Top Producer Summit

Beyond the Blame Game: Navigate the Mental Toll of Modern Ag

Fri, 03 Apr 2026 13:55:10 GMT

When market pressures mount, it is easy to succumb to the “blame game.” Yet, the most resilient operations are those that anchor themselves in a mission larger than the current balance sheet. For leaders like James Burgum and Lamar Steiger, coping with stress isn’t just about managing the books, it’s about managing the mindset.

The Many Hats of the Modern Producer

James Burgum, CEO of The Arthur Companies, believes the first step in managing stress is acknowledging the sheer weight of the roles farmers play.

“One of the things I did when I stepped into my role is an exercise where I said to our team, ‘Help me understand all the hats on the farm – farmworker, agronomist, grain merchandiser, mechanic, truck driver, snow removal lead, banker, economist,’” Burgum said during a discussion at Top Producer Summit. “You start to go down the list, and its dozens and dozens of roles that an individual farmer plays.”

By recognizing the complexity of these roles, Burgum argues that producers can move toward servant leadership—prioritizing the team’s needs.

“There are things that are much more important and much bigger than the challenges we’re wrestling with on the job every day,” Burgum says. “It’s hard to juggle all the balls, but at the end of the day, we want everyone on our team to make sure they get home at night and be there for their families.”

Choosing Abundance Over Scarcity

Lamar Steiger, owner of The 808 Ranch, learned about stress through the lens of his father, a man who seemed to face every possible setback: health crises, financial downturns and missed market peaks.

The farm struggled during times of high interest rates in the late ‘70s and early ‘80s and his father was diagnosed with an autoimmune disorder, Guillain-Barre, that left him paralyzed for six months.

Still, his dad always had an attitude of abundance, not scarcity, Steiger says.

“With my brothers holding other obligations, I was left to milk the cows,” Steiger says. “We were so far behind, and all my dad would say is, ‘It could be worse.’”

Breaking the Silence

Eventually, his family lost the dairy. After hitting rock bottom and battling depression , Steiger realized that the “tough it out” mentality was a liability, not an asset.

“When the stresses pile up, you’ve got to find help,” Steiger says. “I wasn’t ‘man enough’ to step up and say, ‘Hey, something’s wrong here.’ I should have said, ‘Time out—this is not working.’”

Steiger’s advice for those feeling the weight of the current market is simple: Find your “who.” Whether it is a spouse, a neighbor or a professional, talking through the stress is the only way to separate your self-worth from the volatility of the markets.

“In agriculture, we’re so reliant on outside forces,” Steiger says. “You’ve got to have an attitude that it’s going to work out. As my Dad would say, ‘Well, we never missed a meal.’ That was his bottom line for ‘It’s okay.’”

From Constraints to Catalysts: How Ag Leaders Turn Hardships into Strategy

Thu, 02 Apr 2026 18:19:04 GMT

In an industry defined by “one-year-at-a-time” cycles, the greatest threat to a growing operation isn’t just a market downturn—it’s the inertia that comes with size. Farm Journal CEO Prescott Shibles argues that long-term survival requires a rare blend of faith and agility. To maintain an entrepreneurial mindset, leaders must lean into “conviction” as the core of a strategy that survives the lows.

Here is how four industry leaders are turning today’s constraints into tomorrow’s differentiators.

1. Build when times are hard.

When Brent Smith, president and CEO of NewLeaf Symbiotics, joined the company in 2023, the grain market was entering a significant down cycle. While some saw a risky time to lead a startup, he saw an opportunity.

“I learned in my first startup that the best time to build a business is in hard times,” Smith said said during a discussion at Top Producer Summit. “Because if you can’t withstand tough times, you’re not going to survive long term.”

For Smith, survival meant doubling down on the company’s core: science. Despite the pressure to cut costs, NewLeaf continues to spend half of its operating expenses on science.

“It would be very easy to peel that back,” he admits. “But we focused on projects that make the most impact the quickest, while keeping an eye on the long-term innovation in our pipeline.”

2. Control what you can control.

Farmers face the ultimate constraint every year: the weather. Scott Beck, president of Beck’s Hybrids, recalls the planting crisis of 2019 when constant rains kept tractors out of the fields well into May.

“I was concerned for our customers not being able to plant, but also for us not being able to plant our seed for the next year,” Beck says. “There was nothing that we could do to control the weather, but we could control how we interacted with our customers.”

Rather than retreating, the Beck’s team focused on transparency and empathy, using video series to connect with farmers and even forming small groups for prayer and support. Ultimately, they wanted farmers to know they cared and were there to support them however they could.

Despite the financial reality of what could happen if farmers didn’t plant and returned seed, Beck’s decided their course of action would not include employee layoffs. Instead, they prepared to sell land to protect their people.

“Fortunately, the weather broke and everybody was able to get planted,” he says. “Then the second miracle happened. We had the second warmest September on record, and that’s what brought the crop through to enable 2019 to not turn out as bad as it started.”

3. Turn disadvantages into advantages.

In 2014, Lamar Steiger, owner of The 808 Ranch, was tasked with a monumental challenge: helping Walmart reinvent its beef supply chain. At the time, the retail giant was at a disadvantage, forced to accept whatever the major meatpackers provided.

Steiger’s strategy was to turn that lack of control into a new kind of independence.

“I convinced the Walmart team to go around the traditional supply chain,” Steiger says. Today, Walmart sources 28% of its beef from its own “farm-to-table” supply chain.

There’s no question that decision was really good for Walmart. But Steiger says it was also really good for him personally.

“It reminded me that no matter how big you are, there are always challenges,” he says.

4. Create “white space” for the future.

When the day-to-day tasks of an operation become overwhelming, long-term strategy is often the first thing to go. James Burgum, CEO of The Arthur Companies, believes leaders must intentionally carve out “white space” for their teams.

“It’s important to find ways where people can actually spend their time working on the business, not just in the business,” he says.

By protecting time for team members to execute ideas that are three to five years out, Burgum manages the tension between short-term urgency and long-term viability.

“It’s hard to step away from the daily fires you’ll face in your operation, but it’s important,” he adds. “How we manage that tension of short term and long term is creating that white space and making sure that we consciously work on the business.

The Long Game

Ultimately, resilience in agriculture is about knowing when to push and when to pivot.

“You have to know when to put the gas down, and you need to know when to tap the brake,” Smith says. “And regardless of what you are doing, you need to stay focused on what you’re doing.”

Whether it is investing in science during a downturn or choosing customer empathy over the bottom line, these leaders say constraints don’t have to be roadblocks; they can be the very catalysts that drive an operation forward.

When Risk in a Crisis Becomes a Turning Point: Lessons from Top Producers

Wed, 25 Feb 2026 16:51:40 GMT

In a volatile agricultural landscape, risk is a constant. Weather, markets, input costs, succession issues, cyberthreats and pandemics all push farm families into uncomfortable decisions. During the “When Taking Risk in Times of Crisis Pays Off” panel at Top Producer Conference, six producers shared how they’ve navigated those moments — and what they’ve learned when the stakes were highest.

The panel, moderated by Rena Striegel, president of Transition Point Business Advisors in West Des Moines, Iowa, included: Edward and Rebecca Dalton, of Dalton Farms, Wakeman, Ohio; Chris Payne of 3B Hay & Straw, Ontario, Ore.; Wendy Alsum Dykstra and Heidi Alsum Randall of Alsum Farms and Produce, Friesland, Wis.; and Ron Rabou of Rabou Farms, Albin, Wyo.

Their stories spanned family tragedy, ransomware, COVID-19 disruptions, organic transitions and bold expansion moves — offering a candid look at what it really means to take risk in agriculture.

Here are five key takeaways from the conversation:

1. Crisis as a Catalyst, Not a Dead End

For several panelists, a crisis didn’t just test their operations; it forced a complete re-evaluation.

The Daltons describe being emotionally exhausted and financially stuck before a Top Producer event pushed them to question everything.

“We were floundering in agriculture,” Rebecca says. “We were not making any money, really. We were just doing it to do it and to continue that legacy. And we were to the point where, like, ‘why are we doing this?’ You know, we only have so many days here. We only have so much time here.”

After a series of family tragedies and persistent unprofitability, they made a bold move to transition about half their acres to organic production. The shift brought much-needed profitability and renewed purpose.

“The risk was I was going to quit farming,” Edward explains. “We needed something and a spark and to just want to farm again.”

In Wyoming, Rabou’s turning point came after the sudden death of his father and the unraveling of a complex family ranch structure. Walking away from a fifth-generation operation was emotionally painful, but necessary.

“We did a lot of soul searching, and I kind of came to the conclusion that the risk for me for not doing something was much greater than actually doing something,” he says.

Rabou and his wife started essentially from scratch, building an organic grain operation and a hunting enterprise, borrowing heavily despite having grown up in a “never borrow” mindset.

2. Numbers Matter — But They Aren’t Everything

A recurring theme was the importance of knowing your numbers while recognizing data alone cannot drive every decision.

“Knowing our numbers is what really helped us,” Edward explains. “If you know your own data front and back, when you really get into those tight situations that you need to be able to think and move… sometimes you just have to move, whether you want to or not.”

Recently, the Daltons made a bold move back to conventional production. The Daltons’ choice to step out of organic was a conscious decision to go against what the spreadsheet said, in favor of their family and team.

“Right now, when I’m hauling $12 beans instead of $40 beans, like we were for a few years, I’m not really happy with that decision, but it was too much time,” Edward explains. “We were losing time with our boys, and that ultimately is why we went back, even though we were making more money per acre.”

Rabou emphasizes having a clear philosophy about leverage: “I have no problem borrowing money on appreciating assets, but I have to be very careful about borrowing money on assets that depreciate.”

For him, land and infrastructure are long-game investments, and he admits he more often regrets the risks he didn’t take than the ones he did.

“I’ve never looked back and said I shouldn’t have made that investment,” he says. “But I have looked back a multitude of times and said, ‘Wow, I wish I would have made that investment.’”

3. Fear vs. Action: Moving When the Window Opens

Panelists agree that fear is often the biggest barrier to seizing opportunity — especially when decisions must be made quickly.

Oregon onion grower and packer Payne describes how, in the middle of a tense meeting, he and another young partner were essentially challenged to buy out older shareholders in an onion packing facility. They had seconds, not months, to commit.

His broader advice to producers now: “Don’t get caught up in fear. If you let fear dominate your thought processes, you’re never going to succeed.”

Preparation helps in those “15-second” decision moments, Payne adds. Continually learning, attending conferences and thinking through scenarios ahead of time gives you a framework so you’re not starting from zero when opportunity knocks.

Edward adds, “You absolutely know how it’ll go if you don’t try. If you’re not willing to try, it’s not going to work. You can’t move forward if you don’t do something or try.”

4. Cyberattacks, COVID-19 and the Power of Systems

For Alsum Farms & Produce crisis came in very modern forms: a ransomware attack and then the COVID-19 pandemic.

“At 3 a.m. one morning in October, I got a call from our IT manager that we had been hit with ransomware,” Wendy explains.

She explains recovery from the attack required all hands on deck, multiple external experts and months of work to protect traceability and keep product moving. The aftermath included layered backups, new server and email security, user training and an ongoing relationship with cybersecurity and insurance professionals.

Just months later, COVID-19 hit. With 90% to 95% of their business retail-focused, the Alsum team quickly formed a COVID-19 response group, redesigning workflows to keep employees safe and shelves stocked.

The sisters say one key result from COVID-19 was when another supplier faltered, the Alsums were ready to step up for a major retailer — turning crisis into opportunity.

5. Relationships as a Strategic Asset

Beyond capital and land, the panel underscores the value of relationships — with peers, competitors and buyers.

Edward, Payne and Rabou maintain a group text, often used when one of them is wrestling with a big decision.

“Have people in an industry that you can trust and communicate with,” Edward stresses. “There’s been days they’ve literally had to walk me off a ledge when I’m trying to figure out how to make a decision.”

In the potato and produce world, Heidi says, competitors often become collaborators when the chips are down.

“The nice thing about the potato industry and the produce industry in general that we’ve experienced is that it’s been very collaborative,” she explains.
Rabou adds he sometimes sells grain below top price to maintain long-term relationships and outlet security.

“Those relationships to me are more important than making the dollar in the moment,” he explains.

His broader warning to producers is to stop comparing your operation to your neighbors’.

“You really have to determine what works good for you as an individual, you as a couple, you as a business,” he stresses. “Stop paying attention to what everyone else is doing.”

The Bottom Line from Top Producers

Across all their stories, the panelists echoed a few core principles:

Know your numbers but also know your values.
Act in crisis — don’t let fear make the choice for you.
Be willing to pivot, even away from something profitable, if it no longer fits your life or strategy.
Invest in appreciating assets and in relationships, both of which can pay off long after the crisis has passed.

In short, risk in times of crisis isn’t just something to endure; handled intentionally, it can be the turning point that reshapes a farm for the better.

