Management

Dollars And Dirt: Navigating The Financial Reality Of Conservation Farming

Fri, 19 Dec 2025 20:47:18 GMT

Farmers like Ted Hamer and April Hemmes aren’t opposed to conservation practices or regenerative agriculture—both Iowa row crop growers already use some. What they are opposed to is taking on unmanageable risk in an environment of tight margins, volatile markets and rising input costs without clear, reliable benefits.

During their recent, wide-ranging conversation on AgriTalk, a central theme emerged: if policymakers and companies seek broader adoption of conservation and regenerative practices, they must pair expectations with practical, well-designed incentives.

Here are some of the key points the two farmers made during their discussion with Host Davis Michaelson.

‘Regenerative’ is Just Good Farming
When new programs are announced with big dollar figures and bold language, they often imply that farmers need to be “fixed.” That doesn’t sit well with farmers, many of whom have been stewarding the same land for generations.

As Hemmes, based in Franklin County, Iowa, puts it, many practices highlighted under the umbrella of “regenerative agriculture” are simply standards for good farming.

“What you’re saying is regenerative ag, I just call farming. That’s just what we do. Taking care of our ground and having healthy soils is what we farmers do because it’s our legacy to our family,” says Hemmes, who uses no-till, cover crops and water management practices.

In her and Hamer’s perspective, farmers are not resistant to regenerative practices. Instead, they dislike being told they are “farming wrong” by groups and individuals outside of agriculture who may not fully grasp the on-the-ground economic and agronomic realities.

Tight Margins Make Experimenting A High-Stakes Decision
Hamer, based in Tama County, Iowa, explains that adopting new practices—such as cover crops, reduced tillage, or diversified rotations—often means incurring upfront costs, significant management changes, and a lot of uncertainty.

“It’s terribly risky with the margins we have right now… I’ve got to make a buck… I can’t have it be so risky that I don’t see a return on my investment,” Hamer says.

This is the crux of the matter: even when farmers are supportive and willing to adopt new practices and technologies, the math has to work, and some profit must be realized.

Their collective perspective is clear: without robust ROI data, strong cost-share or incentive payments, and integrated risk-management tools (like multi-year contracts or crop insurance integration), shifting current practices is often unjustifiable.

“The margins are too tight to stick your neck out very far at this time,” Hamer says.

Incentives Must Include Technical Support
National agricultural announcements often tout the dollar amounts available, such as the recently announced $700 million Regenerative Pilot Program . While funding is crucial, Hemmes points to an equally pressing need: technical support in the field to help implement the programs effectively.

“They need more dollars for people in the field…. I’ve been a soil and water commissioner for over 30 years, and we are in desperate need for technicians out here. So, throwing money at this is one thing, but getting the people in place to carry out the programs is another,” she says.

When USDA service centers, Extension offices, and others at the local level are understaffed and technical assistance is stretched thin, good programs can stall at the farm gate. Hemmes outlines the requirements for effective incentives:

Adequate Technical Assistance: To help farmers correctly design and implement complex practices.
Reasonable Timelines: Recognizing that some benefits, like improved soil structure and organic matter, take time to develop and build.
Simple, Predictable Processes: Application and compliance should be straightforward.

Without the necessary technical support and manpower, Hemmes notes that even the best programs often just turn into frustrating paperwork exercises.

Aid Payments Don’t Fix Structural Issues
Short-term “bridge” or aid payments can help keep farms afloat during difficult years, but Hemmes and Hamer say they don’t structurally support the long-term decisions that can improve grower practices and profitability.

The main issue, they contend, is that much of the money from these aid programs never truly stays on the farm.

“This payment (the $12 billion Farmer Bridge Assistance program) isn’t for us. It’s all going to input costs, fertilizer, equipment. None of that money stays in our hands,” Hamer says.

Hemmes agrees, noting that people outside of agriculture often “don’t see what the problem is” because farmers are seemingly getting “free” money.

“It’s not like we go to Amazon and order a bunch more crap off there because we got some money,” she says. “No. It goes to everything we have to do to put the next crop in the ground.”

Ultimately, she believes, major policy change requires facing difficult truths.

“We’d love free and fair trade, but we know that’s not a possibility,” she contends. “It’s going to hurt to make a change, and I think that’s what politicians don’t like. They want to get reelected, so [their attitude is] ‘let’s just keep doing it this way.’ That’s the tough part of it all, because anything that revolves around changing policy is messy.”

Hear the complete conversation between Hamer, Hemmes and Michaelson on AgriTalk:

Farm Equipment Buyer Hacks: 3 Insights From Fellow Farmers

Thu, 25 Sep 2025 14:07:44 GMT

Farmers are getting creative with their fleet management strategies and equipment purchasing behaviors in a world of tight farm economics. In addition, rising new and used equipment costs, the growing role of smart farming technology in purchase decisions and the dealer-farmer relationship come into play.

Here are three talking points to help keep your equipment fleet up to date in a down market from the farmers on stage at this year’s Moving Iron Summit , an annual Farm Journal event for used farm equipment dealers and auction companies.

Adopt a Second Buyer Approach
One effective strategy is shifting from a buy-new-at-all-costs mindset to a second buyer approach. Most combine harvesters remain operational for 15 to 18 years and have up to eight owners.

Illinois farmer Steve Pitstick and Iowa farmer Ben Riensche have found being the second buyer is the sweet spot for getting a good deal in the used market and still having a machine with modern precision ag technology. Riensche explains the mindset at play: When corn was trading at $6 a bushel, he says, it took 80,000 bu. to generate enough revenue to buy a nice used row crop tractor. Today, with $4 corn, that number has exploded to 140,000 bu. of corn to pay for the same used tractor.

“All those buyers are critical to that whole machine life,” Pitstick says. “I’ve chosen to be the second buyer. I come in at 300 hours, 400 hours and run it for a year. We flip machines every year with a 2-year-old or 1-year-old machine. Oftentimes it’s like a new machine to me because the first guy for some reason left the plastic on the seat.”

Keep a Backup for the Backup
The panel also agrees it pays to have a backup tractor or combine stashed in the machinery shed during spring planting and fall harvest, in case the tractor running the planter or the combine breaks down.

“We’ll keep our best old, used [machine] back in the back of the shed,” Riensche says. “If it gets used on that bluebird day when you really cut a lot of soybeans and it gets pulled out, or the day the front line combine goes down, we’ll pull it out because it obviously isn’t worth much on trade.”

Planter and Sprayer Tech Pays Off
When it comes to technology, Texas farmers Dale Allen and Todd Kimbrell, who both maintain relatively new equipment fleets, are seeing a return-on-investment when they take the time to figure out what works for their operations.

“First and foremost, for us it’s planters,” Kimbrell says. “Planter [tech] makes money in my part of the world, flat out. I can show you [data] all day long. It’s planter tech for us. Once we fixed our planters, our yields started going up. I’ll be honest, I don’t think we really knew how to plant until we put the technology on there.”

Allen is finding a lot of value in having his sprayers equipped with John Deere’s ExactApply application management system, which is available new from the factory and as an aftermarket retrofit kit on older machines. But John Deere’s hottest technology, it’s See & Spray smart spraying system, just doesn’t pencil out for his farm.

“There’s cost savings in being able to apply chemistry the way we need [it] applied,” Allen says. “What I’m trying to say is, not every technology fits on every farm. We got one shot to get it right, and we need to be sure.”

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National Farm Safety and Health Week: Stay Safe This Harvest Season With Expert Tips

Mon, 22 Sep 2025 21:12:05 GMT

Farmers spend a good chunk of their professional lives out in nature, producing healthy crops that feed communities and the world. But if there is one drawback to farming, it’s that it is one of the most dangerous jobs in the U.S., according to Laura Siegel, AgriSafe Network.

