Another challenge facing agriculture is the cost of
distribution and trucking. The cost of transportation is
an inflationary cost as the older workforce retires and
new regulations are being integrated.
A new trend in agriculture that I noticed
throughout my farm and ranch visits is the
“boomerang farmer.” These individuals have spent
time away from the farm serving in the military,
law enforcement, teaching, or unrelated agriculture
businesses. What was the benefit of these experiences?
A few mentioned that they had the ability to work with
diverse people at all stations of life. These farmers also
brought back business protocols and added energy to
the existing business.
One of the 800-pound gorillas that is not being
sufficiently addressed by all the businesses and panel
members has been transition planning. When I would
ask about this issue, I could observe the nonverbal
communication, and that said it all. Common
responses were that they were working on it or as a
family it will be ironed out when the time comes.
Others stated that they had a bad experience with a
facilitator, their lawyer, or an accountant. Despite this,
they indicated that they had things under control.
One common point in transition planning is that
it is not only the fixed assets of the business that are
transferred; the best management practices, expertise,
and culture must be passed to the new generation for a
transition to be truly successful.
While being on the road this summer, I have
noticed that more young people are coming back into
family and non-family agricultural operations. More
and more businesses are also being managed by female
owners and managers. This trend appears to be a wave
of the future.
Finally, all individuals were cautiously optimistic
about the future of agriculture. The ability to adapt
and change, along with a high business IQ, were
stressed as a means of coping with the globally
competitive marketplace where there seems to be a
surprise around every corner.
This chart illustrates the gap between long-term and short-term rates continues to decrease. It is a good time to call your FCS
Financial expert to discuss your interest rate risk and options available including fixed rates.
30-Day vs 15-Year Farm Credit Bond
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
15 Year Farm Credit
30 Day Farm Credit
Fed Funds Target
HEARTBEAT | FALL 2018 11