Global Protein Demand Surges 2% Annually as Producers Navigate Volatile Markets

Thu, 19 Feb 2026 19:28:00 GMT

While global protein demand is growing at roughly 2% annually, livestock producers must navigate a complex landscape of regional shifts, disease risks and policy battles that will define the next decade of production.

“The Global Protein Outlook: Demand, Trade and the Supply Picture” panel discussion during this year’s Top Producer Summit brought together experts from the beef, dairy and pork industries to explore demand, trade dynamics and risks facing the livestock industry today.

Beef, dairy and pork experts explain how foreign animal disease and climate extremes threaten herds and what risk-management strategies producers can use to stay profitable.

(Farm Journal)

On the panel were:

Kenny Burdine, University of Kentucky agricultural economist
Stephen Cain, National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC)
Renee Strickland, Strickland Ranch & Exports, Inc.
Scott Hays, Missouri Pork Association

Five key takeaways from the discussion include:

1. Global protein demand is structurally strong, driven by population growth, rising incomes and a broad cultural focus on protein.

“Globally, we are seeing an increase in protein demand broadly across the board,” Cain summarizes.

He describes a few demand patterns:

Regions like sub-Saharan Africa and India: demand mainly from more mouths to feed, not big per-capita jumps.
Regions like Southeast Asia and China: both population and per-capita protein consumption have risen sharply.
Developed regions like the U.S. and Europe are in a fortified-protein trend: “We are cramming protein into everything,” Cain describes. “We have protein water on the market now … it’s across the world.”

Plant-based and alternative proteins seem to be a niche.

Burdine explains: “They’ve not taken any market share. It’s still kind of staying in that niche and not impacting the major protein categories.”

Cain adds the dairy alternatives are seeing category declines, with more consumers realizing milk is a whole food compared to the ingredient in an almond beverage.

2. Supply and trade are shifting toward more regionalized production and stronger competitors, but U.S. strengths in productivity and quality remain critical.

On the supply side, Cain explains rising demand does not always translate into equally increasing exports.

“We’ve seen that slow down,” he says. “More of that protein demand is being filled by domestic production, more regionalized players.”

He links this to some pushback against globalism and more inward-looking, domestic strategies. The U.S. remains a key exporter but faces growing regional competition.

Burdine adds while the U.S. has the smallest cow herd since 1961 , productivity gains mean more output per animal. He points out Brazil passed the U.S. as the largest beef producer.

“It’s not that there’s not competition out there, but we absolutely [have] a great advantage here in the states,” he says.

From pork’s perspective, Hays says the U.S. pork supply should stay steady into 2026, while global pork supply is shrinking. He predicts China may decrease 1.4 million sows, Spain is cutting numbers due to African Swine Fever, yet Brazil is continuing to grow its numbers.

3. Risk and resilience — disease, climate extremes and feed quality — are central concerns, making biosecurity, preparedness and careful storage essential.

Hays highlights herd health is the biggest concern for all livestock producers.

“What keeps every producer up is herd health,” he stresses.

He points out to these concerns today:

Porcine Reproductive and Respiratory Syndrome (PRRS): PRRS causes “very, very significant losses” and takes a multiyear recovery
Foreign animal diseases – African Swine Fever, foot-and-mouth disease and New World screwworm .

“Foot and mouth should scare everybody at this conference,” he stresses. “We would lose all of those exports on all of those products, from dairy to beef to pork.”

From the cattle perspective, Strickland adds climate extremes are a concern for ranchers today.

“I also fear the climate change extremes that we’re all experiencing,” she says. “Extreme drought, extreme rains… that’s really challenging for me as a producer.”

More information about disease challenges facing the livestock producers today:

PRRS ‘Still Sucks’: New Strain Plagues Pork Producers in Ohio

Strategies to Help Raise PRRS-Positive Pigs

Is a World Without PRRS Possible? Two Veterinarians Say ‘Yes’

Help Protect the U.S. from African Swine Fever

African Swine Fever: What it means for America if it were to get into the country

What Do Foot-and-Mouth Disease Outbreaks in Europe Mean for the U.S.?

The Smell You’ll Never Forget: A Calf Infested with New World Screwworm

New World Screwworm: An Infestation, Not Infection

4. Consumer behavior shows both opportunity and caution: strong protein demand despite high prices, but some trade-down, weaker foodservice and ongoing debates over “ultra-processed” foods.

Burdine compares today’s protein enthusiasm to past diet waves like Atkins and South Beach, but emphasizes: “Consumer trends are always challenging, but it’s the most encouraging in my career.”

Two features about the demand craze he points out are:

How widespread it is across species and products, including eggs.
Price behavior — despite very high retail prices, demand remains strong.

Burdines explains this suggests a deeper, more durable shift for increased protein demand, not just a short-lived fad.

Cain adds in the protein world trade-down due to inflation and increasing costs is real, especially in foodservice.

He notes lower-income consumers pull back on fast food and quick service, which hurts cheese and dairy demand. Cheese consumption, which usually increases about 2% per year, fell 2% last year, which he says is largely due to weaker foodservice traffic.

Burdine adds that trade-down happens across and within species.

Hays emphasizes the new dietary guidelines are a big win for protein and specifically animal protein.

“We’re excited,” he says. “Pork is at the top on the left-hand side, but it’s more about shifting the conversation. We’re moving away from ‘animal fat makes you fat.’ Meat provides hard-to-replace vitamins and minerals, including in the fat portion.”

He did share concern about how ultra-processed concepts are being used.

“We’ve taken this word ‘ultra-processed’, and now it’s a household word. It is the single unit of measure [for] whether or not we should or should not eat something,” Hays says. “And we don’t even know what the definition of it is.”

He explains if ultra-processed is the only metric, a sausage patty and a honey bun look identical, which is misleading for real nutrition decisions.

Cain adds allowing whole milk in schools is a big win, but schools are facing a higher cost than skim and calorie caps that make menu-balancing harder.

5. Strategic actions for producers: robust risk management, efficiency and quality focus, diversification and a commitment to mentoring the next generation.

Cain encourages producers to use risk management and pricing strategies to help make them viable at today’s prices.

“If you’re not economically viable today, you’re not going to be economically viable tomorrow,” he says.

Burdine adds to think about risk management broadly considering price tools and protection from acts of God. This includes biosecurity strategies and insurance.

“Focus on efficiency and quality to stay competitive in good and bad markets,” he stresses.

Hays asks grain producers to protect feed quality. Poorly stored corn or DDGs (dry distillers grains) can create toxin issues that hurt animal performance and reduce demand.

“Your consumer really needs it to be high quality,” he stresses. “And we’ll buy more of it.”

Strickland encourages producers to diversify their income and not put all their eggs in one basket. Her business includes a ranch, export company and a non-ag title search company.

“When one of them is not doing so well, something else bails me out,” she summarizes. “If you’re in a position that you can diversify just a little bit, it can get you through the hard times.”

The final message was a question: Who are you mentoring and investing in? All producers need to consider how they are going to pass information on to the next generation and help them be successful and thrive.

Your Next Reads:
U.S. Cattle Inventory Hits 75-Year Low at 86.2 Million Head
What Do Consumers Buy in the Meat Aisle When Money is Tight?
New Dietary Guidelines Move Food Pyramid Closer to the Farm

Dairy Faces a “Very Weird Situation,” Forcing Farmers to Rethink Revenue

Thu, 12 Feb 2026 17:27:19 GMT

Dairy farmers are standing on shaky ground. Milk checks are tight and input costs are up, but replacement heifers and beef-on-dairy calves are providing an unusually strong backstop. As Gregg Doud, president and CEO of the National Milk Producers Federation, puts it, dairy is in a “very weird situation” right now.

Beef-on-Dairy Helps Pay the Bills

With today’s market conditions, many dairy farmers are finding that the most valuable part of their operation is not in the parlor, but in the maternity pen.

“The milk check is not much,” Doud told “AgriTalk” host Chip Flory during Farm Journal’s 2026 Top Producer Summit. “But those calves are worth so much.”

In some regions, that beef-on-dairy value is staggering.

“The latest number I heard in the Northeast recently, a black day-old calf [is worth] $1,600,” Doud adds. “You talk to [dairy farmers] and they say, ‘We’re in the beef business now.’”

At a time when the milk check alone is not enough to carry the operation, beef-on-dairy has become a financial lifeline that is helping many farms stay profitable.

“Beef-on-dairy doesn’t have 100% penetration into the industry, but it’s close,” Doud says. “I would say it’s over 75% at this point.”

This shift is reshaping how farmers think about cow value, reproductive decisions and even culling strategies. A cow is no longer evaluated only on her milk production or longevity, but on the value of the calf she is carrying.

“If a cow is pregnant, she’s staying,” Doud adds. “The calves are worth too much to ignore.”

Fewer Replacements

That shift, however, comes with consequences for the future makeup of the herd.

With so many breedings going to beef, Doud says the number of replacement dairy heifers in the industry has dropped to levels that are noticeably short.

“The number of replacement dairy heifers is way below what it ought to be,” he says. “So, this is going to be interesting, and there could be a big swing in cow numbers at some point here.”

Doud notes the current reduction in replacement heifers is something the industry is watching closely.

Risk Management Remains Essential

As producers navigate all the shifting pieces in today’s market, Doud draws a firm line on risk management. In a margin environment like this, Dairy Margin Coverage (DMC) and Dairy Revenue Protection (DRP) are not optional tools in his mind. They are essential.

“The Dairy Margin Coverage program for dairy is something that I think everybody in agriculture needs to look at,” he says. “It kicks in when you need it.”

Although DMC has limits on how much milk can be covered at the highest level, Doud notes it still works well for most dairies. He follows that point with strong encouragement for producers to also consider DRP, explaining it offers another way to safeguard milk income by allowing farms to insure a portion of their future revenue against market swings.

“Every dairy farmer in America, my goodness, if you are not signed up for DMC and also DRP on the insurance side of the equation, get signed up for these things,” he adds.

In his view, these tools were designed specifically for moments like this, when margins are thin and markets are unpredictable.

Cautious Optimism in an Uncertain Market

Looking ahead, Doud acknowledges milk checks are likely to remain tight, but the value of beef-on-dairy calves is helping farms navigate a difficult margin environment.

With additional dairy processing capacity coming online and continued demand for protein, he is hopeful milk prices will improve. In the meantime, he views risk management tools and beef-on-dairy breeding decisions as practical safeguards for producers working through challenging market conditions.

A 2014 Repeat? Why This Meteorologist Sees 'Bumper Crop Potential' for 2026

Wed, 11 Feb 2026 17:41:51 GMT

The weather outlook for 2026 is one of “cautious optimism.” While there is less immediate concern compared to the start of 2025, Matt Reardon, senior atmospheric scientist for Nutrien Ag Solutions, says the “spring predictability horizon” remains a factor where conditions could still shift.

El Niño and La Niña are the two opposing phases of the El Niño-Southern Oscillation (ENSO) cycle. This cycle describes the fluctuations in temperature between the ocean and atmosphere in the central and eastern tropical Pacific Ocean.

“That gives us some sense of where things might tilt weather-wise, particularly in winter,” Reardon says. “In summer, there are some correlations, too.”

For many U.S. farmers, El Niño is often welcomed because it can bring increased precipitation to major growing regions, though it can also cause flooding in some areas. Meanwhile, La Niña is frequently associated with increased drought risk in the Southern Plains and Mid-South, which can lead to yield-robbing conditions if the pattern persists into the summer.

“We tend to root for El Niño, particularly in North America, as it tends to be beneficial for our growing regions with a little more precipitation,” Reardon says. “But those correlations are very far from a home run. We’re talking just a slight lean in that direction.”

He says the forecast predicts fading out of La Niña pretty quickly in spring and heading toward an El Niño, potentially by summer.

What Can Farmers Expect This Spring?

“What I’m looking at as we head toward both spring planting then summertime heat and real drought risk in June and July is that one sea surface temperature is closer to home in the Northeast Pacific,” he says. “We found, especially this decade, that as those sea surface temperatures go, our season tends to go.”

Last year, with all the drought concerns going into 2025 growing season, water temperatures in the Northeast Pacific stayed warm – actually record warm.

“We had a great growing season for the most part with plenty of moisture, if not too much, in some areas,” Reardon says. “In 2023, those water temperatures stayed a little bit cooler, and we had more drought risk.”

Reardon admits he’s learned that “cautious optimism about where things are headed” is often helpful when determining weather expectations.

As he looks toward 2026, he sees a similar start to 2014, which was a huge bumper crop year.

“But things can change,” Reardon adds. “There’s that spring predictability horizon we’ve got to leap over here.”

Is Drought Likely in 2026?

One of his concerns is that the latest USDA Drought Monitor shows some overwinter drought, which he says isn’t uncommon.

“We’ve seen a lot of that this decade. Spring rains can quickly make up for a lot of that,” Reardon says.

On Feb. 9, the Southern Plains saw a lot of grass fires. He says some of those were prescribed burns, but winds will be picking up again over the next 10 days.

