Management

10 Leadership Habits That Make Employees Want to Stay

Thu, 16 Apr 2026 16:01:34 GMT

Hiring good employees is only half the battle. Keeping them engaged, motivated and committed to the job often depends on the relationship they have with their employer. Pay matters, but day-to-day interactions, clear communication and trust can have just as much influence on whether employees stay and perform at a high level.

Management and leadership expert Bob Milligan says supervisors who focus on strengthening relationships with their teams often see gains in productivity, motivation and long-term employee retention.

“We focus on improving our relationship and mutual trust with family and friends,” Milligan says. “It is easy to forget that the supervisor-employee relationship is also an interpersonal relationship.”

He outlines 10 practical strategies farm leaders can use to build stronger, more effective workplaces.

1. Practice Active Listening

When people think about communication, they often think about speaking. Milligan says listening is just as important, particularly for employers.

“Active listening means you are listening with all your senses,” he explains. “You are listening to understand both the message that is being delivered and the underlying emotions.”

Because farm leaders hold a position of authority, employees may hesitate to speak openly. Failing to listen can send the message that their input is not valued.

2. Ask Questions

Employees are more likely to share ideas and concerns when they are invited into the conversation.

“The best way to involve them is to ask questions,” Milligan says.

Two simple questions he recommends asking regularly are: ‘What is going well?’ and ‘What could be going better?’

These prompts help employees reflect on their work and provide constructive feedback.

3. Encourage Employees to Share More

Even when employees begin sharing their thoughts, they may stop before fully explaining their perspective.

“To be certain you have everything, ask ‘tell me more’ or another variation ‘and what else,’” Milligan explains. “I have found this question almost always yields additional valuable information.”

This approach signals genuine interest and helps managers better understand the full situation.

4. Circle Back After Important Conversations

After meaningful or emotional discussions, a quick follow-up can reinforce trust.

“In these situations, it is good to circle back in a day or two to check in,” Milligan says.

The purpose isn’t to restart the conversation but to see if the employee has additional thoughts or unresolved concerns.

5. Strengthen Employee Decision-Making

When employees ask how to complete a task, supervisors often provide a quick answer. Milligan suggests using these moments as opportunities for development.

Ask the employee how they would handle the situation.

“You are providing an opportunity to think, which improves decision making,” he says. “The other big advantage is that next time the employee may not have to come to you.”

6. Introduce New Responsibilities in Small Steps

Employees often want to grow in their roles but may hesitate to take on more responsibility because they fear failure.

“Research into human behavior shows that part of human nature is to grow,” Milligan explains.

To reduce that fear, he recommends introducing new responsibilities gradually.

“You cannot get to Z without going through A, B, C, D, E, and F,” he says.

Breaking responsibilities into manageable steps allows employees to build confidence as they develop new skills.

7. Be Transparent About Follow-up

Some supervisors avoid checking in after training or feedback because they worry it will feel like micromanaging. Milligan recommends setting expectations ahead of time.

“To avoid this concern, inform the employee in advance that you will be following up to answer questions or provide anything else they need,” he says.

When employees expect follow-up, it becomes a supportive step rather than unwanted oversight.

8. Set Clear Expectations

Unclear expectations can quickly create frustration and damage trust.

“Think about a time when you were unclear about what was being expected of you,” Milligan says. “I suspect you were frustrated and potentially lost trust with the person not providing clarity.”

Clearly outlining expectations for behavior and performance helps employees understand their roles and responsibilities.

9. Provide Quality Feedback

Effective supervisors use three types of feedback: positive, redirection and negative.

“High quality, specific positive feedback enhances the employee’s confidence and desire to continue to excel,” Milligan explains.

Redirection feedback helps employees learn and improve, while negative feedback should be used sparingly and framed around choices and consequences rather than reprimands.

10. Lead by Example

The final tip focuses on actions rather than words.

“It is crucial that you ‘practice what you preach’ or ‘walk the talk,’” Milligan says.

When leaders fail to follow the same expectations they set for employees, trust erodes quickly. Modeling the behaviors you expect reinforces credibility and strengthens the workplace culture.

Together, these strategies highlight how everyday leadership habits can shape workplace relationships. By listening carefully, communicating clearly and modeling strong behavior, supervisors can create environments where employees feel respected, supported and motivated to perform their best.

3 Steps To Honestly Evaluate Your Farm's Performance

Thu, 27 Mar 2025 19:52:03 GMT

You’re only ever in three stages of life:

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

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

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

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

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

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

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

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

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

Heads Up: Corporate Transparency Act Still in Limbo

Fri, 27 Dec 2024 19:49:00 GMT

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

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

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

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

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

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

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

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

Tax Turbulence: How Sunsetting Provisions Could Change Your Bottom Line

Thu, 19 Dec 2024 15:04:43 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?

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

Thu, 31 Oct 2024 20:12:01 GMT

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

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

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

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

Future Leaders Program

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

Your Next Read: USDA Awards $140 Million to Support American Farms and Businesses

Surprising Ways You Can Make A Big Impact On The Farm

Mon, 30 Sep 2024 17:56:18 GMT

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

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

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

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

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

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

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

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

Your Next Read: First Generation Farmer Shares How He Found His Way To Success

5 Traits All Great Farm Leaders Should Possess

Fri, 27 Sep 2024 02:06:14 GMT

From the bustling big city streets to the store fronts of small-town America, “help wanted” signs can be seen in almost every business window. It’s a problem our country has been facing for years, and agriculture, unfortunately, is not immune.

