#85 Resiliency: The Secret to Success in Farming and Ranching
As I sit here on my farm on August 7, 2024, I can't help but think about the challenges we're facing in agriculture. We've been hearing a lot of tough news lately, and it's got me thinking about how we can stay strong and keep our farms going, even when things look bleak.
First off, let's talk about what's happening. Big companies are laying off workers, cattle markets are down, and grain prices aren't looking great. Here are some of the numbers we're seeing:
Kinze is laying off 193 people from their plant in Williamsburg, Iowa.
John Deere in Moline is cutting 134 jobs in their seeding and cylinder sectors. This is on top of 489 job cuts they made to salaried employees earlier this year.
Agco saw a 6% reduction and reported net sales of $3.2 billion in quarter two this year, which is a 15% drop from the same time last year.
It's enough to make anyone worry. But here's the thing – we've been through tough times before, and we'll get through this too. We never know when the markets will change, but we can rely on a resilient mindset no matter what the economists are predicting.
So, how do we stay resilient? Here are some ideas I've been mulling over:
Mix Things Up
One way to weather the storm is to have different sources of income. Maybe you could add a hay business to your cattle operation, or sell some of your meat directly to customers. Look at what resources you have and what opportunities are out there.
I know it's not easy to start something new when money's tight, but there might be ways to do it without spending too much. For example, agritourism has been a great option for many farms. Just be aware that when times are tough for everyone, people might not have as much to spend on fun farm activities.
2. Use What You've Got
The easiest dollar to manage is the one you've already made. Now's the time to really look at how we're using our resources. Maybe you could sell equipment you don't use much, or team up with neighboring farms to share expensive machinery.
Get out those spreadsheets and really dig into your numbers. Know exactly what you're spending and earning. You might be surprised at what you find when you put it all down on paper.
3. Change How You Sell
If you usually sell your calves at a certain time or weight, maybe it's worth looking at other options. Could you keep them a bit longer and sell at a different weight that might fetch a better price? Or could you team up with local processors to add value to your products?
Direct sales to consumers can be tricky during tough times, but remember – it's not just about price. It's about the relationship you build with your customers and the unique value you offer. Help them understand why buying from you is special.
4. Talk to the Money People
Now's a good time to sit down with your financial advisor or tax pro. There might be tax breaks or incentives you haven't used before. Make sure they know you're looking for ways to position yourself better for the next tax season.
6. Manage Your Risk
Look into tools like crop insurance or futures contracts if you haven't before. Even if they weren't a good fit in the past, it's worth checking again. The goal here isn't to make big gains, but to avoid big losses so we can keep producing until markets improve.
7. Remember Your Purpose
This is so important, especially during tough times. Why do you farm? What gets you out of bed in the morning? Keep that purpose in mind. If we can make it through this rough patch, we'll be in a great position when things turn around.
Lastly, remember it's okay to step back from all the negative news sometimes. Focus on what you can control and the things that really matter – your family, your friends, your community. These are the folks who'll have your back when times get tough.
We can't control what happens in the markets, but we can control how we respond. By staying focused on our goals and making smart decisions, we can weather this storm and come out stronger on the other side.
If you're facing challenges on your farm or have found ways to stay resilient, I'd love to hear about it. Drop by our Facebook group and share your experiences. We're all in this together, and by supporting each other, we can keep our farms and families strong.
You may also enjoy…
#17 Mental Health is Not a Dirty Word in Agriculture with Jason Medows
#32 Shifting Perspectives with Michaela Gasseling
#56 Finding Fulfillment on the Farm through Understanding Your Identity
About the Host of Farming on Purpose, Lexi Wright:
I’m your host, Lexi Wright. I started the Farming on Purpose Podcast from a passion for sharing the future of production agriculture. I’m so glad you’re here and I hope you’ll take a moment to join the conversation with me and other listeners on social media.
Connect with me on Instagram @wrightatthemoment, Facebook, and TikTok.