“We are keeping an eye on the Southern Plains,” Reardon says. “They are getting some rain over the next seven days, but that’s an area that’s so prone to drought, especially in spring. If we see it build there and then try to leach over to Little Rock or Nashville, that can start to become a concern.”

In big yield-robbing drought years, it often flares in the Mid-South or even the Southeast over into the southern plains, first in April or May, and then tends to spread north.

“That’s a common behavior of some of these big concerning years of the past like 2006 or 2012, so we are keeping an eye on that right now,” he says. “But the good news is, in the next 10 days, we are going to get some moisture into the ground.”

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.

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Atlanta Fed Chair Bostic Recognizes Sectors of Agriculture Are in Crisis

Tue, 10 Feb 2026 00:20:01 GMT

Is an economic crisis brewing in farm country? That’s the question Raphael Bostic, outgoing president and CEO of the Federal Reserve Bank of Atlanta, is watching as balance sheets carry over operating expenses into the 2026 season.

“There’s a lot of distress in agricultural marketplaces and in a lot of our agricultural enterprises,” Bostic says. “I do think there’s a significant crisis here.”

During a fireside chat at the 2026 Top Producer Summit , he recognized the challenges facing farmers in today’s financial environment.

“I get to talk to a lot of smaller family farms and I worry about them, especially because the big operations, they are so large scale, it gives you a diversity of possible strategies,” Bostic explains. “You can tap into different types of credit that can allow you to weather volatility a bit more readily, and we don’t see that for a lot of the smaller folks.”

To help, USDA is set to release $12 billion in “ Farmers Bridge Assistance ” payments toward the end of the month.

“This is a short-run patch on something that could be a long-run problem,” Bostic says.

Rising Expenses and the Growing Debt Burden

USDA is expecting net farm income to be $153.4 billion, which is down $4.1 billion from 2025. Economists say this year’s latest outlook continues to reflect declining receipts and an ongoing reliance on help from the government, which is expected to increase by 45% in 2026 alone.

“Total production expenses are forecast to increase almost $5 billion or 1%,” says USDA economist Carrie Litkowski. “On the farm sector balance sheet, assets, debt and equity are all forecast to increase.”

The latest Purdue University - CME Group Ag Economy Barometer in January found 21% of farmers surveyed expect their operating loan to increase over a year ago. Of those, a third say it’s because they’re carrying over unpaid operating debt from the prior year. In 2023 that number was only 5%.

“We know that input prices for a host of products are up,” Bostic says. “We know that competition at a global level is up. We know that the tariffs have put tremendous pressure on the competitiveness of American products overseas because of those dynamics, and we also know many commodity prices haven’t changed to offset these things. These are all incredibly challenging dynamics to wrestle with, and how we move forward is really an open question.”

Fed Policy: Why Patience is Required for Rate Cuts

The Fed’s primary mandate of stable prices and maximum employment provides an environment with predictable growth, giving people the opportunity to invest for the long haul without having to worry about where the economy will be in five to 10 years.

“First we have to diagnose the problem,” Bostic says. “Is this an issue with labor availability, an issue in new technology or shifting climate patterns, etc., and then we need to think about what strategies will work for all of these new things.”

That mandate requires patience in seeing how current monetary policy impacts the market. Bostic notes inflation remains above the Federal Reserve’s target of 2%, but economic growth has been and will continue to be robust. One thing he’s not advocating for is a continuation of interest rate cuts.

“The government shutdown actually prevented a lot of data from being produced, so it is actually going to make the numbers a bit choppier in the next several months,” Bostic explains. “The usual signals we would get from those [reports] are actually going to be weaker than they would be otherwise. For me, that’s another reason why I think we want to be cautious. We want to be patient, and I think that’ll be prudent.”

Patience ahead of additional rate cuts would allow the Federal Reserve to see how tax cuts and deregulation stimulate growth into 2026 before cutting rates, which could spur inflation even further above the Fed’s target.

At the 2026 Top Producer Summit, Raphael Bostic, president and CEO of the Federal Reserve Bank of Atlanta, joins Bill Watts, Pro Farmer editor, to share insights into the economic forces shaping monetary policy and what that could mean for agriculture.

(Farm Journal )

The ag economy is seeing similar challenges to the economy as a whole. Bostic remarks while the top end of the economy is doing remarkably well, there is a growing number of U.S. consumers who are living paycheck to paycheck, evidenced by the increased rhetoric around a K-shaped economy. That has made itself evident in the ag economy by higher consolidation, with big farms getting bigger and smaller farms going out of business.

“This economy has continued to perform well at an aggregate level; consumers have continued to be resilient, and that’s a good thing,” Bostic says. “My outlook is that the resilience we’ve seen for much of 2025 will continue into 2026 and might even get a bit stronger, so we might actually see some of the tax benefits, some of the deregulation, those things could actually spur the economy to do even more than what it did last year.”

Consolidation and the Transformative Potential of AI

The latest red flag, a sluggish labor market has Bostic waiting on data and wondering if technology or AI are having an outsized role in the current new-hire economy.

“When you think about AI, for example, and those technologies, businesses are experimenting with ways to have AI introduced into their production processes to allow productivity that doesn’t require people,” Bostic admits. “You may have heard reports about a lot of entry-level hiring has happened at a much lower pace than it has in previous years. A lot of that is because the promise of AI has folks thinking, well, maybe I don’t need to do those hires, and I can get that same amount of productivity. That’s a structural change.”

From a farming perspective, those opportunities are also presenting themselves. Given the current challenges in agriculture, Bostic says it might be time to look at new ways to build toward the future.

“To the extent that work can be done, that is, generative, without necessarily needing a person to be there all the time, that’s potentially transformative,” Bostic says. “I know the day is long, seasons are hard, and if you can use technology to take two hours out of it that gives you space to do other things. The opportunity there is what do you do with that extra space?”

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 !

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.

Ag Meterologists Worry More Drought Lies Ahead For Spring

Fri, 21 Feb 2025 17:14:24 GMT

As Eric Snodgrass looks six weeks out to the end of March, he doesn’t like the weather pattern he sees shaping up for spring planting season – more dry conditions.

Varying levels of mild to moderate drought have dogged much of the upper Midwest, West and Southwest since last fall, and the outlook is for more of the same, according to Snodgrass, a leading U.S. meteorologist.

Check out the soil moisture deficit currently in the upper Midwest and West. At the opposite extreme, a broad band of soil moisture shows up in blue across much of the Ohio Valley region.

(Eric Snodgrass)

“I’m concerned about the way the central United States and the western Corn Belt, in particular, are going to be dealing with the risk of drought building into spring,” Snodgrass told farmers attending the Top Producer Summit in Kansas City earlier this week.

History shows that drought tends to beget drought. In six of the past 10 years with a really dry fall, Snodgrass says the spring to follow was also dry.

The weekly U.S. Drought Monitor echoes his observations. The Monitor released Thursday (Feb. 20) shows drought is impacting 45% of corn production acres, 36% of soybean production acres, 40% of spring wheat and 20% of winter wheat acres, respectively.In addition – of particular concern to beef and dairy producers – 49% of the U.S. alfalfa hay production acres are also experiencing drought.

Arctic Air Is Contributing To Drought Conditions
Snodgrass spells out what usually happens in late winter to create the moisture farmers need at planting time in the Corn Belt.

As the jet stream moves across the Pacific Ocean, it typically splits and sweeps into the West Coast from two positions – one from the northern North Pacific Ocean and the other from the southern North Pacific Ocean, close to Hawaii. The two portions of the jet stream usually then scream across U.S. western mountain ranges, picking up moisture they then deposit in portions of the Corn Belt before moving on to the East Coast and exiting the U.S. in Maine.

This year, the portion of the jet stream that normally comes from Hawaii has veered from its usual course and possibly even stalled. One indicator of that happening, Snodgrass says, is a drop off in ocean temperatures in the Baja of California and the Gulf of Alaska. The result is dry, arctic air has been moving into portions of the U.S.

In years when the Gulf of Alaska is in a warming trend, U.S. crop yields tend to be higher. The opposite is true when the Gulf cools.

(Eric Snodgrass)

For some parts of the U.S. the cold, arctic air has brought snow along with it. But the snow holds little moisture that would help alleviate the frozen dry soils. “We have some deep snow in areas right now, but it’s only got maybe two-tenths of an inch of liquid in it,” Snodgrass explains.

That’s bad news for farmers who need a full profile of soil moisture going into spring and don’t have one.

“If I’m in Iowa, Minnesota, northern Illinois, the Dakotas, even parts of Nebraska and Missouri, I’m going, holy smokes, that arctic air has prevented any sort of meaningful precipitation coming back at this point of the year,” he says.
Similar concerns were voiced by Drew Lerner, founder and president of World Weather, Inc., during the Top Producer Summit.

“If we continue bringing these cold shots of air through North America, we will have a below-normal precipitation bias [for the western Corn Belt] as we go forward through spring planting season,” Lerner explained during the taping of the U.S. Farm Report.

This map shows what the precipitation could look like in March. But remember, Mother Nature is unpredictable. It’s certainly feasible she could change course and bring moisture to the states west and southwest of the Mississippi River.

(Eric Snodgrass)

That’s not the meteorologists’ expectation for the eastern Corn Belt and portions of the Southeast. Lerner and Snodgrass agree those areas are likely to have plenty of moisture going into spring planting.

More Weather Trouble Brewing For Summer
If the current cold conditions continue through March, which Lerner and Snodgrass anticipate will be the case, what will likely occur is a knee-jerk reaction in the atmosphere: a warming trend will start in late March or early April and build through late spring and into early summer.

“If we warm up quickly in the spring, which is a high possibility, we could end up falling behind the eight ball a little bit more on soil moisture,” Lerner says.

While some meteorologists point to this year’s La Niña as a cause of the continued move to dryer conditions, Snodgrass and Lerner say that’s not the case.

“La Niña will be gone by the time we get into mid-March,” Lerner predicts. “This La Niña hasn’t lasted long enough to really have a big footprint in the atmosphere. As we get into April, it’ll be pretty much a non-event.”

Keep An Eye On The Pacific Decadal Oscillation
Lerner and Snodgrass believe a negative phase of what scientists call the Pacific Decadal Oscillation (PDO) could be a primary contributor to ongoing drought and higher temperatures by April. The PDO is a long-term climate pattern that affects the temperature of the Pacific Ocean and can influence weather patterns across the globe.

While the PDO has not had what Lerner calls a “tremendous amount of impact” in past years in the U.S., it’s looking more influential for the 2025 growing season.

“I’m seeing some additional cooling off the West Coast of North America that may end up leading us into a greater ridge building with all the dryness that’s in the soil and that negative PDO,” Lerner says. “I’m not ready to go all the way over with [that prediction], but that’s where I’m headed.”

The Surprising Solution To Drought
If Mother Nature continues on her worrying course, Snodgrass says continued low temperatures in the Gulf of Alaska would be a signal in early summer for farmers.

“If we get into June and it’s cool there, that is telling me that the atmosphere is not moving. And if it doesn’t move, well, all of a sudden we could find ourselves in a situation in late June into July with more drought and excess heat,” Snodgrass says.

The North American Multi-Model Ensemble (NMME) is a seasonal forecasting system, showing this summer could be a dry one in portions of the West and upper Midwest and into Canada. However, summer is still months away, and Mother Nature could change course. However, being forewarned can help farmers plan ahead.

(Eric Snodgrass and NMME)

Another worrying sign he says to watch for is where the active spring weather pattern falls. If areas of Kansas and the Great Plains see an active tornado season, Snodgrass says that means the weather pattern is more favorable for rains to fall across the Corn Belt. But if tornado warnings blare across the Southeast, Snodgrass says that’s a signal drought could be a problem this summer.

There is a solution to the troubling weather patterns, he adds, one most farmers won’t welcome – a big, wet snow on the Northern Plains.

“The No. 1 thing I’m praying for right now is an April 4 blizzard. I want a foot of snow,” Snodgrass told farmers at Top Producer Summit, many of whom laughed.

Snodgrass laughed, too, and added, “You’ll hate me for about a week, and then love me through the rest of May.”

Your next read: ‘Stay Tuned, We’ll Be Right Back With Your Forecast’

EXCLUSIVE: As DOGE Works to Stop Wasteful Spending, Secretary Rollins Says Vital Farm Programs Aren't at Risk

Thu, 20 Feb 2025 22:44:33 GMT

The Department of Government Efficiency (DOGE) has stormed Washington since President Donald Trump took office, working to uncover what it calls wasteful spending. That includes a comprehensive review of the money going out the door at USDA.

Before Agriculture Secretary Brooke Rollins was even confirmed, DOGE produced findings from its initial review of USDA. Those findings were something Rollins highlighted during her first address to more than 400 USDA staffers and others immediately following her confirmation.

“I welcome DOGE’s efforts at USDA because we know that its work makes us better, stronger, faster and more efficient. I will expect full access and transparency to DOGE in the days and weeks to come,” said Secretary Rollins during her address.

