Farm Business - General

New Data: Is U.S. Agriculture Facing a Typical Cycle or a ‘Geopolitical Reset’?

Thu, 30 Apr 2026 18:56:48 GMT

The latest Farm Journal Ag Economists’ Monthly Monitor shows a bit more pessimism from respondents on the current state of the ag economy as well as how the present compares to one year ago.

Farm Journal regularly reaches out to a vetted list of 80 ag economists from across the industry. Providing directional insights, 10 of the 16 economists who responded to the April survey believe the ag economy is in a worse state than it was a year ago. Slightly fewer than half expect conditions to be “somewhat better” in 12 months, while one-third still anticipate further decline.

“I just haven’t really changed my level of pessimism regarding this year. This is going to be a tough year. There’s no doubt about it,” says Michael Langemeier with Purdue University.

The conflict in Iran weighs heavy on economists’ minds; high fertilizer prices and high energy costs dominate concerns. This overshadows the previous looming concerns of the trade fragility and export deficit. The previously announced government payments are in the rearview mirror.

Wes Davis from Meridian Agribusiness Advisors agrees that profit margins squeezed by high input costs are the top concern.

“When we talk about the more pessimistic view of the ag economy, fertilizer prices driven by the outbreak of war in Iran is certainly top of mind,” he says.

But Davis says there have been some positive tailwinds for commodity prices over the past few months, and there’s ‘no slowdown’ in demand for animal proteins.

“Those tailwinds continue to be present,” he says.

A Fundamental “Structural Shift”

Three-quarters of the economists believe U.S. agriculture is undergoing a permanent structural shift rather than a typical cyclical phase. They cite increased competition from Brazil, changing trade policies and the rapid adoption of artificial intelligence as factors reshaping the industry for the long term.

(Farm Journal Survey, April 2026)

“I’m thinking of this one as the geopolitical and input reset,” Davis says. “What I mean by that is, where things go and how we interact with the global ag economy when this cycle or when this shift is over will be different. The way that farmers get their agrichemicals, their fertilizers, their vitamins/trace minerals for feed, their tractors will all be different.”

Davis brings up the farm bill as another example. He questions whether the structural shift in policy is moving away from supporting “commercial farm preservation” and more toward “rural economic development.” This distinction could change the long-term framing of ag policy.

While Davis’ perspective is in the majority, Langemeier offers a counterpoint. He says this today reminds him a lot of the 2014 to 2019 period when there were about six years in a row of relatively low crop margins.

“I know there are a lot of changes going on, and certainly we’re worried about the competitiveness of U.S. agriculture compared to Brazil, particularly for soybeans,” he says. “As one example, I think the AI developments actually could be positive, and so I don’t necessarily see why that would necessarily mean a structural shift that would be negative.”

Geopolitical Impacts on Input Costs

The conflict in Iran and broader Persian Gulf instability are identified as primary drivers of agriculture’s economic health. Economists are specifically concerned about how these tensions are “pinching margins” by driving up the costs of energy and fertilizer while commodity prices remain relatively low.

“The negative impact of the Iran conflict has been increased fertilizer and energy prices. I did some crop budget calculations: If you hadn’t bought your fertilizer and most of your fuel is yet to be purchased prior to the Iran conflict that’s a pretty large effect on corn break-even price. I calculate it to be 25 cents a bushel. And when your break-even price is already at $5, which is way above what the futures price adjusted for basis is this fall, that’s certainly not helping matters,” he says.

It’s not just fertilizer and fuel. It’s other input categories in row crop agriculture and livestock production as well.

Noting input prices are 15% to 20% higher than pre-COVID levels, Davis points out that prices for active ingredients have gone up 20% to 30% since the conflict in Iran started.

“This continues to exacerbate that question around how long are we going to continue to see input prices increasing?” Davis says. “The other things that are less talked about but are starting to show up in pricing data are things like low inclusion additives for livestock feeds, so things like vitamins and trace minerals are starting to show up in pricing increases as well as they are being disrupted in trade flow and a slowdown of exports from China.”

Langemeier adds to the question around input pricing increases, saying it’s unknown if the uncertainty and elevated costs will go into 2027.

Strategic Deferment of Capital Expenses

To manage tight margins, farmers are expected to prioritize paying down debt over investing in land, equipment/technology, capital improvements and labor. Machinery and equipment purchases are the top items likely to be reduced or deferred in 2026, with half of economists also warning that cuts to fertilizer and crop protection could start impacting yields.

(Farm Journal Survey, April 2026)

“The number one thing as always is farmers want to be paying down debt,” Davis says. “Equipment is going to continue to be in a trough, and my expectation is that tractor sales year over year are still going to be 10 to 15% lower this year versus last year.”

He also foresees a continued transition to generic crop chemicals for the next two years.

Davis makes a distinction regarding which farms could survive this pinch on profitability. He describes a “tale of two economies” where disciplined farms with high liquidity can still find financing to grow, while those who grew aggressively at the peak of the cycle are facing a “pullback” from lenders. This adds a layer of nuance to the “commercial viability” discussion.

Langemeier provides a sobering warning about how farmers are managing the third year of low margins. He notes a trend of farmers starting to borrow against their land (non-current debt) to cover operating expenses — a pattern seen during the 2014 to 2019 downturn. He emphasizes the urgent need for “contingency planning” and a “Plan B” for debt repayment this fall.

“Usually, farms will try to cover their owner withdrawals and repay debt before they even think about making down payments on machinery. Capital expenditures always get squeezed when cash flow is tight. That’s just the way it works. We’re in one of those situations where capital expenditures are just going to be lower, primarily machinery and buildings,” Langemeier says.

10 Leadership Habits That Make Employees Want to Stay

Thu, 16 Apr 2026 16:01:33 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.

The Shrinking Slice: Farmers Receive Less Than 6 Cents of Every Food Dollar

Tue, 31 Mar 2026 20:45:07 GMT

For the past two years, USDA has estimated farmers and ranchers received less than 6 cents of every food dollar. In 2023, that was 5.9 cents, and using the latest data from 2024, it’s 5.8 cents.

“Our oldest data point right now is 2007 [USDA updated the data series] and that’s 14.7 cents per dollar, and now we’re down all the way to 11.8 cents per dollar,” says Faith Parum, economist with the American Farm Bureau Federation. “So we’ve really seen that decline year after year. It reflects how much of the value of things in the grocery store or when you go out to eat is going to other parts of the supply chain and not necessarily to farmers and ranchers.”

Livestock vs. Crops: A Widening Gap

The aggregate decline masks a widening gap between sectors. While the overall farmer share is down, livestock and crop producers are seeing divergent trends:

Crop Farmers: Share dropped from 2.9 cents to 2.5 cents (a 2.5% year-over-year decrease).
Livestock Producers: Share increased from 3 cents to 3.3 cents.

“Overall, the farmer share is down. But we have those two markets really at odds,” Parum says. “We’ve seen that tale of two farm economies where our livestock producers maybe have seen a little bit of better days than they had had in the past, while our row crop farmers and our specialty crop farmers are really facing strong headwinds in the market.”

Effect at the Farm Gate

As highlighted by USDA, farm finances are quickly strained when farmers/ranchers are capturing a small percentage of the food dollar and even modest swings in commodity prices and/or input prices take place.

Parum adds, “when we talk about the health of our farms and the health of future generations on the farm, and being economically viable and sustainable and being able to keep their operations open, the trends we’re seeing right now are really hard for those farmers. Our ranchers are seeing a little bit of better days right now with high beef prices, but that’s not going to last forever, and with production expenses continuing to increase, we’re really going to see that that question come up of, what is sustainable if, if these dollars we’re spending in the grocery store aren’t making it back to our farmers.”

Where Does the Money Get Distributed?

The key takeaway: farmers produce the raw commodities that make food production, however, the price is clearly more determined by what happens after the products first leave the farm.

The USDA Food Dollar Series tracks how each dollar is spent by consumers and then divides it across the industries contributing to the value in the supply chain, such as farming, food processing, transportation, packaging, wholesaling, retail and food service. As noted by the USDA, with each step in the process, the additional services, labor, transportation and infrastructure add value and increase costs to the final food product.

USDA’s Economic Research Service Food Dollar Series shows in 2024, farmers received 11.8 cents of every dollar spent on domestically produced food, the remaining 88.2 cents of the food dollar went toward the ‘marketing bill’, which includes costs associated with food processing, transportation, packaging, wholesaling, retailing and food service. Over time, this shift illustrates how an increasing share of food spending is driven by services and supply chain activities rather than farm production itself.

Groceries Leave the Most on The Table For Farmers

Farmers’ share of consumer food spending varies widely depending on the type of food purchased. For example, the farm share of the food-at-home dollar was 18.5 cents in 2024, up slightly from 18.4 cents in 2023. But even in this category it means only than one-fifth of what consumers spend on groceries goes back to farmers.

As you may expect, products with minimal processing, require less of the value to be retained in that part of the food system, and therefore return a larger share of the food dollar to producers.

“The highest commodity that gets the most of that food dollar is fresh eggs,” Parum notes. “That’s just because there’s limited labor to process that food.”

Examples include:

Fresh Eggs: 69.1 cents (+6% from 2023)
Beef: 52.2 cents (+4.8%)
Fresh Milk: 50.8 cents (+5.6%)
Pork: 23.7 cents (+7.2%)
Poultry (+3.1%)
Fish (+2.8%)
Tree nuts and peanuts (-1.7%)
Fresh fruits and vegetables (unchanged)
Bakery Products: 4.8 cents (-9.4%)
Soft Drinks/Bottled Water: 1.3 cents (-7.1%)

The Succession Gap: Why Two-Thirds of Farms Face an Uncertain Future

Tue, 03 Mar 2026 20:18:09 GMT

Farm Journal recently reported that 44 million acres of U.S. farmland are expected to change hands in the coming years - nearly 15% of American cropland by 2030.

That’s a staggering number. But what concerns me most isn’t just the acreage. It’s what that number represents: leadership transition, ownership transition and decision-making transition happening all at once across the country.

When I look at the accompanying data, I see both opportunity and vulnerability.

According to the Farm Journal Seed & Planting Survey and Consolidation Index Predictive Model Analysis, only 34% of growing operations have a formal succession plan. Among benchmark producers, that number drops to 29%. For operations identified as at-risk, just 21% have a documented succession plan in place.

Let that sink in.

Even among farms positioned for growth, two-thirds do not have a formal plan for how leadership and ownership will transition. And nearly four out of five at-risk farms are operating without one.

At the same time, consolidation risk is not limited to smaller operations. Farms under $250,000 in gross income show a 58% consolidation risk. Farms between $250,000 and $500,000 show 48%. But even operations in the $1 million to $2.5 million range carry a 32% risk. And those between $2.5 million and $10 million still sit in a baseline consolidation risk zone of roughly 27–30%.

In other words, income alone does not protect you.

Succession gaps, management transitions and strategic exits are driving consolidation regardless of size.

I’ve spent my career working with agricultural families navigating generational transition, and I can tell you this: consolidation rarely happens overnight. It happens when pressure meets unpreparedness. A health event. A lender conversation. A market downturn. A disagreement that was never resolved. A next generation that was never fully developed or clearly empowered to lead.

Agriculture has always been unpredictable. We all understand that. Weather changes. Markets move. Policies shift. But what feels different right now is how layered the uncertainty has become. Interest rates have restructured balance sheets. Input costs remain volatile. Capital demands continue to rise. Technology expectations are accelerating. And the average age of the American farmer keeps climbing.

Generational turnover is not something we can push off for “someday.” It is happening now.

So, here’s the question I would ask any farm leader reading this: If something unexpected happened tomorrow, would your operation be okay?

Would there be clarity about who makes decisions? Would ownership be clearly defined? Would compensation and reinvestment policies be understood? Would lenders feel confident in your continuity? Would your successors be prepared - not just present - to lead?

If you hesitate in answering that, you are not alone. But hesitation is a signal.

The data in the Farm Journal analysis tells an important story. Growing operations are more likely to try new technology. They are more likely to plan land investment. And they are more likely to have formal succession plans in place. That is not coincidence. It reflects intentional leadership.

The leaders that plan tend to think about the long term - not just the next growing season. They understand their profitability by enterprise. They are disciplined about capital allocation. They define leadership roles. They have hard conversations before circumstances force communication. They build clarity into the business so that transition strengthens it rather than destabilizes it.

Succession planning is often misunderstood.

It is not simply an estate planning document. It is not a will tucked in a drawer. It is not something you address only when someone retires. It is a business discipline.

It requires clarity about management transfer and ownership transfer - and those are not always the same thing. It requires fairness, which is not necessarily equality. It requires governance structure so family conversations don’t become a business crises. It requires intentional development of the next generation so leadership transition feels earned and prepared, not assumed.

And perhaps most importantly, it requires timing.