Whether you’re talking about tragic grain bin entrapment , dangerous combine harvester fires, or just the simple fact that farmers, their family members and employees spend a lot of time in and around heavy equipment, the bulk of on-farm accidents unfortunately often involve farm machinery.

Siegel spoke with AgDay anchor Clinton Griffiths (video above) about how farmers can help reduce accidents and injuries. She says one approach that significantly reduces accidents is getting enough sleep.

“Harvest is coming up and we know a lot of people are losing sleep because with technology you can use those lights to stay up and work until the job is done,” Siegel says. “But honestly, working [with] your machinery with less sleep is as dangerous as if you’d been drinking [alcohol]. So, it’s important to make sure we’re getting enough sleep.”

Siegel shares these reminders to help everyone stay safe this fall:

If you currently have a pair of boots or gloves with holes in them, you should replace them to “prevent you from [having] any contact with harmful chemicals or organic materials.”
When working with machinery, make sure that your clothes are tight and not loose fitting. “And if you’re wearing a cover-up, make sure that the sleeves aren’t hanging loose because those can get caught in the equipment and cause accidents.”
Take the time to slow down and always be aware of your surroundings when you’re driving or towing farm machinery. “Even if you’ve taken these same roads every day for the past 50 years, ag roadway accidents are some of the highest [occurring accidents] compared to any other area, despite having less traffic.”
Practice smart, defensive driving on public roads. “You don’t know when a big farming vehicle might be coming down [the road] and they can’t stop as fast as you might be able to in your pickup truck or ATV.”

Side-Marking Machinery

(Lindsey Pound)

The University of Wisconsin-Madison’s John Shutske has 40 years of experience advocating farm safety best practices. He spends a lot of time talking about the dangers of slow-moving vehicle (SMV) and car/truck interactions on rural roadways.

Shutske says tractor-auto incidents on rural roads are increasing due to a handful of factors, including the higher average age of farmers (60-plus in many areas), a growing need to operate farm equipment on public roadways due to farm growth and consolidation, and distracted drivers. And most rural roads don’t have wide shoulders where you can quickly veer off to avoid a collision, with many lined by deep drainage ditches.

The average vehicle operator driving at 55 mph and approaching a SMV traveling in the same direction, like a tractor hauling two grain carts at harvest, on a two-lane highway with good visibility will have 11 seconds to slow down before an accident occurs, he says. If the driver of the car or SUV is distracted or simply does not see the SMV right away, it significantly reduces the amount of time needed to stop safely.

(ifloortape.com)

One answer, according to Shutske, is for the owner-operator of the SMV to make the vehicle more conspicuous, or recognizable, to oncoming traffic. There are many ways to do that, one of the easiest is to mark all vehicle and implement dimensions (rear, sides, front, etc) with side-marking tape and/or SMV signs (the red upside down triangle) made from retroflective material, which is engineered to reflect light back at the same intensity that is shined upon it.

“The side-marking tape [at your local hardware store], you can find it for $25, and you can essentially outline every piece of equipment,” Shutske says. “It’s an incredibly cheap investment and one that can save lives.”

He also says there are new safety products available from Amazon and other retailers that are made with LED lights and retroflective material that can be “bolted or clamped on, or affixed with magnets” for under $300 to add safety lighting and markings to any piece of equipment, regardless of age.

What About Trailers?

(Lindsey Pound)

It’s important to use side-marking tape on your trailering equipment, Shutske adds. You don’t have to mark a machine continuously across its side, he says you can simply outline a box or upside-down triangle with the tape at each end point. And always make sure your trailer is loaded and balanced correctly, and you have sufficient braking power for the load you’re hauling.

As more farmers embrace automation and robotics — remotely-piloted machines often must be hauled from field to field — more trailers will be seen loaded up with farm equipment on public roads. Spray drones often require large, bi-level trailers with a lot of heavy equipment packed on, like nurse tanks and power generators.

“We’re seeing a lot of big and small robotic equipment, and transportation is really going to be an issue,” Shutske says. “Right now, most have a steering wheel and seat for the operator, but I do see a future where we need to think about regulations and safety standards [for driverless farm equipment]. Trailering [safety] is going to be a lot more important in the future.”

If you want to learn more tips and tricks for staying safe, AgriSafe Network’s National Farm Safety and Health Week 2025 is happening this week. The agency is hosting 10 free online webinars exploring best practices for staying safe around the farm.

Get registered and check out the webinar topics at learning.agricafe.org/NFSHW.

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Precision Spray Drones: The Future of Invasive Species Control

Fri, 11 Jul 2025 15:32:35 GMT

While addressing weed control and pressing agronomic issues is a farmers’ priority during the growing season, ensuring adjacent wetlands and riparian buffer zones within crop fields are healthy and free of invasive species is imperative, too.

Today, there is novel research from the University of Waterloo showing a single, targeted herbicide application from a spray drone can suppress common invasive reed species with more than 99% effectiveness. The outcome is among many research findings recently published online in a Weed Science Society of America (WSSA) research journal.

If you’d really like to get into the weeds, you can review the full scientific study results here.

“The 99% reduction in live common reed stems observed with drone-based herbicide application demonstrates its capacity to suppress invasive common reed effectively,” says Rebecca Rooney, Ph.D., the University of Waterloo. Rooney is also a professor in the school’s biology department and the study’s corresponding author.

Rooney says the drone application method “matched or exceeded the efficacy of conventional helicopter and backpack applications.”

That’s a key aspect of the study findings because, as any farmer knows, managing invasive weeds in wetlands or buffer strips can pose significant challenges, due to limited access via hand weeding crews and ground rigs.

Spray drone applications allow for smaller spray widths and lower flight heights compared to manned helicopters, Rooney says, and the study results also show a reduction in off-target impacts and spray drift.

“This approach also holds promise for accelerating ecological recovery in wetland habitats,” says Rooney, adding that future research efforts around spray drone application in wetland settings should focus on long-term native vegetation recovery and quantify the accuracy of herbicide applications to minimize off-target damage to native vegetation in wetlands.”

Here’s a video from nuWay Ag showing the process of spray drone application in an Ohio wetland:

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How To Navigate Foliar Fungicide Use in a Tight Soybean Market

Tue, 01 Jul 2025 18:43:53 GMT

Farmers looking to decide when to apply a soybean foliar fungicide can get their biggest ROI from the application by determining the crop’s growth stage, says Matt Duesterhaus, Crop-Tech Consulting research agronomist in Illinois.

A growth stage begins when 50% or more of the soybean plants are in or beyond a specific point of development, according to Iowa State University Extension.

But before you decide when to apply fungicides, university Extension says to evaluate product and application costs, which can run as high as $30 to $40 per acre. Penn State Extension says the realized yield response needed to cover costs may not justify the need for a foliar fungicide, if the risk of disease is not there.

Farmdocdaily, based at the University of Illinois, provides some potential scenarios for soybean growers (and corn growers, too) to evaluate based on yield and prices:

Farmdocdaily adds that while you can figure out the cost of applying foliar fungicides, consider that their application introduces two uncertainties – particularly important to know in a low-price year:

1) the yield response from using fungicides, and

2) the additional drying cost associated with higher moisture due to fungicide use. To learn more, check out the Farmdocdaily article Fungicides Use in a Lower Price Environment.

When Soybeans Make Big Yield Moves

Back to application timing, Duesterhaus says from R2 to R4 is when most farmers are staging soybeans for fungicide applications (as well as insecticide and foliar fertilizer). This period of development typically occurs in later July in the Midwest.

During these growth stages, you start to see some of the biggest yield moves in soybeans – both up and down.

“These pod development stages are about finalizing the potential for soybean yields,” Duesterhaus says. “From R2 to R4, we need to do everything we can to protect the beans so they can hang onto those flowers as pods. Then, in August, we see how we can fulfill the potential out there.”