The American people gave us a mandate: end waste, fraud, and abuse in their government — and we are delivering.

🚨Here are just several contracts we terminated @USDA:

-Media contracts, including Politico subscriptions: $2.77 million

-Diversity, Equity, and Inclusion…
— Secretary Brooke Rollins (@SecRollins) February 15, 2025

According to Rollins, since Jan. 20, USDA has reviewed contracts, personnel, employee trainings and DEI programs. Based on that review, she announced USDA would terminated 78 contracts, which totaled more than $132 million, calling them “bold reforms.” That includes:

Media contracts, including Politico subscriptions: $2.77 million
Diversity, Equity and Inclusion Onboarding Specialist: $374,000
Diversity Dialogue Workshops: $254,000
International Development for Historically Underrepresented Communities: $298,000
Brazilian Forest and Gender Consultant: $229,000
Women and Forest Carbon Initiative Mentorship Program: $121,000

Today’s contract update:

95 cancellations with savings of ~$115M (ceiling value of ~$235M), including two USDA contracts:
- $265k for a “food and nutrition service 3 day leadership retreat in Atlanta”
- $30K for “Malaysia study tour facilitation services” pic.twitter.com/U5IMTpvPLe
— Department of Government Efficiency (@DOGE) February 21, 2025

Just a week later, DOGE posted an update saying the current update at USDA include:

95 cancellations with savings of ~$115M (ceiling value of ~$235M)
That includes two USDA contracts:
- - $265k for a “food and nutrition service 3 day leadership retreat in Atlanta”
- $30K for “Malaysia study tour facilitation services”

Live update from our @DOGE_USDA team’s meeting tonight 👇

Look what we just found (and cancelled!): $324,671 grant for “Increasing DEIA Programming for Integrated Pest Management” … you can’t make this up🤦🏻‍♀️

cc: @DOGE @elonmusk pic.twitter.com/GOaYpIeM13
— Secretary Brooke Rollins (@SecRollins) February 21, 2025

Secretary Rollins also providing an update Thursday, saying the agency canceled a $324,671 grant for “Increasing DEIA Programming for Integrated Pest Management.”

DOGE USDA
DOGE USDA took to X (formerly Twitter), seeking help and input from the public. That one post caused a flood of input, with more than 2,000 comments and suggestions. While some went as bold as asking DOGE USDA to abolish USDA reports, others asked DOGE to look into funding for solar on farmland and where the money has been spent to combat avian flu.

DOGE is seeking help from the public! Please DM this account with insights on finding and fixing waste, fraud and abuse relating to the US Department of Agriculture. Thank you.
— DOGE USDA (@DOGE_USDA) February 17, 2025

Are Farm Programs at Risk?

While farmers seem generally open to a USDA that wants to tackle waste, there’s also concern about what it could mean for crop insurance or other vital farm programs.

In an exclusive interview with Farm Journal during the 2025 Top Producer Summit , we asked Secretary Rollins how much push back she will have on DOGE and what assurances she can give producers that farm programs won’t be at risk.

“DOGE has brought, I think, a lot of excitement to all of America,” Rollins said. “I think there is not one person, except for maybe Elizabeth Warren and a few democrats ... everyone realizes at this moment in time in American history this is really important. Having said that, the United States Department of Agriculture, and since President Lincoln founded it in 1862, I believe, this agency is important to our farmers and ranchers with programs like the farm loans, etc., and imperative to a thriving rural America.”

Thank you @topproducermag for hosting @RogerMarshallMD and me in Kansas City, Missouri, with 1,000 of the Top Producers from across the US to talk about issues like expanding trade access and cutting regulatory red tape for farmers.

Biden’s ZERO trade deals and inflationary… pic.twitter.com/ejMxKxkRMG
— Secretary Brooke Rollins (@SecRollins) February 19, 2025

Rollins also pointed to President Trump’s approval rating within the rural community, as another reason this USDA will work to protect those programs.

“The farmers and the ranchers have been with him since he came down the escalator in 2015. I sincerely believe that those programs that are essential to keeping those communities thriving and hopefully even more prosperous going forward, that we’ll work with those to ensure that there is an understanding of how important those are,” said Rollins.

Checkoff Programs and DOGE
When DOGE took to X to ask for input, there were several comments about DOGE investigating agricultural checkoff programs. According to Pro Farmer Washington Correspondent Jim Wiesemeyer, DOGE is reportedly actively reviewing agricultural checkoff programs as part of its broader initiative to evaluate and potentially reform agricultural policy and spending.

AgriTalk’s Chip Flory asked Rollins if Checkoffs had become a target for DOGE.

“That is to be determined,” Rollins said. “I have not even begun to look at those. I know we’ve got a team looking at them. We’re going to get through the next few weeks and then we’ll start evaluating.

According to Wiesemeyer, USDA’s Agricultural Marketing Service oversees 22 checkoff programs, which vary in legal authority and regulatory structure. Some operate under commodity-specific statutes, while others fall under the Commodity Promotion, Research, and Information Act of 1996. State-level checkoff programs also exist, often independently from federal programs, covering commodities such as corn, rice, apples, and table grapes.

The Pros/Cons of Ag Checkoff Programs
Wiesmeyer reports agricultural checkoff programs provide collective marketing, research, and education benefits, but they also face criticism for transparency, fairness and mandatory participation.

Pros

Market development: Expands markets and funds large-scale advertising.
Research & innovation: Improves farming practices, technology, and sustainability.
Education & trust: Enhances consumer confidence in agricultural products.
Return on investment: Studies show benefits outweigh costs, with high benefit-to-cost ratios.

Cons

Transparency issues: Small farmers criticize unclear fund allocation.
Favoring large producers: Benefits may tilt towards larger operations.
Mandatory fees: Farmers must contribute, even if they disagree.
Potential misuse: Allegations of lobbying and mismanagement exist.
Harm to specialty producers: Organic farmers may not benefit but still pay.
Legal challenges: Constitutional disputes over mandatory participation.

Wiesemeyer reports while checkoff programs drive industry growth, concerns over equity and governance continue to spark debate and calls for reform.

Watch Rollins’ full interview with AgriTalk’s Chip Flory.

Your Next Read:

USDA’s Rollins: ‘Let’s Go Barnstorm The World And Find New Partners’ For Trade

30 Minutes With Secretary of Agriculture Brooke Rollins In Her First Week On the Job

Wed, 19 Feb 2025 21:14:01 GMT

Since Saturday, Nov. 23, 2024 , Brooke Rollins has been focused on how to build the teams and the plans that impact the trajectory of agriculture and rural America. On that day, while en route with her husband and four teenagers in their motor home to Auburn, Ala., for the Texas A&M football game, she got a call from now President Donald Trump. The purpose of his call: She was his top choice to fill his final significant cabinet position, Secretary of Agriculture.

Obviously, she had to wait for confirmation, which came last week on Feb.13 when the Senate overwhelmingly confirmed her as the 33^rd Secretary of Agriculture , but since that Saturday before Thanksgiving, she’s been on the go with an accelerated enthusiasm to understand the significant challenges facing rural communities that lost 147,000 family farms between 2017 and 2022 and why the cost of inputs are up 30% as exports are down $37 billion this year and likely to fall further in the months to come.

“This is a crisis, and this is something that I understand inherently,” Rollins said to kick off Top Producer Summit in Kansas City on Tuesday. “My promise to you is this, and my commitment will never waver, that every minute of every day for the next four years I will do everything within my power, with hopefully God’s hand on all of us and our work, to ensure we are not just entering the golden age for America, as my boss, President Trump, likes to say, but we are entering the golden age for agriculture.”

What Has Rollins Been Up to the Past Four Years?
Secretary Rollins and President Trump have worked together for almost eight years. She was in the West Wing with him for years two, three and four of his first term running his domestic policy agenda.

“This real estate guy from New York City brought that vision to life, and then in the last term, was able to really do some remarkable things,” Rollins said in regard to President Trump returning power to the people who just want a chance at the American dream. “I call it the great pause, the four years in between term one and term two. But I think the great pause allowed very intentional planning. It allowed a courageous and bold leader in President Trump to become a fearless leader and to do everything he can to bring America back to greatness.”

In the “dark days of January 2021,” as she described, Secretary Rollins helped launch the America First Policy Institute, a think tank established by former Trump officials to promote conservative policies. The idea was that those policies that made America great in Trump’s first term would continue indefinitely, not just for a second term, but for four years, eight years or 36 years, Rollins described.

First Week On the Job
Since being confirmed last week, Secretary Rollins has been in the Washington, D.C., USDA office for a few hours, but most of her time has been spent in Kentucky at National Farm Machinery Show in Louisville and Gallrein Farms and in Kansas visiting Finney’s County Feeder, High Plains Ponderosa Dairy and the National Beef Packing Plant .

Describing herself as “a reader and a studier,” Rollins seems adamant to hear firsthand from farmers and ranchers. She referenced her visits to the dairy farm and National Beef facility as inspiring, in a good way but also in a way that helps her understand the real challenges at hand.

Speaking to the crowd at Top Producer Summit, she shared her appreciation for the “entrepreneurial American game changers” who are doing their part to feed the world.

“It is so inspiring and a reminder of the very beginning of our country.” Rollins said. “Our revolution was fought by farmers, our Founding Fathers, like Thomas Jefferson and George Washington. The backbone of the great American experiment is this community.”

Thank you @topproducermag for hosting @RogerMarshallMD and me in Kansas City, Missouri, with 1,000 of the Top Producers from across the US to talk about issues like expanding trade access and cutting regulatory red tape for farmers.

Biden’s ZERO trade deals and inflationary… pic.twitter.com/ejMxKxkRMG
— Secretary Brooke Rollins (@SecRollins) February 19, 2025

Farmer Q&A
Watch and listen to what Secretary Rollins, as well as Sen. Roger Marshall of Kansas, had to say on stage at Top Producer Summit about these 7 topics:

Trade and tariffs — “ Let’s go barnstorm the world , and let’s go find some more trade partners and access [to market opportunities],” Rollins said.
Department of Government Efficiency (DOGE) efforts and modernizing USDA — “DOGE is a very valid and important effort across all government. The stories of waste and abuse were really just, not USDA specific but across government, beginning,” Rollins said.
Federal programs, such as CSP and EQIP — “Our commitment is that if there have been commitments made, those will be honored. Getting our arms around all of that right now is really, really, important. Again, going back to the President’s heart and commitment to our farmers, I feel confident we will be able to solve any issues that are in front of our ag community, that are potentially being compromised by the DOGE effort, while at the same time recognizing how very, very important it is,” Rollins said.
Future of USDA — “There’s no question USDA needs some modernization. I’m just beginning to lean into that as well,” Rollins said. USDA has 106,000 employees and 29 departments. “The Secretary is taking over a department where only 6% of the [D.C.] people work in the office,” Marshall added.
Renewable fuels — Prior to President Trump’s first term, he was “the first major candidate to support biofuels, and I think that carried him through Iowa in many ways. … We’ve got E15 year-round. I think that gives us some certainty as well. … The President is supporting that. I think we’re trying to figure out how to save 45Z, but we can’t let China benefit from it. Right now, China is benefiting more from [45Z] than my farmers and ranchers are, so we’ve got to fix that,” Marshall says.
Immigration policies and availability of long-term labor — “I have a full-bodied understanding of the challenges within the labor market, and I believe the President does too. … I believe that we will very soon be talking about it again. Clearly, the H-2A program needs significant reform, and Lori Chavez-DeRemer, she’s going through the [confirmation] process right now. … Hopefully she’ll get her vote very soon. We’ve got a lot of work to do,” Rollins said.
Trump’s cabinet members — “Our cabinet is comprised of people that have been working together and have been friends and colleagues for years, with a few exceptions. Bobby Kennedy is a new friend, but Lee Zeldin and I worked together in America First Works and America First Policy Institute for the last almost four years, Linda McMahon in education and John Brooks — these are our people,” Rollins said.

The Tax Man Cometh To The Farm

Wed, 19 Feb 2025 16:44:43 GMT

Everyone can benefit from a practical reminder from time-to-time. In this case, Paul Neiffer wants to remind farmers that the 2017 Tax Cuts and Jobs Act is set to expire at the end of 2025.

“We’ve had these tax cuts for eight years now, but farmers may not be thinking about this and what it could mean for them,” said Neiffer, principal of FarmCPAReport.com and a Top Producer columnist.

Neiffer addressed the topic of what farmers need to know now and address from a tax standpoint during the 2025 Top Producer Summit in Kansas City.

“Certainly, farmers are aware of the lifetime estate tax exemption dropping in half after this year. But I think a lot of these other provisions that would hit them, they’re probably not quite as aware of them,” he said.

Neiffer highlighted three provisions he believes U.S. farmers are likely most interested in seeing extended or made permanent. They include:

1. The 100% Bonus Depreciation. Neiffer said he believes the 100% provision will be made permanent, though it’s currently only 40%.

