industry within the next three to five years.

“This industry has never been a very high-tech kind of industry, but I really think that’s about to shift,” Odde says. “If I can save one bull because of this technological oversight, it easily pays for itself.”

According to the 2025 Farm Journal State of the Beef Industry survey , 66% use at least one tech tool on-farm.

Respondents indicated technology is a challenge to achieving their goals in the next few years.

They also mentioned these challenges related to technology:

Limited access to the latest agricultural technologies can hinder competitiveness
Finding the right technology solutions that align with business goals can be a daunting task
High cost of technology for a small operation

Troy Rowan, University of Tennessee assistant professor, summarizes: “I’m excited about the technologies that we’ve been innovating on over the past decade finally becoming affordable enough for deployment across the industry. Things like genomics have typically been reserved for seedstock breeders, but prices have dropped to a point where there is clear return on investment for commercial operations. Genomics is starting to break through in the commercial heifer replacement arena, but I’m most excited to see how genomics being deployed in feeder calves can add value and increase our industry’s efficiency. Other technologies like virtual fencing, drones and wearable sensors are also approaching price points where wider deployment will come fast.”

The State of the Beef Industry Report includes input from nearly 500 beef producers. The annual report provides information to help producers when making decisions. Click here to download the full report.

For more insights to the report as well as producer and economist perspectives, watch the State of the Beef Industry Webinar exclusive on FarmJournal.tv . The panel includes Ken Odde, a South Dakota cattle producer, along with Matt Perrier, Angus seedstock producer from Kansas, and Lance Zimmerman, RaboResearch senior beef industry analyst. You won’t want to miss their thoughts on the beef industry today and in the future.

Your Next Read: Producer Purchasing Decisions: What Matters Today

FBN Spins Out Its Crop Protection Business, Focuses on Marketplace and Technology

Thu, 09 Oct 2025 17:49:41 GMT

Last week, just a few hours after Corteva announced its spin out dividing seeds from crop protection, Farmers Business Network (FBN) announced it is separating its businesses. Moving forward FBN will focus on its digital marketplace for farmers, and the newly launched Global Crop Solutions will be an independent supplier of crop protection products.

FBN leaders say the timing is coincidental. Their motive for the timing was brought about by the new fiscal year. But they offer both of the announcements together could be a sign of a trend of vertical integration getting unwound in the name of efficiency and focus.

“We’re doubling down, allotting capital on digital innovation for FBN’s future,” says Diego Casanello, CEO of FBN. “FBN’s core business is a digital commerce and fintech platform. We want farmers to be able to buy, finance, and market everything they need while sitting in their combines. These are technology challenges, so the core competence you need to be successful at FBN is different from managing the supply chain of the crop protection business.”

In the past 14 months, FBN has been refocusing its business. First, it spun off its insurance business, then its Gradable business into a joint-venture with ADM. Now with its crop protection business spin out, Casanello says the FBN marketplace will feature GCS products, such as Willowood USA branded products, via a strategic partnership, and GCS products will explore distribution beyond the FBN marketplace.

“The big unlock for GCS is the opportunity to serve the entire retail and co-op industry,” Casanello says. “It frees GCS of any channel conflicts and hits the ground running with one of the largest portfolios of products in the industry. And it frees FBN from similar constraints as we move to an open marketplace architecture. We are onboarding new sellers and their portfolios every week. We provide them the tools to manage pricing, marketing, and placement. FBN is open for business and we’ve had significant interest from additional partners before and after the announcement.”

FBN’s Marketplace Strategy

Currently, FBN says it has 120,000 farmer members in the U.S. and Canada. The business provides a marketplace with farm inputs and supplies, financial services and data-driven intelligence.

FBN co-founder Charles Baron says the FBN marketplace has expanded its product range to include crop protection, seed (with additional partner news coming soon), fertilizer, livestock products, veterinary pharmaceuticals, farm supplies and more.

“To farmers, there’s no change in their experience. And over time, we’ll bring an even broader assortment of goods,” Baron says. “You’ll be seeing announcements from us every two weeks or so about the suppliers coming on the platform. It’s one of the most exciting times in our history.”