A Different Recommendation For White Mold

If you have an issue with white mold in soybeans, Mike Staton, Michigan State University Extension , says to evaluate your crop and be ready to apply a foliar fungicide at R1 (one open flower per plant on 50% of the plants).

Staton adds that a second fungicide application made approximately 10 days after the first application may improve white mold control if the weather is predicted to remain cool and wet or humid.

Sporecaster , a relatively new phone app from University of Wisconsin, was created to suggest if a fungicide should be applied for white mold.

The Crop Protection Network has also released its 2025 Soybean Foliar Fungicide Efficacy ratings to help farmers make product selections for all disease issues in soybeans.

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

Mon, 30 Jun 2025 18:28:52 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.”

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Soybean Farmer Fine-Tunes Seeding Rates For Higher Profits

Thu, 17 Apr 2025 13:57:30 GMT

How low can you go with soybean seeding rates and still harvest high yields?

Perhaps a better question Brian Scott set out to answer five years ago was, how low could he go with populations and still produce the most profitable soybean crop possible on his northwest Indiana farm?

In 2024, the answer was 100,000 seeds per acre – a rate that penciled out to an investment of $53 per acre in seed. Yield results at harvest averaged 76 bu. per acre.

“We had really good results and set a lot of yield records in our fields last year,” says Scott, who farms 2,500 acres of corn, soybeans, popcorn and wheat with his dad near Monticello, Ind. The field shown below was split between two populations of the same variety in 2024: 100K on the left and 40K on the right.

“Driving by, you’d never know there was a difference,” he says.

Brian Scott says growing conditions were ideal in 2024 and yield results were strong across the board, regardless of seeding rate. He points out that the field shown here was split between two populations: 100,000 plants on the left and 40,000 on the right. “You can’t hardly tell the difference other than a little height on the higher population. Driving by you’d never know there was a difference,” he told Farm Journal.

(Brian Scott)

Scott says the family’s ongoing objective for evaluating seeding rates each year is to find that fine line between cutting seed costs and growing the most profitable soybean crop.

Lower Rates Are A National Trend
The move to lower seeding rates has been a national trend for more than two decades, according to USDA-ERS.

Average seeding rates for U.S. soybeans declined nearly 22% between 1997 and 2018, according to the agency’s May 2024 oil crops outlook.

Key contributors to the downward trend include improved genetics, seed treatments and a widespread shift toward planting in conventional rows instead of drilling or broadcasting soybeans, USDA reports.

Highly productive areas are where you can usually trim soybean populations, according to Matt Duesterhaus, Crop-Tech Consulting field agronomist in Illinois.

“Higher fertility and adequate soil moisture will promote more growth and height in the soybean plants, as well as more branches to make up for fewer plants,” he says. “We see this in fields with a manure history as well.”

In those fields or parts of fields that are producing shorter soybeans (or in fields with tough clays or sand) that’s when farmers need higher populations to reach canopy quickly, Duesterhaus adds.

Base Decisions On Multiple Years Of Experience
Plant height is a positive only to a point. The family started reducing seeding rates 10 years ago as they found plants were getting too tall and lodging. At the time they were planting a rate of 165,000 seeds per acre.

“The beans were getting chest high in August, especially if we got some rain. And we were like, oh, that’s not good, so we dropped to 140,000 an acre which took care of the lodging issues,” Scott recalls.

Since then, they have evaluated planting populations as low as 40,000 seeds per acre.

The plants shown here are in order by population, from left to right: 40K, 80K, 100K and 160K. “This was the same variety planted in the same field,” Scott says.

(Brian Scott)

“We planted a block last year at 40,000 that averaged 69 bushels at harvest,” Scott says. “They were massive plants; the stalks were as big around as my thumb at the soil’s surface.”

Those results (shown in the photo above at populations ranging from 40K at the far left to 160K at the far right) were just the opposite of his experience the year before, in 2023.

“We got some heavy rains, and at that 40,000 rate the beans struggled to break through the crust. It was a really thin stand, and we had maybe 25,000 plants at harvest,” Scott recalls.

Today, he says 100,000 seeds per acre is the average planting rate for soybeans across the family’s farm.

“We grow mostly seed beans, and I kind of had to convince the company that it would work,” Scott says. “I joke about it a little bit with our seed salesman that they’ll be able to sell us more seed when we buy another 80 acres with the money we save.”

To maximize yield results in most environments , Purdue Extension adds that “growers should have no less than 100,000 uniformly standing plants per acre in 7.5" and 15" rows and no less than 80,000 uniformly standing plants per acre in 30" rows.”

As you head to the field, check out this soybean seeding rate example. A few simple calculations can provide some helpful insights for your farm.

(Purdue Extension)

Your Farm, Your Results
Scott is a proponent of on-farm field tests and routinely shares what he learns with other farmers and general consumers via his blog “The Farmer’s Life” on YouTube and Facebook. Check out this link to learn more about his work in 2024 to evaluate planting populations.

When testing lower soybean populations, he would encourage other growers to consider these three factors:

1. Variety Selection
While yield is always the primary factor when selecting a variety, he’s found bushy varieties are usually the best choice for wide rows.

“You have to seek out bean varieties that branch well and can compensate for lower plant populations,” Scott says, noting he plants bushy varieties at 1.5” deep in 30” rows. His family plants 30” rows because they own one planter, using it for both corn and soybeans.

2. Seed Treatments
Scott routinely use seed treatments with fungicide and insecticide to protect seed, which is especially important when going with lower populations and planting early or in challenging conditions.

3. Weed Control
Scott maintains a robust weed-control program using pre-emergence and postemergence herbicides featuring residual control. Given the operation’s 30” rows, he says preventing weeds from emerging is particularly important as the crop is often slower to canopy than if they planted in narrow rows.

“We do a burndown treatment with a residual right before planting,” Scott says. “We’ve had really good luck coming back in our first post pass with putting down another residual in the last few years – that seems to be helping quite a bit. Then, we usually come back a second time with a post application during the summer.”

Duesterhaus says weed pressure is his No. 1 consideration for whether soybean planting populations can be reduced, given the struggle many growers have today with herbicide-resistant waterhemp, pigweed and ragweed species.

“If you’re growing organic soybeans or in a constant battle with weeds, lower soybean populations are out of the equation,” Duesterhaus says. “High populations and quick canopy coverage are a crucial and effective part of your weed management in those scenarios.”

‘Go Slow, But Give It A Try’
Scott encourages other farmers to try cutting seeding rates on a small scale and evaluate how the various rates perform.

He typically puts in a 120’ strip of each seeding population, which gives him three passes at harvest with the combine to evaluate.

“Just put a block out in the field somewhere and either keep track of it on your monitor or throw some survey flags out, and pick it out at harvest,” he advises. “Try it on a small scale, and then go from there the next year.”

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3 Steps To Honestly Evaluate Your Farm's Performance

Thu, 27 Mar 2025 12:00:00 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?

Plowing Through Tough Times: Equipment Manufacturers Double Down on Technology Upgrades Amid Sales Slump

Tue, 18 Feb 2025 15:29:35 GMT

New two-wheel and four-wheel drive tractor sales appear to be in a free fall to start 2025, and combines are tumbling down with them. That’s based on data pulled from the latest Association of Equipment Manufacturers (AEM) U.S. Ag Tractors and Combine Report.

With spring planting just a handful of weeks away for some, the ag equipment industry is well aware of the forecasts predicting another down year demand-wise.

“I would say our guide on the larger ag machines is in that minus 20 to minus 30 range for the full year, but I haven’t gone through all the details (of the AEM report) yet,” says Kurt Coffey, head of North America, Case IH.

Coffey does think it’s a bit premature to sound the alarm bells based on a contracted January, though.

“We need to see the quarter play out in total, because there are companies that had new product launches that were getting the new line rates adjusted and maybe didn’t ship in January, but they may ship in February,” he adds.