The U.S. Chamber of Commerce reports more than 50 million U.S. workers quit their jobs in 2022, many of whom were in search of an improved work-life balance and flexibility, increased compensation, and a strong company culture. But according to Fast Company, lack of leadership is another main culprit as to why employees are leaving.

To boost employee retention, farms need leaders who can effectively inspire and guide others. This may sound simple, but the job often requires its leaders to possess a handful of characteristics not necessarily used on other areas of the farm. These traits include:

Providing Context – As leaders, it is our responsibility to know the ins and outs of our operation. But what about our employees? Shouldn’t they also know what it takes to keep the farm profitable? According to Bob Milligan, Senior Consultant with Dairy Strategies, LLC, they should.

“Nearly all employees are interested in what is happening with the business that employs them – in your case, the farm. This knowledge is key to engagement,” Milligan says. “As farms become larger and employees more specialized, keeping everyone informed becomes more challenging and will likely require a higher priority and some formality. That system will be different for each farm, depending on the characteristics of the workforce, the uniquenesses of the farm, and the priorities of the owners.”

Even if the news isn’t good, transparency can build trust. Take time to keep your employees in-the-know on the business side of your operation.

Being Proactive – When employees leave, managers often wonder what they could have done to prevent that employee from quitting. Good leaders, however, stay proactive to prevent employees from quitting in the first place.

“Leaders should remain continually engaged with their employees, asking them about their goals and needs, if they are feeling engaged and challenged, and how they can make the employee’s work life better,” says Ola Chowning, partner at global technology research and advisory firm ISG.

This requires leaders to show interest and compassion while also taking mitigating actions before an employee begins to think about leaving.

“Employees work for leaders from whom they can learn,” Chowning adds. “Share knowledge, share insights, be vulnerable and open. Allow employees the environment to ask questions and learn.”

Being Empathetic – All managers know that working with people can sometimes be one of the hardest parts of the job. But to be a great leader, one must possess empathy.

“At its core, leadership is ultimately about others. It means inspiring them to take actions beyond their capabilities, leading them in a direction that is compelling and inspiring. Empathy is the foundation of those actions,” says Lolly Daskal, leadership coach and CEO of Lead From Within.

Being empathetic with your employees allows you to better understand their perspective and gain insights behind their decisions, she adds. Furthermore, it also allows you to communicate in way that makes people feel safe to talk to you, making it more likely that they will come to you when a problem arises.

Encouraging Growth – Great leaders see the potential and bring out the best from within their employees. Instead of allowing an employee to stay stagnant within their position, they encourage and help foster growth.

“Help employees find where their right fit is from a capability perspective,” Chowning says. “Give them candid feedback on how they perform to better allow them to recognize and further expand strengths and mitigate weaknesses. Give them stretch tasks that allow them to learn and grow. And, more importantly, stand behind employees when they are successful.”

Value Input - Your role as a leader isn’t to know all the answers; it’s to help your team develop the answers, says Shanna Hocking, a leadership consultant and author.

“Ask questions and truly listen to what your employees say,” she says. “They often have insights on what can be done to make the work better and more efficient. This is especially valuable when you’re starting a new project or initiative. Employees who feel heard and valued are more likely to want to contribute to projects and do their best work.”

For more on leadership, read:

How Do You Know When Agriculture Is In A Recession?

Wed, 04 Sep 2024 22:03:48 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 21:13:26 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

4 Quick Succession Planning Tips With Attorney Jim Angell

Fri, 23 Aug 2024 20:46:39 GMT

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

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

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

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

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

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

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

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

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

Hear more from Angell on the Top Producer podcast

Four Experts You Need On Your Succession Planning Team

Thu, 01 Aug 2024 15:36:15 GMT

When it comes time to get serious about succession planning, many operations turn to their lawyer to kick off the process. And while that’s a good place to start, Matt Gunderson, vice president of Farmers National Company, wants to make sure your journey doesn’t end there.

“A lot of times when folks think about estate planning, they think, ‘Well, I just need to go see an attorney, right?’ And to some degree, that answer is correct. But what we try to talk about is how to set up a good team,” he says.

Gunderson recently joined an episode of the Top Producer Podcast to share the four professionals he recommends for any succession plan, likening the process to building as sturdy of a stool as you can.

“What’s the best, most sturdy type of stool out there? Well, it’s a four-legged stool,” he says. “Think about that farm or ranch land asset as the seat. Then we start looking at the four legs.”

The Four Legs
1. Attorney
Gunderson stresses the importance of choosing the right lawyer for this process.

“There are different types of attorneys out there. So one, finding an attorney who does estate planning is important. But two, it really comes down to finding an attorney who understands estate planning and agricultural assets,” he says.

Be sure to also consider the state your land is in, and not just where you reside.

“We’ve seen where attorneys in one state drafted something according to that state’s laws, but where the land is at as a completely different example in terms of what that looks like from an estate standpoint,” Gunderson says.

2. CPA
He shares the second leg of the stool should be a CPA. This expert will help you understand the plan’s current tax implications and will also stay up to date on how that could change.

3. Financial Planner
The third leg is a financial planner. Financial planners can help you in some ways a CPA can’t. According to Gunderson, this role looks at future considerations for the plan, such as what it looks like for the upcoming generations.

Just as with attorneys, however, there are different types of financial planners, and it’s important to find one familiar with agriculture and the various accounts you will have.