The leaders say farmer use of e-commerce has increased every year since they launched, and in 2025 FBN served a record number of customers. “Farmers are really focusing on value right now and maximizing every dollar,” said Baron. And per their analytics roughly 35% of U.S. farmers visit FBN.com to browse inputs, apply for financing, or look for information.

The Future of GCS

As a newly formed independent crop protection supplier, GCS has a portfolio of 250 registrations on post-patent products. The company will specialize in sourcing, managing first mile logistics, developing new products and regulatory aspects.

To lead the business and its team, Amy Yoder, most recently EVP of FBN’s livestock division, is incoming CEO.

“Global Crop Solutions launches today as an independent powerhouse,” said Yoder, in a press release. “For the first time, our extensive portfolio and efficient global supply chain are fully available to all partners— from retailers, to distributors, to co-ops. Our independence unlocks immense growth potential and allows us to be the most reliable and collaborative partner to the entire agricultural industry.”

Investing in Shade: Keep Cattle Cool and Protected

Thu, 09 Oct 2025 13:26:36 GMT

Keeping cattle comfortable and out of the elements contributes to good animal welfare and positively impact the bottom line for cattle producers. Longer, hotter days can lead to heat stress in cattle.

Shade structures represent another purposeful purchase driven by animal welfare and productivity for The 808 Ranch near Anderson, Mo.

After noticing the lack of natural shade on the initial ranch, the Steigers invested in seven 34’x34' shade structures.

“If you’re calving in August in Missouri, it’s hot and humid,” Carl Steiger, The 808 Ranch asset manager, explains, highlighting the importance of providing cattle with protection from extreme temperatures.

Each structure can accommodate 40 to 50 cow-calf pairs.

Steiger recommends ensuring the structures have sufficient concrete weight in their bases to withstand strong winds. He appreciates the fact they are movable to keep mud build up at a minimum.

With no natural shade, beef producer Trey Ruetti invested in five shade structures when building a 500-head feedyard.

(Angie Stump Denton)

Keeping Cattle Comfortable and Growing

With no natural shade, Kansas beef producer Trey Ruetti chose to purchase five shade structures for his new 500-head feedyard from Strobel Manufacturing.

Each 40’x40' shade can cover approximately 100 head. He says the structures are remarkably robust, noting they withstood 80 mph wind gusts this summer with no problem.

Recent studies show shade is important for growing cattle comfort and efficiency. Heat stress can create challenges for cattle as their thermal neutral zone is less than humans. Cattle are comfortable with cool temperatures, and more affected by the heat.

Your Next Read: 6 Equipment Purchase Strategies To Improve Ranch Efficiency

Producer Purchasing Decisions: What Matters Today

Wed, 08 Oct 2025 13:06:57 GMT

With a strong calf market, cow-calf producers are enjoying more cash in their pockets. With this increased income comes the chance to evaluate opportunities for using the extra dollars earned.

Julie Haggard, Valley Vet senior category manager, says they have seen sales increase on weighing devices and other health management tools.

“Vaccine, dewormer, ID tags and fly and lice control have been on the rise all year long,” she says. “With cattle prices at an all-time high, producers are protecting their investments.”

Other items Valley Vet has seen an increase in sales for are the Palmer Cap-Chur riffles, EID tags, EID stick Readers, loads bars and complete weigh systems.

“The technology available to producers for precise dosage of medications is actually quite amazing,” she adds.

Drovers Readers Weigh in

Interested in how Drovers followers are reacting to the high market and increased profits, we asked this question on Facebook: “With today’s cattle market, how are you planning to invest in your operation? What purchases are you considering.”

