Management

Dollars And Dirt: Navigating The Financial Reality Of Conservation Farming

Fri, 19 Dec 2025 20:48:35 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:

The Scoop Podcast: Put The Right People In The Right Seat On The Bus

Mon, 28 Jul 2025 01:35:22 GMT

Tell us why you started Align Talent.
“I provide recruiting services as well as industry and market analysis for companies and individuals within the ag industry. I specialize in sales leadership and operational roles exclusively for agriculture and ag tech companies throughout the United States. My mission is to use my experience and knowledge of the industry having worked in the industry for 27 years and having worked in a lot of the positions that I recruit for.”

What’s your philosophy about recruiting?
“While recruiting has never been part of my title, it’s always been a large part of what I’ve done, and I found that very fulfilling to be able to put the right people in the right seat on the bus and watch them grow.”

How can companies create greater success through the recruitment process and employment tenure?
One of the best ways is to spend the time to talk about what’s in it for the candidate. The companies that have embraced that and take the time to explain the role in terms of what the progression is throughout their career are the companies that are being most successful. Everybody wants to continue to progress within the compensation ranks. But people stay where they feel like they’re respected, they’re heard and they’re supported.

What’s a key driver changing the roles needed in the ag industry?
“One of the biggest things that is having an impact on the roles within agriculture is technology. It’s rapidly transforming how we do business and also the skill sets that are needed within the professionals and employees that work within the industry. We’re hiring for jobs today that we didn’t even know existed, just a few years ago.”

What are the biggest pain points in the labor force for ag retail?
As long as I’ve been in agriculture a challenge is finding the people. There’s such a high demand for the services and things that retailers provide, and not everybody is willing or able to commit to that level of service that’s needed. Technology is one of the ways that we’re addressing that as we try to take labor out of out of every operation within ag retail. For example, the automation systems within the chemical buildings and fertilizer buildings are what used to take 2 to 3 people to operate, and now you can get by with maybe one or one and a half people.

What trends do you see in tenures across the industry?
We’re seeing a real trend in the aging of our demographic within ag retail. A lot of our operators and leadership, or within 5 to 10 years of retirement. There seems to be a real gap when it comes to those folks that have 5 to 10 years’ worth of experience to come back in and fill those shoes. When I first got into business, you could see building careers in the industry, staying throughout their career, or spending 9 to 10 years in their in their job. And now 2 to 3 years stints are usually pretty common.

How are you seeing businesses solve for these problems?
The leaders within the industry are looking outside of just the industry For example, if you’re a person who knows how to how to sell, they may not have sold chemicals and fertilizer and technology, but they can very well be taught. Or for an applicator role, if you’re bringing somebody from the outside who knows how to operate equipment and is mechanically inclined, they can very much be taught how to how to operate our equipment. The ones that are that are getting on board with this approach the quickest are the ones that are really starting to bridge that gap the fastest.

Is there a formula for higher retention?
High retention teams usually have a strong communication, clear expectation and supportive family like culture. Within that organization your brand as an employer is more visible than ever. Candidates are researching companies online and listening to what others have to say about them. Telling your story, whether through social media, employee spotlights or community involvement, those types of things also help attract aligned candidates.

Precision Spray Drones: The Future of Invasive Species Control

Fri, 11 Jul 2025 18:14:46 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:

Your Next Read: County Shuts Down 15-Year-Old’s Bait Stand on Family Farm, Threatens Daily Fines

How To Navigate Foliar Fungicide Use in a Tight Soybean Market

Tue, 01 Jul 2025 18:45:07 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.

Your next read: Dynamic Duo: Research Shows 2-For-1 Benefit Pairing Ammonium Thiosulfate With UAN

Soybean Farmer Fine-Tunes Seeding Rates For Higher Profits

Thu, 17 Apr 2025 14:00:13 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.”

Your next read: With Soybean Planting Populations, How Low Can You Go?

Are You Leaving Growth On The Table?

Wed, 19 Mar 2025 17:13:13 GMT

Do you use SWOT (strengths, weaknesses, opportunities and threats) as a strategy process? If so, you are leaving growth on the table. Successful strategy is not just about reacting to the market but proactively managing key business pressures. The PTA (Pressures, Trends, Actions) Assessment provides a framework to focus your growth strategy where it matters most.

Competitive Pressure
1. List your top competitors and their strengths and vulnerabilities. Using that, build out action steps for sales and marketing to neutralize their strengths and exploit their vulnerabilities.
2. Evaluate your products and services against competitors. Identify and leverage your unique advantages.
3. Conduct customer depth interviews to discover what truly influences buying decisions.
Vendor and Supplier Pressure
1. Evaluate the abundance or scarcity of quality suppliers, assess their strength — can they drive up prices or limit supply?
2. Strengthen partnerships where mutual advantages exist and negotiate leverage where they don’t.
3. Evaluate alternatives to mitigate reliance on a single supplier.
Customer Pressure
1. Analyze how easily customers can switch to competitors and build strategies to increase loyalty. Evaluate the cost for customers to switch to competitors.
2. Develop retention programs and incentives that make your offering “stickier.”
3. Identify untapped market segments and define steps to capture them.
The Pressure and Potential of New Competition or Alternatives
1. Assess the likelihood and ease with which new competitors could enter your market.
2. Increase barriers to entry by strengthening brand recognition, patents or proprietary processes.
3. Monitor emerging technologies that could disrupt your industry and take preemptive action.
Employee and Talent Pressures
1. Identify workforce pressures — are you facing skill shortages, retention issues or union demands?
2. Evaluate whether your talent advantage comes from hiring top-tier candidates or from developing internal expertise.
3. Invest in unique training and development programs to build a workforce that is a strategic asset not a liability.
Substitution Pressure
1. Determine how easily customers would be able to replace your offering with another solution.
2. Find ways to increase reliance on your company by becoming the most valuable or only provider of a key service.
3. Strengthen your brand to ensure customers view you as the default choice.
Pressure From Technological and Resource Changes
1. Identify critical technologies and data sources that are evolving in your industry.
2. Protect or gain ownership over essential information or tech assets.
3. Develop proprietary systems or solutions that can create a sustainable competitive advantage.

The PTA Strategy Process: Turning Pressure into Action

Analyze Past Trends
1. Identify shifts over the past three to 10 years in competition, supply chain, customer behavior and technology.
2. Have your competitive pressures intensified? Have suppliers gained leverage?
Assess Current Trends
1. What trends are dominating today? Are competitors consolidating or expanding?
2. Are customers demanding lower prices or higher customization?
Predict Future Trends
1. What’s next? Is artificial intelligence (AI) about to disrupt your sector? Will new regulations reshape your supply chain?
2. Identify potential threats and strategize proactive responses.
Prioritize Strategic Actions
1. Develop jujitsu-like strategies to turn external pressures into internal advantages.
2. Prioritize actions that are going to enhance profitability and market leadership.

My PTA Assessment lets you lead rather than react. Strategy means learning the forces shaping your industry and using them to create advantage. Prioritize, take action and dominate your market.