“We think that will come back to farmers,” he said. “The practical benefit is when they purchase equipment or farm buildings they’ll be able to deduct 100% of that item in the year of purchase. Also, there is a chance that trade-in of farm equipment will be similar to the old rules and non-taxable in most situations.”

2. The increase in the lifetime exemption for estates. If the current law is left unchanged, as of Jan 1, 2026, the present lifetime estate and gift tax exemption will be cut approximately in half. It currently is almost $14 million.

Neiffer is optimistic about the exemption. “I think the likelihood on the estate exemption is very good. I think that’ll stay at least at the current level,” he said.

3. The Section 199A Cap. This provision allows individuals, trusts and estates with pass-through business income to deduct up to 20% of qualified business income (QBI) from taxable ordinary income. Schedule F farmers are also granted the 20% deduction.

While Neiffer said there is some bipartisan support in Congress for extending the Section 199A deduction beyond 2025, he is ambivalent about that happening. “With that 20%, it would be a lot more costly to enact,” he noted.

Practical Next Steps Farmers Can Take
Looking ahead, Neiffer said he believes the likelihood of having a major tax bill before the end of 2025 is slim. At best, the bill would be ready by November or December.

For that reason, Neiffer’s recommendation to farmers is for them to plan on pushing income into 2026 but to have the flexibility to bring that income back into 2025.

“The reason is if the tax cuts don’t get extended that means 2026 tax brackets are going to be a lot higher,” Neiffer explained. “So, we would want to bring income into 2025. Now, farmers have the ability to do that using deferred payment contracts and some other elections that they can make – but only if they plan ahead accordingly. They definitely want to make sure they do that,” he added.

Your next read: It’s Tax Time: Your Guide To Calculate Farm Income

USDA's Rollins: 'Let's Go Barnstorm The World And Find New Partners' For Trade

Tue, 18 Feb 2025 18:25:26 GMT

On Brooke Rollins’ first full week on the job as Secretary of Agriculture, she addressed the 600 farmers, ranchers and industry leaders in Kansas City for the 2025 Top Producer Summit.

High on Rollins’ list of priorities was the topic of trade and President Donald Trump’s vision for U.S. agriculture moving forward.

While Rollins did not shy away from addressing the administration’s decision to implement trade tariffs, noting “farmer and rancher concerns are legitimate,” she focused on what she sees as her role ahead.

“My job is to ensure that as President Trump and our trade representatives are making their decisions that I am in the room and advocating on behalf of our people, on behalf of all of you,” she told Top Producer Summit attendees.

One of her key objectives, she says, is to find and expand market access for U.S. agricultural products domestically and abroad.

“Let’s go barnstorm the world, and let’s go find some more trade partners and access [to market opportunities],” she says.

Rollins says her goals for trade are a reflection of Trump’s vision and his determination to make agriculture part of the “golden age” he sees ahead for the U.S.

Trump is the consummate deal maker, Rollins notes, able to side-step bureaucracy and red tape in the process to work with world leaders.

“I don’t know that in the last 250 years, we’ve had anyone in office like President Trump,” she says. “He is a very unusual, remarkable and fearless man, and he wants to make a deal, and in the best way, and put America first.”

Agriculture Secretary Brooke Rollins spoke to a crowd of 600 farmers, ranchers and industry leaders at the 2025 Top Producer Summit.

(Jim Barcus)

Making Headway With Trade
Sen. Roger Marshall of Kansas, who moderated the conversation with Rollins, highlighted Trump’s work to build trade during his first term.

“He redid USMCA, and now that’s our largest ag partnership, with Mexico and Canada,” Marshall says. “He gave us South Korea and Japan, which has been so important to Kansas and our cattle industry, as well as trade 1.0 with China.”

Marshall then mentioned the headway he believes Trump and team have made with India.

“I see India replacing China as our major trade partner, as well that China is growing right now,” Marshall says. “I think there’s huge opportunities in India.”

U.S. ethanol, cotton and tree nuts are three of the top agricultural exports to India, a country that has in the past impeded agricultural trade with tariffs and non-tariff barriers alike. Trump called out the barriers to trade following recent conversations with India’s Prime Minster Modi.

A joint statement after the Trump-Modi meeting said Washington welcomed New Delhi’s recent steps to lower tariffs on select U.S. products and increase market access to U.S. farm products, while seeking to negotiate the initial segments of a trade deal by the fall of 2025.

Rollins says the progress underway with India was just one step forward to address what she described as a trade crisis for the U.S.

“Our exports are down $37 billion this year and likely to be down $42 billion in the months to come. This is a crisis, and this is something that I understand inherently,” Rollins says.

“We have a tremendous amount of work to do,” she adds. “But my promise to you is this, and my commitment will never waver, that every minute of every day for the next four years, I will do everything within my power with hopefully God’s hand on all of us and our work to ensure that we are not just entering the golden age for America, as my boss, President Trump, likes to say, but that we are entering the golden age for agriculture.”

Secretary Rollins joined Chip Flory on AgriTalk. Listen to their discussion about trade policy and tariffs; avian flu; and disaster and economic aid.

Your next read: Senate Overwhelmingly Confirms Brooke Rollins as 33rd Secretary of Agriculture

BREAKING: USDA Secretary Brooke Rollins and Sen. Roger Marshall to Join Farmers At Top Producer Summit

Sun, 16 Feb 2025 21:24:21 GMT

Secretary of Agriculture Brooke Rollins and Sen. Roger Marshall of Kansas will speak Tuesday morning at this week’s Top Producer Summit in Kansas City. The event is among the secretary’s first public appearances since being confirmed Feb. 13 . The fireside chat will cover key topics driving the future of agriculture.

A one-day pass to the event is available to give the agriculture industry a chance to hear Secretary Rollins share her vision for U.S. agriculture. Advanced registration is required due to security protocols. Register now with discount code ONEDAY to receive the special rate.

Secretary Rollins, originally from Glen Rose, Texas, serves as the 33rd Secretary of Agriculture. Most recently, she was founder, president and CEO of the America First Policy Institute. During President Donald Trump’s first administration, she was the director of the Domestic Policy Council and assistant to the President for Strategic Initiatives in the White House. She also previously served as director of the Office of American Innovation.

Sen. Marshall is a physician and U.S. Senator for Kansas. As a fifth-generation farmer from Butler County, Sen. Marshall became the first in his family to attend college. In the Senate, he serves on the Committee on Agriculture, Nutrition, and Forestry. He is the chairman of the Subcommittee on Conservation, Climate, Forestry, and Natural Resources and a member of the Subcommittee on Food and Nutrition, Specialty Crops, Organics, and Research.

Tickets are still available to attend the entire Top Producer Summit , which is agriculture’s premier educational and networking event for forward-thinking farmers and ranchers. The event will bring producers of nearly a dozen commodities together at the Loews Kansas City Hotel to share business opportunities and ideas for taking their operations to the next level.

In addition to the fireside chat with Secretary Rollins and Sen. Marshall, the agenda includes:

The Future of Farming with Byron Reese, futurist, technologist and entrepreneur
Conquer Decision Paralysis with Rena Striegel, Transition Point Business Advisors
How Income Taxes May Change Due To The Election with CPA Paul Neiffer
Land Diversification: What to Know Before Exploring Renewable Energy and Conservation Opportunities with Quint Shambaugh, Pinion
What’s Ahead for Farm Input Pricing with Sam Taylor, Rabo AgriFinance
What to Watch With the Weather in 2025 with Eric Snodgrass, Principal Atmospheric Scientist, Conduit Ag
Global Fertilizer Market Overview: What It Means At Your Farm Gate with Josh Linville, StoneX

Some of the nation’s most outstanding farm operations will be recognized, including winners of the 2025 Top Producer of the Year award , the 2025 Women in Ag award and the 2025 Next Gen award .

Do Tariffs Work? Leading Ag Economists Weigh In

Mon, 03 Feb 2025 17:00:00 GMT

Tariffs are a tool used by President Donald Trump during both his terms. But do they work? Not even ag economists are in alignment, as the answer seems to be: It depends.

This past weekend, Trump signed three executive orders for tariffs , the first time a president has used powers granted under the International Emergency Economic Powers Act of 1977. The orders also include retaliation clauses that would ramp up tariffs if the countries respond in kind. Trump cut the levy on imports of Canadian energy to 10%.

By Monday morning, Trump had agreed to delay tariffs on goods from Mexico for one month to allow more time for negotiations. The agreement happened just hours before the tariffs were set to take effect.

President Claudia Sheinbaum said U.S. tariffs against Mexico will be delayed for one month after a conversation with Trump on Monday. Trump then confirmed the news on Truth Social.

Which Input Could Be Impacted Most by Tariffs?

Tariffs on the U.S.'s top three trading partners could have a major impact on agriculture. The January Ag Economists’ Monthly Monitor asked economists which input is most at risk. The top answer was fertilizer.

Ag Economists’ Monthly Monitor

(Lindsey Pound)

“From a headline standpoint, it’s probably potash,” says Samuel Taylor, farm inputs analyst, Rabobank. “We get 85% to 90% of our potash from imports from the Canadian market. The residual is made up by Russia and Israel, in principle, with some other markets coming in.”

One day after Trump announced he would move ahead with planned tariffs, Prime Minister Justin Trudeau stated tariffs targeting $30 billion in American products, such as alcohol, produce, household goods and industrial materials, will roll out in two phases starting Feb. 4, the same day the U.S. tariffs are set to begin.

The tariffs on the other $125 billion worth of goods will come in 21 days to allow impacted Canadian companies to adjust their supply chains. Trudeau emphasized Canada’s response would be “strong but appropriate,” while also considering non-tariff measures such as restrictions on critical minerals.

Do Tariffs Work?

With tariffs and a potential trade war brewing that begs the question: Do tariffs work?

It’s something Farm Journal asked the nearly 70 ag economists part of the Farm Journal Ag Economists’ Monthly Monitor. The survey asked economists: “Do tariffs work in trade policy?” Economists views were mixed:

“Tariffs can work in trade policy — that’s why nations continue to use them. The complex part that extends beyond the tariff action is potential long-term repercussions that can result from trade flow changes.”
“In limited cases, typically only if they result in a policy response in the targeted country. Much of the time, tariffs are like cutting off one’s nose to spite one’s face.”
“Tariffs provide short-term gains but have always failed relative to free trade in the long term.”
“Absolutely, when properly applied.”
“Not over the long term. They tend to affect who gets to supply different markets around the world.”

The Ag Economists’ Monthly Monitor also asked: “When tariffs are used as a ‘tool’ in trade, who pays the tariff?” Not all economists were aligned on that answer either, saying sometimes it’s farmers and consumers, but it can also be the exporting countries.

“When the U.S. imposes tariffs on imports, importers in the U.S. pay taxes to the U.S. government on their purchases from abroad. When another nation imposes tariffs, importers in that nation pay import taxes to their government on their purchases from abroad. Often, when a tariff is implemented, another nation retaliates, and you end up with importers in both nations paying the price on whatever products the tariffs apply toward.”
“If an importing country places a tariff on the exporting country, producers in the exporting country and consumers in the importing country both lose (i.e., receive lower and higher prices, respectively). Conversely, producers in the importing country and consumers in the exporting country win (i.e., receive higher and lower prices, respectively).”
“In the short run, consumers who purchase goods with a tariff might see higher prices if the tariff is not absorbed elsewhere. In the long run, the tariff might result in changes to the supply chain that result in higher prices but also create other economic opportunities in America (e.g. reshoring of domestic manufacturing).”
“The correct economist answer is: It depends. Tariffs drive a wedge between prices in the exporting country and in the importing country. It depends on the circumstances of particular markets and how much is reflected in higher prices in the importing country and reduced prices in the exporting country.”
“Both the exporting nation and the importing consumer pay some portion of the tariff depending on who has more flexibility to adjust to trade barrier. If exporting countries can easily switch to supplying other markets, they won’t have to ‘pay.’ If consumers can easily find cheap substitute goods, they won’t have to pay.”

Farm Business Resolutions for 2025

Thu, 26 Dec 2024 19:38:00 GMT

We asked past Top Producer award winners to share what’s new for them in the coming year. Here are some of the responses they shared with us:

(Top Producer)

"2025 is the year of artificial intelligence (AI) for Carroll Farms. It’s a top-down push for training and implementation. The ability of AI to automate processes, write contracts, prepare reports, perform HR functions, and analyze data is stunning. I think the world could look dramatically different in five years as AI moves into all areas of our lives and businesses. “
~John Carroll

“This year is about going back to the basics like when I first started farming in 2015 in the last margin squeeze. I’m giving my personal family living budget a solid look, diving headfirst into the farm cash flow, developing a marketing strategy, and sticking to it. We’re replacing the tropical vacation with a staycation to do projects around the homeplace to eliminate some repair and maintenance bills. And for the fitness center I own and operate after all the updates and changes made this summer, I am going to let it operate for a year before any other drastic things are done. The only thing new thing I am trying is adding my significant other to my health insurance policy.”