Consolidation favors clarity. It favors farms that reduce ambiguity before outside forces expose it. It favors operations that are structured - not just successful.

One of the most revealing pieces of the consolidation data is that even higher-income farms carry measurable risk. A $3 million or $5 million operation is not immune. Scale does not eliminate vulnerability if leadership transition is unclear or strategic direction is undefined.

The 44 million acres projected to change hands represent a defining moment for American agriculture. Some families will use this season to strengthen continuity and expand. Others will find themselves reacting - not because they lacked work ethic or competence, but because they delayed putting structure in place.

Planning does not eliminate uncertainty - but it does provide framework and stability.

It allows you to make proactive decisions rather than reactive ones. It gives lenders confidence. It gives the next generation clarity. It protects family relationships. And it preserves optionality.

If your farm is truly okay - strategically aligned, financially transparent, leadership-ready - then planning becomes a growth tool.

If it’s not, planning becomes urgent.

Either way, it matters.

Knowing the data should never create paralysis. Understanding your consolidation risk, your succession gaps and your financial position gives you something incredibly valuable: choice. When your business structure is clear and your succession plan is thoughtful but flexible, you can pivot as markets shift, opportunities emerge or circumstances change. You may not be able to eliminate uncertainty - but you can position yourself to move through it with confidence.

USDA Forecasts Significant Drop in U.S. Ag Trade Deficit as Exports Rise

Fri, 27 Feb 2026 21:24:46 GMT

USDA now projects the U.S. agricultural trade deficit will narrow to $29B in FY2026 , down from about $50B a year ago. Undersecretary for Trade and Foreign Agricultural Affairs Luke Lindberg says the trade team isn’t done yet.

(Data: USDA)

“Our goal is to get back to surplus, but going from $50 billion (forecasted) to $29 billion in one year shows tremendous progress, 43% down over this time last year, and we’re continuing to make good progress on seeing that drop even further,” Lindberg says.

Exports rising

Three areas with notable increases in exports by year-end of 2025 include:

Dairy exports up 15%
Ethanol exports up 11%
Corn exports up 29%

Simply put, the U.S. ag trade balance is export value minus import value. Lindberg says the export side of the equation is where his team can make the most impact.

“We’ve seen great opportunities as our producers can take new advantage of some of these trade deals the president has put in place. So, the stat that I love to say right now is over half the world’s population and over half the world’s GDP have come to some kind of a trade agreement with the president in his first year in office. That’s a lot of mouths to feed and a lot of dollars that can be buying U.S. products.”

In recent decades, the U.S. maintained a positive trade balance up until 2020 when the surpluses were much smaller or became deficits.

How USDA says it will push exports

To build back trade, Agriculture Secretary Brooke Rollins’ team is sticking to a three-point plan:

Get better trade agreements.
Build willing buyer and willing seller relationships.
Hold trading partners accountable.

“Our team and our friends over at the U.S. Trade Representative’s Office have done a tremendous job opening up market access with our dealmaker-in-chief, President Donald J. Trump. Our team at USDA plays an outsized role in getting our farmers and ranchers out there to sell their products. I refer to it as building buyer-seller relationships. And so we’re aggressively approaching that this year, with getting our farmers and ranchers and our agribusinesses on the ground in these countries where they have market access today that they didn’t have yesterday,” he says.

Trade missions: 2026 schedule and priorities

To continue to build trade relations and boost exports, Lindberg points to the traditional USDA agribusiness trade missions ( of which there are six scheduled in 2026 ), and the rapid response trade missions called TRUMP missions (Trade Reciprocity for U.S. Manufacturers and Producers).

“We really do have a robust, aggressive schedule this year to make sure we’re quickly getting into these markets that the president has unlocked,” he says. “We need market access. We need to be able to compete on a fair and level playing field to export our products around the world.”

Domestic angle: imports, tariffs, and “level playing field”

As for the domestic demand of ag products, and potentially reducing the value of agricultural imports, Lindberg says farmers should also have a level playing field stateside.

“Our farmers and ranchers now have a better playing field, both overseas, where we’re taking down trade barriers, but also here domestically, through the President’s aggressive use of tariffs and the way in which he has restructured the opportunities that exist domestically for our farmers. And we’re seeing that in the trade data, where on a dollar-for-dollar basis, we’re going to be importing a significant amount less this year than we did even last year. And what that does is it means more Americans, more of their dollars are going towards food that is produced, consumed, slaughtered, raised, processed, right here in the United States of America, and I think that’s a win as well.”

The next agribusiness trade mission is to the Philippines.

44 Million Acres: The New Frontier of Farm Consolidation and Growth

Tue, 10 Feb 2026 18:01:18 GMT

At the 2026 Top Producer Summit , Farm Journal Intelligence unveiled new farmland insights derived from predictive modeling and deep-data analysis. The research focused on the shifting landscape of land acquisition, identifying which operations are at risk of consolidation, who is positioned for growth and where the most significant opportunities lie.

Here are the six primary findings for farm businesses:

1. Scale Does Not Immune Operations from Consolidation.

(Farm Journal)

While smaller operations face the highest risk — with 58% of small farms “at risk” for sale or acquisition before 2030 — size is not a complete safeguard. Research shows the risk of consolidation or ownership transfer never drops below 27%, even for the largest operations. Furthermore, crop diversity made minimal impact on these odds; the likelihood of transition remains constant whether a farm produces one crop or more than 11.

2. Geography Trumps Diversification.

(Farm Journal)

Regional location is increasingly becoming a primary driver of financial success, often outweighing the benefits of operational diversification. As regional market divides grow, farmers and ranchers are finding that local market conditions and individual circumstances dictate their trajectory more. State-level or even county-level effects are more indicative of their situation than national trends.

3. The 44-Million-Acre Transition.

(Farm Journal)

Nearly 15% of American cropland is projected to change hands within the next three years, driven by generational transfers, continued consolidation and economic pressures. Farm Journal data identifies the Midwest as the epicenter of this shift, with roughly 12 million acres likely to transition. Nationwide, that total reaches a staggering 44 million acres.

4. Mapping the “Sweet Spot” for Expansion.

(Farm Journal)

By plotting cost per cropland acre against the volume of land likely to transition, clear opportunities for expansion emerge. For producers looking to grow their footprint, the most viable opportunities are currently concentrated in Kansas, Texas, North Dakota, Missouri, and Oklahoma, according to this research.

5. Integrity Is the Top Currency in Rental Markets.

(Farm Journal)

When more than 400 landowners were surveyed about tenant selection, integrity ranked as the most critical factor. Interestingly, age was reported as the least important factor. For producers looking to secure rented ground, a reputation for character and experience outweighs both seniority and youth.

6. The “Willingness” Factor in Technology.

(Farm Journal)

Producers most inclined to expand share a common trait: a higher comfort level and rate of adoption with technology. Crucially, this is not necessarily tied to technical skill or existing expertise, but rather to mindset and action. The most growth-oriented producers are defined by their willingness to try new technologies rather than their current mastery of them.

Download the Full Report

How the $15 Million Estate Tax Exemption Changes Your Farm Succession Strategy

Mon, 26 Jan 2026 20:01:09 GMT

The world of estate planning for farmers has changed dramatically after the passage of the One Big Beautiful Bill Act. This permanently increased the lifetime gift and estate tax exemption to $15 million indexed starting Jan. 1. With the federal estate tax exemption at historically high levels, most family farms are no longer at risk of paying federal estate tax. However, this shift has brought a new focus to income tax planning and the importance of preserving the step-up in basis at death.

Understand the Step-Up in Basis

When a person passes away, the value of their property is generally reset to its fair market value at the date of death. This is known as a “step-up in basis.” For farm families, this is a crucial benefit. Farmland and other agricultural assets often appreciate significantly over time. If heirs inherit these assets, they receive them at the new, higher value. This means that if they later sell the property, they will owe little or no income tax on the appreciation that occurred during the original owner’s lifetime.

Why Estate Tax Is Less of a Concern

With the current high exemption, only the largest farm estates face federal estate tax. For most families, the bigger risk is not estate tax; it’s the potential for large income taxes if the step-up in basis is lost. This can happen if assets are given away during the owner’s lifetime, rather than being passed on at death.

The Pitfalls of Lifetime Gifting

Many farmers consider making large gifts during their lifetime, worried that the estate tax exemption will drop in the future. While this can be a good strategy for very large estates, it can be costly for smaller farm operations. When assets are gifted during life, the recipient takes over the original owner’s basis, which is often much lower than today’s value.

If the recipient later sells the property, they could face a significant income tax bill. In contrast, if the property is inherited, the basis is stepped up to current value, minimizing or eliminating income tax.

Likely the best asset to gift during lifetime is farmland that will be retained in the family for multiple generations. The step-up in this case is not as valuable because we can’t depreciate farmland, and if it is not going to be sold, the heirs are not worse off. Plus, appreciation in farmland can be very volatile and could cause the farm couple to owe estate tax.

Hidden Cost of Gifting Negative Capital

Many farm operations are structured as a partnership for income tax purposes and farms with debt will typically create what is called a negative capital account and, in many cases, this can easily exceed $5 to $10 million for larger farm operations. Gifting any interest in these partnerships during a lifetime will create ordinary income to the farmer because the “debt” eliminated exceeds the basis in the partnership’s assets, which is typically zero. Whereas holding until death eliminates the tax for their heirs. However, a drawback is that the older generation might still be on the hook for the debt until they pass.

For the vast majority of farmers, estate tax planning is now about smart income tax planning. Preserving the step-up in basis at death can save heirs substantial taxes and help keep the family farm in the family. Careful planning today can help protect your family’s legacy for generations to come.

Paul Neiffer has been tracking the latest in tax policy and government programs. Learn more about what you should factor into your farm business and potential tax implications at Top Producer Summit, Feb. 9-11 in Nashville. View the agenda and register today !

Winter-Proof Your Workforce: Keeping Employees Warm on the Job

Fri, 27 Sep 2024 17:11:57 GMT

What started as a mild winter is bound to become brutal as plunging, dangerous temperatures sweep across much of the U.S. While most of the country will stay bundled up inside, farmers and their employees don’t have the luxury of skipping work for a snow day.

To create a safe and comfortable work environment for your farm employees, it’s important to address the specific challenges posed by cold weather on the farm. As temperatures begin to drop, consider implementing the following tips to keep your crew safe, warm and productive:

Make Sure They Have Adequate Clothing

Dressing poorly shouldn’t be considered “cool,” especially when it comes to harsh winter weather conditions on the farm. However, not all employees know how to appropriately dress for the bitter weather. Consider providing them with the following checklist and keeping a few extra items in a bin for employees to use in case they forget.

Some examples of warm winter clothing include:

Lined jackets
Lined overalls
Stocking caps / hats and lined gloves
Long thermal underwear
Lined boots – waterproof and anti-slip
Wicking wool socks
Scarf

Provide Warm Break Areas

Working out in the cold can take a toll on the body. That’s why it’s necessary to take frequent breaks to rest and warm up. To keep employees going, be sure to create designated warm break areas for your employees to recuperate.

Offer snacks that are not only tasty but also provide energy. Nutritious options like trail mix, energy bars, and fruits can help replenish energy levels. You can also supply a selection of hot beverages like coffee, tea or hot chocolate. If employees are coming in from wet or snowy conditions, consider having a designated area with a drying rack for wet outerwear, gloves, and boots.

Adjust Schedules

Adjusting schedules in the winter is a practical strategy to address the challenges and potential hazards associated with cold weather. Along with allowing more frequent breaks to prevent prolonged exposure to the cold, consider scheduling more grueling outdoor tasks during the warmer parts of the day.

Keep Up Communication

Safety concerns rise as cold weather intensifies. This rings true for not only our employees, but livestock as well. Keep the lines of communication open with employees to address concerns and gather feedback on their comfort and to learn if areas of the farm need immediate attention.

Work in Pairs

While farmers are already hard-pressed to find labor, working in pairs allows employees to get the job done quickly and safely. Using the buddy system ensures that every employee is accounted for and that the work gets done in a timely fashion. This system is especially important for employees working in remote areas.

Have an Emergency Kit

Winter weather can be unpredictable. Having an emergency kit in a well-known location can be a lifesaver when it comes to coping with unexpected challenges. Keep your kit filled with the essentials, such as:

Medical supplies
Extra clothing
Blankets
Handwarmers
Flashlights
Non-perishable snacks

Know the Signs of Cold Stress

Hypothermia and frostbite are the two most common forms of cold stress and can be fatal if left untreated. To help minimize the risk of these conditions going unnoticed, make sure to review and be on the lookout for the following symptoms.

Signs of Hypothermia:

Fast and shallow breathing / trouble breathing.
Going from shivering to not shivering.
Hunger, fatigue and confusion.
Lack of coordination.
Increased heart rate.
Weak pulse.
Slurred speech / mumbling.
Dizziness and nausea.