Remember, an annual strategic planning retreat is an event and an oxymoron, while self-assessment like the above is a process. As the leader, it’s best for you to begin the above privately with outside guidance and then facilitate a process. Call me, I’m glad to help.

Mark Faust
(513) 621-8000
mark@em1990.com
@markfaustsr

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

Tue, 18 Feb 2025 19:20:46 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

Don't Fall Into The Trap Of Confusing A Lack Of Growth With Stability

Mon, 17 Feb 2025 12:07:00 GMT

Many multigenerational family businesses have faced the bitter reality of either selling out or closing down. What these organizations mistook for stability was, in fact, a slow death spiral of not setting new growth and innovation goals.

This mirrors a mistake amateur pilots can make of relying solely on Visual Flight Rules (VFR) when navigating through thick clouds instead of trusting their Instrument Flight Rules (IFR). By relying on visual cues instead of dashboard instruments, they might already be in an unrecoverable dive toward the ground once they regain sight.

In business, relying solely on intuition or visible metrics can lead to catastrophic outcomes.

Betrayal of Senses
As business leaders, our instincts and experiences are invaluable, but they are not infallible. Just as a pilot must trust their instruments, leaders need tools that provide deeper insights. Checkpoints of balance, governance frameworks, and trusted advisers who challenge decisions help avoid blind spots.

Business, like flight, requires a combination of both VFR and IFR. Leaders must see through observable data and feel the pulse of their organization, but they must also rely on instruments such as depth interviews, echeloned strategy dialogues, growth boards and culture levers to maintain a clear trajectory for growth and innovation.

Synergistic Growth
When strategy, culture and innovation work together, they create exponential growth opportunities. A thoughtful strategy, when clearly communicated, invigorates and motivates the organization. This aligns with a sharp focus on the company’s higher purpose, creating a culture of trust and engagement.

A great strategy doesn’t just promise more profit for owners; it delivers increased value for stakeholders and reinvestment capital for the business. This builds confidence, which, in turn, drives innovation. Effective innovation isn’t just profitable; it’s good for the team. Employees find satisfaction in creating something better, more productive and more rewarding.

The Silent Driver of Success
Great cultures are designed with intention. Companies listed as “Best Places to Work” foster engagement, openness and trust. However, a great culture alone is insufficient. When it is synergistic with strategic objectives and innovation goals, the entire organization thrives.

As science continues to prove, happier employees who are under less stress are able to think more clearly, innovate more freely and work more productively. A synergistic culture in the workplace ultimately helps fuel the company’s strategic and innovative pursuits.

Don’t let your business rely solely on visible metrics or gut instincts. Equip yourself with the tools and strategies that illuminate hidden opportunities and risks.

Your business doesn’t have to navigate blindly through the clouds. With the right tools and strategies, you can achieve lasting success and growth.

If you’re looking for innovation or strategy improvement tools, call me. I’d be delighted to send you resources that can help transform your organization.

Mark Faust
(513) 621-8000
mark@em1990.com
@markfaustsr

3 Tips To Make Sure Your Strategy Is Driving Innovation

Mon, 13 Jan 2025 20:29:30 GMT

At the beginning of the year, many managers begin financial projections and resource planning. While doing this work, I’ve seen too many leaders confuse tactics for strategy. Implementation planning around your strategy is about tactics, and strategy sets the nature and direction of your business, defines your vision and determines how to differentiate yourself in the marketplace.

You need to ensure three key areas of strategy have been addressed before implementing tactics crosses your mind:

1. Vision
Vision is your picture of the future for your business, not numerical targets. It defines what success looks like and serves as a guide for decision-making.

How well-defined is your vision?
Can your team articulate it effectively?

To create a future-focused, achievable blueprint, you can use collaborative workshops, customer feedback, scenario planning or a one-on-one visioning session with a strategic growth coach.

2. Marketplace Divergence
A robust strategy identifies how you stand apart. Conduct third-party interviews with key customers to identify your points of:

Competitive uniqueness
Advantage
Equality
Weakness

Dollarize the unique value you bring to your customer. Validate your claims with examples and testimonials from customer depth interviews.

3. Innovation
Innovation keeps you and your business ahead of the curve. Epoch Times recently reported more than 2,000 CEOs of larger companies resigned last year. Many, if not most, had failed due to stagnant innovation.

Regularly assess if your business is adapting to increased competition and changing customer needs. Create a process for vetting and implementing new ideas that align with your strategic vision.

Implementing Strategy
As your strategy becomes ever clearer, continually refine your implementation planning. Here are some steps:

Prioritize Constraints and Opportunities:
Find areas with the highest potential to grow the business.
Customer Segmentation:
Rank customers by profits and potential growth, and estimate growth potential.
Untapped Potential:
I am conducting a survey of CEOs, and the 70 replies I’ve received so far have revealed:
- Avg. company revenue: $38M
- Avg. untapped growth potential with existing customers: 65% and $36M
- Total potential growth: $2.5B across respondents

Where to Start
The first steps in strategy and self-assessment often fund the next investments in growth initiatives.

If you want to assess and confirm your business’ growth potential, then call me for a pro bono strategic thinking coaching session. Privately, we can prioritize growth levers and identify blind spots.

A third-party assessment of your strategy doesn’t just pay for itself. It also sets the stage for your long-term success.

Mark Faust
(513) 621-8000
mark@em1990.com
@markfaustsr

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 14:31:59 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

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.

Technology Risk Takers: A Look At United Prairie's Innovation

Wed, 04 Dec 2024 18:00:00 GMT

Whether it’s a product, software or machine, the team at United Prairie doesn’t shy away from new technology. The retailer is prepared to take a leap of faith if it means bringing the best innovations to its customers.

“We have been a company that has readily adapted and grabbed the bull by the horns to figure this stuff out, even though it could be potentially detrimental in the end,” says Kyle Meece, United Prairie agronomy manager.

It’s the forward-thinking mindset and willingness to embrace change that led to United Prairie’s Tolono, Illinois, headquarters being named the winner of The Scoop’s 2024 Business Innovation Award, sponsored by Ever.Ag Agribusiness.

It All Starts With The Grower
United Prairie is a full-service ag retailer. It offers dry fertilizer, seed, custom spraying and application. Since 1996, when the company was founded, the United Prairie footprint has expanded from four locations to 14 across east-central Illinois. That growth has made the shift to modernize operations paramount.

“We needed to find ways to be more efficient and give a better customer experience to the grower,” says Curt Miller, United Prairie CEO. “It all starts with the customer. You hear their wish list, see what’s achievable and what makes sense and then go from there.”

Meece echoes that sentiment and emphasizes the importance United Prairie places on including growers in these decisions.

“The worst thing I can do, or anybody in our industry can do, is assume we know what the farmer wants,” Meece says. “We have to go ask what they want to see, where they feel like they’re lacking and what we can improve for them.”