More than 80 producers responded to the question. Here are 10 responses readers shared:

Cow Herd Expansion
One follower wrote, “Steers are paying the bills, so I am breeding more heifers.” Similar responses include: “Raising heifers to increase our two herds” and “Breeding more cows.”
Subsidizing Farming or Row Crops
Paying Down Debt
Update Facilities
One follower wrote, “Update facilities a bit, bought a hydraulic chute. May buy portable corral yet, too. Otherwise just keeping debt in check and planning for the crash, it’ll make 15 look like a cake walk in my opinion.”
Maintenance
Fence
Concrete
Building a Butcher Shop
Preparing for the Crash
When one follower who answered “preparing for the crash” was asked how exactly he was preparing, he responded: “Retaining more heifers, culling running-age, under-performing cows, stockpiling hay and cash to be able to either buy cows or retain our own calves.”
Saving

(Photo: K-State Research and Extension)

Experts Share Ideas

A recent Kansas State University Beef Cattle Institute Cattle Chat podcast focused on options for producers to consider with the profit potential this fall.

Beef cattle nutritionist Phillip Lancaster says producers should consider alternatives to traditional haying systems, especially as equipment continues to depreciate quickly and the cost of new machinery rises.

“Ranchers often want to invest in new tractors and hay equipment when the real opportunity lies beneath their feet,” Lancaster explains. “Every acre of grazing land represents a potential efficiency gain.”

Lancaster encourages producers to maximize forage utilization to reduce operational costs.

“When a cow can effectively graze versus me spending time and resources harvesting feed, we’re talking about significant economic advantages,” he says.

Veterinarian Scott Fritz suggests facilities as another area where investment can lead to long-term gains in safety and efficiency.

“Sometimes those old working facilities are flat-out dangerous for employees and animals,” Fritz says. “If you’re hurt, you take away from the labor you have, and if it’s a one-man operation, that’s a significant loss in day-to-day management.”

In summary, don’t make a hasty decision just because you have some savings in the bank. Spend the time and come up with a plan for strategic purchases and investments to position your cow herd for future profitability and success.

Your Next Read: 6 Equipment Purchase Strategies To Improve Ranch Efficiency

6 Equipment Purchase Strategies To Improve Ranch Efficiency

Tue, 07 Oct 2025 12:01:54 GMT

The 808 Ranch’s equipment strategy goes beyond mere purchasing. It’s about creating an integrated system that improves overall ranch efficiency.

Carl Steiger, The 808 Ranch asset manager, explains today’s ranches are challenged to “produce more beef on the available acres.”

At The 808 Ranch, with facilities in Missouri and Arkansas, a primary focus has been on investing in equipment and facilities that directly improve ranch operations, animal welfare and overall productivity.

Steiger has served as the asset manager since February 2021 when his brother and sister-in-law, Lamar and Shari Steiger, talked him out of retirement to help build their vision for the ranch. During his career, he worked at several progressive, successful ranches, including JAC’s Ranch, Glenkirk Farms and Pearson Land & Cattle.

Steiger shares these strategies when considering new equipment purchases for your ranch or farm.

Be curious about new technologies
Stay open-minded
Don’t be limited by traditional methods
Look for technologies that provide tangible benefits
Prioritize equipment with good vendor support
Consider long-term value and efficiency improvements

Steiger says purchasing equipment is not about following trends, but about making strategic investments that directly improve their ability to produce high-quality beef efficiently and sustainably. Each piece of equipment is a purposeful tool designed to address specific operational challenges and opportunities.

He encourages producers to be curious and open-minded when considering new equipment purchases and implementing new technologies.

Your Next Read: Efficiency Meets Innovation: Investing in Cutting-Edge Cattle Equipment and Technology

Designing the Perfect Cattle Facility: A Producer’s Blueprint

Mon, 06 Oct 2025 13:53:03 GMT

For Kansas beef producer Trey Ruetti, quality and value comes first.

“Quality is our first box that needs to be checked with everything we do,” Ruetti says. “As expensive as junk is these days, a little extra for good quality is a no-brainer. If it’s worth doing at all, it’s worth doing right — whether that’s equipment, fencing or the cattle themselves. The second has to be value.”

Ruetti’s approach to farming is collaborative and forward-thinking. He consults widely, learns from others’ experiences and is willing to invest in quality infrastructure and genetics. His operation reflects a modern approach to cattle farming that balances traditional knowledge with innovative techniques.