Signs of Frostbite:

Cold skin, prickling feeling and numbness.
Red, white, bluish-white or grayish-yellow skin.
Hard or waxy-looking skin.
Clumsiness due to joint and muscle stiffness.
Blistering after rewarming when severe (expect exposed skin to peel off).
If the skin turns black seek medical attention..

Will Congressional Inaction Force Farmers to Choose Between Health Insurance and Their Farm Budget?

Tue, 16 Dec 2025 15:16:10 GMT

Healthcare insurance plans for some U.S. farmers could double in 2026, as enhanced federal subsidies under the Affordable Care Act (ACA) are scheduled to expire.

The impending cost surge could affect thousands of U.S. farmers who currently rely on the ACA marketplace for their health insurance, according to the non-partisan KFF (formerly Kaiser Family Foundation), a health policy organization.

KFF estimated in 2023 that 27% of “farmers, ranchers, and other agriculture managers” relied on individual ACA market coverage. Nationally, more than 22 million Americans rely on the ACA marketplace for insurance options.

Farmers ‘Don’t Have Many Options’
Iowa farmer Aaron Lehman, who testified before Congress last week, highlighted the severity of the potential cost increase on his family. He said he expects to pay double to purchase an insurance plan for 2026 that would be comparable to what his family had this year.

“That is an incredible cost for our family budget and for our farm budget,” Lehman stated. The fifth-generation farmer and president of the Iowa Farmers Union described how rising healthcare costs are colliding with already harsh economic realities in agriculture.

“Farmers right now are trying to make all sorts of decisions because commodity prices are low, because of the chaotic trade situation that we’re in and higher input prices. All these things have made a real crisis for a lot of our farmers,” said Lehman.

“Finding ways to deal with that, we just don’t have too many options. Farmers will buy less equipment or not make the necessary upgrades and equipment that they need to,” he added. “They’ll look at their input suppliers, and they’ll decide, ‘what can we do to get through just this year … to get a plan to put the crop in the ground?’”

Read the testimony of Aaron Lehman here. A portion of his testimony and discussion is also featured on a posting to YouTube .

Signup Deadlines For Coverage
The challenge for farmers trying to decide on what insurance policy to purchase is compounded by the deadline to enroll in ACA marketplace plans: People needed to choose their ACA plan by Monday for coverage to begin Jan. 1. Open enrollment continues in most states until Jan. 15 for coverage beginning Feb. 1.

Despite broad public support for an extension to the ACA tax credits — a KFF poll said 74% of Americans favor continuing the enhanced credits — a congressional standoff has so far failed to produce a solution:

Failed Votes: Both a Democratic plan to extend the enhanced tax credits for three years and a Republican proposal to replace them with Health Savings Accounts (HSAs) failed to pass the Senate last week.
Impending Crisis: Nearly six in 10 enrollees (across all categories) told KFF they could not afford even a $300 annual increase in 2026 without significantly disrupting household finances.
Political Fallout: The issue of healthcare costs and expiring subsidies is highly polarizing, with some Republicans warning that a failure to address the problem could cost them legislative majorities in next year’s mid-term elections.

As the deadline for open enrollment closes and the Dec. 31 subsidy expiration date approaches, farmers must prepare for substantially higher health insurance costs in 2026 unless Congress acts to reach a last-minute agreement.

Young Farmers Need Better Options
During his testimony and ensuing discussion, Lehman stressed that healthcare isn’t just a personal household issue; it’s central to the future of American farming. With the average age of an Iowa farmer at 57, he said the sector desperately needs young and beginning farmers to return to the land. But without affordable, reliable health coverage, inviting the next generation back onto the farm becomes a far riskier proposition.

“You have to be very smart to figure out the plan that can bring the next generation on the farm,” he said, adding that many talented, innovative young people want to farm, but face daunting financial barriers — healthcare high among them. He noted that one of his sons works with him on their family operation, which is based in Polk County, Iowa.

Lehman framed affordable healthcare for farm families as an investment, not a handout: a way to make it possible for young farmers to feed their communities, support local and regional food systems, or continue larger family commodity operations.

“Extending the federal support for lowering the cost of health insurance is a true win for farmers and for all of rural America,” he said.

One Farmer's Idea to Avoid Yellowstone Drama When Transferring the Family Farm

Tue, 25 Nov 2025 14:30:54 GMT

At 8 cents a pound, pigs weren’t worth much when Todd Wiley formed Interstate Swine LLC with his dad in 1998. Nobody wanted weaned pigs. Facilities quickly became available as people left the pork industry. With a sincere desire to make a living raising pigs on his family’s farm, Wiley stepped out in faith. Nearly 30 years later, this multi-generational farming endeavor in eastern Iowa has survived some of the toughest times and some of the best times.

Maybe that’s why Wiley has taken a unique approach to bringing the third generation back to the farm.

“There’s no doubt that family is important to Todd,” says Pat McGonegle, CEO of the Iowa Pork Producers Association. “He puts family first, and the farm is a part of that discussion. He manages his family members that are part of that farm in a real professional way, but also with an eye towards the legacy that he and Denise want to leave on their farm.”

Would This Be Good For My Kids?

Growing up, Wiley’s parents talked about succession planning often with their three sons. The concept of planning for the generational transfer of the family farm came naturally to Wiley.

“When we started Interstate Swine, we needed to hire employees,” he says. “One of the things I was conscientious about was making sure the employment opportunity within our business would be conducive to our children filling those roles.”

From the beginning, Wiley instituted health insurance plans, matching IRA funds, paid time off, paid vacation, and other benefits that employees would typically look for when securing a job.

“I constantly asked myself if this would this be good for my kids someday?” he says.

Wiley and his wife, Denise, have four kids: Drew, a Kansas State University animal science graduate and former K-State Football defensive tackle; Isaac, an Iowa State University agribusiness graduate now employed with Ever.Ag; Emma, owner of Auntie Em’s - Event Florist and attended Des Moines Area Community College; and Joshua, a junior at Iowa State University in animal science.

In 2017-2018, the Wileys doubled their sow farm to create more opportunities for the children to have a place on the family farm.

“It was a fairly tedious process – not only from a business standpoint, but about what the next generation was going to do,” he says. “They were all too young back then, and there was no way I could ask them for any sort of commitment to our business. But I did ask a lot of professionals. I remember asking our accountant specifically, ‘In your experience, what is the likelihood of a farm family having the next generation be involved, providing you have a viable business?’”

The accountant’s response was, “It’s pretty high.”

“Denise and I knew we needed to have some economies of scale,” Wiley explains. “There’s not much point in succession planning, if there’s nothing to succeed to or succeed with. We were mindful of that when we moved forward. Now, we have room for additional people, not only for labor, but also in management where we can utilize their skills.”

No Yellowstone Drama Here

As a family, it is easy to recognize each other’s strengths as well as quirks, he points out. But he wanted a better way to evaluate his children’s strengths and weaknesses, as well as interests, on the farm.

“I remember when a successful family in eastern Iowa, with a number of businesses, built a feed mill and elevator,” Wiley shares. “The father of this family passed away unexpectedly. Come to find out, nobody in the family had any interest in this feed mill and elevator, so they end up selling it.”

This hit Wiley hard. What would his kids say about where their farm was investing capital? That sparked the construction of a succession planning instrument for the Wiley family.

(Lori Hays)

“The first page of the instrument (an Excel document) started two years ago with a list of 35 jobs that need to be done on our farm,” Wiley says. “Most of them are pig related, but we do crop farm some. It was pretty much everything I was doing in a spreadsheet.”

Each of their children (and one daughter in-law at the time) was asked to rate those 35 jobs from one to five under this scenario: It’s 2033 and Todd and Denise are serving in an advisory role only. You choose to be an active employee of the family businesses. Please answer by circling the corresponding number that best describes your interest in the listed activity.

“It was interesting to see who had interest in what, but it also told us pretty clearly where we needed to go in the future if we wanted our children involved in our business,” Wiley says. “Initially, I think they saw it as a fun activity, just another of Dad’s crazy ideas. But I learned a lot.”

This past summer, the family completed the exercise again.

“I needed to see if the kids were drifting in their interest,” he says. “In one case, there was significant movement in what one of our kids wanted to do. It surprised me to be truthful about it. In the other three cases, they held true to what they thought two years previous. But bear in mind, our youngest was a freshman in college two years ago and a lot can change in college.”

Wiley emphasizes that nobody is required to come back and be involved in the operation. He says there are a million ways to make a living out there and he wants his kids to pursue their dreams. In the version his family filled out in the summer of 2025, he added a second page with 45 statements.

“If you’re going to work with people in a business and a family in any organization, even if you’re not related, you need to have some idea of where they’re coming from,” Wiley says. “On the second page of statements, they were asked to rank their level of agreement with the statement.”

For example, one of the statements was: No matter what I may think of a family member’s job performance, I’ll always have their back publicly.

“If you’ve ever watched Yellowstone, that show creeped me out,” Wiley says. “When I saw the family dynamic portrayed, it made me uncomfortable. We can have our disagreements. But, as a family, you better have each other’s backs out in the community, especially in the business we’re in.”

Getting Out and Getting In

This instrument has been helpful for the Wileys in many ways as they prepare to transfer more of the farm to their children.

“It sheds light on areas where their belief system parallels ours,” he says. “We have a definite place of emphasis now. Our children have a pig feeding business called Fourth Gen Hogs LLC, where they’re each 20% owners, Denise is a 10% owner, and I’m a 10% owner. It has been a great exercise in giving them the responsibility of ownership.”

He says the timing mirrors the situation he was in when Interstate Swine was formed.

“They got in about a year ago when it was pretty doom and gloom. We went to the bank with this idea, and they’re like, ‘You want to do what?’”

He believes this business venture will be the vehicle for he and his wife to exit pig ownership as their children get into ownership.

“Uncle Sam would have his way with us if we sold out all at once,” Wiley says. “But if we can gradually exit individual barns or individual parts of our production flow and have them enter into it, that’s a fairly nice segue for us to get out and them to get in.”

Wiley shares more about his mini adventure raising rabbits, opportunities for talented young people back on the farm and the message he hopes pork producers hear right now and more on The PORK Podcast. You can watch it here on YouTube or listen anywhere podcasts are found.

Watch more episodes here.

How to Get a Loan Approval: A Banker's Point of View

Tue, 18 Nov 2025 20:28:25 GMT

For most farmers, the next big project on the operation starts with a conversation with your banke, and being fully prepared before you walk into that meeting can significantly increase your chances of getting a loan approval.

Curtis Gerrits, senior lending specialist at Compeer Financial, has spent years helping producers get the financing they need. During a recent Professional Dairy Producers webinar, he shares what truly makes a loan application stand out and how farmers can set themselves up for a smoother approval process.

Get Your Financial House in Order
When preparing for a loan, Gerrits emphasizes lenders look first at clear and complete financial documentation. The process begins with the fundamentals.

“Some of the documents that are top of mind are your profit and loss statement,” he says. “Don’t just stick with the current year. Try to have access to the last three years.”

A profit and loss statement not only establishes whether a business is profitable but also helps lenders understand how the farm manages revenue and expenses over time. Gerrits encourages farmers to follow this with a current balance sheet that breaks down assets and liabilities in detail.

This balance sheet should include livestock numbers, acres owned and leased and a complete equipment list with updated values. Together, these documents paint a picture of financial health and management discipline.

For long-term planning, Gerrits stresses the importance of forward-looking projections.

“Probably one of the last things is to have a detailed projection,” he adds. “What is the business plan, and how is this going to impact your business?”

These projections help both the producer and the lender understand how an expansion, land purchase or capital improvement will affect cash flow and operational stability in the years ahead.

Details Matter
Gerrits says one of the most common pitfalls he sees is overlooking the finer points of financial reporting. Accurate and transparent records build trust and demonstrate professionalism, giving lenders greater confidence in the producer’s decision-making capacity.

“The attention to detail is probably a key thing that maybe gets overlooked from time to time,” he explains.

A lender needs to see exactly what makes up the operation’s income. This could include crop sales, livestock sales, custom work, direct-to-consumer revenue or any other streams that support the business. Clear categorization helps verify performance and gives lenders a better understanding of how the farm is managed.

Build a Strong Relationship
Beyond the numbers, Gerrits stresses the importance of working with a lender who understands the realities of farming. A loan officer familiar with agriculture can better interpret financial statements, spot trends and anticipate challenges.

“Working with a loan officer that understands your day-to-day is really important,” he says. “Having that good relationship where you can bounce ideas off of one another is a really great thing.

Gerrits also encourages producers to bring their lender onto the farm. Sometimes a walk-through can communicate more than a financial packet ever could.

“Put your boots on and take a walk through the barns and show them what you are doing and why the loan application that you are requesting is important,” he says.

Seeing the animals, the facilities and the workflow helps lenders fully understand the operation’s strengths and opportunities, and it gives them greater clarity when evaluating a loan request.