The most impactful changes the company has implemented based on grower feedback include the following:

A customer portal and app
Fleet management tools
Drone application

United Prairie UP Connect Digital App

(Cheyenne Kramer)

Going Digital
One of the most requested updates has been the ability to digitally view and pay invoices, prepay bookings and track expenditures as the retailer’s customer base has been transitioning between generations. This is now possible with the addition of the company’s app and customer portal named UP Connect, which was developed in partnership with AgVend.

“We love to hear what kind of features they’re wanting,” says Dakota Patton, United Prairie controller. “We don’t want to push something out just because everyone is doing it.”

Roughly 20% of customers have downloaded the app, but Patton says an important distinction is that almost all of the company’s top 100 customers are using it.

“It’s not just the number of accounts. It’s the key accounts,” he explains.

Patton shares the goal with adding these tools isn’t to become totally paperless but to be able to offer customers their preferred option.

“You’re going to have some people that are still wanting paper statements and contracts,” Patton says. “I just want to be able to offer to every grower we have whatever they feel comfortable with and offer the best service.”

United Prairie uses Sky Dispatch from Agvance to notify growers when application is complete.

(Cheyenne Kramer)

On-Demand Updates
Just as popular as paying invoices in the app is the ability to check the status of an application with the integration of Sky Dispatch by Agvance.

“Some of our growers were really wanting on-demand updates of when their applications are completed, so they can dispatch tillage equipment to their fields,” says Ben Rawlins, United Prairie operations manager.

This feature has been a long time coming for the company. Rawlins explains United Prairie has been in the process of testing versions of the software for more than a decade.

“We had been playing with a version of the program since the mid-2000s,” Rawlins says. “The older versions didn’t work well with our business model. But the latest one was what we needed, and we implemented it two to three years ago.”

The new ability to notify growers when their field has been completed has created a notable efficiency for United Prairie, essentially cutting out a middleman during the application process.

“It eliminated a lot of phone calls because the manager has access to be able to see where they are in their application, and the salesperson doesn’t have to be in the middle of that. Whenever customer communication does need to be made, it automatically does that,” Rawlins says.

Carly LaFoe launches United Prairie’s spray drone

(Cheyenne Kramer)

Adding, Not Replacing
One of the most difficult additions United Prairie made is drone application.

“The drone application was more challenging than we anticipated and not as efficient as we anticipated, but a lot of the growers and people in the community are interested in it,” Miller says.

Carly LaFoe, assistant marketing manager and drone operator at United Prairie, explains in working through those challenges, the company found the best place for the technology would be on new acres.

“We don’t want to take acres away from an airplane or take acres away from a sprayer. We’re more here to help them,” she says. “If they can’t get the job done, we’ll come in and try.”

The team plans to sit down this winter and calculate just how many acres they were able to add this year by having their drones, but LaFoe estimates the Tolono drone was able to spray around 2,500 over the summer.

And while the original plan for this technology wasn’t for recruitment, it’s become a unique tool to set United Prairie apart.

“When students at career fairs find out we have a spray drone and the new See & Spray technology, they want to learn all about it,” LaFoe says. “Technology is a big part of the next generation’s lives, and they really love what we’re incorporating.”

Miller adds, “Younger generations want to see new tech and see organizations that are advancing.”

Kyle Meece examines soybeans on the United Prairie Innovation Farm

(Cheyenne Kramer)

Not Just Any Innovation Will Do
When it comes to putting new innovations in front of customers, United Prairie sets a high bar to meet.

A rigorous vetting process takes place for all technologies and products to ensure they provide a return on investment. Depending on what the innovation is, it may be tested with employees who have been known to adapt quickly, operations managers, sales managers or on the company’s innovation farm.

“We research everything we sell to a farmer. That’s not negotiable. That return on investment has to be there, or we won’t sell it. It’s just that simple,” Miller says.

Meece explains there’s a three-year process for products that make it to the United Prairie Innovation Farm, which was started 10 years ago to perform randomized, replicated trials on a small scale.

Year one: The product goes on the research farm to look for return on investment.
Year two: If return on investment exists, then the product goes to the sales team and is given to key growers to test.
Year three: If return on investment continues, then the product can be brought to market with confidence.

United Prairie’s fertilizer warehouse

(Cheyenne Kramer)

Forward-Thinking Mindset
That advancement within the company is what the team believes makes United Prairie unique within the industry.

“Our management and our operators are willing to adapt to something as quick as we can throw it at them, LaFoe says. “We approached them and said, ‘Hey, we’re going to get a spray drone.’ And we had three operators step up and say, ‘I want to learn how to operate it.’”

And it’s not just about adapting to implement a new technology or tool. It’s also the need to roll with the punches afterward.

“Anytime you try to make changes, there’s pushback, and that’s OK. There should be pushback in anything someone is passionate about,” Miller says. “There’s also going to be innovations or technologies that you try that do not work. But being able to work through those challenges makes us more efficient and helps us give a better customer experience.”

It all comes back to being a partner—solving problems for growers and helping keep them sustainable for years to come.

“We want it to be a joy to do business with United Prairie,” Miller says. “When I walk into a grower’s office and their admin staff grabs me and says, ‘Hey, we really like this. It has made our lives a lot easier.’ To me, that’s a really big win.”

Discover 7 Leadership Secrets From Nature’s Playbook

Mon, 25 Nov 2024 12:00:00 GMT

If you enjoy hunting, like me, or have admired geese in formation, you may have wondered why they do that. The reasons are surprisingly relevant to the principles of great management. Let’s explore seven strategies that come from the wisdom of nature.

1. Energy Efficiency
Birds/Jets: Flying in a V-formation reduces drag and conserves energy. Similarly, planes flying in such a formation cut down on fuel use.

Management: Shared Effort and Resource Optimization. In strong teams, members share responsibilities and leverage strengths to minimize exhaustion and increase overall productivity.

2. Leadership Rotation
Birds: The lead bird bears the most wind resistance and gets tired quickly, so the flock rotates leadership to maintain endurance.

Management: Rotational Leadership to Prevent Burnout. Effective teams share leadership roles to distribute the workload and cultivate leadership skills among team members.

3. Visibility and Communication
Birds/Jets: Each bird or pilot has a clear view of the others and can communicate easily, which is essential for safety and navigation.

Management: Open Communication and Situational Awareness. High-functioning teams prioritize efficient communication to anticipate challenges, adapt strategically and work in harmony.

4. Mutual Support and Safety
Birds: Flying together provides a safety advantage and helps the flock endure harsh conditions.

Management: Team Cohesion and Risk Mitigation. Effective teams create a supportive environment where everyone feels safe to take risks.

5. Shared Vision and Purpose
Birds: Birds in formation are united by a common destination, which keeps them coordinated and motivated.

Management: Unified Goals and Purpose. When everyone understands how their role fits into the bigger picture, it drives motivation and fosters a sense of unity.

6. Adaptability and Speed
Birds: Formation flying allows for quick adjustments to weather or threats, and the aerodynamic benefits help the flock travel faster.

Management: Agility and Accelerated Execution. Agile, well-coordinated teams capitalize on each other’s momentum, allowing for efficient execution while staying responsive to challenges or opportunities.