Still, the AEM numbers to kick off 2025 don’t paint the rosiest of pictures. Case IH specifically is coming off a busy 2024 that featured two new massive row crop combine launches and the late-summer introduction of its new mobile fleet management app, FieldOps. For this year, the company debuted a new Farmall C utility tractor in the 100 hp range that Coffey says represents “kind of the core of the every man’s tractor” and is something he is “very excited about that.”

“There are certain areas where we’re very clean and there are certain areas where we would like to reduce a half a month to a month of stock, if that makes sense,” Coffey says. “We’re sitting where we want to be on more of the large categories, but I would like to maybe get a little cleaner on some of the livestock or mixed farm categories, but these are statistically small to our total performance, so it’s nothing really that we’re concerned about here in North America.”

Coffey says he isn’t super worried because his team is focused on what matters: staying steady and “destocking at the dealer level.” He says that effort has helped with overall dealer financial health and has calmed some of the concerns equipment dealers had coming into the year.

“We’ve been closely watching lead measures and used values, and not only values in dollars, but also in quantities,” he says. “And we heavily invested in velocity last Q3 and Q4 to help get some of the used stuff through the system, and now we’re starting to see some of the fruits of that labor.

“I don’t want to speak for our dealers, but we’re hearing feedback that we’re being more proactive and a stronger partner in that area than our dealers have had in a long time. That feedback came from our dealer advisory board. And that’s a good indicator of when the market stabilizes, how healthy are we to then attack a market on an upside?”

Of course, sluggish machine sales aren’t the only hurdle to leap over. The ongoing threat of tariffs – many of which could be levied against some of America’s strongest ag trade partners – has demanded a high level of attention over the last few weeks.

“I’m a farm kid from a town of 800 people, Ashmore, Illinois, and at like eight years old my dad told me ‘Kurt, I can’t sit here and worry about if it’s gonna rain or not,’ and we were in a massive drought. It was the 80s and it just really imprinted on me like, I can’t control this, so what can I do about it,” Coffey says. “And so we stay disciplined and balanced (in our approach). We’re having daily reviews with the Executive team because look, last week it was China, Mexico, and Canada. And then the next day, Canada and Mexico were paused for 30 days. And last week, we had a solid go forward plan. And then over the weekend there’s steel and aluminum (tariffs), so the plan changes. We’re staying calm, focusing on customer value and in a disciplined way, we’re doing what we can to deliver that.”

With new equipment sales slow and the threat of a global trade war looming, one area Coffey is seeing interest from farmers is in Case IH’s tech stack and its digital platform, FieldOps.

“We’re really going deep on our technology and unlocking value with our FieldOps platform,” Coffey told Farm Journal last week at the National Farm Machinery Show. “Where’s the machine? How’s it operating? What are my yields? I need to send that to my agronomist.” Honestly, I’ve been here all day today and that’s probably half the conversation. People literally coming up saying, ‘Hey, how do I integrate my data from my combine to my planter?’

AGCO-PTx Trimble weigh in
AgRevolution CEO Stacy Anthony met with Farm Journal at the AGCO booth, where the Duluth, Georgia-based manufacturer debuted an updated line of Massey Ferguson utility tractors as well as a new Hesston double square baler for hay and forage operations.

RELATED: AGCO Launches Massey Ferguson 2025 Compact Tractor Series, New Double Square Baler

Anthony told us farmers he met with at the show are still talking about last year’s AGCO-Precision Planting-Trimble tie up, which remains the largest ag tech acquisition deal in history. The companies re-branded its combined precision ag technology portfolio under the PTx Trimble name.

“We were always thought of as kind of chasing the leader for years to come, and now this PTx Trimble deal has given us a position to lead from the front, to lead with strength,” Anthony says. “Now we’re going to have a tech stack that’s unlike and unmatched from anybody else in the industry. That’s what we’re excited about and that’s what the farmer is excited about, because he’s got a choice now. He’s got a choice between the competition.”

PTx Trimble had its own separate booth in Louisville, where it was showing its new WM-Field Form land-forming and water management kit for the first time.

The WM-Field Form kit adds an RTK receiver to the blade implement on a tractor already equipped with auto steer to increase single-scraper landforming accuracy and improve connectivity at the edge of the field or in areas where the tractor and implement may not have full line of sight to the sky.

The company also featured its OutRun autonomous grain cart retrofit kit. That tractor and grain cart autonomy kit is available now from PTx Trimble dealers. Although it will start out automating only the tractor-grain cart functions, senior product manager Dinen Subramaniam says the same kit will be adapted to automate tillage tools and dry fertilizer spreaders in the near future.

“There are a lot of small operations that really struggle to find good help and there are large farms that can benefit from the increased efficiency,” he says. “They can now take someone, a highly skilled operator, and get them to do something that is worth their time, but no one else can do it, and then have an autonomous tractor out there taking care of the other tasks.”

Deere Dials Up More Retrofit Options
John Deere did not launch any new tractors or machines at the Louisville show this year, but the manufacturer did expand its Precision Upgrades retrofit program to include ExactEmerge and MaxEmerge 5e seed meter upgrades for 2015 and newer factory planters. The kits are available now at your local Deere dealer.

Deere says farmers that upgrade to its ExactEmerge electric seed meters can increase productivity by more than 100 acres per day by planting at speeds up to 10 mph.

(Matthew J. Grassi)

Both upgrade kits offer increased population accuracy - Deere claims a 20% increase in seeding accuracy compared to its MaxEmerge 5 meters - and the ExactEmerge kit enables accurate population and spacing while planting at speeds up to 10 mph, Deere says.

“Traditionally, customers have gotten a planter upgrade from us and essentially that upgrade came in a full row unit, but now we’re giving them the ability to upgrade without replacing the entire row unit,” says Kyle Barry, manager, Precision Upgrades.

Barry adds the newer your John Deere planter is, the easier it is going to be to install the electrically-driven seed metering kits on your own. Deere is also offering dealer installation if farmers would rather let the dealer techs handle it.

Barry says most farmers make the decision to upgrade an older planter once they get wind of the capabilities that new technology can offer, such as automatic row shutoffs and better seed singulation. Often, those increases can be the difference in getting your acreage planted in a tight window versus missing your window and feeling some yield drag on the back end of the growing season.

“With both of these seed meters we’re giving you the ability to have individual row shut offs on your planter,” he explains. “So as you go around corners or you plant into a headland and you have point rows, we’re going to shut each individual row off. You’re putting the seeds exactly where you want to, so you’re not over planting. That’s where you can get that 20% increase in population accuracy.”

After re-branding its aftermarket program to Precision Upgrades and launching the Precision Upgrades Essential kit at last year’s Louisville show, Deere is now offering many of its technologies as both OEM installed and aftermarket add-ons, most notably being its See & Spray smart spraying technology. Barry says this evolution at Deere is all about meeting farmers where they are on the technology journey and helping them be more productive and profitable.

“We’re increasing the options that customers have with upgrades in general, its not something we’re doing that is just specific to planters,” he says. “We’ve got sprayers, combines, air seeding, basically you name it. Depending on the customer, we’ve got options (for them). We’re really excited about these two new meter only upgrades because it’s giving customers that traditionally would have said no to an upgrade the ability to get this technology on their farm. Or, if its planter-applied fertilizer they want to get into, now we have ExactRate and ExactShot (kits).”

Your Next Read: Where Farm Equipment Is Made

Mastering Life’s Challenges: Saddle Up and Charge Forward

Tue, 11 Feb 2025 21:00:48 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 18:53:02 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.

From Louisiana Farm to Ag Retail Leadership: Dean Williams’ Journey to FBN

Thu, 26 Dec 2024 16:41:51 GMT

Dean Williams grew up on a farm in Louisiana and found his way to agriculture through retail. He’s spent more than 20 years selling crop protection, procuring supplies and managing ag retail warehouses and distribution businesses.