~Maggie Holub

(Top Producer)

“I have sat down with my last two years of profit/loss (P/L) statement and “scrubbed” every line item. I asked where/what are the reductions or cuts that could be made. Then, I made a list of any/all line items that need to be looked at more in depth. I then am looking into these expenses one by one to understand if it is a merited expense or an “extra” that can be reduced. If it doesn’t provide a defined ROI, it is definitely out!
Cash rents that do not have a flex bonus have been negotiated and (thankfully) reduced appropriately. This is a reflection of a continual dialog year around about their farm and all-encompassing topics like profitability.

We have a continuous dialogue throughout the year with our lender(s) as to how we are doing business. Sharing these things listed above really helps the relationship and their confidence in our operation.”

~Dave Nelson

“I’m trying four new and/or different things for 2025.

Beef: We are moving to a fall calving schedule for our beef cattle. We have typically had spring and early summer calves. We are shifting to this schedule so that we can AI more efficiently and have better management of the schedule.

Labor: We are shifting our mindset on labor. We are re-evaluating how to structure part-time and seasonal workers to be most beneficial to both parties. We want the employee to receive maximum benefit for their time and talents as well as running our operation as efficiently as possible.

Advocacy: I am putting more focus on our media and promotion of agriculture and our farm operation. It has been somewhat of a passive project. I am working on making it deliberate and intentional this year. Promoting agriculture and educating the public is a great passion of mine.

Marketing Diversity: We are exploring new ways to connect with customers locally with the ear corn and freezer beef businesses. We continue to load containers for export and are looking at future marketing diversity in that entity as well.”

~Marcia Ruff

(Top Producer)

“At Splitter Farms, we are looking at 2025 as a reset year and getting back to firm foundations. We’re planning to focus on employee retention and development as well as improved landlord relationships, including consistent communication with them throughout the entire year. We are also scheduling in time for data analysis; we do a great job of data collection and we’d like to make analysis a priority again.”
~Matt and Janna Splitter

Read even more farmer New Years’ resolutions here.

Trump’s Cabinet Nominees Now Up Odds for Expanding U.S. Trade/Economic War with China

Wed, 20 Nov 2024 17:07:14 GMT

President-elect Donald Trump’s selection of Howard Lutnick, the CEO of Cantor Fitzgerald, as Commerce Secretary highlights plans to leverage tariffs in trade negotiations, with Lutnick emphasizing their use as both a revenue source and bargaining tool.

Lutnick has called the tariffs a negotiating tool that could be used to convince other countries to bring down their own levies or to force companies to move production to the U.S. He has said Trump would avoid taxes on products U.S. companies don’t make.

Commerce oversees the International Trade Administration, an agency in charge of enforcing trade laws and investigating unfair trade practices.

The appointment raises questions about the role of Robert Lighthizer, a prominent China hawk and decoupling advocate, who might still secure a key position such as National Economic Council leader or ambassador to China. The nomination marks Lutnick’s transition from co-chair of Trump’s transition team to a pivotal role in shaping U.S. economic policy.

Of note: Trump said that the Commerce Secretary would have “additional direct responsibility for the Office of the United States Trade Representative.” The phrase means that Trump may try to fold the latter position within the Commerce Department, a move that has been tried before to combine government trade work.

Trump’s trade agenda is heavily focused on imposing substantial tariffs, particularly targeting China. He has proposed a 60% tariff on Chinese goods and 10-20% tariffs on imports from other countries. Lutnick has been a vocal supporter of these tariffs, suggesting they could replace income tax revenue over time. He believes that by making American businesses more competitive through tariffs, it could lead to lower overall tax rates.

Lutnick’s vision aligns with Trump’s historical approach to trade, which emphasizes protectionism to bolster U.S. manufacturing and reduce reliance on imports. During a recent rally, Lutnick remarked that America’s economic prosperity in the early 1900s was due to tariffs rather than income taxes, indicating his belief in a return to such policies. Lutnick has said the incoming administration would use tariffs as a bargaining chip with other countries. “We’ll make a bunch of money on the tariffs, but mostly everybody else is going to negotiate with us,” he said on CNBC.

Lutnick’s appointment signals an aggressive stance on trade that could lead to increased tensions with trading partners. The Commerce Department plays a crucial role in enforcing tariffs and negotiating trade agreements, which may become contentious under Lutnick’s leadership. Economists have expressed concerns that such high tariffs could lead to retaliatory measures from other nations, potentially resulting in higher prices for consumers and disruptions in global supply chains.

On China, Lutnick has accused the country of being the source of fentanyl in the US, saying that “China is attacking America from its guts.” Kevin Chen, associate research fellow at the S. Rajaratnam School of International Studies, told the South China Morning Post, “There is little question that he will push forward with tariffs That being said, he has also suggested that the tariffs could be used to negotiate trade deals with other countries,” he said. Chen suggested that the choice of Lutnick —alongside other China hawks joining Trump’s team including Marco Rubio as secretary of state and Mike Waltz as national security adviser — could be “very dangerous for U.S./China relations” given the Commerce Department’s oversight of export controls.

“Lutnick is likely to focus tariffs on China’s manufacturing sector, especially for goods that the U.S. already produces. The likelihood of this leading to another U.S./China trade war is too high to ignore,” he said. “Lutnick fits in well with the trend of Trump’s cabinet picks … [as] he’s a China hawk who shares Trump’s strong views on the threat posed by China and how to address it.”

Asked about Lutnick’s nomination, Chinese foreign ministry spokesman Lin Jian said he would not comment on U.S. internal affairs but added that a trade war “will not produce any winner and is in no one’s interest.”

Treasury Secretary Possibilities

Trump is taking a closer look at Sen. Bill Hagerty (R-Tenn.) to potentially serve as Treasury Secretary, Axios reports. Hagerty, a former private-equity investor who was Trump’s ambassador to Japan, is one of three apparent finalists, along with former Fed governor Kevin Warsh and Apollo CEO Marc Rowan. The Treasury position is key as the Cabinet member will play in a key role in major issues, including:

Rising federal debt
Enacting Trump’s tax cut plan
Helping implement Trump’s tariff plans
Coming up with pay-for plans
Keeping inflation low
Implementing 45Z and other biofuel tax incentive programs (IRS)

U.S. businesses brace for potential Trump tariffs.

American companies are accelerating inventory orders ahead of Donald Trump’s inauguration, fearing the implementation of his proposed tariffs on imports. Trump has suggested levies of 10-20% on all imports and up to 60% on Chinese goods. Firms are also strategizing for potential impacts, including price adjustments and diversifying away from Chinese manufacturers, the Wall Street Journal reports ( link ).

Tariffs and Pricing Impacts

Walmart acknowledged the retailer would probably raise prices on some goods if Donald Trump moves forward with plans to enact sweeping tariffs. Walmart’s CFO John David Rainey stated that prices on some items may increase but it is uncertain which products might see price hikes due to the tariffs. A Walmart spokesperson indicated that any price changes are speculative, but future tariff-induced costs could burden sensitive shoppers.

Lowe’s words were more circumspect, with the home-improvement retailer’s executives noting tariffs would lift costs but also saying they were waiting to see what happens when the new administration takes office in January.

Walmart said shoppers are resilient but are still spending more on food than they have historically.

Lowe’s said homeowners are still waiting for lower interest rates to embark on big home-improvement projects.

Your Next Read: Could Trump Actually Be Good for U.S. Ag Trade?

Could Trump Actually Be Good for U.S. Ag Trade?

Tue, 19 Nov 2024 20:52:49 GMT

President-elect Donald Trump has released a slew of key cabinet and advisory picks at a historic pace the past two weeks, but the agriculture industry is waiting on two key selections — Secretary of Agriculture and the U.S. Trade Representative.

The Financial Times previously reported Robert Lighthizer could make an encore performance as the U.S. Trade Representative under Trump , but nothing official has been announced.

“Trump and Bob Lighthizer are two peas in a pod when it comes to using tariffs to get what they want in amongst our trading allies,” says Jim Wiesemeyer, Pro Farmer Washington correspondent.

If it’s a repeat of the last time, Lighthizer held that seat, there will be an increased focus on trade and using tariffs, which comes as no surprise since that was a major point on the campaign trail

“President-elect Trump was so strong on doing tariffs before that, it’s very likely that he’ll follow through now,” Mary Kay Thatcher, who’s the senior lead for federal government relations at Syngenta, told “AgDay’s” Michelle Rook. “I mean, he’s talked about at a minimum 20% tariffs on everybody. He’s talked about 60% on China, who will likely fall to two or three, but still a very important market. And he’s talked about putting them on Mexico. If Mexico doesn’t stop as many people coming across the border.”

Tariffs were the talk of the campaign trail, not just on commodities, but even ag equipment that’s imported on.

Ag groups want a focus back on trade, but they are also concerned it could come at a cost.

“Mexico, Canada, China are always our No. 1, No. 2 and No. 3 three ag markets,” Thatcher says. “And so, a lot of concern in agricultural circles about the fact that most likely that’s where the retaliation starts first.”

Reality of a Growing Ag Trade Deficit

As tariff talk heats up, there are still tariffs in place today, and a growing ag trade deficit that’s glaring for U.S. agriculture. The ag trade deficit is expected to balloon to $42 billion in 2025, under the current administration. And Indiana farmer Kip Tom, who served as the ambassador to the United Nations in the first Trump administration, argues the focus back on trade could bode well for ag.

“When Trump was president, we did nearly 50 trade deals around the world,” Tom told “AgDay’s” Clinton Griffiths in an interview. “He did the Phase One deal with China. And granted, we didn’t get to Phase Two or Phase Three, but the reality is he got to put together and he got started following the trade war that we had with him for a little bit. So, I think trade is going to be No. 1.”

Tom says Trump’s next four years will be looking at new trade deals, but today, groups like U.S. Meat Export Federation (USMEF) also want any trade negotiations to do no harm, especially considering some meat exports have actually grown this year, in spite of the widening U.S. ag trade deficit.

“I think if you look at 2024 pork exports, we’re pulling our weight. We’re going to have record volume and record value this year, approaching $8.5 billion or so on the pork side,” says Dan Halstrom, CEO of USMEF.

Mexico Becomes U.S. Top Buyer

Halstrom says record demand from pork is broad based, but the No. 1 buyer is Mexico.

“Mexico is being driven by everything,” Halstrom says. “I mean, food service, retail, convenience stores. The buying power of the Mexican trade has been record breaking but also a little bit amazing.”

Earlier this year, Mexico bumped out China as the top trading partner for the U.S. But in the final days of Trump’s presidential campaign, he threated to impose 25% tariffs on all Mexican imports if Mexico didn’t tighten the border. And Mexico’s economy minister said it’s considering retaliatory tariffs of its own.

“I think as long as we don’t have any disruption, then yes, I think the strong export pace is very well positioned to continue,” Halstrom says. “Of course, you have new administrations coming in with a lot of talk about the U.S.-Mexico-Canada Agreement (USMCA). But as long as we stay within the confines of the USMCA agreement and follow that, I think we’re well positioned to continue this momentum in Mexico.”

Dairy and the Importance of USCMA

Another protein seeing positive demand from Mexico through the USMCA is dairy.

“When the administration first negotiated USMCA, which was do no harm to what’s working well, and for us, dairy continues to be overall a really positive relationship. So, working to help preserve that,” says Shawna Morris, executive vice president of trade policy and global affairs at National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council.

The relationship with Mexico within USMCA has been a positive for dairy, but it’s the Canadian side of the agreement that needs work, according to Morris.

“I mean, they’re flat out not doing what they promised to do. And I just don’t see any way around calling them on the carpet for that,” Morris says. “Yes, they eked out a win in the last dispute settlement case the U.S. brought against them, but if one judge had changed their mind, though, we would have been on the winning side. It’s just a three-person panel. This isn’t gospel here; we’re talking about what Canada’s doing is shady. It needs fixed.”

She says between the way Canada administers the dairy tariff rate quota quantities to U.S. competitors, to their excessive exports of dairy protein, dairy is a piece of USMCA that needs to be addressed.

“The last administration tried to deal with that in USMCA,” Morris says. “We had some disciplines to try to tackle it in the agreement. And Canada has found some workarounds that both of those issues are going to need to be on the table. I think just in terms of UCMCA, it’s clean-up and follow through.”

The Biggest Wild Card: China

Even with southeast Asia, Latin America and Mexico carrying the weight for dairy exports, China is still the biggest wild card. We asked Morris if China does retaliate against Trump’s threatened 60% tariffs, if it would have the same impact as it did during the last trade war.

“China, even though it has pulled back on its global dairy imports, it’s still our third-largest export market,” Morris says. “So, it’s a pretty sizable market and difficult to place out into other markets the volume of that production, but I think what we also saw the first time around, in addition to the pain and disruption caused by the retaliatory tariffs that were imposed, was at the end of the process progress having been made.

Phase One Trade Deal with China

Progress in the form of the U.S. China Phase One agreement, which as Tom noted, was negotiated under Trump’s first term. Morris describes that deal as useful for dairy.