7. Morale and Encouragement
Birds: Geese honk to keep each other motivated during their long migrations.

Management: Recognition and Motivation. Leaders who foster a culture of recognition see greater commitment and engagement, helping the team through demanding projects.

These natural and engineered strategies underscore the importance of collective effort, shared leadership and a strong sense of purpose.

How could your group harness the wisdom of flight to soar higher, stay energized and achieve extraordinary outcomes? Inspired by these principles, I named my business “Echelon Management” in 1990.

During strategy sessions, I’ve seen many teams use this metaphor to inspire their values and cultural direction with great benefit. Now, consider how your team could become better echeloned to unlock its full potential.

_____________________________________________________________________________

Mark Faust

513-621-8000

mark@em1990.com

@markfaustsr

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.

How To Get The Most Out Of A Business Sale

Fri, 01 Nov 2024 13:00:00 GMT

Exit planning is more than just preparing to walk away from the business. It’s about crafting a compelling narrative that shows where the company has been and where it’s headed. In preparing to sell, business owners need to assess levers that unlock incremental value. This includes demonstrating a clear growth trajectory, including expansion opportunities, to potential buyers.

A crucial aspect of this preparation is cleaning up financials. Business owners must ensure they have solid financial statements that justify a business’ valuation. This often involves seeking a third-party audit to verify financial measures such as EBITDA (earnings before interest, taxes, depreciation and amortization) and confirm the quality of earnings. Streamlining operations to optimize earnings is also key as buyers look for operational efficiency and profitability.

Consider Personal and Business Planning
As essential as it is to prepare the business for sale, it’s equally important for owners to engage in thorough financial planning. Consider your personal life objectives and financial needs post-sale. What do you want to do with the proceeds? What are your long-term financial goals, and how much do you truly need? Understanding these objectives early on ensures you’re fully prepared for life after the sale.

On the business side, preparing for a sale includes deciding whether to use a business broker or investment banker. The choice will depend on the company’s size. For businesses valued at less than $5 million, a business broker may be the best option. Brokers typically market to a broad audience and negotiate with a single buyer. For larger companies—especially those with valuations exceeding $15 million—a controlled auction process involving an investment banker is often more suitable. The banker contacts potential buyers and creates a competitive bidding environment with multiple phases and rounds of negotiations.

Controlled Auction Process and Due Diligence
In a controlled auction, an investment banker helps the business owner develop a compelling narrative and reach out to potential buyers. The auction process usually starts with a teaser—a brief document describing the business while keeping its identity confidential. Interested buyers must sign nondisclosure agreements before receiving a detailed confidential information memorandum, which outlines the business’ financials, operations and growth opportunities.

From there, buyers submit an indication of interest to articulate their interest and ability to meet the seller’s expectations. The top potential buyers then submit a letter of intent. Due diligence follows for 60 days to 90 days as the company’s financials, operations and legal documents undergo inspection.

The Role of Culture & Terms
Beyond the financial aspects, potential buyers consider the company’s culture and how well it aligns with their own. The sale terms, including the structure of the deal, can greatly impact both sides. Sellers should work with their legal and financial advisers to draft the final purchase agreement—whether that is an asset purchase agreement or a stock purchase agreement.

Contact me if you would like to conduct a free in-depth valuation to discover the asset, liquidation, equity and enterprise values of your business and see how your 12 financial ratios stack up against your competition’s. I would be glad to take your ownership through the process, provide the resulting 26-page report and show how to optimize your value.

A Few Other Key Points:

Never negotiate alone.
Avoid selling to one buyer. “If you have one buyer, you have no buyers.”
Build and execute on your growth strategy before you sell. Demonstrate it can be accomplished. Often your potential can be your most valuable asset, and proving it can be golden.

___________________________________________________________________________________________
Mark Faust
513-621-8000
mark@em1990.com
@markfaustsr

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.

ARA Management Academy: Maintain A Competitive Edge During Turbulent Times

Mon, 21 Oct 2024 20:29:13 GMT

By Erin Robinson, Purdue University Center for Food and Agricultural Business

Building resilient agricultural retail supply chains is complex. Industry consolidation is changing the scale at which ag retailers do business, and growers are also grappling with labor shortages and rising input costs. Retailers must adapt quickly but also plan strategically for the future.

Maintaining a competitive edge and creating lasting value for growers is increasingly critical. Leaders must refine their business strategies and sharpen their leadership capabilities to guide their organizations into the future.

From Jan. 28-30, 2025, ag retail managers, agronomists and sales professionals will gather at Arizona State University’s (ASU) Tempe campus for the ARA Management Academy. This three-day workshop, led by Purdue University’s Center for Food and Agricultural Business in collaboration with the Agricultural Retailers Association (ARA) and ASU’s W.P. Carey School of Business, will help participants tackle current industry challenges head on and explore innovative strategies to fuel future success.

Adapting to Change
The agricultural marketplace continues to face disruptions affecting technology, talent and business operations on a global scale. Supply chains once prioritized delivering commodities at the lowest cost, but today’s focus is on delivering value that meets distinct customer needs.

Technology’s impact on the way farmers and suppliers interact is undeniable, and it’s only just beginning. As the industry faces ongoing disruptions, adopting long-term, strategic thinking will be key to staying competitive. These challenges offer unique opportunities for ag retailers to reposition, gain a competitive edge and lead their organizations toward innovation.

To address these trends, Allan Gray, professor and executive director of Purdue’s Center for Food and Agricultural Business, will lead a session focused on the drivers of market change and their implications for business strategy. He will also offer practical steps to ensure participants are able to implement what they learn when they return to their daily operations.

“This was the most informative, applicable information and classwork that I have ever been a part of,” says Greg Griffin, director of fertilizer, Wilbur-Ellis Agribusiness.

Participants will analyze shifting market dynamics, study consumer behavior and develop actionable strategies to position their agribusinesses to embrace and respond to these trends.

Your Services from the Customer’s Perspective
Understanding your services through the eyes of your customers is essential to meeting buyer needs. Although recognizing customer expectations is not a new concept, technological advancements and shifting consumer behaviors make it an unavoidable challenge. Service blueprinting, a valuable tool for visualizing service processes from a customer’s viewpoint, helps organizations streamline their services to meet or surpass expectations.

Doug Olsen, associate professor at ASU’s W.P. Carey School of Business, will lead a session on the topic, providing participants with insights into customer perspectives and tools to design services that drive customer satisfaction and loyalty.

Unlocking the Academy’s Benefits
One of the academy’s standout advantages is its ability to bring together ag retailers from across the industry—from commodities to specialty crops—creating an environment of shared experiences. Participants will benefit from networking opportunities with peers facing similar challenges while gaining a new perspective on the current marketplace.

In addition to Allan Gray and Doug Olsen, participants will have the opportunity to engage with renowned experts such as Joan Brett, associate professor of management and entrepreneurship at ASU; Scott Downey, professor of agricultural economics and director of the Purdue Center for Food and Agricultural Business; and Mark Manfredo, professor and director of the Morrison School of Agribusiness at ASU.