Be Honest About Tough Years
Producers should not shy away from acknowledging difficult financial periods or reporting losses on taxes. Gerrits reassures farmers that losses do not automatically disqualify them from financing.

“Do not get too hung up on the losses out there,” he explains.

A balance sheet can often show how those losses are supported or offset by strong assets, such as land, livestock or equipment equity. What matters most is transparency and context. And demonstrating that you have a plan to manage challenges and leverage your assets can build confidence with your lender.

Plan for the Future
Constant communication with your loan officer can make a big difference in the approval process. Gerrits says checking in periodically, even with a quick touch base, helps avoid surprises.

“Maybe you’ve already talked about: ‘Hey, in a couple of months we might have something come in, and I’m going to have a request for an operating line of credit,’” he says. “That way it’s already in the back of the loan officer’s mind, and they can start preparing or gathering the right information.”

A little preparation can also greatly speed up the loan process. Gerrits recommends giving your loan officer about one month of lead time before funds are needed, along with complete financial documents.

“At the end of the year, we’ll see some borrowers who need to borrow money to do some prepaids to help their tax situation,” he says. “It’s hard to turn things around because a lot of folks are coming in at the last hour. If you give them a month’s lead time with all of the information pertinent, all the financials and balance sheets, that will just help expedite it.”

Looking further ahead, Gerrits encourages producers to think generationally and begin planning for succession well before retirement becomes imminent.

“It is never too early to start a succession plan,” he says.

Early planning gives the next generation clarity about future roles and expectations, helping them prepare financially and personally for the responsibilities that lie ahead.

Own Your Numbers
Ultimately, Gerrits believes successful borrowers take responsibility for knowing and understanding every aspect of their financial position.

“Know your numbers first,” he says. “Don’t just rely on your loan officer to tell you how you are doing.”

Throughout the loan process, preparation and transparency go a long way. Clear financials, attention to detail and regular communication help your lender understand your goals, while on-farm conversations and honest discussions build trust. Being organized, consistent and informed does more than streamline an application, it helps you make better decisions, catch issues early and keep the operation moving in the right direction.

Bitcoin Set to Revolutionize US Agriculture?

Tue, 04 Nov 2025 15:25:41 GMT

Pebble to landslide, Bitcoin is approaching agriculture and its impact will be seismic, echoing the benchmarks of farming history, including cotton gin, steel plow, mechanization, and biotech crops. Or will it?

Only 10 years back, on the turnrow or at the seed house, the mention of Bitcoin elicited mockery. Five years back, laughter. Now? The derision is replaced by inquiry.

Cryptocurrency, as a store of value to a medium of exchange, is on an economic collision course with agriculture, set to change American farms forever, contends a growing chorus of voices within the ag chain.

“Bitcoin is an absolute agriculture necessity going forward,” says producer Zack Smith. “People just don’t realize it yet. Soon, they will.”

First Bird to Fly
Bitcoin was created in 2009. In the eyes of critics, it was a lie agreed upon, or a pyramid built to topple. However, 16 years beyond Bitcoin’s birth, the online currency, thriving beyond the fat fingers of government, is among the fastest adopted technologies in world history.

In extreme northcentral Iowa’s Winnebago County, a stone’s throw below the Minnesota line, Smith works 1,200 acres of row crops and raises a small amount of livestock. He doesn’t flinch at the “first bird to fly takes all the arrows” maxim, whether innovating via wide-row corn, strip intercropping, stock cropping , or Bitcoin.

“Bitcoin is the currency of the future, and that includes agriculture,” says Iowa grower Zach Smith.

(Photo by Stock Cropper)

“It’s just a matter of time for Bitcoin in agriculture, and I don’t mean far off. In 10 or 15 years, Bitcoin could be a normal part of a farm transaction. It’s a question of when critical inertia hits, but Bitcoin will be utilized by folks in agriculture in the near future.”

“The people at the top of agriculture in power, the CEOs, big-time commodity traders, and agribusiness, are looking at Bitcoin as a hedge against dollar debasement,” he continues. “Again, it’s coming fast.”

Out of the chute, Smith sees Bitcoin as a store of value. “Look what’s happened to land. So many outside investors have entered the market, producing inflated land values that make no financial sense with the value of what is being produced.”

“That’s where I see Bitcoin making its first impact. As investors discover there’s something better than land and just as finite, something you don’t pay property taxes on, something you don’t have to maintain, something that is portable, I think land prices will drop closer to utility value, allowing young farmers better opportunities to compete in the market.”

At present, income surpluses are akin to snowflakes in hell, but Smith urges producers to prepare for change. “For those who put their fiat money into Bitcoin, and are patient, I believe they’ll be able to buy two to three times the land in the near future they would have otherwise.”

“The money printer isn’t stopping,” he adds. “Bitcoin is the offramp to the debasement problem.”

Jumping the Treadmill
A lone voice a decade-plus in the past, Vance Crowe has long been a proponent of Bitcoin in agriculture. Host of Ag Tribes and founder of Legacy Interviews , Crowe is adamant: Bitcoin is transformative for farming.

“Just a few years ago, people reacted negatively when I talked about Bitcoin. That’s been replaced with genuine questions and consideration. Bitcoin is going to become deeply embedded in how the business of agriculture functions, and people who’ve been trying to preserve the value of their dollars are going to move those dollars out of land and into Bitcoin. Guys who’ve gotten a 6-7% return on land are looking over at Bitcoin and seeing a 65 percent return every year for the last 15 years. The wake-up is happening in real time.”

“Five, 10, or 15 years, it’s going to completely change agriculture’s game,” says Vance Crowe, regarding Bitcoin.

(Photo by Legacy Interviews)

In March 2025, President Trump signed an order establishing a Strategic Bitcoin Reserve . Three months later, the Federal Housing Finance Agency (FHFA) ordered Fannie Mae and Freddie Mac to develop plans toward the use of cryptocurrency as a mortgage loan asset .

“It’s only a matter of time before ag lending starts realizing it’s a lot better to collateralize loans with Bitcoin, than to do so with cattle or maybe even land,” Crowe projects. “If you collateralize a loan with cattle or land, if that person doesn’t meet their obligations, the lender must assess, load, or sell. Only then does a lender get the money. Bitcoin bundles all of that into a 10-minute fix. Ag lending will become heavily enmeshed in Bitcoin.”

Government maintains the exorbitant privilege of seigniorage, i.e., printing reams of bills with no backing. Need more, print more. Conversely, Bitcoin is limited to a 21-million cap. Finite.

No central issuer; no board of directors; no CEO; and no marketing department. Just a vehicle, according to Crowe, carrying unprecedented opportunity for agriculture. “Farmers have been put in a position where they spend as much of the money they have coming in as possible, both for tax reasons, but also because the value of their dollars always goes down.”

(For a basic primer, see What is Bitcoin? The Explanation That Clicks )

“Bitcoin provides an unprecedented option where a farmer can say, ‘I’ve made this money and I don’t want to risk its value. I’m putting it in Bitcoin.’ That provides a way to jump off the treadmill of constantly buying new tractors, building more sheds, or constantly growing.”

Fundamental change is knocking, Crowe contends: “Five, 10, or 15 years, it’s going to completely change agriculture’s game.”

Proverbial Lightbulb
Raised in hardscrabble 1980s row cropping in southcentral Nebraska’s Adams County, Kevin Kimle watched his father barter. Side of beef for a farm repair; load of pigs for a used semi.

“It’s in our agriculture muscle memory: a means to trade in a different currency,” says Kimle, now an Iowa-based entrepreneur and agriculture economist, and founder of BitCorn . He serves as Rastetter Chair of Agricultural Entrepreneurship and director of agricultural entrepreneurship programs at Iowa State University.

“I view Bitcoin as one of the most important inventions in human history,” says Kevin Kimle.

(Photo by BitCorn)

“We’re at the beginning of a transition to a Bitcoin standard not only in the U.S., but globally, and I think agriculture is a natural first mover on the leading edge of that transition.”

Practically, what does that mean to a farmer? A seventh saved, according to Kimle . As in, annually turning a seventh of a crop to Bitcoin, generating at least two crops worth of Bitcoin by the end of seven years.

He still owns farmland in Nebraska and began researching Bitcoin in 2021. “I’m about four years into this. But my own simulation, if I had sold 10% of my grain for Bitcoin instead of dollars, I’d have four years of crop in Bitcoin today.”

In summer 2025, Kimle set up a business bridge between Bitcoin and traditional agriculture— BitCorn —intent on giving farmers tools, basics, and the means to make transactions.

“The proverbial light bulb went off. At BitCorn, we’re providing a place where a farmer can learn Bitcoin. Agriculture is packed with incredibly innovative entrepreneurs, and their ideas are going to take us down the Bitcoin road.”

Bitcoin trades 24 hours a day, seven days a week, and 365 days a year. “I view Bitcoin as one of the most important inventions in human history,” Kimle explains, “in the ballpark with the wheel, plow, printing press, electricity, and anything else.”

Our Children’s Money
Dennis Campbell is at the helm of Crystal Creek Enterprises, in east Iowa’s Clinton County, working with corn, soybeans and some wheat acres. Crystal Creek manages a portfolio of 10,000+ acres of owned, rented and custom farmed land.

“There’s a way to wake up and say, ‘I can buy $500 worth of something that’ll hold value as good as or better than land,’” asserts Dennis Campbell.

(Crystal Creek Enterprises)

Starting in 1854, Campbell’s forefathers scratched dirt outside Grand Mound, within proximity of the Mississippi River. His farming bloodline reaches back to Antebellum America, but although Campbell shepherds past legacy, his eyes are locked on the horizon. Internationally renowned for emerging technology, Crystal Creek is a consistent mecca for visiting ag delegations from Africa, Australia, Europe, and South America since 2013. In 2025, Campbell opened a BitCorn node on his farm. He jumped in the Bitcoin pool in 2023.

At present, Campbell estimates 85% of U.S. farmers take zero notice of Bitcoin. “They are nose to the grindstone, trying to juggle work, debt, equipment, and family, all while things get worse financially. I don’t know any more than anybody else, but I believe Bitcoin, at a minimum, is becoming a major tool in the toolbox to protect ourselves against an out-of-control government.”

“Just look at crop insurance, alone,” he continues. “You can spend $45 to $55 an acre insuring 250-bushel an acre APH corn. That’s crazy. I sure as hell won’t make 50 bucks an acre this year. Even if Bitcoin only gave some independence back on crop insurance, that by itself is enough for me.”

Does Campbell see growers investing a seventh of a crop in Bitcoin?

“We’ve got to put a portion of our proceeds in. If I could do that and have sufficient comfort to lower my 85% revenue harvest priced option insurance policy to 70% and lower my cost from $50 bucks to $20, that’s quite a savings account. Every year, regardless of how tight our belts are, we need to allocate a percentage of proceeds above and beyond our principal payments for land and green or red paint into something that can’t be debased and diluted by runaway government spending by 535 people in Washington, D.C.”

In 2025, Dennis Campbell opened a BitCorn node on his Iowa farm.

(Photo by Crystal Creek Enterprises)

Debt and the next generation loom large in Campbell’s view of Bitcoin.

“We’re spending our children’s money now and that’s what debt is. That’s what debt creates—a burden on future society and on future fruits of labor. It’s madness and we all talk about land as the best store of financial resources, but land is difficult to accumulate at a fractional pace. It’s not easy to wake up and say, ‘I’m gonna go buy 80 acres today,’ but there’s a way to wake up and say, ‘I can buy $500 worth of something that’ll hold value as good as or better than land.’ Bitcoin.”

Adios to the Rulebook
“The smartest thing somebody in agriculture could do is go down and borrow a bunch of money against traditional collateral and use that money to buy Bitcoin.”

Bold words. However, Matt Gilbert maintains Bitcoin future for agriculture is inevitable and backs his contention with receipts. Raised in the vast fields of Texas cotton country, Gilbert is an esteemed entrepreneur with specialization in mergers and acquisitions. He calls balls and strikes.

“Before my lifetime ends, the old playbook will be obsolete, and those prepared today will lead the charge into tomorrow’s agriculture economy,” says Matt Gilbert.

(Photo by Gilbert & Associates)

“Modern farmers invest heavily in equipment, infrastructure, and resources, yet the real paradigm shift lies in leveraging advanced financial tools. Up and down the agriculture supply chain, whether you’re manufacturing machinery or distributing fertilizer, nearly every participant depends on traditional lines of credit,” Gilbert explains.

“Financing in dollars is trapped in a cycle of diminishing returns—a negative loop. But using Bitcoin as a store of value creates an entirely positive feedback loop. If you’ve held Bitcoin during any four-year window since its inception, historically your purchasing power has multiplied, matching up to nearly 12 times what a dollar-based payment could achieve. This shift isn’t incremental—it’s transformational for agricultural economics.”