Ruetti and his wife, Lexie, have a 200-head commercial cow herd that is currently in the process of transitioning to a registered Wagyu herd. The couple’s goal is to build a direct-to-consumer e-commerce beef sales platform — Firegrass Wagyu — with their partner, Michael Tilley.

“We raise them from birth to finish, aside from the few operators we are currently working with through our calf buy-back program,” he explains.

Ruetti’s family has farmed since the 1910s and solely crops since the mid 1980s. Although his family prefers crops to cows, the couple bought their first seven heifer pairs in 2014 and have built their herd since that initial purchase.

“The symbiotic nature of cattle production and grain farming is paramount,” he says. “One does not exist in its current form without the other. We bale our waterways, we graze our stalks and stubble fields. In the last few years, we have been implementing cover crops on more and more acres, and grazing them subsequently. From the biological side, these prairie soils evolved with a large ruminant animal grazing, and I believe we are witnessing these soils wake back up and take the next step in production due to their return.”

(Angie Stump Denton)

Investing in New Facilities

Last fall the couple made the decision to build a 500-head feedyard with working facilities at their headquarters location.

“Today’s cattle market has made it easier to justify investment on this side of the aisle,” Ruetti says. “With that said, starting from scratch, our choices were pretty limited. Our options were either to reinvest or sell out. Lexie and I are too stubborn for Option B.”

As the couple is transitioning from a commercial to registered herd, they have been implanting purchased Wagyu embryos in all their cows. Prior to their new facility they had been using a portable corral to do all their set-up and embryo work.

“It’s been an awful lot of faith in single-strand hot wire, and has not been without fault,” he recalls. “We wanted a space that would reduce the stress of gathering on the animals, as well as ourselves. This, coupled with the need to increase space to finish our calves, made this decision simple.”

After visiting several operations, consulting with other beef producers and visiting with different companies, the couple chose to put in a 20-foot adjustable alley, as well as gates and continuous fence from Linn Post and Pipe for their feedyard project.

“The reasoning was pretty simple,” he says. “They came highly recommended from people I trusted. The quality was easy to see, and Ryan Wieters made the entire process incredibly simple.”

The facility features a bud box handling system.

“I’d been around some bud boxes, and I’ve been around some tubs, and I thought the flow of the bud box made sense,” he explains.

He incorporated a slight modification, adding a tub-style gate for that occasional stubborn animal.

To go with the bud box system, he purchased a used Moly Silencer cattle chute. He says he’s been impressed with its longevity, reliability, durability and its quiet operation.

He notes, “It’s a used chute, 20 years old, and everything still works.”

(Angie-Stump Denton)

Feed Bunks and Waterers

The water infrastructure received significant attention. Ruetti invested in Johnson Concrete Waterers. He chose the water tanks because of their sturdiness and its heating elements.

Local contractor Kyle Blackwood of Blackwood Fencing did the lion’s share of the project’s construction including the custom-formed bunks.

“He is a premier builder in our area which is easy to see in all of his work,” Ruetti says. “His common-sense approach coupled with his creativity made this project come to life.”

The facility represents more than just a current solution it is a steppingstone to future expansion with the family’s cow herd, feedlot and beef business. For Ruetti, the cattle are more than a business venture; they are a testament to his deep commitment of raising his family involved in agriculture and specifically the beef industry.

Your Next Read: Efficiency Meets Innovation: Investing in Cutting-Edge Cattle Equipment and Technology

Efficiency Meets Innovation: Investing in Cutting-Edge Cattle Equipment and Technology

Fri, 03 Oct 2025 16:41:29 GMT

At The 808 Ranch, a primary focus has been on investing in equipment and facilities that directly improve ranch operations, animal welfare and overall productivity.

Carl Steiger, The 808 Ranch asset manager, explains ranch owners Lamar and Shari Steiger’s approach to equipment purchasing is rooted in a philosophy of purposeful innovation and efficiency while prioritizing safety for all.

“Without a doubt I think the Moly Manufacturing TurretGate and the Silencer chute have been an important purchasing decision to start The 808 Ranch,” Steiger says.