The 2025 ARA Management Academy will cover essential topics such as creating profitability, developing customer value and driving leadership strategies for long-term success. Participants will leave the workshop equipped to lead their organizations confidently during extraordinary times.

A Partner In Shared Success: Retailer Of The Year MKC

Fri, 27 Sep 2024 17:59:15 GMT

With a mission “to create customer, employee and partner success to provide a safe and sustainable food supply” and a shared vision “to partner with customers to successfully navigate the complexities of modern agriculture and industry,” MKC has been named the 2023 Retailer of the Year, an award sponsored by Bayer Crop Science and supported by The Scoop.

Formed in 1965, the cooperative and its 600-plus employees today serve 11,000 member-owners in Kansas and surrounding states.

Simultaneously, MKC has grown traditional businesses and added new opportunities and services.

“We’ve got businesses in the traditional sense of grain, agronomy, energy and feed and animal nutrition, but we also do risk management,” explains Brad Stedman, president and CEO of MKC. “We try to tie the whole thing together through how we help the farmer be successful. Our view from our customers’ and farmer-owners’ standpoint is if they’re successful, ultimately we’re successful.”

Company leaders echo, physical signage declares and MKC employees embody the tagline, “Shared growth. Shared success.”

This statement of continuous improvement is tied to the purpose of MKC and is the intrinsic driving force bringing employees to work.

“Shared growth, shared success is not only important to our customers and our strategic partners but also to employees and the rural communities we live and work in,” says Dave Spears, executive vice president and chief marketing officer.

MKC sets its culture based on the four keys of safety, courtesy, image and innovation.

“These four keys really drive how we show up in the market, how we treat each other, how we treat customers, strategic partners and ultimately how we drive our brand and innovate across our organization,” Stedman says.

Four Core Values

Safety
MKC has established a safety-first culture for its business operations. Eight MKC locations have received certification through the Occupational Safety and Health Administration and its Safety and Health Achievement Recognition Program.

Courtesy
Company leaders say this is the backbone of customer service, and they strive to provide best-in-class customer service.

Image
MKC has strived to create a high standard in not only the experience member-owners and customers receive but also the image that communities served have of MKC.

Innovation
Team members are encouraged to embrace new ideas, be open to change and always learn. MKC offers support to them through a strong learning and development program that provides opportunities for growth, skill-building and leadership preparation.

Providing further fuel to the growth of MKC are the four pillars of its strategic plan: talent, brand, customer and profit.

Talent
Recruitment and retention are key tenants to MKC’s talent strategy. Hilary Worcester, manager of learning development, explains that the team aims to build pathways and development opportunities.

“Building the pipeline of talent for MKC starts in educational environments through on-site tours and classroom visits for local schools. These experiences progress into job shadow programs and internships for students to experience real career options. The company recently launched an apprenticeship program to foster talent without a direct background in agriculture to find opportunities at MKC.”

To establish consistency, all employees attend in-person orientation on their first day at the Moundridge, Kansas, headquarters. Additionally, once a year, all operations staff attend training to maintenance protocols and standard operating procedures.

MKC aims for high employee retention to better serve farmers with consistency and excellence.

“Each employee has a set of goals and a development plan designed with their manager to ensure clarity of expectations and tie their work to MKC’s success,” Worcester says. “The next step is providing continuous employee development to grow our current team members into industry experts and accrue bench strength for when leadership opportunities arise.”

A newly established manager’s training program focuses on outfitting successful team members for the next phase of their careers.

“We want to give them a hands-on experience, not only with our processes and tools but also with the way MKC thinks about management—not management of tasks but management of people and individuals through their career,” Worcester says.

To prepare managers for next-level leadership opportunities in the business, MKC has developed a proprietary program called the Strategic Thinking and Execution Program.

“We’ve found it’s most helpful to structure these programs ourselves because it’s about teaching the MKC way of thinking about things,” Worcester says. “They’re all rooted in our four keys. They’re all rooted in our objectives. They’re all rooted in our vision.”

Brand
Stedman wants farmers to view the MKC team as a solutions provider.

“We employ an enterprise sales approach across the business. So when we show up at the farm gate, we’re looking at their entire business rather than just a segment of it,“ he says. “We connect our team of specialists together, so they can meet the enterprise needs of the farmer. By using risk management tools, like crop insurance and grain origination contracts, we are able to tie their grain outputs and crop inputs together. Ultimately, we want to help them maximize their revenue potential while creating a floor for future success. We think it’s really important that our customers think about profitability and tying it all together through our enterprise approach.”

From how the team shows up physically on the farm to what comes to mind when a farmer thinks of MKC, this perception-building is paramount to the business’ growth.

Spears adds, “What sets MKC apart from other competitors in Kansas includes our employees and their ability to service our customers and provide them a full range of products and services.”

As such, MKC has embedded more technology into its business to deliver value and instill relevance. They are on a digital transformation journey to automate processes, create efficiency and re-imagine the business for the digital age. The four areas of projects within this initiative are business applications, robotic process automation, paperless workflows and artificial intelligence and machine learning.

For example, MKC has invested in new customer-facing portals: MKC Connect and MWF Connect. These have created an improved online and mobile experience for member-owners and customers.

“We’re invested in a drone company. We’re invested in a robotics company,” Stedman says. “We’re not afraid to try new things and fail, and we’re not afraid to try new things on their behalf to figure out what is going to help them from an agronomy input perspective in the future to make their crops more profitable and more productive.”

Customer
MKC has surveyed its core customer base for the past six years. The results have improved year over year. In 2023, the overall customer satisfaction score averaged 87%, which exceeded the 85% goal. Since administering the survey, customer retention averaged more than 97%.

“Customers choose us because we focus on bringing innovative solutions to their farm gate—whether it’s being a vanguard on the leading edge or supporting them where they are,” says Devin Schierling, vice president of sales. “They trust us to be a consistent factor throughout the entire process to help make a positive impact on their farm.”

MKC uses metrics to measure success for ease of doing business, customer satisfaction, customer and employee retention, regrettable turnover and profitability.

From the farmer survey, areas of positive feedback were as follows:

Friendly, trustworthy and knowledgeable people.
Investments made toward the continued improvement of services and programs.
Value and reliability provided by agronomic strategic account managers to the producers’ operations.
Reliability of the employees, products, programs and services.

When asked to describe MKC, this customer group most often used the word “partner.”

What Farmers Have To Say About MKC

Dale Schmidt, DE Schmidt Farms, McPherson, Kansas
“They’re able to meet the needs that I have for service. Really, my business depends on their timeliness and having good employees showing up whenever I need them. MKC invests my dollars into the infrastructure for elevators, machinery, equipment, but also, they’re investing in good people, which is greatly needed.”

Derek Sawyer, Sawyer Family Angus, McPherson, Kansas
“MKC does a great job of getting their service people to the farm gate—from having crop insurance advisers that come out and help walk us through it to the crop protection specialists that actually get out in the field and quite oftentimes will tell me what’s going on before I realize it in the field and then the marketing guys or ladies that are a phone call away to help with marketing of the crops.”