4. Professional Manager
The fourth leg of Gunderson’s estate planning stool is a professional manager for the property.

“A professional manager can help take care of that land asset for the next generation if they’re not actively engaged in farming or they’re not actively near the property,” he says.

Gunderson adds that after this team is formed and your plan developed, you shouldn’t set it and forget it.

“Don’t throw it on the shelf or put it in a drawer. You better get that team back together every three years to look at that plan because things change, laws change and family dynamics change,” he says. “Was there a birth? Was there a death? Was there a marriage or divorce? Get that team back together to make sure that it’s up to date or it can still come back and bite you in a negative way.”

Catch up on episodes of the Top Producer Podcast

How To Translate Generational Misunderstandings

Tue, 18 Jun 2024 16:24:36 GMT

The week of June 10, Farm Journal is celebrating the next generation of American agriculture. Our goal is to encourage you to plan for the future and cultivate multigenerational success through the transfer of skills and knowledge. Think tomorrow, act today to align your asset, resource and financial legacy.

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

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

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

Why It Matters Now

Taking a refreshed approach to understanding on-farm team members from other generations is top of mind as today there are four generations actively employed across our economy.

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

“Dates given for generations are just a starting point. Generational theory is taking formative events from our growing years and seeing how they shape the people who lived through it,” she explains

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

“There are individuals who sit between two generations, and those people can serve important roles communicating between the generations. They are generationally bilingual,” Lear says.

3 Steps for Generations To Work Together
“We are in a unique time where we have four generations in the workforce,” says Kim Lear. She suggests three steps to bring together a productive team. 1. Prioritize clarity over brevity in communication. 2. Instill respect as the foundation. 3. Deliver feedback in a way that motivates to improve rather than paralyze with fear. Give a clear path for the road to improvement with the tools to get where they need to be.

3 Steps for Generations To Work Together

“We are in a unique time where we have four generations in the workforce,” says Kim Lear. She suggests three steps to bring together a productive team.

1. Prioritize clarity over brevity in communication.

2. Instill respect as the foundation.

3. Deliver feedback in a way that motivates to improve rather than paralyze with fear. Give a clear path for the road to improvement with the tools to get where they
need to be.

We Are Getting Older

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

“The story of aging is changing in America,” she says. “We have cliff diving birth rates and low immigration. Also, we are an ageist society.”

Today 62 million adults ages 65 and older are living in the U.S., which is 18% of the population, according to the U.S. Census. In 30 years, 84 million adults ages 65 and older will make up an estimated 23% of the population.

With the recognition of how our population is structured, and how your on-farm team members reflect their generational trends, you can evaluate your communication.

Next Gen Insights

Lear shares trends about Generation X (birth years: 1965 to 1979), millennials (birth years: 1980 to 1994), and Generation Z (birth years: 1995 to 2012).

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

“If a brand crosses them, they are hard to earn back as a customer,” she says. “It’s telling — the divorce rate doubled during the Gen X birth years.”

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

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

“Millennials are collaborative, empowered, networked, risk averse and in search of meaning,” she says. “But America has more single parent households than anywhere else in the world. It’s one way to understand why work-life balance is at the forefront of recruitment and retention.”

For Generation Z, our present serves as the backdrop of their formative years. Already, Lear has seen how Gen X parents and Gen Z children have relationships rooted in friendship.

“They are highly influential over each other’s decision-making. For example, Gen Z will bring job offers to their parents to vet,” she says.

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

“They are showing how they can abandon any obsession of convenience with an obsession of optimization,” she says. “For example, a regular stationary bike is convenient versus a Peloton is synched with stats and analytics. It’s the expectation of personalization and customization.”

Lear gives an exercise to test your transgenerational communication.

“Look at processes, procedures and norms. What are you holding on that is a sacred cow? And then ask your team to think about where can we focus on that’s more useful and more productive for us?” Lear outlines. “You’ll identify priorities and open up how our team talks to one another.”

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

Wed, 12 Jun 2024 00:40:01 GMT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Tue, 11 Jun 2024 17:49:00 GMT

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

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

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

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

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

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

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

The role of farm board chairman could include:

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

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

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

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

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

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

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

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

Mon, 10 Jun 2024 16:05:02 GMT

The week of June 10, Farm Journal is celebrating the next generation of American agriculture. Our goal is to encourage you to plan for the future and cultivate multigenerational success through the transfer of skills and knowledge. Think tomorrow, act today to align your asset, resource and financial legacy.

(Farm Journal)

Cody Goodknight
Chattanooga, Okla.

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

(Farm Journal)

Chase Dewitz
Steele, N.D.

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

You can apply for The Top Producer Next Gen Award

(Farm Journal)

Maggie Holub
Scribner, Neb.

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

(Farm Journal)

Matt Splitter
Sterling, Kan.

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

(Farm Journal)

Janna Splitter
Sterling, Kan.

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

Do you qualify for the Top Producer Next Gen Award?

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Think Inside The Box To Solve Problems On The Farm

Mon, 01 Apr 2024 17:41:31 GMT

In a year predicted to bring tighter margins on the farm, many operations will need to get creative when it comes to balancing inputs and income.

But Kyle Scheele, a motivational author, speaker and artist, says this doesn’t necessarily mean thinking outside the box, but instead thinking within the constraints you’re given.

“Stop saying ‘If only I had this or that,” he says. “Constraints are beneficial.”