Adios to land or physical assets as necessary collateral? Yes, Gilbert says. “Choose any era in history: mass-market automobiles, television, the arrival of the Internet. Bitcoin’s adoption curve is exponentially steeper than any previous innovation. It stands alone as an asset that appreciates with unrivaled velocity, fundamentally altering the financial landscape for growers and agribusinesses.”

Agriculture trade is conducted via the U.S. dollar, which loses at least 3-5% per year in value. Tack on the price of inflation, and farmers see 10%-plus of dollar value slip away, annually. “Those numbers are incredibly disheartening,” Gilbert details. “For example, if someone got paid for a crop in 2023, sat on a little of the money, and decided to spend it in 2026, they’re going to have somewhere between 25-40% less purchasing power with the dollars they saved. That’s a giant problem. Bitcoin solves that problem.”

Bitcoin’s adoption rate has been phenomenally steep.

(Graphic by BlackRock)

“The implication for farmers and ag professionals is clear: Understand the currency paradigm shift, because the money you’re using, the dollar, is undermining your business more than you realize,” he says.

“My advice to those in agriculture is to leverage the advantages of both systems; pay expenses in dollars, but demand income in Bitcoin—the most secure and robust cryptocurrency. Weak currencies burden, but robust currencies liberate. It’s time for agriculture to pivot toward strength.”

What about buying farmland? Tokenization, Gilbert posits. “It’s already happening. Commercial real estate has been tokenized in the last couple of years. Agriculture assets are going to follow. Tokenization is the future, not theory. It’s reality. Commercial properties have already been fractionalized on the blockchain (the network Bitcoin runs on), and agriculture is next in line.”

Think apartment complex or condo in New York City. The building can be bought by tokenizing the real estate, meaning multiple people buy a portion. One buyer in Kansas; another in Indiana; more elsewhere, all purchasing 500 square feet apiece via the blockchain.

“Imagine democratizing rural assets. A family in Iowa, an investor in Mississippi, and stakeholders from across the nation jointly tokenizing a farm. The blockchain ledger transparently records every transaction, making ownership, lending, and risk radically clearer and more efficient than ever before. This will overhaul deed registries, middlemen, banking, and title services, drastically cutting costs and speeding processes.”

Markets also benefit, Gilbert believes. A futures contract is typically bundled in lots of 100, whether hedging crops, fuel, or fertilizer. Bitcoin splits the bundle into fractions of 1 million. “Instead of the current way things are primarily done, which is 100 units equals a contract, Bitcoin breaks that into a million pieces instead of 100 pieces, which means a far more level playing field for the person in agriculture versus the person in finance.”

The next 15 years will be telltale, Gilbert predicts. “Having studied the Bitcoin space since 2013, I’ve witnessed digital currency realize in a decade what it took the dollar more than a century to accomplish, without systemic debasement. Within the next fifteen years, financial rules governing agriculture will be rewritten, marking a generational inflection point. Before my lifetime ends, the old playbook will be obsolete, and those prepared today will lead the charge into tomorrow’s agriculture economy.”

What is Money?
Bitcoin naysayers abound. Ponzi party. Bernie Madoff special. Dot.com crash all over again. Sam Bankman-Fried unleashed. Cinderella at midnight .

Pitfalls? Certainly. Black swans. Always.

The Trump administration has generated strong support for Bitcoin, but the perspective of subsequent administrations is unknown. What about the Bitcoin blockchain—how secure will it be in years to come?

However, bolstered by steady gains and landmark promise, the past 16 years of Bitcoin have shown otherwise, contend Crowe, Kimle, Campbell, Gilbert, and Smith.

A handful of years in the past, Smith was a Bitcoin scoffer. Scam. Scheme. Trainwreck.

No more. He now sees Bitcoin as bell cow.

“It’s a question of when critical inertia hits, but Bitcoin will be utilized by folks in agriculture in the near future,” concludes producer Zach Smith.

(Photo by Stock Cropper)

“Whether Bitcoin is a store of value or medium of exchange in farming, it’ll be one or both,” Smith concludes. “Over the last 10 years, I’ve asked myself the hard question, ‘What is money?’ The best answer is to make the effort to find out for yourself. Go to Amazon and buy a copy of The Bitcoin Standard . Might be the most valuable $20 you’ll ever spend. Why? Because Bitcoin is the currency of the future, and that includes agriculture.”

For more from Chris Bennett (@ChrisBennettMS or cbennett@farmjournal.com or 662-592-1106), see:
Corn and Cocaine: Roger Reaves and the Most Incredible Farm Story Never Told

How the Deep State Tried, and Failed, to Crush an American Farmer

Game of Horns: Iowa Poacher’s Antler Addiction Leads to Historic Bust

Ghost Cattle: $650M Ponzi Rocks Livestock Industry, Money Still Missing

Farmer Unearths Lost Treasure, Solves WW2 Mystery

3 Ways To Protect Your Ag Business from Cybersecurity Threats

Mon, 27 Oct 2025 14:59:13 GMT

Agriculture is in the bull’s-eye for threat actors trying to access business information. But as Chris Sherman says: “Our keys in the visor mentality” has many farmers trusting too much and putting too much at risk.

Sherman is the founder of Tech Support Farm, an IT and cybersecurity consulting business who works with farmers, co-ops, custom harvesters and more ag businesses to shore up their systems, lock down their sensitive information and stay attuned to emerging risks.

The FBI has listed agriculture as a critical infrastructure for cybersecurity.

So where do most farmers leave themselves vulnerable to hackers? Sherman shares these:

1. Email

Sherman points to email as the No. 1 priority for farmers on where to start in taking cybersecurity seriously.

“The amount of information and data we are sending via email leaves every farmer at risk — from our FSA staff, agronomists, banks and more,” he says. “Emails can be intercepted, all contents can be exposed, and no one is the wiser. It would be like a rural mail carrier, and when he drops the mail someone stands there opening it, reading it and closing the envelope and putting it back in the mailbox. Foolhardy to be using the free email services such as Gmail, Yahoo and others.”

Here are four steps to shore up your email:

Get a domain
Get a commercial email provider
Get a filtration software (which monitors what comes in)
Get a DMARC compliance service (which manages outbound emails, so no one spoofs you and encryption is done properly)

As an example of why this should be prioritized, Sherman tells the story of a farm business working on a land deal.

“A dad and son were just about ready to sign, and the dad got an email from the bank, at least it appeared to be from the bank, but it was a spoof encouraging them to e-sign,” he says. “And everyone signed, and it drained the bank accounts and blew up the deal.”

2. Be aware of your personal information shared, and embrace “herd immunity”

All to often, farmers don’t have passcodes on their phones.

“That’s like leaving your credit card at the bar,” Sherman says. “For some reason in agriculture we are running multimillion dollar businesses on residential-grade infrastructure.”

He says by the nature of the business, enrolling in government programs, immigration workforce programs (such as H-2A) and more, make your address, phone number and email readily accessible.

“It’s a wealth of opportunity for threat actors. We can’t leave our doors and windows open,” Sherman says. “So you have to protect yourself, and encourage your friends, neighbors and business partners to do the same. If we are all reducing our individual risk, we are reducing the overall risk.”

3. Use high-quality passwords

Sherman says good passwords are must-have on all your accounts, including your Wi-Fi.

“Too often, farmers have their password just be a duplicate of the network name. Or if a farmer’s favorite tractor is a John Deere 4450, 4450 is his pin for everything,” he says. “When we are on the internet, it’s like being in the big city, and you have to act accordingly.”

Unlock Financial Success: Working with Your Ag Lender

Wed, 10 Sep 2025 14:50:25 GMT

The latest USDA farm cash receipts forecast has corn, soybean and wheat prices driving a 2.5% decrease for 2025 crop receipts compared to 2024, and the agency’s forecast shows an 11.2% increase for total animal/animal product receipts. Pair that with production expense increases calculated at 2.6% for crops and 21.5% for livestock. Farmers are financially pinched.

“Good decision-making, good risk management are always differentiators in any market, but they’re especially true today,” says Jase Wagner, president and CEO of Compeer Financial.

This fall into the winter, farmers will meet with their lenders to discuss operating loans, cash flow and capital expenditures. And the risks feel higher than ever. While greater transparency may reveal vulnerabilities in the business, it is the No. 1 thing lenders say will help them get farmers through what could be a very tough series of years.
“Really be open and honest with your lender,” Wagner says. “Being honest with yourself about where you are and what your abilities to execute over the next couple years will be really important as things get tighter.”

To prepare yourself for working with your ag lender, Kelly Hardy and Jim Halvorsen, with CLA, share these tips from the accountancy perspective:

1. Build a team of outsiders that work together. That should include:

Banker
Accountant
Attorney
Grain Buyer
Marketing Advisor
Crop Insurance Agent
Mentors
Successors

2. Be proactive in who you work with.

“Work with lenders who understand farming,” Halvorsen says. “You should expect to give them information about [the] farm, answer their questions and have them understand your goals.”

As for how often to meet with your lender, Halvorsen says it’s a best practice to meet with your financial partners once a quarter.

3. Know the type of information needed to make the best decisions for your business.

“If your banker only wants your tax return, it’s a red light,” Hardy says. “You need to provide a financial statement.”

She says tax returns are not a measure of the business’s profitability or assets.
“Tax returns don’t say how much grain you have in the bin,” she says.

Also, she advocates for the financial discussions to be centered on investments in the business — not taxes.

4. Transparency is the quickest way to establish a long-term, successful strategy despite any short-term challenges.

“No lender wants to take your farm. They are there to help you,” Hardy says.

She says having honest discussions with the full set of information is what reveals opportunities, even if the discussions may show weakness in the current business.
With lower commodity prices, Hardy says the drop in income will be evident on balance sheets this year. Having a true state of the business discussion will also unveil a strategy for how to manage the current farm economy.

3 Big Leadership Myths You Need to Bust

Thu, 07 Aug 2025 19:12:38 GMT

Leadership in agriculture often comes with high expectations. Whether you’re running a multigenerational farm, overseeing a team of employees or managing the day-to-day operations, the pressure to “do it all” can be intense. But sometimes the assumptions we make about what good leadership looks like can actually hold us back.

A recent article from Fast Company lists the three most common leadership myths, along with why it’s time to set them aside. From the push for speed to the pressure of having all the answers, these myths can shape how we lead, often without us even realizing it.

Myth No. 1: Faster Is Always Better

Running a farm is a fast-paced job. With long to-do lists and constant demands, it can be tempting to make quick decisions just to keep things moving. While fast thinking might help you get through a busy day, too many rushed calls in a row can create bigger challenges in the long run.

“While speed has its place, it can also be a liability,” says Tony Martignetti, chief illumination officer at Inspired Purpose Partners. “Moving too fast often means overlooking critical insights, missing long-term opportunities and making short-sighted decisions that sacrifice lasting value for immediate gains.”

This rings especially true in agriculture, where the days are long and the decisions are endless. The pressure to “keep up” with changing conditions can make urgency feel like the only option. But not every problem calls for an immediate fix.

“Before defaulting to speed, ask yourself: Are we moving in the right direction? Are we building something that will stand the test of time?” Martignetti says. “True competitive advantage doesn’t come from speed but from strategic timing and intentional execution. Create space for reflection and thoughtful decision-making.”

Myth No. 2: Innovation Means High-Tech

These days, it’s easy to assume that true innovation requires the latest and greatest technology. From automation and data systems to robotics and sensors, the industry is full of shiny new tools that promise improved efficiency and performance.

However, some of the most impactful changes on the farm don’t involve technology at all. Innovation can be as simple as rethinking how you train new employees to set them up for success, or it can involve updating standard operating procedures (SOPs) to better reflect what’s actually working in your operation, rather than sticking to routines that no longer serve it.

These types of improvements don’t require the latest hardware or software. They require a willingness to think critically, question old habits and try something new.

Myth No. 3: Good Leaders Have All the Answers

As the leader of your operation, you might often feel like you should know everything, but thinking you need to have all the answers can do more harm than good. Not only does it create immense personal pressure, but it can also unintentionally silence the people around you. When team members sense that their input isn’t welcomed or needed, they may stop offering ideas, pointing out concerns or asking important questions.

“The best leaders don’t have all the answers; they create environments where the right questions lead to breakthrough solutions,” Martignetti says. “Leadership isn’t about possessing infinite knowledge; it’s about creating an environment where curiosity thrives, where diverse perspectives are valued and where new ideas can emerge.”

On the farm, where no two days look the same, adaptive leadership is often more valuable than certainty. Martignetti notes that leadership requires you to ask the right questions, like: What are we missing? What could we do differently? What does the team think? These questions open the door to better solutions than any single individual could come up with on their own.

“The best leaders don’t have all the answers; they create environments where the right questions lead to breakthrough solutions,” he adds.