The system’s primary value lies in its ability to dramatically reduce labor and enhance safety.

“Chace and I can work by ourselves, for the most part, the cattle without any extra help,” Steiger explains, highlighting the system’s efficiency.

Chace Jamison serves as The 808 Ranch cattle manager and has been a member of The 808 team since October 2020.

Safety was a critical consideration in their purchase.

Steiger notes, “Most of the injuries that I’ve seen happen, usually happen right there behind the chute, and the TurretGate is so sweet. You can run it with a remote. You don’t have to get in there.”

The system’s design allows for smooth cattle handling, with Steiger emphasizing how cattle learn to move through the system quickly and with minimal stress.

He also explains how the Moly system saves the ranch in labor costs.

(Angie Stump Denton)

“I think, labor savings paid for this chute in two years,” Steiger says. “One or two people can work cattle very efficiently and be safer.”

The chute system’s technical features are equally impressive. It offers precise control, with Jamison being able to “adjust it quickly on the fly.” The system includes innovative features like rubber flanges that restrict side visibility, helping to calm cattle by reducing their perception of potential threats.

Steiger shares these six advantages of Moly Manufacturing’s TurretGate and Silencer hydraulic chute:

Labor Efficiency. Two people can handle working cattle easily; can process around 100 cows in a couple of hours; significantly reduces manual labor requirements
Safety Features. Remote-controlled TurretGate minimizes human risk; gentle cattle handling without pushing or stressing animals; designed to reduce potential injuries for both humans and cattle
Technical Design. Quiet hydraulic system; responsive levers allowing quick adjustments; adjustable neck extension for medical procedures - Rubber flanges help calm cattle by restricting side visibility
System Flexibility. Cattle flow smoothly through the system; adaptable for different cattle sizes; integrated with scale monitoring and potential computer data collection
Customer Support. Moly representatives provide excellent post-purchase support; helped troubleshoot initial technical issues; responsive to customer needs
Long-Term Value. System paid for itself within two years; maintains excellent condition after five years with proper maintenance; planned to install same system at their second ranch

(Kristen Schurr)

All-Purpose Corral Provides Flexibility

The 808 Ranch also invested in Moly’s All-Purpose Corral. Steiger says the system was a flexible, practical investment that supports the ranch’s growth and provides a versatile cattle management solution across different properties.

“With that All-Purpose Corral, you can set it up so that you can gather probably 40 or 50 head in there, and then, as you haul them out or process them through there, it has a head gate on the front of it,” he explains.

The system can be moved easily between different locations and helps The 808 Ranch crew manage cattle in areas not adequately set up for gathering. He says the corral’s mobility and versatility make it an invaluable tool.

Steiger’s philosophy can be summarized in his own words: “Don’t forget the human touch.” While embracing technology, he never loses sight of the practical, hands-on knowledge that makes ranching successful.

For The 808 Ranch, purchasing equipment is not about following trends, but about making strategic investments that directly improve their ability to produce high-quality beef efficiently and sustainably. Each piece of equipment is a purposeful tool designed to address specific operational challenges and opportunities.

Steiger says each equipment purchase is carefully considered for its potential to:

Create a safe environment for the animals and the operator.
Improve animal welfare.
Enhance operational efficiency.
Reduce labor requirements.
Provide long-term value.
Support future expansion.

He summarizes the importance of being curious and open-minded when considering new equipment purchases and implementing new technologies.

“Be curious. Be open. Don’t have blinders on and think this is the way dad or granddad did it, this is the only way we’re going to do it,” he reminds producers.

5 Questions to Consider Before You Invest in New Technology

Thu, 14 Aug 2025 13:46:12 GMT

Investing in new technology can be one of the biggest decisions you make on the farm. With so many new tools, systems and innovations hitting the market, it can be tempting to purchase the latest and greatest gadget with the hope that it will be a smart investment. But as enticing as new technology can be, the decision to make a big purchase should never be made on impulse.