His resume includes strategic leadership stints at Nutrien/UAP, Simplot Grower Solutions, Pinnacle Agriculture and Terral Seed. He has a track record of growing businesses, optimizing profitability and navigating market challenges.

His southern roots and strong work ethic have helped him create winning teams throughout his career. He joined FBN in July to help grow crop protection sales via the company’s digital online storefront.

Q: What do you like about working in ag retail?

A: I’ve always been passionate about the agricultural industry. Having grown up on a farm in Louisiana, I’ve always wanted to do something that makes life better for farmers. As I worked in the industry and figured out all of the moving parts, it’s been a renewed focus. Things in the retail channel are too expensive, and I’ve always thought it was very inefficient. That is what drives me. I think we need to make the industry a lot more efficient for our farmers and for suppliers as well.

Q: What’s your leadership style?

A: I’m a person who’s very passionate and very direct, probably to a fault. My style is to be open and transparent. But, when I take a new role, I want to come in and find out what the business is about, listen to the customers, figure out their needs and how we can service them. I like to build a process or a model we can implement. Then it’s about getting the right people on the team and in the right positions. I try to be very open about what the goal is and where we’re headed. I believe if we can get all their cleats pointed in the right direction and heading toward the goal, it will take us toward success.

Q: What’s the best advice you’ve ever received?

A: Be willing to embrace change. I got that advice early on, and I think it’s where a lot of people struggle. This world’s always changing, and the ag industry is no different. You have to get ahead of change. The puck’s always moving, and you want to stay ahead of the puck, so that means skate to where the puck is going and not where it’s sitting today. For me, this new position at FBN is about skating to where the puck is going.

Q: What advice do you have for others getting into the agricultural business?

A: It’s a great industry, and I don’t know that I’ve ever had a bad day. I’ve had a few bad moments, but I’ve never had a really bad day. It’s a lot of fun. This business is about building a puzzle and then putting that puzzle together. You have to know your farmers, know the people you call on, understand the area, understand what it means to grow and just do the best you can every day. Farmers like the human touch. They like to have fun, but they also like good advice. Always bring good advice to the farm when you go because they really don’t want you to show up just to see them. They want you to show up with information because their time is valuable. Be willing to explore new ideas and, as I said, be willing to change.

Your Next Read: This South Dakota Rancher Is Prepared To Seize Each Opportunity

Tax Turbulence: How Sunsetting Provisions Could Change Your Bottom Line

Thu, 19 Dec 2024 14:31:58 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

Tue, 10 Dec 2024 20:38:54 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

How One Farmer Built A Safety Net For His Operation

Fri, 06 Dec 2024 20:52:42 GMT

When northeastern Iowa farmer Erick Oberbroeckling graduated college, he was looking for more to do during the winter. So he put commercial plates on the trucks the family farm already owned and began hauling grain, sand and milk. His team now consists of 50 people and 23 units.

Oberbroeckling recently joined the Top Producer podcast with host Paul Neiffer to share how the addition of this business has served a risk management tool and steady income stream for the farm.

“By having the trucking business around, we’re hauling ag products, but they’re not really tied or dependent upon the price of what we’re hauling–they still have to move,” Oberbroeckling explains. “The good thing about milk hauling is we have work available seven days a week. The bad thing about milk hauling is we have work available seven days a week.”

Oberbroeckling estimates spending over half of his time on the trucking business, and his brother’s day-to-day responsibilities mostly pertain to their hog business. He says this diversification provides a consistent workforce and a better way to allocate salaries.

“We need a certain number of people here, whether we were trucking or not,” he says. “Our grain operation is not burdened with 100% of salaries of four or five people. We can diversify those salaries and allocate those salaries a little bit better among both entities.”

No Silver Bullet For Management
Through growing these entities, Oberbroeckling has found himself managing a large group of employees–a task he compares to herding cats.

“You’ve got 50 different personalities you’re dealing with, and you have to really figure out what makes people click on their own level,” he says.

He says his management style stems from the golden rule and offers these three pieces of advice to each of his new employees:

Take criticism and learn from it.
Raising your voice will never accomplish anything.
Once something is said, you can’t take it back. Sleep on it for a day.

To hear more from Oberbroeckling, listen to this episode of the Top Producer podcast.

Your Next Read: Avoid This Common Labor Mistake — Tips from an Iowa Farmer

4R Management Experts Share Their Big Plans For 2025

Fri, 06 Dec 2024 17:00:00 GMT

We caught up with The Fertilizer Institute’s 2024 4R Advocates—a group of two farmers and two retailers who are committed to implementing fertilizer management practices based on the principles of 4R Nutrient Stewardship. They reflect on 2024, share their sustainability wins and describe how 2025 could look different.

What Does Sustainability Mean To You?

Allen Spray
Chestertown, Maryland, Willard Agri Service
Sustainability means maintaining a profitable farming operation while doing what’s right for the environment and always looking for ways to improve yield with less inputs.

Bryant Lowe
Laurel, Delaware, Lakeside Farms
To me, sustainability means being able to farm the way we have been for years while trying new things along the way to be successful for future generations.

Daniel Mullenix
Auburn, Alabama, GreenPoint Ag
If we are more aware of nutrient stewardship and using the 4R methods of fertilizer applications along with new technology when applying crop protection, we can work toward enhancing environmental stewardship. Focusing on sustainability from a cover crop and soil health emphasis builds organic matter and allows the soil to hold onto nutrients longer. Both of these perspectives preserve our environment, provide an economic benefit to the grower and move toward a path of preserving the land and soil for the future generations to follow.

Mason Roberts
Sylvester, Georgia, MTR Farms
Sustainable agriculture is the No. 1 priority in our operation, and the reason for that is the assurance there is a tomorrow for our future generations to produce food and fiber for the world. That comes from knowing we are making practical and ethical on-farm decisions today to minimize our footprint.

What’s Been Your Biggest Success Story With 4R Management?

Spray: This year, while working with some technology, I was able to reduce phosphorus by 66% in a corn starter and maintain the same yield.

Lowe: Our biggest success story has to be successfully growing high-yielding crops on our sandy soils. Using the 4Rs allows us to manage the crop while minimizing nutrient leaching throughout the season.

Mullenix: When a grower sees the 4R plan as an investment and not an expense, we have been successful. Our greatest successes have come when growers and retailers understand that soil sampling and prescriptive fertility management really help everyone involved. It’s not just about cutting cost or using new technology. Everyone wins when we work together toward success.

Roberts: Practical and ethical decisions that we have made through following 4R have made our farm footprint smaller but also helped our neighbors and other farmers in the community grasp the concept today before we are legislated to make infeasible changes tomorrow.

Are You Trying Anything New Agronomically in the Field in 2025?

Lowe: We are going to try banding almost all of the nutrients next to the row instead of any broadcast in hopes this will raise our ROI even more for 2025.

Roberts: After meeting Bryant Lowe and hearing the successes of farming strictly with liquid fertilizers, I know we will have some agronomic changes take place in our operation. In southern Georgia, most at-plant fertilizer applications and sidedress applications are broadcast dry granules. For 2025, most of our operation will go to an organic at-planting fertilizer, such as chicken manure and compost, and sidedress applications will be done using liquid fertilizers through a Y-drop applicator to ensure an on-target application directly over the root zone of the crop.

As Retailers, What Are You Asking Farmers to Try for Next Year?

Spray: I’m asking my growers not to panic and try some new technologies to help reduce their risk and the amount of fertility.

Mullenix: The biggest thing we’re asking farmers to try for 2025 is to try to stay in business. We have several agronomic and technology tools to help farmers spend each dollar as wisely as possible. Working together is the only way we’ll make it through these economic times.