Become a Mythbuster

Running a farm means moving fast, thinking on your feet and handling a hundred things at once — but good leadership requires you to know when to slow down, when to listen and when to try something different. Letting go of old ideas about what leadership should look like can be tough, but it also opens the door to something better.

The best leaders don’t have all the answers, and they don’t rely on flash or speed to get results. They lead by example, stay open to new ways of thinking and create space for the people around them to grow. And according to Martignetti, that kind of leadership can make all the difference.

Could EPA Decision Signal The Beginning Of The End For DEF?

Thu, 31 Jul 2025 16:27:17 GMT

Mike Berdo has strong words to describe his ongoing experiences using machinery requiring DEF ( Diesel Exhaust Fluid ) on his southeast Iowa farm.

“It has been an absolute nightmare, at least for us. Mechanics make trip after trip to do little stuff that’s very expensive to fix,” said Berdo, who produces grain and beef cattle near Washington. “We had planting delays last spring … little stuff that came from it and just seemed like [an issue to deal with] day after day.”

The ongoing mechanical issues and costs are why Berdo said he is “all for” EPA rescinding the 2009 Greenhouse Gas Endangerment Finding. The Finding has enabled the agency to regulate greenhouse gas emissions under Section 202 of the Clean Air Act and, in recent years, and launch requirements such as the use of DEF systems in diesel-powered engines.

EPA Draws A Line In The Sand
On Tuesday, EPA Administrator Lee Zeldin released a proposal to rescind the 2009 Finding.

If finalized, the proposal would remove all greenhouse gas standards for light-, medium- and heavy-duty vehicles and heavy-duty engines, EPA said in a follow-up press release .

The move would start with EPA’s first greenhouse gas standard set in 2010 for light-duty vehicles and those set in 2011 for medium-duty vehicles and heavy-duty vehicles and engines.

EPA said the proposal is expected to “save Americans $54 billion in costs annually through the repeal of all greenhouse gas standards, including the Biden EPA’s electric vehicle mandate, under conservative economic forecasts.”

Zeldin made the announcement to rescind the Finding in Indiana, alongside Energy Secretary Chris Wright, and called it the largest deregulatory action in U.S. history.

What The Decision Could Mean To Farmers
Specific to U.S. farmers, the proposal could potentially result in DEF systems no longer being included on new tractors and other heavy equipment using diesel-powered engines, said Chip Flory, host of AgriTalk, during a Farmer Forum discussion on Wednesday.

South Dakota farmer Ryan Wagner told Flory he has a wait-and-see perspective on how or whether the EPA proposal goes into effect. He anticipates that reversing the Finding will take considerable time and effort for EPA to implement.

“It took a long time with the interim engines and things to get into full DEF in the first place,” Wagner said. “I don’t know how long it would take to unwind all that and how quickly manufacturing will just take those systems right off, but it’ll be interesting to see what happens.”

To Wagner’s point, here’s a brief look back at some timing showing when DEF rolled out in agriculture and nonroad equipment and became mandatory . The regulations were phased in over several years based on the type of equipment and engine size:

2008: DEF became required for all new diesel engines with engine sizes over 750 horsepower.

2011: the regulations expanded to include equipment with engine sizes between 175-750 horsepower.

By 2015, all new nonroad diesel engines were required to be Tier 4 compliant and utilize DEF, regardless of equipment type or engine size.

As Wagner considers DEF, he noted its use in diesel engines has provided him with one benefit: “On the plus side, I do like that they don’t make the walls of my shop black. That’s been nice,” he said. “You can run them inside for a short time and not not feel like you’re breathing in a bunch of soot and making everything black.”

Expect Legal Challenges To EPA Decision
A number of environmental groups have already blasted the move by EPA, saying it spells the end of the road for U.S. action against climate change, according to an online article by Reuters .

Legal challenges from various environmental groups, states and lawyers are likely ahead.

That fact wasn’t lost on Flory and the Farmer Forum participants during the AgriTalk discussion on Wednesday.

“If this proposal is finalized, it’s going to start a lot of conversations … and the dominoes are going to start to fall, something that we need to keep track of, no doubt,” Flory said. You can hear the complete Farmer Forum discussion on AgriTalk here:

EPA will initiate a public comment period to solicit input. Further information on the public comment process and instructions for participation will be published in the Federal Register and on the EPA website .

Your next read: Right To Repair Granted? John Deere Launches Digital Self-Repair Tool for $195 Per Tractor

Make the Most of Your Midyear Money Decisions

Tue, 01 Jul 2025 13:50:51 GMT

As the calendar flips to July, it is the perfect time to take a hard look at your operation’s financial health. A midyear financial check-in can be one of the most valuable tools in your management toolbox, offering a clear-eyed view of where your business stands and how to pivot if needed before the year wraps up.

“Performing a midyear checkup can help you stay on track for achieving your financial goals,” says Samantha Gehrett, Senior Extension Educator with Penn State Extension. “It is an excellent opportunity to evaluate how your operation is doing and make adjustments for the remainder of the year.”

Here are five key areas Gehrett recommends reviewing to strengthen your financial footing in the second half of 2025.

1. Update Your Books
Accurate records are the foundation of sound financial decisions. Gehrett encourages producers to review and update their books regularly, not just once a year at tax time.

“Experienced business owners know that accounting and financial reviews should take place monthly,” she says. “If you do not yet have a system in place or find that you continue to fall behind on monthly reporting, consider scheduling some additional time with your accountant.”

Midyear is a smart time to catch up on tracking income, expenses, assets and liabilities. Whether you use software like QuickBooks or a simple paper ledger, keeping current ensures you are working from real numbers, not guesses. This will also make year-end reporting and tax prep significantly easier.

2. Reconnect with Your Business Goals
The goals you set in January might not match the realities you are facing in July. That is why Gehrett encourages producers to revisit their goals and ask:

Are my initial goals still appropriate
What have I achieved so far
Are there any achievements I have missed and why
Are there any new needs that require setting new goals

Whether it is related to increasing cash flow, expanding acreage or investing in equipment, now is the time to shift your targets or reallocate resources as needed. Staying flexible helps ensure your goals evolve with your operation, not against it.

3. Organize Your Financial Documents
Organization is more than just tidiness. It is a financial strategy that saves time, reduces stress and prevents mistakes. Gehrett advises producers to make sure receipts, invoices, loan documents and financial statements are easy to access and up to date.

“Having your income, expense, asset and liability information organized makes conversations with your accountant or lender much more effective,” she explains.

It can also help you avoid missing important deductions or payment deadlines that may affect cash flow and credit relationships. Set aside time to clean up digital or paper files, double-check entries and review outstanding bills or receivables.

4. Check Cash Flow and Budgets
Now is the time to examine how money has moved through your business so far and whether it aligns with your expectations.
Gehrett suggests starting with key questions:

Are there outstanding bills that need immediate attention?
Are you on track to meet your projected income goals?
Are your expenses being managed effectively?
Do you need to consider adjusting your pricing or service rates?

If cash flow is tight or trending in the wrong direction, consider trimming unnecessary expenses, renegotiating terms or identifying areas for additional revenue generation. Small changes now can make a big difference by year-end.

5. Review Your Key Financial Statements
To understand your operation’s financial position, you need to analyze three core financial documents. According to Gehrett, these documents include:

Income Statement — This shows your revenue, expenses and net profit or loss over a specific time frame. Think of it as your farm’s financial report card.
Balance Sheet — This snapshot reflects your assets, liabilities and equity at a particular point in time.
Cash Flow Statement — This document tracks when money is coming in and going out, helping you anticipate shortfalls or surpluses.

Gehrett notes these reports work together to give a complete picture of financial health. They help you answer important questions such as:

Are you profitable?
Is your equity improving?
Do you have enough liquidity to support upcoming decisions?

Why This Check-In Matters
By summer, planting is behind you and harvest is still ahead. It is the perfect window to regroup, reassess and reinforce your financial footing.

With updated records, refreshed goals and a clear understanding of your cash flow and net worth, you will be better positioned to catch and correct issues early, adjust plans proactively instead of reactively, strengthen lender and vendor relationships and capitalize on opportunities like equipment upgrades or land purchases.

Don’t wait until December to find out how your year really went. Take charge now and finish financially strong.

Overcoming Burnout in the Agriculture Industry

Tue, 01 Jul 2025 13:41:30 GMT

Burnout isn’t always about doing too much. Sometimes it’s about doing the wrong mix of work or carrying all of the mental load on top of the physical. That’s according to Kacee Bohle, who runs AgriMinds , a group coaching business for members of the agriculture industry.

“You can still have a full plate and feel fine, especially if you’re doing stuff that energizes you,” she says. “But what happens when every single part of your day feels like a chore, even the stuff that you used to love? That’s when you know stuff is starting to get off. You can feel burnt out, even when you love or loved the type of work that you do.”

For business owners, farmers, ranchers and ag professionals, Bohle says people often judge themselves for having negative thoughts about the work they have chosen to do in a field they love. There is pressure to carry on the family legacy and love every part of it, and to feel proud of the work.

“Burnout doesn’t care who you are,” she says. “Burnout doesn’t care who’s in charge. It shows up when you’re over extended, misaligned, and you’re trying to carry all the things all the time without any support,” she explains.

Sometimes the work isn’t optional. The gate needs fixed. The field work needs done. The livestock need fed. Bohle points out even when the tasks can’t change, the conversation can. Sometimes it’s not the physical work that is causing burnout, but the mindset surrounding the work.

“What I mean is I want you to start noticing what expectations, pressure or guilt that you’ve been piling on top of the already heavy stuff,” she explains. “Sometimes what’s extinguishing you isn’t the work, it’s the story that you’re telling yourself about the work.”

For example, it could look like thoughts that are similar to: I should be able to handle this. I shouldn’t be tired. I chose this. I don’t have time to feel burnt out. I just need to push through this. It’ll eventually go away.

As Bohle points out, pushing through only works so long.

“There’s only so much you can brush under the rug before it starts seeping out, bulging and tripping you up,” Bohle says. “Eventually, your energy runs out, and if your mindset isn’t giving you any grace or flexibility, everything is just going to continue to feel harder.”

Can you extinguish burnout? Start with what you can control.

An exercise to address burnout is to create two lists. Write down what gives you energy and what drains you, Bohle suggests.

Notice one item on this list that drains you that you can shift or do differently, she says. Then look at the list of things that gives you energy and intentionally add back in something that gives you energy — even if it’s for just five minutes.

“This is not about trying to fix everything,” she explains. “It’s not even about trying to fix stuff overnight. This exercise is just about noticing what’s going on beneath the surface, giving yourself permission to make some small shifts here. Control what you can control.”

Four mindset shifts to keep in mind:

You’re not lazy or failing.
You’re likely mentally, physically, and emotionally maxed out.
Focus on awareness and small, intentional changes.
Remember, the goal is not to fix everything overnight, but to start noticing and making small, manageable changes.

Your next read: Overcome the No. 1 Challenge in Passing Down Your Family Farm

Overcome the No. 1 Challenge in Passing Down Your Family Farm

Mon, 30 Jun 2025 18:41:37 GMT

Between now and 2048, about $124 trillion is expected to exchange hands from older to younger generations in the U.S., according to Cerulli Associates, a Boston-based market research firm.

For perspective, that dollar amount is approximately five times the size of the 2023 U.S. Gross Domestic Product (GDP), which totaled $27.72 trillion.

How will farmers fit into what many people are calling the “Great Wealth Exchange” over the next two decades? Much of it is specific to land, according to the American Farmland Trust (AFT). It predicts 300 million acres of U.S. agricultural land will change hands in the next 20 years.

Based on $5,000 an acre for farm ground, Paul Neiffer, the Farm CPA, estimates that would be a transfer of between $1.5 trillion and $2 trillion in land from older farmers to younger generations.

“If you throw in rangeland, that’s another trillion, so $3 to $4 trillion at most is where I think we’re at,” Neiffer says.

The Reason Succession Often Fails

A common issue is that while 69% of farmers plan to transfer their operation to a younger family member, only 23% have a plan , according to AgAmerica Lending LLC.

But the No. 1 issue that trips up people in the succession planning process is most people – farmers included – focus more on the mechanics involved in transferring assets than on keeping their family relationships intact.

That’s according to Amy Castoro, CEO and president of The Williams Group, a family coaching and consulting organization. Her firm does relationship planning to help family members make sure they’re still speaking to each other after the wealth transfers.

Many times, she says, the friction in the transfer of wealth has little to do with money and material goods and a whole lot more to do with whether the family members involved felt loved.

A Formula For Success

The Williams Group did a 20-year field study and from that developed a formula for how people need to focus their time and energy in the succession process.

The company recommends spending:
60% of your time on building family trust and developing good communication practices;

25% preparing your heirs to take over the operation, laying the business and fiscal groundwork for the farm to continue under their leadership;

10% of your time getting on the same page about your family’s values and having a family mission;

5% of your time on the estate planning mechanics, the nuts and bolts of how the assets will transfer.