During a keynote presentation at the 2024 Top Producer Summit, Scheele shared constraints can actually be a good thing on the farm because they:

1. Facilitate focus
A lack of resources can help you focus on what’s most important to the operation’s success and what actually needs done instead of trying to accomplish everything.

2. Require resourcefulness
If you don’t have the resources someone else does, Scheele says to ask yourself what else you could be doing to help solve the issue.

3. Inspire innovation
Farmers are known for being innovative. Think about what you can do with what you already have. Do you have equipment that may not be intended to complete a certain task, but could be adjusted to do it?

4. Create connection
Scheele shares trying to make something relatable to everyone ends up making it relatable to no one. How do your constraints make your operation unique?

5. Foster collaboration
We often turn to collaboration when there’s no more money or time to put toward a problem. Farmers are working toward a common goal through different methods. Share the challenges you’re facing with your friends, neighbors and others in the industry. Odds are they’ve experienced something similar – or know someone who has – and can offer new perspectives toward solving it.

6. Build resiliency and strength
Tough times build tough people. Learning how to make the most of the years with limited resources will help you do more when favorable margins return.

Scheele says the first step to making the most of the constraints you are given is to figure out the boundaries and tools you are working with. Additionally, he advises to change your perspective to think of any limitations as constructive rather than constrictive.

“Identify the boundaries and look for the gaps,” he says. “Pushing against the constraints helps you find the gaps and the hidden solutions.”

Thinking inside the box, and therefore breaking the myth of looking outside the box, can yield hidden solutions for your farm and business.

“Creativity isn’t limited to artists, sculptors and musicians,” he says. “Thinking inside the box is true creativity.”

Kyle Scheele was a keynote speaker at the 2024 Top Producer Summit and has been known as the “patron saint of crazy ideas”. Scheele shared a few of those ideas with the audience, including how his high school t-shirt business wound up with designs in Urban Outfitters, the story behind hosting a fake marathon with nearly 35,000 participants, and the photoshopped family photo that earned him over 1 million TikTok followers in a day.

As an author, speaker and artist, he shares his story with audiences across the country in hopes to inspire others to chase their own crazy ideas and become the people they were meant to be.

What You Need To Know About Charitable Remainder Trusts

Mon, 25 Mar 2024 14:45:25 GMT

Charitable remainder trusts can be a great option for farmers preparing for retirement, but they don’t make sense for every operation.

Farm attorney Matt Folz recently joined the Top Producer podcast with Paul Neiffer to share four factors to consider before deciding to set one up.

Do you need to decrease your tax bill from selling assets?
Folz says the main purpose of a charitable remainder trust (CRT) is to avoid jumping to the top tax bracket the year you retire and sell the farm’s assets.

“When you’re done farming, you deal with a very large amount of assets that have a zero-tax basis. If you sell them, you are basically paying taxes on the whole amount,” he says. “The charitable remainder trust is designed to solve that issue. You transfer the assets into the trust, and it sells those assets.”

The CRT does not pay income tax at those initial sales and the money made is then paid out in annuities over time.

“It keeps you in a lower income tax bracket for a considerable amount of time,” Folz says. “I tell people they’re going to save taxes, and they’re going to benefit a charity. Even if you’re not charitably inclined, I bet you like charity more than the IRS.”

Are you contributing everything this year, or over time?
If you’re interested in setting up a CRT, it’s important to know there are two types to consider: a charitable remainder annuity trust (CRAT) and a charitable remainder unit trust (CRUT).

Folz says the right one for your operation depends on when you are planning to sell your assets.

“For farmers who are potentially slowing down but not retiring, a charitable remainder unit trust allows you to make multiple contributions into that trust over different periods of time,” he says. “The charitable remainder annuity trust is on a one-time contribution. You can put everything in there but you can’t contribute to it in the future.”

He adds many of his clients prefer the CRAT because it offers fixed payments over a period of time – something farmers aren’t typically used to having.

Is managing the trust something you want to take on?
While the CRT offers significant tax savings, Folz says some farmers decide paying bigger bill makes more sense for them.

“The CRT is the more complicated route – it doesn’t get easier than sell everything, pay one giant check and whatever is leftover is yours to deal with,” he says. “Not everybody wants to deal with an attorney and an accountant every year to look at their charitable remainder trust and stay on top of actually taking the annuity payments and making sure the investments are where they need to be.”

What are your retirement plans?
Another reason some farmers decide against creating the trust is due to their plans post-retirement.

“People have big goals – they want to travel and do a bunch of stuff,” Folz says. “If you convert it into an annuity, that’s your income. If you sold everything, you get more money initially and maybe that better suits your retirement goals.”

To hear more from Folz on CRTs and succession planning, listen to this episode of the Top Producer podcast.

7 Essential Strategy Considerations

Mon, 08 Jan 2024 15:51:50 GMT

Mark Faust works with owners, CEOs and sales managers who want to grow their businesses.

He says strategy should be like a laser, which can become sharper, more intense, brighter and more effective. And he recommends business managers review their strategy on a quarterly basis.

“Routinely sharpening your strategy gives clarity to your vision to be intensified with greater detail,” Faust says. “What gives you competitive advantage, your points of divergence from the competitive alternatives, can be intensified as well.

How and where you invest your resources, your strategic focus, can be intensified by strategically abandoning weak markets, customers, products and practices and reallocating resources to areas with higher return.”