The Only Way To Be Sustainable Is To Be Profitable

Fri, 06 Dec 2024 12:30:00 GMT

The only sustainable thing for your business long-term is profitability. This doesn’t mean we shouldn’t make efforts toward soil preservation or time efficiency, but does improving organic matter by 0.5% over 15 years matter if you go out of business doing it? Is the carbon program making the payment for your recently purchased land?

The roller coaster of markets will continue into eternity as it always has. Your focus should be what is most profitable for your business. Most of the rest is noise — though it’s still important to pull the signals out.

The current bleak outlook for farm profitability should stress the importance of this message. Many operations in 2024 are going to be OK only because of the higher yields. 2025 is an unknown, as any new year is.

The Best Product, The Best Price
The first question clients ask us is, “Where can we cut first so this doesn’t hurt as badly?”

Usually, we start with the importance of yield and price. You can’t save your way to prosperity — you need product (bushels), and you need to capture the best price by paying attention to the markets and knowing when to market because you know your bottom line (cost of production) to the penny. Cost of production doesn’t have room for error.

The Wrong Cuts in the Wrong Places
Next, we look at expenses. You need yield, so choose your fertility cuts with caution. The uncomfortable one that most people choose last is the cost of living. Lifestyle creep is when we make more money, we spend more money and become accustomed to that standard of living — see 2021 to 2023. It seems too hard to cut. Packages, frivolous expenditures or premature equipment upgrades add up fast. One or two generations back kept the cost of living in line much better than we do today — this is not conjecture, this is a fact.

The next place people look is other things they are writing a check for: seed, custom application and insurance. This is a slippery slope, especially in the outlook of environmental sustainability or income security.

While this might be unpopular in the modern outlook of sustainability, not seeding a cover crop could be a huge net positive. No seed costs, no application costs and maybe increased tillage. Tillage can and does improve yields in a large area of the country, and that is why it is still prevalent and important — this should be undisputed.

I wouldn’t reduce insurance coverage. Saving a few bushels worth of cost and leaving 20% to 80% of your income unprotected is something a lot of farms can’t afford. I don’t care if you like the current system or agree with the programs — they offer a huge safety net for revenue.

Five Takeaways
Do you want your farm to be sustainable for years to come? Make more money. Pull out the tillage equipment, grow good crops, get your spending in check and take advantage of insurance and marketing opportunities. It’s simple when written, but it’s not easy. Sustainability is profitability — there’s no two ways around it.

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?

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.

Farm Management New Year’s Resolutions for 2025

Fri, 29 Nov 2024 14:00:00 GMT

We asked past Top Producer award winners to share what’s new for them in the coming year. Here are some of the responses they shared with us:

“For the first time, we planted all our acres going to corn or soybeans next year to a cover crop. It is not the first time we have planted cover crops, but it is the first time we have done that many acres.” ~Bill Came
“We are hiring more people for the same amount of tractor seats. We are scheduling much better. We do this for two reasons — younger employees don’t want to work as much as they used to. Most used to work six days a week 10 years ago and now they are happy with four days a week. The second reason is ag overtime has passed in Oregon, so in order to manage overtime, we manage hours.” ~Shelly Boshart Davis
“We are continuing to expand the intensity of revenue acres by converting more conventional acres to organic production.” ~Pat Duncanson

“We’re going to reduce our soybean acres and increase our corn, winter wheat and cow-calf operation with these acres. We feel this will increase profitability.” ~Kelly Garrett
“I want to do a better job of promoting the extremely nutritious vegetable (yes, a vegetable) we call a potato, whenever possible. When choices appear relating to the value of spending time at work or with family, personally, I really need to do a better job of prioritizing, and therefore choosing, family time. After all: which one is more important?” ~Gregg Halverson
“For the first time in 39 years, I want to sidedress nitrogen on all of my corn acres.” ~April Hemmes

“Things that we need to do next year are straight out of the Danny Klinefelter playbook. We will focus on controlling cost in a high inflation/low price world. We’ll look for money under rocks — diversify revenue streams. We’ll leverage technology and new practices to become more efficient. It’s time to manage debt carefully in a high-interest environment, and it’s time to plan for the long term. This is a valley, don’t lose focus on the long-term plans of the operation.” ~Jeremy Jack
“I will physically and mentally execute and implement a succession plan for our farm to transition to the next generation.” ~Pam Johnson
“My resolution is that if you want to sell things at my farm, you need to reduce pricing by 15%. For those who say that is too sharp a cut, I say “try on my boots.” Price increases were easy on the way up. Now it’s time to reduce or be replaced.” ~Ben Riensche

“We’re going to buckle down and conserve operating cash and be conservative with inputs in anticipation of Trump tariffs negatively impacting our markets and prices like his last administration. We are considering replacing some aging storage and increasing our capacity. There are no plans to update equipment; just keep what we have operating. We will probably increase our vegetable acres in anticipation of low grain prices.” ~Jennie Schmidt
“We purchased life insurance and invested cash in a flex plan, so we can cover and service the debt if I am not around.” ~Trey Wasserburger

Does Your Culture Need A Change? Here Are The Warning Signs

Sun, 24 Nov 2024 14:00:00 GMT

Sometimes we just don’t like the way things are. Truth be told, that doesn’t always mean that things need to change. Sometimes, it’s on us to adapt or accept circumstances beyond our control. However, there are real signs that an operations’ culture is a problem. Here are six to look for when considering the need for culture change:

Frequent employee turn over
Secrecy or hidden information
Back-stabbing among staff and family
Overt jockeying for position or favor
Lack of trust or reluctance to trust
Poor or contradictory communication

Any one of these items can indicate it’s time for a culture shift, but three or more means the culture is in jeopardy, for sure.

Remember from Part I that I mentioned all families and businesses have culture; it’s either intentional or assumed, but we can all sense that it’s there. To consider if your culture is in the healthiest form, take a read of some common culture types and consider where your business fits. You might find that you’re a blend of a few of these.

Types of Culture

Types of culture - Sarah Beth Aubrey - November 2024 Top Producer

(Lori Hays)

Clan: This is a tight-knit operation, usually all family or at least family and trusted advisers. Everyone must pull their weight and all rewards get (generally) shared. Non-members are often disregarded or untrusted.
Risk and Innovate: This culture values being first. Ideas are accepted and encouraged. Risks, including big financial risks, are attempted with success and failure. This operation always is first to try the new tech.
Results-Driven: This culture is all about profit and productivity. It’s a banner of pride to never take a day off. Expenses are kept to a minimum, even when spending money could make things easier or quicker.
Ruler-Peasant: In these operations there is only one alpha. All plans run through the leader. Individual ideas aren’t valued unless expressly approved. Ideas implemented without approval are seen as an affront.

Culture Changes
You can change culture, but as you can imagine, it takes time and steady progress. Remember, culture forms over time, so shifting it won’t happen instantly. A few fast tips to support changing culture include:

Values: These are the deep-seated beliefs that people hold and that rarely shift. Is our current culture reflecting these values?
Mission: This is about the purpose and the way an operation lives out their values. This absolutely can shift overtime, often as people age and mature or as new people take on leadership roles. A common farming mission is to build a business that transfers to the next generation. Does the current culture support the likelihood of that happening?
Goals: Goals are the aims the business intends to achieve that are brought about by their actions. If your operation hasn’t truly set or updated the short- and long-term goals recently, doing so could create an excellent pathway to changing culture.

Coming Soon: Podcast Launching With Focus on Co-Op Boards

Thu, 31 Oct 2024 14:02:43 GMT

A new podcast is on the way with a mission to help improve co-op boards.

The Build Better Boards podcast will be hosted by Keri Jacobs, professor at the University of Missouri-Columbia, and Richard Fagerlin, co-founder of Build Better Boards. It launches Monday, Nov. 4.