In addition, The Williams Group advises that you work with your heirs to:

Strike a balance between control and collaboration.
Embrace the next generation’s perspectives.
Bolster intergenerational solidarity.
Embed high-trust behaviors.
Co-design standards for readiness.

Start The Plan Sooner, Not Later

If you want to see your farm succeed with the next generation of family members, make sure you have the right structure in place – and set it up sooner than later. Don’t put it off, Neiffer advises.

Once you have a plan in place, you have a tool you can modify to fit what your family and farm need over time.

“Having a plan in place can help alleviate stress, even if things change down the road,” Neiffer says. “Keep in mind that farming is a dynamic business and your plan needs to be, too.”

Your next read: Big Questions Remain For Next Gen Farmers

Is Food Inflation Heating Up July 4th Grills?

Wed, 25 Jun 2025 17:44:50 GMT

Two industry reports are shining a light on the cost of a July 4^th barbecue.

The economists at Wells Fargo calculate an at-home holiday party for 10 will cost $130. The menu includes chicken breasts, beef sliders, hot dogs, fresh fruit, a vegetable platter, potato salad, corn bread, cake, apple pie, ice cream, beer, wine and soda.

Dr. Michael Swanson, chief agricultural economist within Wells Fargo’s Agri-Food Institute, says year-over-year food inflation is 2.2%.

For notable food prices from the July 4^th report, he cites the following:

Ground beef: Up 7.4%
Boneless chicken breasts: Up 1%
Watermelon and strawberries: Down 0.6%
Potatoes: Up 1%
Egg prices: Up 40%
Ice cream (1.5 quart): Up less than 1%

Swanson says beef prices year over year have been running 6% to 8% higher.

“When you talk to somebody who’s a processor or a packer, there’s not a part of the cow that moves independent from the other parts of the cow so it’s all right in that category 6% to 8% on a year over year basis the last couple of months based on CPI,” he says.

He says for cost-savings, chicken offers the greatest opportunities in the protein category.

“When you look at the composite pricing from USDA, it’s right around $2.42 to $2.45 a pound — including everything from wings and breasts,” he says.

As for hot dogs, Swanson says the blend inside the casing will drive the price.

“If you go with the all-beef frankfurters, yes, they’re up substantially. If you look for a sausage or bratwurst that has a blend of pork and beef in it, you’re probably finding a much better bargain. Pork has been pretty flat year over year,” he says.

Swanson says the effects of highly pathogenic avian influenza are still being reflected in higher egg prices for menu items such as deviled eggs and salads.

As for ice cream, Swanson says the increase in cost is being attributed to additional labor expense in production.

“We’re seeing a little bit of inflation in that category, but just very modest. We have a good supply of cream and milk in the country right now. The dairymen are doing wel. So, what that reflects is kind of that cost of transformation,” he says.

Wells Fargo uses NeilsenIQ data for its analysis.

American Farm Bureau Market Basket Survey
Using its annual survey, The American Farm Bureau Federation says this year’s food prices are resulting in the second-highest cost for an at-home July 4^th barbecue since 2013 when the survey began.

“High prices don’t mean more money for farmers, however. Farmers are price takers, not price makers. Their share of the food retail dollar is just 15%. The cost of running their farm is up — from labor and transportation to taxes,” says AFBF associate economist Samantha Ayoub.

Per AFBF, this year’s cost for an Independence Day cookout will cost $70.92 for 10 people. Included in the calculations are cheeseburgers, chicken breasts, pork chops, potato salad, strawberries and ice cream.

Last year was the highest cost found by the survey at $7.39 per person.

Year-over-year retail price increases in 2025 include:

2 lb. of ground beef: Up 4.4% to $13.33
Pork and beans: Up 20¢ to $2.69
Potato salad: Up 6.6% to $3.54

Notable reductions, compared to 2024, in food prices per the survey were:

3 lb. package of pork chops: Down 8.8% to $14.13
Chips: Down 10¢ to $4.80 a bag
Hamburger buns: Down 2.6% to $2.35

Agriculture in the Bull's-Eye: Raids Reportedly Resume on Farms, Meatpacking Plants

Fri, 20 Jun 2025 18:40:23 GMT

After President Donald Trump reportedly ordered Immigration and Customs Enforcement (ICE ) to pause raids on farms and meatpacking plants last week, new reports say the administration is reversing course again. The on-again, off-again reports regarding ICE raids is sowing confusion for those who rely on immigrant labor and already causing labor shortages due to employees not showing up for work.

There was an update again late Friday, with President Trump saying he’s looking at new immigration policy steps that would allow farms to take responsibility for people they hire.

The Washington Post first reported Monday that ICE officials told leaders representing field offices across the country they must continue to conduct raids at worksite locations, which is a reversal from guidance issued just days earlier.

Officials with the Department of Homeland Security (DHS) wouldn’t confirm the Washington Post’s report, but an agricultural association told Farm Journal the article is accurate based on their discussions with the administration.

Instead, DHS told us this:

“The president has been incredibly clear. There will be no safe spaces for industries who harbor violent criminals or purposely try to undermine ICE’s efforts,” says DHS assistant secretary Tricia McLaughlin. “Worksite enforcement remains a cornerstone of our efforts to safe guard public safety, national security and economic stability. These operations target illegal employment networks that undermine American workers, destabilize labor markets and expose critical infrastructure to exploitation.”

By Friday, there was another update. Reuters reported President Trump said he was looking at immigration policy steps that would allow farms to take responsibility for people they hire.

“We’re looking at doing something where, in the case of good, reputable farmers, they can take responsibility for the people that they hire and let them have responsibility, because we can’t put the farms out of business,” Trump told reporters. “And at the same time we don’t want to hurt people that aren’t criminals.”

According to Farm Journal’s Michelle Rook, the recent ICE raids are already creating absenteeism and labor shortages that could severally disrupt the U.S. food supply. Ag groups are again calling for immigration reform with hopes the issue will finally come to a head.

Ripple Effect of Immigration Crackdown

Joe Del Bosque, owner of Del Bosque Farms in Firebaugh, Calif., is experiencing the rollercoaster with labor, saying the shifting policy strikes fear in farmers and workers.

“There’s so much uncertainty as to what the administration’s going to do,” Del Bosque told Rook on AgriTalk this week.

Del Bosque says the raids on California produce farms are disrupting the harvest of perishable produce.

“They haven’t been really huge sweeps. They’re usually picking up a few people. But it creates a lot of fear, and people don’t show up to work. That’s just as bad as if they were taken away,” he says.

According to an exclusive report by Farm Journal’s The Packer , the ripple effect of Trump’s immigration crackdown on agriculture could be far-reaching — if the administration revives its focus on ag.

Kevin Kelly is the CEO of Emerald Packaging — the largest flexible packaging supplier to the leafy greens industry. Based in Union City, Calif., the company has been in the packaging business for 62 years. Kelly says the immigrant workforce in California is feeling uncertain and afraid.

“We’ve certainly heard folks aren’t turning up to work in the fields, and we’ve seen it in our facility. We verify everybody, so we know everybody in our facility is documented and can legally work in the United States,” Kelly tells Jennifer Strailey, editor of The Packer. “In our case, it’s brothers and sisters being deported, and other family members being afraid. Our employees are staying home to help their family members move, to take care of them or to take them to see an attorney — that kind of thing.”

Dairy operations in several states have also been raided recently. Dairy producers say they rely on immigrant labor to provide a stable year-round work force and to keep the U.S. food supply stable.

“We need these people to take care of our animals so we can produce food. Without animal care, we won’t have milk, cheese, butter — nothing,” Greg Moes, MoDak Dairy in Goodwin, S.D., told Rook.

The recent ICE arrests at Glenn Valley Foods of Omaha, Neb. have also led to absenteeism at meat processing plants.

“At the beginning of the Trump administration, we had this same worry with the crackdown — whether this was going to impact absenteeism and things like that,” says Brad Kooima, Kooima Kooima Varilek in Sioux Center, Iowa. “So, hopefully we can put that in our rearview mirror.”

By the Numbers: A Heavy Reliance on Immigrant Labor
The news this week of the Trump administration putting a pause on raids of farms and meat processors is welcome news for those in agriculture. From dairies and produce farms, to meatpacking plants across the U.S., these sectors rely heavily on immigrant labor.

Immigrant labor makes up a substantial portion of the meat processing workforce, with estimates ranging from 37% to over 50%. However, states like South Dakota and Nebraska have even higher concentrations of immigrant workers in meat processing — reaching 58% and 66%, according to the nonprofit Migration Policy Institute.

And a large portion of U.S. dairy farms rely on immigrant labor, with estimates indicating that over half of all dairy workers are immigrants. Specifically, these workers account for 51% of the total dairy workforce and are responsible for producing 79% of the U.S. milk supply.

Farmworker Justice estimates 70% of the produce industry’s farmworkers are immigrants. USDA’s estimates are lower — closer to 60%.

Lift the Fog: 4 Drivers of Farm Profitability To Watch in 2025

Fri, 20 Jun 2025 19:14:17 GMT

What is the status of the general ag economy? On the surface, strong livestock prices and recent government payments are making the farm sector look more positive than reality. Here are four drivers of farm profitability to watch this year and a glimpse into 2026.

There’s More Than Meets The Eye
As highlighted by Farmer Mac , an aggregate view of the agricultural economy doesn’t give a clear view of the driving forces and notably, the unknowns surrounding trade policy.

Farmer Mac highlights how the strength of the U.S. dollar might be the largest driver of commodity price movements over the past several months. A stronger dollar can make U.S. commodities more expensive on the global market, whereas a weaker dollar can lead to higher domestic prices.

Input Costs Vs. Commodity Prices
“The grain complex is under a lot of pressure,” says John Newton with Terrain Ag. “USDA just released their new cost of production estimates for 2026. We’re looking at record input costs for a number of crops. And commodity prices aren’t showing any signs of really rebounding.”

Per USDA, per-acre cost of production for corn in 2026 is forecast to be $915.51 — up from $897.44 in 2025. For soybeans, cost of production per acre is forecast to be $650.34 — compared with $639.15 in 2025.

Newton says the $30 billion in ad hoc payments to farmers approved by Congress is helping farmer sentiment and the ag economy’s health.

“Looking to the next year, that ad hoc support is not guaranteed to be there. Hopefully there’s more ‘farm’ in the farm bill because that’s also retroactive to the 2025 crop year. But again, input costs are projected to increase. Every single category is projected to be higher next year than this year. The only category projected to be lower is interest expenses,” he says. “Looking forward to 2026, it’s going to be a tight margin environment unless we get some strong tailwinds in agriculture.”

For livestock producers, the lower commodity prices have continued to bring lower feed costs. Specifically for swine feed costs, 2024 ticked downward , with lower costs expected through the rest of the year.

Interest Rates and Farmer Credit Health
“It’s a cash flow situation in the ag sector. That’s why they’re holding off on any large expenditures if they can. That’s the name of the game, which is why Congress has to approve a farm safety net. If they don’t, we’re in a world of hurt in the ag sector,” says Jim Wiesemeyer, a Washington policy analyst.

Earlier this week, the Fed left interest rates unchanged.

“I think the Fed is locked in, and it could be September at the earliest, if not October, before they actually have the data they want to begin cutting interest rates,” Wiesemeyer says.

Newton agrees.

“They’re waiting for inflation to heat up. They’re waiting for if unemployment is going to heat up. We continue to beat expectations on all of those,” Newton says. “We had negative GDP growth the first quarter. If that continues — if unemployment ticks up, if inflation ticks up, that’s what they’re watching for.”

Meanwhile, using data from the first quarter, the KC Fed released a report showing deteriorating ag credit conditions. Ty Kreitman and Morgan Mastrianni point to data showing how demand for farm loans continued to grow as farm finances tightened, but credit availability was steady. From their report, more lenders say they had tighter credit standards — the highest in over a decade.

USDA’s Next Net Cash Farm Income Report
In September, USDA will release its update on Net Cash Farm Income (NCFI).

“A knee-jerk reaction might be that USDA is likely to reduce its forecast for NCFI in September,” said a Farmer Mac report. “The reality is numerous factors influence farm sector revenues and profits.”

Dairy Powers America: New Report Shows $780B Economic Impact

Thu, 12 Jun 2025 15:04:00 GMT

The U.S. dairy industry continues to be a driving force behind the American economy according to the newly released 2025 Dairy Delivers report from the International Dairy Foods Association (IDFA). This biennial analysis reaffirms dairy’s powerful role in job creation, economic output and community sustainability across the country.