Faust says objectives must be set in seven key areas:
1. Marketing
2. Innovation
3. Culture
4. Resource requirements
5. Productivity
6. Community, industry and social responsibility
7. Profitability requirements

Semi-Annual Review of Role Focus

The frequency of the strategy recalibration is key, and it’s a must to involve your team.

“When recalibrating your business’s targets quarterly and setting new objectives, it should be done with your team,” he says. “The more this rhythm takes hold, the more your team will contribute innovations and improvements through new objectives.”

He suggests all managers should have one-on-one realignment meetings with each direct report semiannually.

“There are tools to help to illuminate constraints and opportunities for an organization’s management team as well as keep everyone focused on dedicating an appropriate amount of time and focus to the appropriate objectives, projects and priorities,” he says.

Accountability Tools
Faust says business leaders point to their boards, advisers and customers for input.

“We all have blind spots, and having growth advisers and some type of board sharpens your leadership, strategy and execution,” he says. “Quarterly in-depth interviews with customers are one of the most commonly missed steps involved in developing strategy. These interviews should be a requirement.”

Faust has seen how having a third-party interview a sample of customers every quarter brings innovation and new opportunities. He credits this idea to the founder of strategy, Peter Drucker, who said if you’re not listening to the customer regularly, then you’re not doing strategy.

Growth Is Relative
Not all businesses can experience exponential growth.

“But odds are you know right now what type of and how much potential growth your company could have if you execute accordingly,” Faust says. “The key is to use the best practices above and get all you can out of all you’ve got.”

He encourages farmers to see how executing strategy as a quarterly process within their teams will uncover more and more hidden opportunities that facilitate business growth.

Here more from Mark Faust at the upcoming Top Producer Summit. Click here to register.

Innovative Immigration Solutions Can Diversify Your Farm Team

Thu, 05 Oct 2023 12:50:41 GMT

If your available labor pool seems to be getting more shallow, Rachel Beardsley, partner at Fragomen, an immigration law firm, says ag business managers can think more creatively.

“Employers are seeking creative solutions to tap into new sources of talent to meet their hiring needs,” she says. “Immigration can be vital to an employer’s ability to achieve their workforce development needs as there are seasonal and full-time work visas available to lawfully hire talent from outside of the U.S., which is a vital pipeline for employers facing domestic talent shortages.”

At the 2024 Top Producer Summit, taking place in Kansas City, Mo., Feb. 5–7 , Beardsley will detail strategies and tools managers can use. Three of those immigration program tools include:

seasonal visas
full-time work visas
long-term permanent residence strategies

“Talent shortages in the domestic labor market result in agribusiness employers relying on international workers to meet their employment needs. While of course agribusiness employers recruit locally to fill positions, for many of these roles, there are more positions available than there are local workers available to fill them,” she says.

Learn more about successful strategies for diversifying your hiring pool at 2024 Top Producer Summit. Registration is open!

Feb. 5–7, 2024
Kansas City, Mo.

Beardsley has helped clients take a fresh look at their business’s open positions and where sponsored visas could provide an opportunity for talent acquisition.

Specific work visas are available for seasonal and year-round work.

“There are a wide variety of work visas available for the agricultural industry depending on the position. Visa solutions for seasonal or peak needs include the H-2A and H-2B visa categories,” she says.

The difference is in the nature of the work. For example, the H-2A visa is available for workers to perform agricultural services of a seasonal nature, such as harvesting crops. The H-2B visa is available for workers to perform non-agricultural work, which could include truckers, technicians and meat trimmers.

Temporary works visas can be applied for year-round roles to help agribusiness employers meet their workforce needs.

“For example, the TN visa is for Canadian and Mexican nationals in certain occupations, many of which are relevant to agribusiness positions, including agriculturalists, animal breeders, animal scientists, horticulturists, plant breeders and soil scientists. Given its universal nature, the H-1B professional visa is also an attractive option as it is available to any professional role that requires a bachelor’s degree,” she says.

While these tools open opportunities for diversified labor availability, Beardsley advocates it does require planning. Such advanced planning can include up to six months from the project start.

In addition to temporary work visas, another option is to sponsor international workers for permanent residence (green card) status.

“This option enables employers to retain top talent typically for key employees,” she says. “Employers may pursue the labor certification (PERM) process or a national interest waiver, depending on the position and the employee’s qualifications.”

Is Risk Management A Necessity Again?

Tue, 03 Oct 2023 15:53:14 GMT

The necessity for managing price risk in the ag sector, as well as non-ag, is likely coming into vogue again. The two-year bull market for grains ended spring 2022 with collapses from lofty levels in $8 corn, soybeans over $17 and Chicago wheat over $13.

The supply-driven bull markets that began in September 2020 for grains have seen gains reset back to those levels. Soybeans have reset 50% of that price move.
The profit-landscape of U.S. agriculture has changed, putting a new emphasis on risk management. Twelve years at 2% inflation and interest rates near zero were an outlier as the chart below reveals.

I lived through the 1980s, when inflation and interest rates were much higher — as did many of those in government and the Fed. While interest rates are not at 1980s levels, capital expenditures for land and machinery are much higher. Return on investment (ROI) requires a new perspective for both depreciable (machinery) and non-depreciable (land) assets.

The Fed is allowing risk back into the marketplace. Gone are the days of the Central Bank “we got your back zero interest policy (ZIRP),” an environment where investing in just about anything yielded more than money in the bank and the cost of money had only honorable mention on a P/L statement. The environment of zero-rates led to popular perspectives of “there is no alternative (TINA) but to buy dips” in assets that returned anything better than zero or money in the bank.