With the goal of elevating board member leadership, the podcast will provide:

expert insights
practical tools
impactful conversations

“Whether you’re a seasoned board member or just starting out, our episodes provide the tools and inspiration you need to strengthen your board and make a greater impact in your organization,” Build Better Boards shares on LinkedIn.

The podcast will have bi-monthly episodes and feature industry-leading guests and questions from the greater co-op community.

To listen, search for “Build Better Boards” wherever you find your podcasts.

Making Purchases for 2025: All You Can Do Is Your Best!

Fri, 11 Oct 2024 01:46:56 GMT

It was a crisp, cool day in late February many years ago when I stepped into my Wichita newsroom for our morning editorial meeting. I tied my tie and sat sipping a cup of coffee listening to the overnight police reports when my cell phone rang. The caller breathlessly explained a deal had been struck to sell the city’s largest employer. As the aviation beat reporter at the time, I rushed to grab my bag and headed for the door.

The importance of the story was high, and it became the lead story in every newscast that day. The stress of a 12-hour shift and the pace required to gather interviews, write, edit and report was overwhelming. Of course, this wasn’t new. It’s relatively common in a profession where every single day starts at zero. Farmers generally know the tasks awaiting them based on the timing and rhythm of the season. The news is new every day.

Panic On Pause

As I sat there frantically waiting for my editor to pull together our story knowing we had just minutes until the top of the newscast, I finally hit the end of the rope. I was doing my very best, and if that wasn’t good enough, so be it. From that point forward, those words have steadied my nerves and quieted anxieties about work. All I can do is my best. There is no such thing as going 110%. It’s a lie we tell ourselves to try and wring one more ounce of effort from our tired minds or bodies.

Purposeful Pursuits

I recently received what could be called providential affirmation of this mantra in the form of a fortune cookie. The non-fortune fortune written clearly, “Your best is enough.”

It made me pause and think about my work and the work of our nation’s farmers. I’ve never met a single person pursuing their passions half-heartedly. As you go through this harvest season and begin to make purposeful purchasing plans for 2025, be sure to take a deep breath and remember your best is enough.

As long as it’s truly your best, it’s all you can do.

Your Next Read: How One Farmer Turned the 1980s Disaster Into Enduring Success

How One Farmer Turned the 1980s Disaster Into Enduring Success

Mon, 07 Oct 2024 11:54:48 GMT

Fall’s sun drapes across the sky in Nokomis, Ill., as Skip Klinefelter admires another season’s crop. Through four and a half decades of turbulence and tribulation, he continues to pursue his purpose at the helm of his ever-evolving operation.

“I started off at the top and worked my way to the bottom,” Klinefelter smirks. “Then I started farming.”

With plans to build race cars that later found him running a tire shop, in 1977 he returned home to farm with his father. A 50/50 split on 456 original acres, the Klinefelters went to work.

“I always hated hogs and loved cattle, but I couldn’t afford to get into cattle,” Klinefelter explains. “So, we built a 250-sow specific pathogen free seedstock operation and grew the farm to 3,200 acres along with doing custom work.”

Then the 1980s hit, hard.

“There was no light at the end of the tunnel, and nobody had any reason to believe it was going to get better,” Klinefelter recalls.

In 1983 his crops were wiped out by serious drought. By 1988, another drought arrived, but he had insurance and hogs to help with cash flow.

“We were robbing Peter to pay Paul to get through it,” Klinefelter explains. “I guess we could have gone broke and out of business, and some people said that’s what we should do because it would be less painful, but I refused to take that route.”

Klinefelter’s wife, Barbara, had off-farm jobs that provided health insurance, which was a big help. She first worked at the local ASCS office (known as the Farm Service Agency today) then went back to school for her masters while teaching English and dual credit college courses at the local high school.

It took Klinefelter 10 years to overcome the 80s. Then the late 90s came knocking. Another short crop and hog prices falling to 7¢ per cwt forced him to rethink his future.

“I thought in four to five years the hog market was going to see serious consolidation,” Klinefelter explains. “I was wrong. It took 18 months.”

Not willing to take on a mountain of new debt after spending the last two decades paying off loans, Klinefelter made the decision to exit the hog business and focus on precision farming.

“I watched a local equipment dealer service our seed meters, and I didn’t think they did a very good job,” Klinefelter laughs.

That moment kicked-started a passion for ag equipment and 20 years of investment. He now owns and runs the largest independent precision ag business in Illinois. While he knows the current ag market is in a downturn, he’ll take today over the 1980s every time.

“I’ve definitely made mistakes and decisions that were expensive,” Klinefelter says. “So far, I’ve been able to get through to the other side of them.”

State of the Economy

Following record highs in 2022, the latest projections from USDA-Economic Research Service (ERS) shows overall farm sector income is forecast to fall once again in 2024 but at a slower rate than it did a year ago. Economists now project a drop of $6.5 billion. That’s down 4.4% from 2023 but much better than the February projections that suggested a decline of 26%.

Essentially, better livestock margins are helping improve the overall picture of the ag economy with cash receipts expected to end the year close to $267 billion. That’s up more than 7% year over year.

The major grains, however, continue to struggle. USDA-ERS economist Carrie Litkowski says the value of crop production is forecast to decrease $25.6 billion versus 2023 with the largest decline from corn and soybeans.

USDA–ERS stresses the importance of looking at the numbers with the past 20 years in mind.

“The farm sector balance sheet is projected to remain strong,” Litkowski says. “Net farm income fell 22% from 2022 to 2023, and in 2024 net farm income is forecast to fall nearly 7% [when adjusted for inflation]. Even with these expected declines, both sectors in 2024 are forecast to remain above their 20-year-average.”

The Food and Agriculture Policy Research Institute (FAPRI) at the University of Missouri updated its baseline projections in mid-August. It stretched $4 corn through the end of the decade along with $9 to $10 soybeans and sub-$6 wheat.

“In the absence of new shocks to the weather, the macroeconomy or policy, projected prices generally remain near current levels over the next five years,” according to FAPRI’s report.

The biggest challenge remains the cost of production. Without some sort of adjustment to either side of the balance sheet, the finance community says breakevens could turn negative in 2025.

“If you look at input prices, they’re about 40% higher than they were in 2014,” says Tony Jesina, senior vice president of insurance and consumer lending at Farm Credit Services of America. “That’s a lot more pressure on margins, and producers really, in effect, have more dollars at risk than they’ve ever had before.”

Lending in the ’80s

The farm crisis of the ‘80s left a mark on all those who experienced and lived through the inferno of scorched balance sheets and farmstead graveyards — the angst and anguish coloring their outlook for every season henceforth.

Retired Indiana ag lender Joe Kessie was one of them. He graduated from Purdue University in 1983 with a degree in ag finance — during the height of the 1980s farm crisis.

Thrown in the fire but without a lifetime of professional baggage, Kessie says his biggest challenge was balance sheet visibility.

“The problem was balance sheet lending, and lenders did not have a system to calculate earnings from operations,” Kessie explains. “By using accrual earnings and earned net worth calculations, I was able to grow with the operations actually making money.”

That window helped him build relationships and find ways to help customers survive or even thrive.

“In the late ‘80s, early ‘90s, there were tremendous opportunities to take advantage of,” Kessie says. “Ground was $1,000 an acre or less in our area.”

Despite the pressure from falling prices and high input inflation, Kessie doesn’t expect a repeat of the 1980s for three reasons.

“Back in the ‘70s or early ‘80s, all the farm rates were variable. When rates skyrocketed, basically all the debt on the balance sheet went up,” he says. “Today, about any kind of term debt is fixed at pretty attractive rates. These higher interest rates do affect operating loans or if a farmer makes a new equipment purchase, but the other debt on the balance sheet is not affected.”

He also believes overall farm finances and management prowess is much improved.