The updated report shows dairy supports:

3.05 million American jobs
$197.6 billion in wages
Nearly $780 billion in total economic impact
$83 billion in federal, state and local taxes
$8.2 billion in annual exports

“The data is clear: Dairy runs deep in every community across America,” says Michael Dykes, DVM, president and CEO of IDFA. “From family-owned dairy farms to processors, retailers and community businesses, dairy supports livelihoods, sustains local economies, and delivers real value to the people who depend on it. These numbers reflect more than economics; they reflect the reach and relevance of dairy in the daily lives of Americans.”

Dairy Segments

(IDFA)

As part of the release, IDFA also unveiled a series of graphics highlighting the top dairy economic states. Take a peek at the following:

Dairy Delivers: California

(IDFA)

Dairy Delivers: Wisconsin

(IDFA)

Dairy Delivers: Texas

(IDFA)

Dairy Delivers: New York

(IDFA)

Dairy Delivers: Ohio

(IDFA)

In celebration of National Dairy Month, IDFA is ramping up efforts to share dairy’s story through events, media outreach and social media, making sure both the public and lawmakers see just how much value the U.S. dairy industry brings to communities across the country. Whether it’s supporting jobs, fueling local economies or putting nutritious food on the table, dairy’s impact is everywhere.

Your Next Read: The Kids Aren’t Coming Back to the Farm – Now What?

The Kids Aren’t Coming Back to the Farm – Now What?

Wed, 11 Jun 2025 19:38:02 GMT

“Grandpa and Grandma passed the farm down to my parents, then my parents passed it down to me. We’re hopeful the next generation will take over in the next few years.”

Sound familiar? It’s the story shared on countless family farms across the country — an unspoken hope that the torch will pass naturally. No formal plan, just a quiet assumption: Our kids will come back.

But here’s the tough question no one wants to ask:

What if they don’t?

What if they have other dreams?
What if they’re not cut out for the job?
What if you’ve spent your life building something worth continuing, and no one is waiting to carry it forward?

Who runs the farm then?

It’s a question more farmers are grappling with as rural demographics shift, career choices broaden and fewer children return home after college. While it might not be the path you envisioned for your operation, the absence of a next-generation successor doesn’t mean the end of your farm. But it does mean it’s time to think differently.

Whether it’s transitioning to a trusted employee, partnering with a young beginning farmer, exploring lease-to-own arrangements or even selling to a like-minded producer, there are more options than you might realize. The key is being proactive, not reactive.
Long story short, waiting and hoping isn’t a succession plan.

Know Your Options
When a family successor isn’t in the cards, it doesn’t mean the legacy of your farm has to end. Whether your kids aren’t interested, aren’t able, or just aren’t the right fit, there are still ways to ensure the operation you’ve built continues to thrive.

1. Long-Time Employees
Sometimes your successor is already part of your team. A trusted employee who understands your operation, shares your values and has a strong work ethic might be the ideal candidate.

“It involves identifying the right person, mentoring them over time and gradually transferring responsibility,” says Jessica Groskopf, agricultural economist and extension educator at the University of Nebraska. “When done well, it’s incredibly rewarding for both parties. But it does take time, trust and careful legal planning.”

Don’t wait until retirement to start the conversation. Begin involving them in decision-making, management and financial discussions early. Let them see what it takes to run the business. Not just the day-to-day labor, but the big-picture strategy.

Formalizing their involvement with clear expectations, written agreements and timelines can also protect both parties. Work to create a succession roadmap that includes phased ownership, buy-in options or profit-sharing models to help them build equity over time.

2. Beginning Farmers
There are many young, aspiring farmers ready to work hard, but they lack land or capital. Connecting with young producers through farm incubator programs, state-level beginning farmer initiatives or land-linking platforms can lead to meaningful partnerships.

“These agreements between non-relatives are actually very common,” says Julia Valliant, a research scientist at Indiana University. “According to USDA data, land is most often accessed through a non-relative, either through rental or purchase.”

Programs across the country are designed to help match landowners with beginning farmers and even offer incentives for transitions to socially disadvantaged or beginning producers. Some states also provide tax benefits to landowners who sell or lease to a qualified beginning farmer, helping reduce the financial risk of transition while encouraging generational renewal.

3. Business Partners or Co-Ownership Models
If your kids aren’t coming back, co-ownership might be another way to ensure the farm’s legacy lives on while bringing new energy and ideas into the operation.

“That might mean forming a formal business entity, like an LLC or corporation, where ownership is shared,” says Kelly Wilfert, farm management outreach specialist at the University of Wisconsin-Madison.

However, these arrangements are not one-size-fits-all.

“Multiple owners may divide ownership of individual assets such as land, equipment or livestock, or simply share ownership of the entity that holds those assets,” Wilfert says. “This flexibility allows outgoing owners to structure transitions in stages, working alongside future owners to gradually shift responsibility.”

It’s Still Your Legacy
A non-family transition doesn’t mean your farm’s story ends; it simply turns a new page. What matters most is that it continues in a way that honors your work, your values and the community it supports.

“Have open and honest conversations with your family about this,” Groskopf says. “Understand each other’s values and goals. That emotional clarity paves the way for good business decisions.”

And don’t go it alone. Extension educators, ag consultants and estate planning attorneys can help you sort through the legal, tax and emotional complexities of transitioning your farm. But you have to take the first step.

In the end, waiting isn’t a plan. And doing nothing is still a decision.

Your Next Read: Growing Pains and Big Gains: A Wisconsin Dairy’s Fast-Paced Journey From 70 Cows to 700

Why Strong Milk Prices May Block DMC Payments This Year

Tue, 10 Jun 2025 15:56:00 GMT

Strong milk prices and lower feed costs have kept Dairy Margin Coverage (DMC) margins relatively healthy so far in 2025, making a program payment unlikely for the remainder of the year. But while the numbers may look good on paper, Katie Burgess, dairy market advising director at Ever.Ag, warns volatility still lurks beneath the surface.

“For the past 10 years, we’ve seen Class III milk prices hit $19 or higher half the time, and 2025 will fall in that category,” she says. “But it’s not the full picture.”

Corn and soybean meal prices have trended lower thanks to strong planting progress and ample inventories. But milk production is growing, and increasing supply could weigh on milk prices later this summer.

“Volatility is always lurking in this market,” Burgess says. “We’ve had Class III above $20 early this year, but it doesn’t take much — a market shock, a trade disruption or a shift in consumer buying — for things to swing the other direction.”

She points to USDA data showing that in nine of the past 10 years, Class III prices have fallen below $16 per hundredweight at least once. The only exception was 2022.

“While current Class III forecasts are well above $16, you can’t fully rule it out — and $16 milk today is a lot different than it was five or six years ago,” she says. “With rising non-feed costs like labor, insurance and supplies, that number now falls below the cost of production for most farms.”

DMC, created in 2018, was designed to be a financial backstop when margins are squeezed. In turbulent years like 2020 and 2023, the program more than paid for itself —specially for those who opted into $9.50 Tier I coverage. But this year, that safety net may stay folded.

“When feed costs are high, the program leans toward paying out,” Burgess explains. “But with feed prices low this year, it’s less likely to dip into major payout territory. That’s why expectations should be managed. It’s not the slam dunk it was in years like 2023.”

Unless milk prices take an unexpected dive or feed costs jump significantly, 2025 appears to be following the playbook of years like 2022 or 2024: margins get tighter, but not tight enough to trigger substantial DMC support.

“Risk management isn’t magic — it’s math,” Burgess says. “DMC remains a useful tool in the toolbox, but it shouldn’t be the only one. Producers should consider layering strategies like Dairy Revenue Protection, Livestock Gross Margin and forward contracts. Because the one thing you can count on in dairy markets is uncertainty.”

Your Next Read: A Big Step Toward Better Milk Options for Kids

The Best Time to Start Your Retirement Plan

Mon, 09 Jun 2025 19:35:34 GMT

Farmers historically have struggled to invest money in anything other than their farm operation. However, by investing in retirement plans including an IRA, a farmer can more easily save up for retirement and make the transfer to the next generation much easier.

The power of compounding is the financial seventh wonder of the world. Based on your annual investment return, you can determine how quickly your investment will double by dividing it into 72. For example, if you average 3% on your money, it will take 24 years to double. However, if you can earn 8%, then it only takes nine years.

The younger you start to invest, even small sums, the more money you will have at retirement. Let’s compare the results of placing $10,000 into a retirement account at either age 20 or 40.

The farmer who does this at age 40 and then pulls the money out at age 70 will have $100,627. However, the farmer who starts at age 20 will have $469,016, and if they can earn 10%, will have $1,173,909.

The cost of maintaining a solo 401k plan is very inexpensive and married couples can set aside at least $14,000 into an IRA each year. The fees on those accounts are minimal and you can make sure to invest in low-cost ETFs or mutual funds. High-cost funds could quickly reduce your returns substantially.

Most of the earnings will result in the last 10 years, so the sooner you get started, the more funds you will accumulate.

Risk Protection Benefits
There’s another big reason to make this investment. Funds in a retirement plan are fully exempt from bankruptcy, and we all know farming can be a very risky business. The full exemption does not apply to IRAs, but the amount that is exempt is fairly large.

This amount gets updated every three years. On April 1, 2025, the exemption amount was raised from $1,512,350 to $1,711.975 through March 31, 2028.

Most farmers have IRAs less than this amount, so it’s likely they will have a full exclusion if bankruptcy was to occur. Amounts rolled over from a 401k plan or other retirement account, including earnings associated on that account, are fully exempt.

In some states, IRAs are fully exempt or at least partially exempt.

The bottom line is to invest in an IRA or retirement plan. I hope you never need the protection, but it is a good insurance policy.

Hard Work, Sacrifice And Risk: Advice For First-Generation Farmers

Mon, 09 Jun 2025 16:00:00 GMT

Doug Stark of central Wyoming knew he wanted to farm after high school but quickly had a hard reality check.

“The first year I kind of dabbled at it a little bit–I rented a farm and used my dad’s equipment. That didn’t really work out,” Stark recalls. “I didn’t have enough farm ground to make it all work, and I frankly, didn’t really know what I was doing from a business standpoint.”

Stark ended up at the University of Wyoming to study for an ag business degree. Once he graduated, however, there was no longer a family farm to apply his skills on.

“My dad sold the dairy, liquidated the farm and moved on as well,” Stark says. “It was out into the working world and Farm Credit Services of America.”

Stark stayed at Farm Credit for 37 years, eventually serving as the company’s CEO until his retirement a few years ago. He recently joined the Ag Inspo podcast with Ron Rabou and Rena Striegel to discuss what he believes the next generation of producers need to start a farming operation when one isn’t being passed down.

It’s Possible To Start From Scratch
Stark says the first misconception many young producers have is they can’t start farming by themselves. He says it can be done, but be prepared to make sacrifices.

“Whether in ranching or farming, people I know who did it have worked their tails off,” he says. “They went without a lot of years. They built things themselves. This friend of mine built his own shop by hand. He pounded all the posts, put up all the rafters and ran all the wiring. That’s the kind of thing that you have to do when you’re starting.”

Get Creative
Since first-generation farmers aren’t inheriting equipment, land, or other assets, Stark says they’ll need to get creative.

“How can you look at things differently than the traditional ‘buy the land and buy the machinery’ mindset,” he asks. “Maybe you help your neighbor harvest corn in exchange for using equipment initially or trade labor.”

That could also look like running a bare-bones, older equipment fleet for a few years.

“I met with a farmer who was stepping in to take over, and he was willing to downsize the equipment line in order to be able to afford to buy into the operation,” Striegel adds. “They were going through their inventory saying, ‘Do we really need a planter this nice and this big? Could we get by with something a little less new?’ It was really cool to see that young farmer being willing to consider not running top of the line equipment in order to be able to get in.

Another option is connecting with farmers without children to pass their farm down to - something Starke says is more common than you may expect.

“I can’t tell you how many producers I have known in my role as a leader that don’t have succession on their farm or ranch, and they would love to have a young person to work with to help them get started. It doesn’t mean they’re going to give their farm or ranch to them, but they would get a break and develop a lot of knowledge.”

Striegel shares an example of this she’s seen first-hand.

“I was on a farm where the gentleman didn’t have a lineal descendant as a successor. The young man he was working with was his best friend’s youngest son. Their farm was not large enough to support his two sons, so the older son was on the family farm, and the younger son is now working with this neighboring farmer to take over.”

Take Risks
Starke says you must be willing to take chances, as he doesn’t recall many farmers regretting a risk they took - mainly the ones they didn’t take.

“I would drive by a farm with a client and they would say ‘You know, I had a chance to buy that back in 1969 for $500 an acre, and I passed it up. We could have made it work, but I just was too stubborn. I only wanted to give him $450 and it’s worth $15,000 today,” Starke recalls.

He also recommends having an entrepreneurial spirit and finding ways to enhance the value of your operation.

“Maybe there’s some other agritourism you can employ. Maybe there’s other assets on the farm that you can look at, whether it’s a gravel pit or something that you could develop,” Starke says.