Cash Is King Again

Profit margins will be under attack and enterprises allowed to fail. Banks will let non-performing assets sell at market-clearing levels. The question is whether U.S. agriculture has become too big to be allowed to fail.

This new environment is global. European and socialistic countries face the same issue, while emerging nations will carry new risk of uncertainty as money/investing goes to countries with a stable government, military and economy. The U.S. meets the criteria suggesting a stronger dollar will make our products less competitive. It becomes not who can produce the cheapest, but who will sell the cheapest.

(Farm Journal)

It’s likely managing a slimmer margin in production agriculture will be closer to the 1980s than the 2010s. The danger is in new participants in our ag economy who view the last 20+ years as normal. Worse yet, participants for whom those years were the basis for their entire careers.

The massive infusion of government money the past few years created a sense of apathy toward managing price risk. As a result, the need for risk management might have been grossly underestimated. Our ag economy is also underestimating risk management’s importance in the new environment of positive real interest rates.

Unintended Consequences

This isn’t my first rodeo. I’ve seen a scenario like this before with land and machinery. Investing in land that returned 2% was and is better than zero return on money in the bank. Land has doubled or tripled the past 20 years under the “TINA” scenario. But a 3% to 4% return on $5,000 per acre of land and a 5% return on $15,000 per acre of land are quite different. A $750 per acre rent isn’t practical nor is a $400 rent under $4 corn. There lies an alternative investment vehicle (ROI) now for new money and old money currently invested, especially if normalizing interest rates is the new norm.

The same is true for depreciable assets. Immediate write-offs have been touted by the capital goods industry as economically beneficial, but there is a price to pay if the asset is depreciated fully but not paid for. It takes after-tax income to make a capital payment and depreciation is the vehicle allowing that to happen. Whether it’s land, a home or unwise tax planning, there are consequences. The Fed is sending a message: There are future intended consequences. The future is here.

Single Best Tool To Predict Peak Performance

Thu, 31 Aug 2023 14:26:53 GMT

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

Dave Mitchell thinks there is one–the job description.

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

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

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

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

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

Hear more from Mitchell in The Scoop Podcast:

How to Keep Farm Employees Safe During the Extreme Heat

Mon, 21 Aug 2023 18:37:48 GMT

For those whose livelihood depends upon working outdoors or in less than favorable conditions, this week looks to be quite difficult with higher-than-normal temperatures and humidity predicted. Meteorologists suggest parts of the upper Midwest could experience temperatures that land them in the categories of “high alert” and “emergency.”

When temperatures reach this level, it’s critical to take them seriously. While farmers do what they need to do to ensure livestock are cool and comfortable, it is also essential to check on other farmworkers and employees. Many farm employees may lack previous farm or other outdoor employment experience, so dealing with weather-related conditions may be new to them, not to mention the difference among individuals who may or may not be acclimatized to high heat conditions, explains Melissa O’Rourke, farm management specialist with Iowa State University Extension and Outreach.

In general, she says farm workers can become overheated in one of two ways:

The heat from the environmental conditions in which they work.
An individual generates internal heat through physical labor.

In states like Washington, permanent heat rules for outdoor workers are now in effect. The overall goal is to address minimum requirements to prevent heat-related illness and reduce traumatic injuries for outdoor workers associated with heat exposure.

According to the Occupational Safety and Health Administration (OSHA), almost half of all heat-related deaths occur on a worker’s very first day on the job, and over 70% of heat-related deaths occur during a worker’s first week. This is because workers who are new to working in warm environments may not be acclimatized to heat. Their bodies need time to adapt to working in hot conditions.

To protect new workers from heat hazards, schedule shorter shifts in the heat, separated by breaks, and monitor new workers closely for any symptoms of heat-related illness.

Other Helpful Tips

The Farm Bureau Financial Services shares other helpful tips that can help keep employees that work outdoors safe during the heat, including:

Dress the Part

Shield yourself from the sun by covering yourself up with a wide-brimmed hat and sunglasses. OHSA recommends wearing light-colored, loose-fitting, and breathable clothing like cotton or linen. A special body-cooling vest might also be a great investment if you live in a steamy climate.

Drink Up

The Centers for Disease Control and Prevention (CDC) recommends drinking 1 cup of water every 15 to 20 minutes during moderate activity. If you’re working outside in the heat, you’ll want to stay ahead of those numbers to avoid dehydration. Your urine is a good indicator as to whether you need to be drinking more water. Ideally, you want your urine to look clear. You might swear by your morning cup of joe to get you going but avoid drinking caffeine all day or adding sugary or alcoholic beverages to the mix. All of these items can dehydrate you.

Keep Your Cool

Find a shady spot where you and your team can take frequent breaks during hot weather. That could be the air-conditioned cab of your truck or even an outbuilding. Eat regular meals and include a lightly salted snack or two throughout the day for energy and balance electrolytes. If possible, schedule demanding tasks for early morning or evening when it’s cooler.

Mind Your Meds

Your body temperature might have difficulty cooling down or it may heat up more quickly if you take certain medications or have certain medical conditions. Talk to your physician before working in the heat this summer to find out if you’re at an increased risk for heat-related illness and need to take additional precautions.

Know the Symptoms

Heat-related illnesses can sneak up quickly. Keep an eye out for the warning signs and act fast in the event of heat stroke, heat exhaustion and heat cramps.