Before you go signing on the dotted line, Stephanie Plaster, Extension farm management outreach specialist, and John Shutske, UW-Madison professor and Extension specialist in biological systems engineering, recommend asking yourself five key questions that can help determine whether a new purchase is truly the right fit for your farm.

1. What Issue Are You Hoping To Solve?
“The first question you should ask yourself is, what issue or challenge are you hoping to solve?” Plaster explains. “Understanding what is driving your decision to invest can help you evaluate whether this will be worth both the financial cost and the inevitable discomfort of the adoption transition period.”

While new equipment can make productivity and efficiency easier, technology is rarely plug-and-play. It requires time to learn, integrate and adapt. If you don’t clearly understand the benefits it provides and how those benefits justify the cost, you may end up investing in a solution that doesn’t truly address your needs.

2. What Are Your Skills And Interests?
Your strengths and preferences can make or break a technology investment. Knowing what you and your team are comfortable with can determine how smoothly a system is adopted and used. Technology that aligns with your skills and interests reduces frustration, speeds up integration and increases the likelihood the investment will deliver the results you are expecting.

“This might seem like a silly question when considering autonomous equipment, but it could make or break the success of the technology adoption or change management process,” Plaster says.

If you’re comfortable with software, data analysis and troubleshooting, certain systems might be a perfect fit. If not, you may want to choose technology with strong dealer support.

“Playing to your strengths and minimizing your weaknesses is a solid strategy,” Plaster adds.

3. Do You Have Reliable Internet Access?
Many of today’s technologies require consistent connectivity for updates, monitoring and troubleshooting. Without reliable internet, systems may not run as expected. That’s why verifying your internet connection beforehand is essential so the technology can perform as intended from the start.

“Do you have broadband internet access you consider both accessible and affordable?” Shutske asks. “By formal definition, we’re talking about a speed of at least 25 megabits per second for downloading and three megabits per second for uploading data.”

For farms in rural areas, this may require exploring alternative solutions like fixed wireless, satellite or cellular-based services before implementing connected technologies.

4. Is There Adequate Service Infrastructure?
Even the most advanced equipment will eventually need service, whether it’s routine maintenance, troubleshooting or unexpected repairs. According to Shutske, having access to knowledgeable technicians and reliable support can make all the difference between a smooth operation and days of downtime.

“It’s really important to ask questions of your technology supplier or vendor,” Shutske says. “Our research shows that it’s proving to be a real challenge for local technology companies who want to hire excellent people with technology skills to work in and service agricultural areas.”

He encourages farmers to ask vendors about their staffing, average response times, remote troubleshooting capabilities and how they support customers during the startup phase.

“Will they be able to support you remotely if a service technician cannot come out and travel to your farm?” Shutske asks. “Reliable service infrastructure is essential for smooth operation and maintenance.”

5. How Comfortable Are You With Your Finances?
Ultimately, the decision to invest comes down to the numbers. Not just whether you can afford the purchase today, but whether it will pay for itself and support the long-term health of your operation. A piece of technology that looks appealing on paper can quickly become a financial burden if it doesn’t deliver measurable returns.

“It’s critical to identify if the farm will have the capacity to achieve financial and production performance goals and objectives,” Plaster explains. “That means knowing your current financial position, understanding key measures like ROI (return on investment) and IRR (internal rate of return), and calculating how this purchase will affect cash flow and debt load.”

She notes that salespeople, lenders and accountants will all use different financial language. Therefore, the more familiar you are with the terms and metrics, the more confidently you can make an informed choice.

Build a Decision-Making Framework
While these five questions are a strong starting point, Plaster emphasizes the value of a structured decision-making process.

“To make informed decisions, it is essential to have a clear strategy,” she says.

Tools like a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) and gap analysis can help you evaluate current performance, identify areas for improvement and determine whether new technology is the best path forward.

By weighing the problem you’re trying to solve, the skills you bring to the table, your infrastructure and your financial readiness, you can approach a technology investment with clarity and confidence.