Justin Mosiman, Mosiman Farms, Newton, Kansas
“We have been with MKC for multiple generations. The service and the commitment they’ve had to us has helped us. Their willingness to innovate and try new things has helped us on our farm as well. We’re able to do business as friends, and we feel like we make decisions together.”

Sara Hasty, Graber Grain Farms, Hesston, Kansas
“We consider our strategic account manager part of our team in our operation, and they’re a partner with our planning before the year even begins. Right before any busy season, we go through planning, and then it helps things go a lot smoother.”

Profit
Stedman credits the cooperative’s consistency to its strategic plan.

“We’ve been very consistent over 12 years with our growth strategy,” Stedman says. “It has directed how we grow, making sure it’s core to who we are and who our customers are. As long as we focus on growth that is positive for our customers and our farmer-owners, that drives our success.”

He says the team at MKC is committed to earning farmers’ business every day. Focusing on winning business on the acre and serving customers for the long term have yielded success for MKC.

“Our approach isn’t about selling a widget. It’s about a mindset—a way of doing business,” Schierling says. “When you remove the noise of price and distraction in advertising, you get down to the question: How does what I do today impact the bottom line of my farm? From there, you expand that to look at managing operations on a multiyear basis.”

Advocacy

About 20 employees at MKC are actively involved in national and state associations.

“I think policy and politics are not spectator sports, and we need to have everybody involved in it,” says Brad Stedman, president and CEO, MKC.

The cooperative is a member and has employees engaged as leaders of the Agricultural Retailers Association, National Grain and Feed, National Council of Farmer Cooperatives, Kansas Agribusiness Retailers, Kansas Grain and Feed, Kansas Cooperative Council, Certified Crop Adviser Program and other industry groups.

Dave Spears, executive vice president and chief marketing officer, echoes how MKC has taken on a role of advocacy, “We advocate on behalf of our customers, our strategic partners and the entire industry as well.”

Annually, MKC hosts a Legislative Staff Day for congressional staff and state legislators at facilities to form personal connections.
MKC annually hosts members of the congressional delegation and regulatory agencies for tours and roundtable discussions at its facility locations.
At the Kansas state capitol, MKC attends Legislative Action Day each year and has for well longer than a decade.
MKC leaders and members of its board of directors make frequent visits to Washington, D.C., so they can meet with members of Congress.

“MKC having a voice not only at the local and the state level but also the national level allows them to amplify the message of Kansas farmers like us, and also sing in harmony with the other ag organizations across the country to really put an emphasis behind those important priorities as we write the farm bill,” says Katie Sawyer, state director for U.S. Senator Roger Marshall (pictured above with Spears). “The freedom to operate is invaluable to the growth and prosperity of Kansas agriculture and agriculture across this country.”

Innovation and Adaptability Are Critical Components in Farming

Fri, 27 Sep 2024 13:12:51 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.

Your Next Read — Next Gen Spotlight: Indiana Farmer Helps Grow Family Businesses

The Best Leadership Strategies To Lay The Groundwork For Success

Mon, 23 Sep 2024 20:16:18 GMT

I keep hearing phrases like “It’s not a good year” and “I’m either a few rains from bankruptcy or a bit more of a drought away from having a great year.” In agriculture, we often think we have it the worst.

Agriculture does face unique challenges like few other industries. But we are warriors focused on the war, not quick to be decimated by the poor outcome of a single battle.

Having worked with more than 350 companies—and more than 60 in agriculture—I know firsthand every industry experiences downturns. But as leaders in agriculture, we have the resilience to weather these storms.

Here are a few of the top strategies from great leaders who possess the turnaround mindset:

1. Cast a Vision
As a leader, you need a clear vision. Start by solidifying this vision within yourself, and validate it with a trusted colleague. Then, share it with your team. Communicate your belief in the future and your commitment to the team. Emphasize that though times are tough and profit margins may be slim or nonexistent, this doesn’t mean the company or farm is at risk of going out of business. It simply means that we need to tighten our belts and delay upgrades or luxuries for now. Your team is your most valuable asset, and engagement from team members is crucial in navigating the turbulent times.

2. Engage Your Top Talent
Now is the time to lean on your team’s strengths. Challenge the team to contribute more than ever. John Pepper, former CEO of Procter & Gamble, emphasized the importance of transparency and commitment during his turnaround of the company in the early 2000s. Pepper didn’t shy away from the company’s challenges; instead, he rallied his team by sharing the reality of the situation and demonstrating his unwavering commitment to the organization’s long-term success.

3. Focus on the Fundamentals
In tough times, getting back to basics is vital. This was a strategy used effectively by Albert Dunlap, a.k.a. Chainsaw Al, who, despite his controversial methods, understood the importance of streamlining operations and focusing on core competencies. For your business, this might mean identifying the most profitable parts and doubling down on those areas. It could also mean cutting unnecessary expenses and finding ways to optimize existing resources. You can ask me for a checklist to help with this step.

4. Foster a Culture of Resilience and Adaptability
A great turnaround mindset is grounded in resilience and adaptability. Tim Caldwell, another gifted turnaround CEO, often emphasized the importance of creating a culture where change is not only accepted but embraced. Encourage your team to be adaptable, think creatively and not fear failure. This mindset shift can lead to innovative strategies that may not have been considered under normal circumstances.

5. Open Communication
Regularly communicate with your team about where the company stands, what challenges are ahead and what steps are being taken to address them. By being open, you empower team members to take ownership of their roles in the turnaround. Remember, a motivated and informed team is far more effective than one left in the dark.

Final Thoughts
The path may be steep, but it’s not insurmountable. Current challenges aren’t a sign of inevitable decline but rather an opportunity to strengthen and refocus. Tough times don’t last forever, but strategies we start now can lay the groundwork for long-term success.

_______________________________________________________________________________________________

Mark Faust
513-621-8000
mark@em1990.com
@markfaustsr

USDA’s Latest Farm Income Data Looks Brighter Than Early 2024 Numbers

Thu, 05 Sep 2024 21:17:51 GMT

USDA–Economic Research Service (ERS) has released updated projections for 2024 farm income, and though it’s still anticipated to decline, the outlook doesn’t look quite as dim as it did earlier this year.

The new numbers show net cash farm income for the 2024 calendar year will fall $12 billion, which is about 7% down from 2023, and net farm income will fall $6.5 billion or 4.4%. This is compared to projections released in February of this year that suggested net farm income would fall 26%.

“There are a lot of factors going on here, but to me, the primary ones are that the revisions reflect expectations that animal and animal product cash receipts will increase while production expenses will fall,” says USDA–ERS economist Carrie Litkowski. “This is largely due to the incorporation of new data.

Litkowski shares the primary cause for the fall in 2024 farm income comes from commodity prices. Cash receipts or sales are expected to decrease by $27.7 billion. When combined with the inventory adjustment for crops, the value of crop production is forecast to decrease $25.6 billion from 2023. The largest decline comes from corn and soybeans, though wheat producers are expected to have a nearly 50% decline in average net cash farm income in 2024.