Heat stroke happens when the body can no longer control its temperature and is unable to cool down. Heat stroke is a medical emergency, and you should call 911 immediately.
Heat exhaustion is the body’s response to dehydration. If you are experiencing signs of heat exhaustion, ask a fellow worker or family member for assistance; you shouldn’t be left alone, and you may need medical treatment.
Heat cramps occur when your body sweats out too much salt and can also be a sign of heat exhaustion. Drink a sports drink or try water with a salty snack. Seek medical attention if you’re on a low-sodium diet, have heart issues or if your cramps don’t go away after an hour.

Grade Your Business Management IQ

Wed, 26 Jul 2023 19:49:21 GMT

Take a high-level assessment of your strengths and weaknesses

Your operation can be moving forward, but still falling behind. “Management is more than just being smart and using your head,” says Danny Klinefelter, Texas A&M University professor emeritus. “Strategic management is about anticipating, adapting to, driving and capitalizing on change.”

Grade yourself in the following areas, Klinefelter suggests. In areas where you are deficient, set concrete goals to improve.

A = YES
B = SOMEWHAT
C = NO
_______ Are you strategic? How do you handle change?

_______ Do you provide effective leadership? Do you communicate a clear vision of where you want the business to go?

_______ Do you have a strong culture that attracts top talent? What is your turnover rate?

_______ Do you use sound financial management practices? Is income evaluated on an accrual adjusted basis or just cash basis? Do you understand your key financial metrics?

_______ Do you have a marketing plan, and do you follow it? Do you know your per-unit cost of production for each commodity and enterprise?

_______ Do you control costs, including family living? Are assets used effectively and efficiently?

_______ Are you a consistently good producer? How do you stack up against the competition?

_______ Do you set business priorities and follow through on them?

_______ Do you have a succession plan? Do you also have development and transition plans?

_______ Do you see and understand the big picture? Do you have a strategy for major economic or policy changes?
_______ Do you have policies and procedures in place? (Ex: personnel and safety policies, standard operating procedures, etc.)

_______ Do you hold regular meetings to address concerns, report on business performance and expectations? Is that information shared with all vested parties?
_______ Are you a member of a peer advisory group of top managers?

_______ Are you getting better before you get bigger?

Little actions can equal big results for leaders. Read a few pieces of leadership advice from military
heroes, leadership experts, award-winning coaches and athletes at AgWeb.com/6-leadership-tactics

Read more from Top Producer .

Create A Mastermind Group to Gain a Competitive Edge for Your Farm

Fri, 21 Jul 2023 18:15:47 GMT

How do you set your farm on a profitable and exciting trajectory? Surround yourself with smart people, and then give and take.

“It’s critical to seek other winners,” says Danny Klinefelter, professor emeritus and Extension economist at Texas A&M University. “Successful people force you to think differently.”

To challenge yourself, look at joining or creating a like-minded group of innovative and caring people you respect. This could be a peer group or what Mary Kelly, CEO of Productive Leaders, calls a mastermind group.

“A mastermind is a group of people who get together on a regular basis to grow their businesses and to serve as a sounding board for other people’s businesses,” she says.

RECIPE FOR SUCCESS

A great mastermind group tends to have several traits:

Trust. Participants can say anything and know the information is not being shared, Kelly says. Klinefelter adds: “For the group to be effective, you have to share details, tell the truth and take criticism. The best groups will challenge you and push you out of your business comfort zone.”
Transparency Around Failures. “As you test your limits, you have failures,” Kelly says. “Failures in business need to be acknowledged, and in a mastermind group, the lessons learned from the failures are shared so everyone can learn.”
Motivation. While peers can provide that vote of confidence you need to pursue a new idea, they should also give critical feedback. Be ready to hear advice you might not want to hear, Kelly advises, which is part of testing your ideas.

CONTINUAL IMPROVEMENT

A peer group can give you a sounding board for ideas, explore “what-ifs,” and provide operations against which you can benchmark your performance, Klinefelter says.

“The best managers I know recognize the importance of networking and the need for continual exposure to different perspectives and new ideas,” he says. “They realize that however well their business is doing, there will always be a better idea or way of doing things.”

The Power of Just 15 Minutes of Focus

Thu, 20 Jul 2023 19:39:14 GMT

The poet Ovid said, “Dripping water hollows out stone, not through force but through persistence.”

This quote perfectly encompasses a key in business success: small habits done repeatedly truly do add up.

What is a small task you could start that would pay dividends? In just 15 minutes you could dramatically improve the camaraderie and efficiency of your farm’s team, says Eric Termuende, author and co-founder of NoW of Work .

“The fastest way to speed up human connection is to slow down,” he says. “In times like now, it is not just all about business — it’s all about people.”

Every two weeks, he says, set aside 15 minutes for your entire team to gather and answer these three questions:

What should we start doing?
What should we stop doing?
What should we continue doing?

“People may not have ideas, and that’s OK,” Termuende says. “The point of the meeting is to promote the idea you have a purposeful and safe space for ideas to be heard.”

FOCUS ON CULTURE

Why does this work? It builds an exciting culture for your farm , says Mark Faust , president of Echelon Management .

“A healthy, vibrant culture is the new competitive advantage,” he says. “Your biggest opportunity to fuel business growth likely has to do with creating a great culture.”

Set cultural objectives you can measure for your farm, and don’t be afraid to have fun with your culture.