7 Ways To Be A Lifeline For Farmers

Mon, 07 Oct 2024 14:15:04 GMT

When times are tough is when farmers need their trusted advisers the most, says Greg Martinelli. For the past eight years, he’s coached ag sales professionals specifically in the retail/inputs category.

“When I worked in corporate ag, there was a moment when this idea hit me like a ton of bricks,” Martinelli says. “I was visiting a Midwest row crop farmer in 2011, when corn was $6 and breakeven costs were close to $3.50. He told me, ‘I don’t need you now, I needed you when corn was $3.50.’”

Martinelli says there are opportunities to bring value in this current economic environment. To help refocus your efforts in sales and marketing, he offers seven steps to find success with customers despite the tough economic times of the cycle.

1. Don’t jump into the quick sand with them.
“Farmers love to complain and commiserate about how hard it is. And as sales people we love to commiserate with them on how you understand the farmer’s business,” Martinelli says. “But if you do that, you aren’t doing anything different than what they hear at the coffee shop.”

He equates reiterating the negativity as not throwing them a lifeline but rather jumping into the quicksand with them.

“Farmers are looking for someone with a solution. You show up on the farm with all of your company tools and resources and instead of using them to help, you jump into the quicksand with them. This is where a trusted advisor can set themselves apart,” he says.

2. Keep them moving.
With the magnitude and quantity of factors farmers consider, they can fall victim to analysis paralysis.

“Farmers are seeking ideas but more so clear answers,” Martinelli says “This is where you can—not in a gossipy way—share your insights from other farms. Every day all day you’re on farms. You can share in a professional way what you are seeing and what you are learning.”

This combination of experience and credibility can serve the purpose to keep farmers considering new ideas as well as help prevent someone from going too far or all-in on a risky choice.

3. Provide perspective.
“If you’re lucky enough to be in the middle or late in your career, you’ve gone through downturns before,” Martinelli says. “That means you know things change, and there will be an upturn.”

He cautions sales people from encouraging negativity and rather engaging in a positive way.

“You have to acknowledge what is going on, because the financial pain is real,” he says. “Often as salespeople we can seem like we’re acting like a psychiatrist, and the opportunity is to not let the negativity persist any more in the conversation than it needs to.”

4. Shed light.
“There are places farmers aren’t looking where there are opportunities for you to help them uncover,” Martinelli says.

As an illustrative example, he talks about crop marketing.

“This is a weak area across crop production because there are no right or wrong answers, and the skills required usually mean the oldest person on the farm does the work,” he says. “The thing to do is admit you don’t have the answers, but ask what they are doing with their marketing plan.”

He says many of those conversations unveiled farmers with even 30 years of experience didn’t understand crop insurance, which provided another valuable exploration of additional services.

5. Show them a path.
“Instead of selling an idea, explain why a change of approach is an asset to their business,” he says.

One common trap is to talk broadly about precision agriculture and not detail exactly what product and service fit an individual field.

6. Put your customer on your org chart.
While this may sound a bit off the wall, Martinelli advocates identifying where the customer fits into your business by the simple task of putting them on your company’s organizational chart.

“We all need an org chart to know who manages who, but if you really want to start the engines of the thought process, ask where on your org chart is your customer. Where would you put them.”

This helps illustrate how marketing, accounting and other teams are taking into account what customers are trying to accomplish.

“If things are changing, and times get tough for the customer, it’ll get tough on your agribusiness. How are we organizing around the customer?” he says.

7. Let them know they aren’t completely alone.
“At first, it may not be well received or completely understood that everyone is experiencing this downturn,” Martinelli says. “Farming and making decisions can be a lonely business for our customers. As their trusted adviser, this can be your chance to provide support. Let them know they are not alone in their struggles.”

He says when customers are venting, don’t interrupt them, but rather when they are done ask them with all of the negatively for how things are, what are they going to do different.

With the seven steps, Martinelli coaches advisers to take their three biggest customers, and list the steps they will do in 30, 60 and 90 days.

“Having a plan is certainly better than just showing up on the farm and kicking tires,” he says.

Your Next Read: New Study Looks At The Relationship Between Farmers And Their Advisors