USDA ERS Row Crop Cash Receipt Projections 9-5-24

(USDA ERS)

But it’s not all bad news for crop farmers. Fertilizer expenses are expected to fall almost 10%.

Better News in Livestock
The outlook for livestock producers is more positive. Total animal and animal product recipes are expected to increase by $17.8 billion, or 7.1%, with the main driver coming from egg prices.

“Receipts for eggs are perhaps the biggest story here, in that they are forecast to see the largest increase in 2024 at 35%, or about $6 billion. Eggs alone account for a little more than half of the total increase in animal and animal product receipts,” Litkowski says. “Back in February, we did not anticipate that egg prices were going to increase as much as they have. That’s due to supply restraints we’re seeing due to the avian flu.”

Dairy farm businesses can expect to see the largest increase in average net farm income at 47.2%. Litkowski attributes this to higher milk receipts and lower expenses in 2024.

Farm businesses specializing in hogs are forecast to have an 11% increase but remain low relative to prior years. Beef farm businesses are projected at a 9.7% increase and poultry will see an 11.7% increase.

USDA ERS Livestock Cash Receipt Projections 9-5-24

(USDA ERS)

These operations should see big savings in feed as well, with an anticipated decline of 12%.

Geographic Breakdown
Looking at the data by region, six of USDA’s nine regions will see lower average net cash farm income. Farmers in the heartland states will be hit the hardest with a 23% decline.

Income increases are forecast for producers in the northern crescent and fruitful rim regions — between 1% and 4%. Litkowski says this is where many dairy farms are located and can be attributed to the expectations for higher dairy receipts and lower expenses.

“Regional performance of farm businesses can vary considerably due to the strong geographic concentration of certain production specialties or average farm size,” she explains. “Across all farm businesses, average net cash farm income is forecast to decrease 9% from 2023 to 2024 in nominal dollars.”

USDA ERS Farm Income By Region 9-5-24

(USDA ERS)

Household Income Remains Unchanged
Total farm household income is projected to increase 1.7% in 2024 to $99,683. However, when inflation is taken into consideration, Litkowski says she categorizes it as “relatively unchanged”.

“1.7% is less than the expected rate of inflation in 2024, so it’s really more like a decline of 0.7% in real dollars,” she explains.

The Big Picture
While this year’s income projections may have producers concerned about their bottom line, 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%. Even with these expected declines, both sectors in 2024 are forecast to remain above their 20-year-average.”

USDA ERS Farm Income 20-year Average 9-5-24

(USDA ERS)

Click here for the full report.

Your Next Read: How Do You Know When Agriculture Is In A Recession?

How Do You Know When Agriculture Is In A Recession?

Wed, 04 Sep 2024 19:38:23 GMT

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

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

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

Your Next Read: More Than 50% of Ag Economists Now Think the U.S. Ag Economy is Already In a Recession

New Study Looks At The Relationship Between Farmers And Their Advisors

Wed, 04 Sep 2024 15:57:40 GMT

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

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

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

(Purdue University Center for Food and Agricultural Business)

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

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

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

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

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

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

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

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

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

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

Your Next Read: 4 Areas to Revamp Your Ag Retail Business

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

Thu, 08 Aug 2024 18:50:10 GMT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How Landus Is Blazing A New Path in Ag Retail

Thu, 01 Aug 2024 19:55:45 GMT

There’s a cooperative in Iowa blazing a new path and pursuing a transformative vision of tomorrow’s ag retailer.

Many of the moving pieces and final details remain to be sorted out still, but the bottom line is this: Landus is viewing everything it does through the perspective of its farmer-owners.

Founded in 2016 when Farmers Cooperative Co. of Ames, Iowa, and West Central Cooperative of Ralston, Iowa, merged, Landus has 55 retail outlets today that touch 34 states and 16 countries, and it employs more than 600 full-time workers. The co-op generates $2.4 billion in annual revenue.

Four years into its mission to turn traditional ag retailing on its head, the cooperative’s energy is pulsing throughout its sleek digs in downtown Des Moines—just a few blocks down the river from Norman Borlaug’s World Food Prize Hall of Laureates. It’s fitting that such farmer-focused innovation is taking place in the same city where Borlaug’s legacy endures.

“We really have a tremendous amount of passion and emotion for these farmers as a collective team. And even the communities that our team and farmers live in, for rural America,” president and CEO of Landus and Conduit Matt Carstens says. “We’ve got to do a job here that’s different than what the people before us and the people well before them did. It’s a different day and a different time, and we’re excited about it.”

Landus is indeed doing it differently and transforming itself into the farmer-first cooperative of the future.

A Different Spin on E-Commerce
Online ordering and on-farm delivery of crop inputs has become old hat at this point.

Landus’ Conduit program sets out to fuse the integrity of the cooperative system with the nimbleness of a tech company. To accomplish this, it leverages existing distribution infrastructure throughout the country rather than build out a distribution network. By partnering with local retail sheds and distribution warehouses, Landus can stage products where its data says farmers are going to need them.

The cooperative made waves this past spring when it launched 0% interest financing on all input purchases. And then beyond inputs, farmers using Conduit are able to apply for other financing opportunities in certain states for land and equipment purchase loans, according to Landus.

Illinois farmer Kevin Kennedy says buying products off the internet is a game he knows well, and it has worked for him in the past. He’s a charter member of FBN.

“So far, Conduit has worked even better,” he says.

Landus has brought on former FBN executive Amol Deshpande as an adviser within its Conduit segment. The co-op has leaned on Deshpande to bring the necessary technical expertise as Conduit turns this planned digital transformation into a reality.

Des Moines Landus Connector

(Landus)

Holistic Health & Wellness
Landus has also been reimagining its health and wellness program. The new program will include health insurance coverage options and a new leader with big-league experience in keeping high-performers fueled and ready to go.

Looking back, Carstens likens the undertaking of finding the right program as essentially “Mount Everest to climb,” but the CEO is convinced the business has finally been able to summit the peak. He says the still-developing program will offer strong overall coverage plans nationwide at “10% to 15% less than the average cost” of traditional insurance options.

“Some of our farmers are almost in tears over what this is going to do for them,” Carstens says. “For years, they had to go off the farm and take a second job just to get health insurance.”

Finding a strong leader to champion health and wellness was another priority for the Landus executive team. Dr. Dehra Harris, a former director of athlete performance with the Toronto Blue Jays, intends to do just that.

Dr. Harris and her team will address a constellation of issues, including daily diet and hydration to fuel the body, injury prevention, strength and conditioning and farmer mental health.

You get the sense this job represents a lot more than just another resume bullet point for Dr. Harris.

“An athlete, a doctor and a farmer—they all must perform. There is no opt-out. You don’t call in sick,” she says. “It’s about making sure our people know what stress feels like and how to reset your nervous system, educating them on being more nutrition-focused and connecting them to specialists.”

She says mobile outreach clinics will begin popping up around Iowa soon with resources available for the entire family.

“I don’t hear a lot of farmers give a list of a thousand problems. They’re not complainers,” Harris adds. “If we’re going to show up for them, we’re going to really have to show up for their families, too.”