“We had a number of different non-tariff barriers, issues that were a drag on our ability to be able to reliably export to that market. And the phase one agreement included progress and dealt with a whole handful of those,” Morris says. “So, I’d say, yes, there’s upheaval. We’ve also seen from the first time around that that can yield significant progress in certain respects, and we’re hopeful that that’s more of what we’ll see this time around.”

China has also scaled back on their buys of U.S. pork, with exports down 11% so far this year, but Halstrom points out even with increased tariffs now entering the picture again, tariffs the past four years never went away.

“The thing to remember on these tariffs is, we’ve had a tariff now for quite a few years on China, on both beef and pork, and it’s not the ideal situation, but it doesn’t it doesn’t eliminate trade,” Halstrom says. “We ended up doing $2 billion in sales on beef with a tariff in 2022, I believe was the year. A lot of that came as a result of the phase one agreement in 2020, but people sometimes forget that there was a tariff involved, and we still had a pretty good outcome.”

Two weeks after the election, and Trump’s playbook seems to be unfolding quickly with all his cabinet picks. But some argue those tariffs might just be threats at first.

“Here’s what the Republicans tell me,” Wiesemeyer says. “Trump isn’t going to invoke these across-the-board tariffs right away. He’s going to use that as leverage to countries looking at their trade relationship with the U.S., and his key word is ‘reciprocity.’ If you don’t treat us like we treat you, then I’m going to invoke tariffs.”

Those close to Trump seem to be in alignment: the U.S. needs fair trade.

“When we’re spending $500 billion in China, and they’re only spending $350 billion with us, we need to level that out a little bit. And maybe it means more agriculture trade going into China to balance that trade out,” Tom says. “I’m very optimistic on trade with Trump. I have no doubts that we’ll get things put together. He knows farmers don’t like to get their money from the government; they like to get it from the market. And so, I’m really excited about that when we talk about trade. But yet, I know everybody’s pretty edgy about it at this point in time.”

Your Next Read: Do Tariffs Work? The Answer Isn’t As Straightforward As You May Think

Stabenow Finally Releases Full Text of Senate Farm Bill; Here's What It Means for Agriculture

Mon, 18 Nov 2024 17:35:09 GMT

Stabenow unveiled 1,397-page details of her long-awaited farm bill Monday morning. This comes as early Sunday evening Pro Farmer broke the news that Senate Ag Chairwoman (D-Mich.) had briefed Democrats but not Republicans on her coming farm bill text, which was expected to be released Monday.

Stabenow said in a news release and summary of the bill , “The foundation of every successful farm bill is built on holding together the broad, bipartisan farm bill coalition. This is a strong bill that invests in all of agriculture, helps families put food on the table, supports rural prosperity, and holds that coalition together.”

BREAKING: Chairwoman @SenStabenow Introduces Rural Prosperity and Food Security Acthttps://t.co/qRunZlk6zj
— Senate Ag, Nutrition, & Forestry Committee Dems (@SenateAgDems) November 18, 2024

The Rural Prosperity and Food Security Act includes $39 billion in new resources “to keep farmers farming, families fed, and rural communities strong.” The bill builds on the proposal Stabenow released in May by investing new resources and including innovative, new ideas to deliver the assistance farmers need faster.

It provides farmers with the certainty of a 5-year farm bill and the immediate help they need to manage the urgent needs of the present. It doubles down on our commitment to rural communities, ensures that the Supplemental Nutrition Assistance Program (SNAP) keeps up with the realities of American life, and brings the historic investments in climate-smart conservation practices into the farm bill. These new investments include:

$20 billion to strengthen the farm safety net to support all of agriculture and establishes a permanent structure for disaster assistance so emergency relief reaches farmers faster;
$8.5 billion to help families make ends meet, put food on the table, and improve access to nutrition assistance;
$4.3 billion to improve quality of life in the rural communities that millions of Americans call home.”

Farm CPA Paul Neiffer has already combed through the bill, and says, “This is our first preview of the Senate Farm Bill Proposal. There appears to be some benefit to production Ag, however, many of the proposals seem to penalize production ag such as the following:

Very limited increase in base acres
Restriction on payments due to ownership of farmland by higher AGI individuals or entities
Reduction in AGI limits
No change to definition of farm income
Possible limit on PLC payments
Items that may benefit production ag include:
Permanent ERP (although this is a very messy program)
Partial advance payments of ARC and PLC
Automatic 2023 and 2024 ARC or PLC decisions”

Senate GOP Ag Committee Ranking Member Reacts

Senate Ag Committee ranking member John Boozman (R-Ark.) on X wrote: “An 11th hour partisan proposal released 415 days after the expiration of the current farm bill is insulting. America’s farmers deserve better.”

“An 11th hour partisan proposal released 415 days after the expiration of the current farm bill is insulting. America’s farmers deserve better.” RM @JohnBoozman
— Senate Ag Committee Republicans (@SenateAgGOP) November 18, 2024

Meanwhile, the National Pork Producers Council (NPPC) issued the following statement:

“Though America’s pork producers appreciate Chairwoman Stabenow’s efforts to publish Farm Bill text, this is simply not a viable bill, as it fails to provide a solution to California Prop. 12,” said NPPC President Lori Stevermer, a pork producer from Easton, Minn. “Pork producers have continually spoken up about the negative impacts of this issue, and it is a shame these conversations were disregarded.”

In May, NPPC secured 100 percent of pork producers’ priorities in the House Agriculture Committee-passed bipartisan 2024 Farm Bill. In June, producers once again secured all policy priorities in Senate Agriculture Committee Ranking Member John Boozman’s 2024 Farm Bill framework.

NPPC said it urges both chambers of Congress to swiftly consider and pass a Farm Bill this year that includes a fix to California Proposition 12, a state law that places arbitrary housing standards on the pork industry, creating uncertainty for pork producers as they look to continue their operations to the next generation.

Additional Impact on Agriculture from Farm CPA

In a post this morning, Paul Neiffer of Farm CPA Report included a quick preview of the items that jumped out at him relative to the farm bill details released by Stabenow.

Reference Prices: The House proposal raised reference prices by approximately 10-20%. The Senate proposal appears to raise reference prices by a flat 5% (rounded). Although it appears that Cotton only went up by 4% instead of 5%.
Increase in Base Acres
- Only underserved and disadvantaged farmers may increase base acres
- Based on average of 2018-2022 plantings
- Includes prevent planted acres
- Maximum increase of 160 acres per farm
- If disadvantage farmer does not farm acres during 2025-2029, then increased base acres are eliminated
- Special 2023 and 2024 ARC/PLC election
- Automatic election to be paid the highest amount for 2023 and 2024 crop year even if the farmer originally elected ARC or PLC.

Limit on PLC Payment: The maximum amount of payment for PLC will be 15% of the effective reference price. As example, assume a farmer has a PLC yield of 200 bushels for corn and the effective reference price is $4.30 and the final corn harvest price is $3.50. Under the old PLC rules, the farmer could receive 200 bushels times 80 cents per bushel or $160. Under this proposal, the farmer is limited to 65 cents or $130 per acre.
Partial PLC Payments: Instead of waiting until after October 1 to collect a PLC payment, the farmer, in certain situations may elect to receive up to 50% of the crop beginning February 1. This is based on firm projections by USDA that the final harvest price will be below the effective reference price. If USDA pays too much, then the farmer must pay it back.
Agricultural Risk Coverage: As expected, the Bill increases the guarantee from the current 86% to 88%, less than the 90% in the House Bill. However, not expected, the Bill increases the maximum payment to 12.50% of benchmark revenue, matching the House Bill and makes this retroactive to the 2024 crop. 2023 crop remains at 10%.
Partial ARC Payments: Provides same mechanism for partial payments as under PLC.
Increase to Marketing Loan Rates: For 2025 crops and subsequent years, the loan rate will be the lesser of 110% of current loan rates or an adjustment based on current input costs versus a five-year average.
Sugar Program: Increase sugar cane payment to 24 cents per pound for 2025-2029. Sugar beet growers will receive 136.5% of sugar cane payment rate.
Permanent ERP: Emergency Relief Program would be made permanent (at least until next farm bill). Payment limits of $500,000 for specialty crops and $250,000 for all other crops.
Terms appear similar to old ERP programs, but it does not mandate how USDA will administer it, etc. Also, no extra payment limit if you can prove you are a farmer. This may still be messy for CPAs to help farmers calculate their claim. Also, requires farmers to insure all acres.
Adjusted Gross Income (AGI) limits: AGI limits dropped from $900,000 to $700,000.
- Increases AGI limits to $1.5 million for specialty and high-value crops.
- What happens if a farmer grows both? The Bill does not address this, other than likely leave it up to USDA to come up with rules.
- Waiver of AGI rules available to economically distressed producer.
- It appears that no payments will be allowed if the land is owned by someone or an entity whose AGI is over $700,000. This means that a farmer who is cash renting that ground will not qualify for any payment on that ground. Under current rules and the House Farm Bill proposal, any farmer who is cash renting the ground and their AGI is under the limit will qualify for a payment. This is a major change and will create the law of unintended consequences. They seem to want to not have an incentive for wealthier individuals to purchase land since their high AGI will not qualify them for any payments but under current rules they get no payment anyway.

Increase in CCC Scoring: Section 1708 indicates that for purposes of CBO scoring, the restrictions on utilizing CCC funds shall be $6.7 billion per year for 2024-2033. The last scoring by CBO was $400 million per year.

CRP Rentals Limit Increased to $125,000 from current $50,000

Crop Insurance Changes: Increases subsidies for beginning and veteran farmers and ranchers to essentially match House proposal.
- Increases SCO to allow for payment at 88% instead of 86% of guarantee. House was at 90%.
- Increases premium subsidies.
Makes improvements to Whole Farm and Micro Farm insurance plans.

Comments:

Several contacts, asked to respond to Stabenow’s late farm bill details, used the same words: “Wow, finally, but too late.” Stabenow is departing Congress after this session ends, and veteran farm bill watchers say this late-entry farm bill is not a positive chapter in her long career. Most are asking why she chose today in releasing the details, and why she took a partisan approach in briefing about the matter.

They Prioritize Genuine People Power

Fri, 27 Sep 2024 18:27:49 GMT

Tucked away in the northeast corner of South Dakota you’ll find cornstalks, jackrabbits and a 130-year-old dairy operation that runs on passion, perseverance and a focus on finding the right people. This dynamic trifecta is what makes up the unparalleled culture of MoDak Dairy in Goodwin, S.D.

On any given day, brothers and co-owners Greg and Jim Moes, along with Greg’s son, Jacob, the farm’s herd manager, can be found working alongside their 40-plus employees on the operation. What started as 30 cows and a tiestall barn quickly grew to 2,600 head and a parlor. And while the growth has been substantial, the Moeses recognize that none of it would have been possible without the help and buy-in from their dedicated employees.

A Family Dynamic

For most, the word family is used to describe a person who is directly related to you. At MoDak Dairy, however, the definition stretches wider than that.

“I like to say that we have 40-some family members working here on the farm,” Greg says. “Each one of our employees is like family to us. We have people who have been with us for 35 years. We don’t just have employees; we have husbands, wives, kids, daughters, uncles and aunts all working here on this operation, and they’re the main driver behind our success.”

From the calf barn to the parlor and all the areas in-between, the Moes work hard to ensure their employees are working in the position that best fits their wants and needs.

“We spend a lot of time making sure we have the right people in the right place,” Jacob says. “If somebody is going to be with us for a long time, we have to make sure that we’re putting them in the right spot for them to grow and, more importantly, for them to enjoy the job.”

For the family, having regular conversations with team members is an essential piece of the equation that makes MoDak Dairy operate so smoothly. Taking time to gather their employees’ thoughts and have meaningful discussions not only helps further the operation’s achievements but deepens the relationship MoDak has with the individuals who work on the farm.

The same can be said for MoDak’s team of trusted advisers and consultants.

“We put a lot of trust into our consultants; they’re there to help us make the big decisions for the future of our farm,” Greg adds. “They’re a valuable piece of the equation. Having the right team members surrounding you just works better for everyone.”

As the family has grown their business, they strive for continuous improvement and look for ways to make the most of their resources. An example of this is when the family decided to dive further into the beef-on-dairy sector. Instead of trying to navigate an unfamiliar market on their own, the Moeses enlisted the help of their lender, Farm Credit Services of America, to help them make sound business decisions.

“We communicate with them regularly so they can help us map out a plan,” Greg adds. “The beef market can be a different ballgame, so having another set of eyes on the business allows us to address challenges that we might not have seen and identify new opportunities to jump on. Prioritizing our people, whether they work for us as an employee or as a consultant, is what has really allowed us to drive our operation forward.”

When MoDak Dairy first began more than a century ago, family was the heart and soul of the operation. Today, that motto still rings true as the family stretches the limbs of their family tree wider to incorporate not only themselves, but their valued employees as well.