“The farm balance sheet was pretty leveraged back then versus now,” Kessie says. “Plus, the management of farms is definitely better today than it would have been in the ‘70s and ‘80s. A lot of the inefficient operations, unfortunately, didn’t make it.”

Additionally, new investment funds are helping to support land values by providing demand.

“There are plenty of farmers still holding cash, and there’s a strong interest from investors and investor funds,” Kessie says. “None of that was there in the ‘80s to support the market.”

From weathered brow, cracked hands and faded caps, the hard-learned lessons of thin margins and financial potholes are worth heeding. Klinefelter has absorbed years of uninvited turbulence and kept moving forward. He offers these six tips for surviving tough times.

1. Communicate, Communicate

If your farm is facing financial hardship, be honest with your lender, landlords and family. Klinefelter believes that’s one of the reasons he survived the 1980s.

“We had a negative net worth in 1987, and I think the only reason they let us survive is because of our communication,” Klinefelter says. “They knew where I was, what was happening, what our plans were, and they even helped to design some of our plans.”

2. Pay Your People

Sometimes how the money gets spent requires a choice. Klinefelter says making payroll the first option is a good investment.

“I’ve heard stories of people not being able to pay their help or not paying employees to instead pay someone else,” he says. “We’ve always been open about what we’re doing.”

3. Rethink or Redefine Success

Take a hard look at career and business goals.

“I spend more time thinking about unwinding my businesses and what is going to survive after me,” Klinefelter says. “My kids are successful and not coming back to the farm. My biggest success is three good kids and eight good grandkids.”

4. Focus on the Bottom, Not the Top

Farmers tend to focus on the best yielding genetics or selling at the highest point in the market. Instead, they should put more emphasis on cutting off the bottom.

“Raise your average by cutting off the worst performers or bottom 20%,” Klinefelter suggests. “People spend so much time trying to hit a home run, they forget about the singles and doubles.”

5. Chase Real ROI

Farmers are known to slam the checkbook shut when markets head south. You don’t have to adopt every new technology, but pay attention to what works and make decisions that fit a need and have a good ROI.

“Take the Keeton seed firmer,” Klinefelter says. “At $5 corn, there’s a 1,200% return on that product in the first year, and it lasts for three to four years. Getting a finger meter checked can cost $35, but it provides the same return. Don’t be blind to a real opportunity.”

6. Know Your Plan, Adjust Your Plan

Making a plan is important for your business, but it doesn’t mean it shouldn’t be flexible.

“Every plan ought to be a living plan, no matter what it is,” Klinefelter suggests. “You can’t lock in and just go tunnel vision. Some things you need to see to the end, but there are other times you need to step back and say: Okay, is this working or not?”

Your Next Read: Courage And Confidence Lead The Way For This Iowa Farmer

How To Win In Turbulent Times

Mon, 30 Sep 2024 16:00:00 GMT

In today’s challenging economic environment for farmers, consultant and coach Mark Faust sees opportunities for business growth.

“With commodity prices being very low at break-even levels or below, how can farmers continue to move forward?” Faust asks. “Strategic thinking and exploring resource management are keys to improving profits and preparing for growth.”

Identify Your Opportunity
Faust is facilitating a one-day business strategy boot camp on Feb. 17 to kick off the 2025 Top Producer Summit.

This workshop titled, “How to Win in Turbulent Times,” requires a separate registration that can be added during your Top Producer Summit registration online.

“In addition to multiple worksheets and interactive tools, attendees will be able to take away three of their highest profit improving opportunities,” Faust says.

Faust encourages any farm operation to send its management team to this workshop to take their strategic thinking up a level. This in-person session will help attendees think around the curveballs of today’s economic challenges.

The agenda will cover:

Enhancing leadership, team performance and bottom-line results.
Identifying what to delegate, eliminate and automate.
Examples of how to cut costs not people.
Discover where to find and capture improved margins and implement with tools and strategies.
A farmer panel on how to drive performance.

For more information, or to register, visit www.tpsummit.com .

Surprising Ways You Can Make A Big Impact On The Farm

Fri, 27 Sep 2024 17:06:09 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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Avoid This Common Labor Mistake — Tips from an Iowa Farmer

Thu, 26 Sep 2024 21:21:13 GMT

Reid Weiland is a sixth-generation farmer based in north central Iowa. His family’s approach to farming, however, is a bit untraditional.

“We’re tenant farmers. We tend to invest in infrastructure that facilitates farming–things like input management or grain sites, shops, tools and mechanics,” he explains. “Other farmers are maybe more focused on farmland as an investment, but we tend to be focusing on investing in the operation.”

With this business model, Weiland commonly brings in consultants and employees to fill in the gaps. He joined Farm CPA Paul Neiffer on the Top Producer podcast to share what he’s learned in that process.

“One thing we’ve done right is learning how to hire and manage people,” Weiland says. “Hiring wrong is the No. 1 mistake, but not setting expectations is No. 2.”

As far as setting expectations, he suggests the following:

Make it clear what the employee will be doing in the role.
Make a plan for the first 30, 60 and 90 days on the job.
Explain what needs to be learned.
Introduce new employees to who they need to know and who they will be working with to get them off on the right foot.

“It’s a two-way street,” Weiland says. “You can hire great people. You can have the best intentions as a manager. But if you don’t get off on the right foot, it’s going to fall apart. And so that’s a really crucial stage.”

To hear more about Weiland’s approach to farming, click here .

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Innovation and Adaptability Are Critical Components in Farming

Thu, 26 Sep 2024 21:15:42 GMT

With nearly 30 years of experience in precision agriculture, Paul is an ag tech advocate dedicated to using technology to help farmers enhance their operations. He holds a bachelor’s degree in agronomy from South Dakota State University and previously worked as a retail agronomist before taking on various roles at Raven Industries, helping the company become a global leader in precision agriculture. He also sat on the board of directors at SST Software. Paul lives in Austin, Texas, with his wife, Heather, and two daughters.

Q: From a leadership standpoint, what have you learned in your position?

A: Innovation is key, and I’ve learned that it’s a continuous journey. At Raven, I saw firsthand how precision ag solutions reshaped farming practices, and now with New Holland, I’m seeing how integration and collaboration across platforms create even greater efficiencies. As a leader, it’s crucial to stay open to learning and evolving, especially in an industry as dynamic as agriculture. Innovation doesn’t have a finish line; it requires a constant drive to improve, whether through new technologies or refining existing processes.

Q: What strategies do you employ to help bring your team together?

A: For me, clear communication is key. People need to understand the why behind what we’re doing, not just the what. Creating a sense of shared

purpose, while giving individuals ownership of their roles, fosters collaboration. I also believe in leading by example — if I’m willing to roll up my sleeves and get involved — it sends a strong message to the team that we’re all in this together.

Q: What’s the best advice you’ve ever received?

A: The best advice I ever received was to never get too comfortable. Agriculture thrives on change, and you need to keep pushing forward. Another valuable lesson is the importance of listening, especially to your customers. By understanding their needs and challenges, you can ensure innovation truly adds value. A focus on the customer should always drive what we do because they’re at the heart of every decision we make.

Q: What advice would you give to someone just getting started in an ag career?

A: My advice would be to stay curious, ask questions and never stop learning. This industry is evolving quickly with technology, and understanding those advancements will help give you an edge. You’re not going to know all the answers, so be brave and ask questions. Equally important is listening — whether it’s your peers, mentors or customers. Building relationships based on trust and actively listening to others’ needs is what will set you apart and help you succeed.

Q: What do you think farmers should know today about the future of automation and robotics in ag?

A: Automation and robotics are going to be game-changers. Farmers should know that these technologies won’t replace them but will be essential tools to enhance efficiency and reduce labor challenges. The key is to stay informed and open to adopting these innovations, as they will allow farmers to produce more with fewer resources, ultimately making farming more sustainable and profitable for seasons and years to come.

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