“You want some rules and rituals that are so memorable, meaningful or maniacal they make permanent impressions, ideally both inside and outside of your company,” Faust says.

This could come in the form of a unique farm slogan, amazing perks or simply an open-door policy with the boss.

“You are in a battle for the best people,” Faust says. “To get them you need to be the best workplace. To be a great place to work you need a compelling culture.”

Beyond a Bonus: How to Put Intention Behind Your Incentives

Wed, 28 Jun 2023 20:30:21 GMT

How can you incentivize your employees in a way that fosters relationships? Going beyond the standard bonus check is a key to increasing morale and retention.

“Incentive plans can be a great way to motivate farm employees when designed correctly,” says Jim Versweyveld, University of Wisconsin-Madison Extension farm management outreach specialist. “Incentive plans should have specific targets and metrics and should be documented in writing and communicated to team members in their preferred language. The metrics should be measurable and tied directly to clearly understood business goals.”

Show gratitude

Ad hoc or unexpected bonuses can also be an effective way to show gratitude to your team at the completion of one-off projects. If they are issued too frequently or at the same time interval, they might be viewed as an entitlement and lose their impact, Versweyveld cautions.

Uncover “hidden paychecks”

Tailoring incentives to each employee’s unique needs and goals can help foster personal relationships, but how can you scale that level of attention to the individual needs and motivations of your entire farm crew?

Versweyveld suggests one of the ways producers can be intentional in their incentive strategy is by creating a total compensation statement unique to each employee. Doing so can set expectations from the beginning and take the ambiguity out of the bonus structure.

Simply put, this document outlines an employee’s direct and indirect compensation, including the following:

Annual pay (including overtime)
Paid time off
Bonuses
Mandated Federal benefits
Insurance plans
Value of technology use
Meals, drinks, and snacks
Transportation (including personal use of farm vehicles)
Professional development/training
Other employee perks unique to the farm: milk, meat, produce, holiday turkeys, social events, etc.

Create a clear path to success

To take the guesswork out of earning potential, Versweyveld says to tie the incentive directly to product quality, such as facility cleanliness or an increased percentage of a saleable product.

Other examples of this might include pigs weaned per year, feed efficiency or specific financial benchmarks. Tom Farms of Indiana offers their employees a “bushel bonus” for all full-time employees of a year or more. The farm puts two cents for every bushel harvested in a “bucket” and divides it out to the team.

“This ensures we are all on the same team to get every bushel in the bins at the end of harvest,” says Kassi Rowland, assistant director of administration for Tom Farms.

Go beyond the bonus check

Minnesota pork producer, Christensen Farms recognizes people are their most valuable resource. Through a variety of employee engagement opportunities they “strive to provide employees with an experience and total pay and benefits package that supports team members’ differing needs” says Tim Fossen, director of human resources.

Their employee engagement opportunities include:

Employee resource groups and appreciation events including picnics, facility tours and training and development opportunities.
Community engagement opportunities. Christensen Farms team members engage within their communities from local parades, youth sports team coaching, EMS and fire department volunteers to engaging with fairgoers at the Iowa State Fair.
Organizational and peer recognition programs and appreciation events. Christensen Farms presents two annual awards , The Bob Christensen Award for Excellence and The Christensen Farms Award for Excellence. They also provide a variety of additional opportunities for recognition across the organization at all levels.
Employee engagement surveys to act as a thermometer for the organization.

Christensen Farms believes there is no “one-size-fits-all” in this space and continuous evaluation of the needs and expectations of their team members is important for growth. Establishing an engaged culture for their team is about “continuously honing their skill sets and supporting their overall growth journey” according to Fossen. Valuing growth, both individual and within their role, ultimately creates a culture where employees feel supported regardless of their title, he says.

Establish a win-win mindset.

Fossen asserts the future state of a successful company rests on intangibles that demonstrate a win-win mindset, such as retention, internal promotions, enhanced efficiencies, strong project collaboration, internal moves, and generally improved engagement.

He believes “the only constant in business and life is change itself. Knowing change is inevitable, the most important objective we can focus on is people’s growth and development, which in turn helps people and businesses adapt to the changing pace around them, providing greater feelings of engagement in their work and role.”

What Makes a Good Farm Manager?

Thu, 01 Jun 2023 20:57:42 GMT

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

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

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

1. Knowledge

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

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

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

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

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

2. Experience

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

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

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

3. Collaboration

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

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

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

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

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

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

Management

10 Leadership Habits That Make Employees Want to Stay

1. Practice Active Listening

2. Ask Questions

3. Encourage Employees to Share More

4. Circle Back After Important Conversations

5. Strengthen Employee Decision-Making

6. Introduce New Responsibilities in Small Steps

7. Be Transparent About Follow-up

8. Set Clear Expectations

9. Provide Quality Feedback

10. Lead by Example

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Feb. 5–7, 2024 Kansas City, Mo.

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Other Helpful Tips

Know the Symptoms

Grade Your Business Management IQ

Take a high-level assessment of your strengths and weaknesses

Create A Mastermind Group to Gain a Competitive Edge for Your Farm

RECIPE FOR SUCCESS

CONTINUAL IMPROVEMENT

The Power of Just 15 Minutes of Focus

FOCUS ON CULTURE

Beyond a Bonus: How to Put Intention Behind Your Incentives

What Makes a Good Farm Manager?

Feb. 5–7, 2024
Kansas City, Mo.