business bus to demonstrate several steps. First, make sure you have only the right people on the bus. Next, place
people in specific seats on the bus. In other words, put individuals where they are most productive and match
them to the right role in your business. You also need to determine the right bus driver or leader. With everyone
in the right seats, allocate time for planning. This ensures each individual is clear about your direction. If you
conduct these steps, they will take you to your desired destination. However, the final step may be one of the most
important; have an alternative plan. Detours are inevitable and often occur in transition.
You may also consider hiring an intern to observe and participate in your business. This affords them a valuable
real-world experience and gives you a young, fresh, outside perspective. If you are a parent or mentor, encourage
the young person in your care to seek an internship away from home, including one abroad. This is important
because transitioning to a successful future requires a global perspective. Learning to broaden your perspective can
be invaluable.
Have a business culture; whether you are solo or a complex business of lifelong learning. Today’s agriculture
industry is all about knowledge, strategy and execution. A network of peer advisory teams will also be critical for
your success.
Finally, economic volatility can be the friend or foe in transitioning. Positioning for extremes requires solid
levels of capital. However, flexibility and the ability to capitalize on opportunities require financial liquidity. The
ability to quickly turn into cash, without disrupting normal operations is crucial. Right now, cash is the most
attractive asset.
Choosing the right people, broadening your perspective and watching cash flow are each some of the challenges
of successful transition. Give yourself the advantage of a team approach and collaborate with valuable resources
around you. Whether or not your business is positioned for the many, coming opportunities in today’s agriculture
industry is really a matter of attitude. Remember attitude plus aptitude equals altitude in business and life.
THis chart illustrates that 30-day Farm Credit issues remain at low levels through mid-September 2015 while the gap between longterm and short-term rates continues to increase. Read our three part series on interest rates at www.myfcsfinancial.com under the
News & Events link to learn more including what establishes the interest rate and what producers can do to manage their risk.
Then talk to your FCS Financial expert about available options including fixed rates.
30-Day vs 15-Year Farm Credit Bond
8.00
15-Year Farm Credit
7.00
30-Day Farm Credit
6.00
Fed Funds Target
All-in cost
5.00
4.00
3.00
2.00
1.00
0.00
Date
HEARTBEAT | FALL 2015 13