This green ammonia fertilizer facility in Boone, Iowa creates 82-0-0 anhydrous ammonia from air, sun and water.

(Landus)

Locally Produced Green Fertilizer
Landus recently installed a solar array ahead of the production of green ammonia at its facility near Boone, Iowa. TalusAg has partnered with Landus to manufacture and distribute locally produced sustainable green fertilizer.

The Talus modular system dispenses anhydrous ammonia produced from renewable energy that is in all ways equivalent to traditional anhydrous ammonia manufactured from natural gas. The system creates the ammonia from air, water and solar power. Shipping containers are repurposed to house and quickly deploy the units.

Using electricity for the major energy input can reduce prices for green ammonia, which typically has tremendous pricing volatility due to natural gas market swings and international shipping restraints. A second TalusAg facility is under development in Eagle Grove, Iowa, that will come on line this fall. Landus will be the sole distributor of the product.

“We can produce 20 tons per day and 7,000 tons per year with one of our talusTen systems,” says Hiro Iwanaga, Talus co-founder. He adds Landus was an ideal launch partner due to its operational scale and storage capacities.

The switch to green ammonia can lower users’ carbon intensity score in corn production anywhere from 25% to 30%, according to Iwanaga. The idea is to unlock carbon credits and other paid sustainability programs for farmer-members.

“Now farmers can go downstream to tell that story—whether that’s for customers interested in sustainability, biofuel companies or others. Farmers are improving their operations’ carbon intensity,” Carstens says.

Tesseract Ventures and Landus representatives walk farmers through Synthesis during an Innovation Connector event.

(Landus)

Synthesis Introduction
Landus has also joined forces with Tesseract Ventures, an American invention company, to bring military-grade predictive data analysis straight from the high-tech battlefield of today into a new digital decision-support platform for farmers and Landus agronomists.

The partnership arose out of Landus’ Innovation Connector program. The cooperative describes the program as “a hub for emerging technologies to showcase how the field of agriculture is propelling into the future.”

The physical space enables Landus to host events that bring together farmers, community members, educators, legislators and more to promote the importance of agriculture and reveal the fascinating advancements Landus and its technology partners have on the horizon.

The cooperative is calling its new software offering “Synthesis.” Synthesis automates the collection and combination of data across an incredibly wide swath of sources—everything from satellites and drones to on-farm sensors, weather stations and even disparate farm machinery brands.

The Synthesis system leverages algorithms originally designed for advanced military intelligence applications to literally synthesize all the relevant available data for a select field or operation into three different modules (Plan, Perform and Prove) that farmers and their agronomists can use to make digital twins, or virtual simulations, of their fields.

By using these digital twins of their real-life fields, the farm management process goes from an inexact, multiple-variable guessing game to a laser-sharp predictive level.

Farmers and their Landus agronomists can run endless scenarios through the digital twins of their various fields to benchmark management practices and what effect they will have on the crop.

“It’s a radical way to reimagine information exchange and how to action it,” says John Boucard, Tesseract CEO. “We now can visualize the past and the present with real-time and edge data and then envision future events and their impact before they happen.”

Carstens adds, “Agriculture has great data, but we have never been able to get it into one spot and then let the farmer analyze the data in real time to create a digital twin that can visualize virtually any scenario. Now they can go out on the farm and be confident.”

The digital platform today remains in development, but the partners are getting very close to releasing the first iteration, and several Landus farmers have been involved in field tests. Kennedy is one of a handful granted with early access. He is convinced it will be a seismic leap forward in farm management information system innovation.

“Having a platform that I can bring all of the different types of data sources into one centralized location, it gives me the foundation I need to use AI toolsets to build these really detailed analyses around so many different scenarios in production,” he says. “We’ve never been able to have enough of our data in one location and have it in a format that we can access and do this type of predictive analysis.”

A Partner for the Future
Along its reinvention campaign, Landus has learned a few lessons. Chief among them is farmers are resilient, and “they will either do it with you, or they will figure out a way to do it without you,” Carstens says.

This long, winding journey to redefine its business model is just that: an insurance policy to stay relevant with today’s farmers and the next generation of growers.

“We will go into the future with a true focus on what farmers’ needs are. When we stay focused on that, the rest will take care of itself,” he adds. “Never underestimate the resiliency of a farmer. They’ve proven that time and time again. Our job is to stay in the mix with talented people, understand the challenges and use our scale to help them be more profitable. A well-rounded cooperative is a very tough model to beat, but at the same time, it’s got to be well-run. And you’ve got to be focused. You must be willing to do the hard things.”

Carstens credits good partners for progress made so far and says there is more to come.

“We’re excited about what this can all mean for our farmers. It’s been a rewarding journey,” he says.

5 Questions To Challenge Your Comfort With Risk

Thu, 01 Aug 2024 18:37:53 GMT

“If you’re not first, you’re last” —Ricky Bobby

It is good to be first — first place at the county fair, first in line at Thanksgiving or first in a race. In agriculture, we’re often called to be first at adopting something new, but it can be hard to make a big change knowing so much is riding on the decisions made each year.

While being an early adopter has its risks, it also has its fair share of advantages.

Innovation Leadership
Early adopters are often seen as leaders. Incorporating new products and services before they are proven is certainly a rare thing in a business that has much to do with commoditization and price taking. But standing out could have its advantages. I once had a client who loved to be seen as a leader and was always testing a “beta” product. I assume he does a lot with carbon credit programs.

Brand Reputation
Being an innovative thinker can also be part of your operation’s brand. While a strong care for the legacy of the past is inherent in most farmers, being open to the future and working to stay relevant could sure help bridge the gap in those multigenerational conversations.

Regulatory Preparedness
Early adopters have the advantage of being well-prepared for future regulations. Consider the much talked about SCOPE 3 in the supply chain. While the ruling on it is in flux, growers who begin to consider and adopt ways to track emissions or implement reduction strategies could have the necessary systems and processes in place to comply with potential future regulations.

Learning Curve
By starting early, individuals and businesses have more time to learn and refine their strategies for a changing market rather than having to catch up when they are behind on what has become the norm. Early adopters often tend to be leaders who are both adaptable people and have the capacity to bring on something new and build it into their production system with relative ease.

Competitive Edge
Being among the first to adopt new technologies allows those who do to differentiate themselves from competitors and demonstrate their commitment to staying ahead of the curve. This can help attract young and ambitious talent or impress the next landowner you’re looking to bring on.

While this list provides a few advantages, being an early adopter is really about the situation, the financial pros and cons, and the operational capacity to bring in the new system or process. It’s called calculated risk.

To evaluate your personal comfort with risk and challenge yourself to take the advantages of being an early adopter, here are five questions to think about:

Am I always seeking ideas, or am I the one who comes up with the new tool and then seeks a supplier?
Do I often get bored or frustrated with current conditions, technology or equipment?
What are the most recent risks I took in the business, and did I consider them risks or innovations at the time?
When evaluating my last season, do I often ask myself what is something new that I tried and how did it go?
Do I believe the benefits to innovating out weigh the value and stability of remaining the same?