Think Inside The Box To Solve Problems On The Farm

Mon, 01 Apr 2024 17:41:31 GMT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

5 Year-End Tax Planning Tips

Fri, 15 Dec 2023 16:27:10 GMT

As we approach year-end and harvest has passed for most farmers, we turn to how we minimize the income tax impact from our farm operations. Many farmers want to eliminate income taxes, but rather, we strive to optimize the amount paid each year. We like to report enough income to soak up the top of certain tax brackets. For example, the top of the 12% tax bracket for a married couple is about $90,000 of taxable income. This is about the lowest tax rate we will see over the next several years.

Here are five key year-end tax planning opportunities to consider, but don’t forget to meet with your tax adviser to pin down what works for you.

1. Estimated Tax Payments
An option only available to farmers is to file and pay income taxes by March 1, or simply pay one estimated tax payment on Jan. 15. Many farmers prefer to use the March 1 option, however, it’s usually better to pay the Jan. 15 estimate and then take care of the remaining amount on April 15 – especially with higher interest rates. The required payment is the lesser of either 100% of the previous year’s tax or two-thirds of this year’s tax.

Example: Assume last year’s tax was $10,000 and you will owe $100,000 this year. You either pay the $100,000 on March 1 or pay $10,000 on Jan. 15 and the remaining $90,000 on April 15. Assuming 8% interest, the savings on the $90,000 deferred from March 1 to April 15 is $907.

2. Deferred Payment Contracts
A favorite year-end tax planning tool is to sell grain on a deferred payment contract. This allows the farmer to lock in their price but defer getting cash until after year-end. A unique benefit of these contracts is we can elect to bring that income into this year’s tax return if we need to increase taxable income. However, this must be on a contract-by-contract basis so make sure to have some smaller and mid-size contracts instead of one large contract.

Example: Assume you sell 50,000 bu. for $250,000. You can either defer it using one contract or use five contracts. When working up the tax return, we find we need an extra $50,000. If we have five contracts, it is easy for us to bring the needed income, whereas the one large contract would result in an extra $200,000 of income.

3. Deferring Crop Insurance Proceeds
Most farmers can elect to defer crop insurance, but only the portion related to yield loss. The price portion can’t be deferred. Crop insurance companies will calculate these two amounts, but we can estimate it by calculating the loss based on electing yield insurance only. The difference between revenue protection and yield would be your price portion that can’t be deferred.

Example: Assume you have 200 bushels APH and elect 85% coverage. Your final yield is 160 bushels, and you collect $100 per acre of proceeds. Ten loss bushels multiplied by $5.91 equals $59.10 of yield loss that can be deferred. The remainder can’t be deferred.

4. Paying Your Kids
We typically see farmers either “forget” to pay wages for their kids who complete work on the farm, or they don’t pay enough wages. If the child is under age 18, there are no payroll taxes on the wages. If they are older, simply paying them with grain will yield the same result. If the child is going to college and needs $25,000 for tuition and costs, then we can really bump up the savings. For 2023, the child can earn an almost $14,000 tax return. If we have gifted them $13,000 of grain that they hold at least a year, the profit from selling it is tax-free because the “Kiddie Tax” won’t apply to them due to the wages being more than half their support. The parents reduce their income by $27,000 and the child pays no taxes.

5. Electing to Capitalize Repairs or Fertilizer
Another option that is available to increase income if needed is to elect to capitalize repairs or fertilizer. This allows us to optimize taxable income.

4 Tips to Grow as a Leader

Fri, 15 Dec 2023 16:25:09 GMT

Sometimes stepping into leadership hardly feels like a choice, especially when you hear the age-old phrase: Someone should do something. It really hits home when you look around and realize that someone is you.

If your journey into a leadership role is imminent, one of the most important ways to get started is through cultivating influence, but building influence isn’t an egotistical thing. It’s about getting the attention of those who need to hear from you to trust your message.

Two ways to build influence are through using effective communication and building a network.

First, influential communication is about meeting people where they are and communicating with them in a way they understand and accept. For example, let’s say you need to step into leadership in your own farm operation with employees or family members. Does the process of communication currently work in your operation? If not, consider building your own communication norms.

Everyone’s different today. Some like to text, some like to pick up the phone, some like group apps, and some don’t. One of the easiest fixes is to get a norm that everyone’s bought into and agrees to use. Try to practice active listening to better understand the needs and concerns of your team.

Next, surround yourself with a support network of mentors, peers and friends who are able to provide guidance, encouragement and a safe space to share your fears and doubts.

Here’s a recap of some tried and tested ways to grow as a leader that you might want to consider going into the new year:

Join a Board of Directors
Get involved in your local community, whether it’s ag-based or not, by volunteering to serve on a board of directors or get yourself elected to the board of a corn or soybean association, town council or rural electric cooperative. You’ll learn new skills and be involved in high-level decisions that provide new insights into your business.

Build a Peer Advisory Board
If you can’t join one, build one. By assembling an advisory board for your own
business with people who have an outside perspective on your operation (not family or staff), you’ll create deeper relationships with professionals and mentors you trust. It’s a great way to bounce new ideas around with those not too close to the business.

Join a Peer-Group Network
A peer-group network managed by a third-party facilitator is a fantastic way to deepen your relationships with like-minded, growth-oriented producers. Share stories, benchmark your financials, and be ready to get valuable feedback.

Attend Workshops
Get out and go! If you don’t have at least one or two professional conferences or workshops on your calendar each year, you should start researching a few. Content, learning and engaging with others is necessary to keep approaches fresh. Hint: Top Producer Summit is coming up!

Stepping into leadership is a journey that requires courage and self-awareness. While the fear of leadership is natural, don’t let it be a barrier to personal and professional growth.

Remember, leadership is not about being fearless but about finding the strength to lead despite your fears.

2024 Top Producer Summit
Feb. 5 to 7
Kansas City

How to Run An Innovation Sprint on Your Farm

Thu, 20 Jul 2023 20:33:44 GMT

Create a process to brainstorm, prioritize and implement ideas

The best ideas for your farm can come from anyone on your team. How can you foster an environment of innovation and strategic focus? Use a process Mark Faust calls an “innovation sprint.”

“The exercise usually focuses on individual development, but you could apply it to items you want to innovate within your area of an organization,” says Faust, president of Echelon Management . “It will prove instantly to you the value of an abundance of ideas and relationships, as well as the benefits of the rules for productive strategy sessions.”

This process can be used as a meeting opener or brainstorming tool. Gather your team and follow this format provided by Faust.

Phase I

Pick something you want to improve.
State it in the positive, Faust says. So, if you picked “get more effective at saying no” or “slow the loss of long-term employees,” change those to “get myself to not overcommit” or “create ways I can help retain our longer-term employees.”
Put your team into groups of four.
Have each person in the group state what they want to improve, in this sentence format:

“When I improve __________, a benefit will be _______.” or “When I get better at __________, a benefit will be _______.”
Repeat four or more times! That way, each person will have stated four or more benefits of this improvement.

Phase II

Have everyone grab a notebook and pen and pair up with one other person to ask them, “What is one idea I could do to ______” in regard to the new behavior or habit.
Write down the idea. Be sure to listen without judgment and thank each person for their contribution.
Allow the other person to ask for an idea and they do the same.

Phase III

Reconvene the whole group.
Ask participants to share one word to describe the process. Limiting it to one word speeds the exercise! Capture those words on papers.
Then, optionally, individuals could share with their small group circles what they learned. This helps to an-chor a positive energy as well as get new ideas for making your first area of change.

The intel you gather during the last phase can be used to drive your farm’s strategy, Faust says. Plus, the process is a great teambuilding exercise.

“This tool helps anyone to both connect a more powerful and positive association with changing a behavior as well as get ideas on how to accomplish the change,” he says.

Rules for a Productive Strategy Session

Set aside titles and status.
Require everyone in the room to declare their point of view
Postpone judgment. There are no bad ideas.
Say yes and eliminate the “buts.”

Listen to Mark Faust discuss growing your business on The Farm CPA Podcast:

5 Business Principles That Define Success

Thu, 20 Jul 2023 20:31:01 GMT

As a child, Rich Redmond had a vision. He could picture himself playing Madison Square Garden and his drum skills vibrating across the radio waves. Redmond wasn’t an overnight success. He became a student of the drum and music industry. Through wins, setbacks and time, he created a no-nonsense system to supercharge your personal and professional life, whether you are a farmer or the drummer for Jason Aldean. His mantra:

C – Commitment: Dedicating energy to yourself, your craft and your customers.
R – Relationships: Navigating and nurturing the connections that inspire us to grow.
A – Attitude: The one thing that people will always remember about you and what will make or break any business venture.
S – Skill: Honing crucial skills for your business, while constantly developing new ones.
H – Hunger: Stoking the flames for success that burn in your belly!

Read more stories from the 2023 Top Producer Summit:

Preventative Maintenance for Your People: How to Reduce Turnover and Boost Morale

How to Run An Innovation Sprint on Your Farm

Take Time to Celebrate Accomplishments

Farming Boom or Bust in the Decade Ahead? How to Manage Price Cycles

Be Inspired by Five Remarkable Farm Operations

Top Producer Summit

Beyond the Blame Game: Navigate the Mental Toll of Modern Ag

The Many Hats of the Modern Producer

Choosing Abundance Over Scarcity

Breaking the Silence

From Constraints to Catalysts: How Ag Leaders Turn Hardships into Strategy

1. Build when times are hard.

2. Control what you can control.

3. Turn disadvantages into advantages.

4. Create “white space” for the future.

The Long Game

When Risk in a Crisis Becomes a Turning Point: Lessons from Top Producers

1. Crisis as a Catalyst, Not a Dead End

2. Numbers Matter — But They Aren’t Everything

3. Fear vs. Action: Moving When the Window Opens

4. Cyberattacks, COVID-19 and the Power of Systems

5. Relationships as a Strategic Asset

The Bottom Line from Top Producers

Global Protein Demand Surges 2% Annually as Producers Navigate Volatile Markets

1. Global protein demand is structurally strong, driven by population growth, rising incomes and a broad cultural focus on protein.

2. Supply and trade are shifting toward more regionalized production and stronger competitors, but U.S. strengths in productivity and quality remain critical.

3. Risk and resilience — disease, climate extremes and feed quality — are central concerns, making biosecurity, preparedness and careful storage essential.

4. Consumer behavior shows both opportunity and caution: strong protein demand despite high prices, but some trade-down, weaker foodservice and ongoing debates over “ultra-processed” foods.

5. Strategic actions for producers: robust risk management, efficiency and quality focus, diversification and a commitment to mentoring the next generation.

Dairy Faces a “Very Weird Situation,” Forcing Farmers to Rethink Revenue

Beef-on-Dairy Helps Pay the Bills

Fewer Replacements

Risk Management Remains Essential

Cautious Optimism in an Uncertain Market

A 2014 Repeat? Why This Meteorologist Sees 'Bumper Crop Potential' for 2026

What Can Farmers Expect This Spring?

Is Drought Likely in 2026?

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

1. Scale Does Not Immune Operations from Consolidation.

2. Geography Trumps Diversification.

3. The 44-Million-Acre Transition.

4. Mapping the “Sweet Spot” for Expansion.

5. Integrity Is the Top Currency in Rental Markets.

6. The “Willingness” Factor in Technology.

Download the Full Report

Atlanta Fed Chair Bostic Recognizes Sectors of Agriculture Are in Crisis

Rising Expenses and the Growing Debt Burden

Fed Policy: Why Patience is Required for Rate Cuts

Consolidation and the Transformative Potential of AI

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

Understand the Step-Up in Basis

Why Estate Tax Is Less of a Concern

The Pitfalls of Lifetime Gifting

Hidden Cost of Gifting Negative Capital

Unlock Financial Success: Working with Your Ag Lender

Ag Meterologists Worry More Drought Lies Ahead For Spring

EXCLUSIVE: As DOGE Works to Stop Wasteful Spending, Secretary Rollins Says Vital Farm Programs Aren't at Risk

30 Minutes With Secretary of Agriculture Brooke Rollins In Her First Week On the Job

The Tax Man Cometh To The Farm

USDA's Rollins: 'Let's Go Barnstorm The World And Find New Partners' For Trade

BREAKING: USDA Secretary Brooke Rollins and Sen. Roger Marshall to Join Farmers At Top Producer Summit

Do Tariffs Work? Leading Ag Economists Weigh In

Farm Business Resolutions for 2025

Trump’s Cabinet Nominees Now Up Odds for Expanding U.S. Trade/Economic War with China

Could Trump Actually Be Good for U.S. Ag Trade?

Stabenow Finally Releases Full Text of Senate Farm Bill; Here's What It Means for Agriculture

They Prioritize Genuine People Power

A Family Dynamic

Think Inside The Box To Solve Problems On The Farm

5 Year-End Tax Planning Tips

4 Tips to Grow as a Leader

2024 Top Producer SummitFeb. 5 to 7 Kansas City

How to Run An Innovation Sprint on Your Farm

Create a process to brainstorm, prioritize and implement ideas

5 Business Principles That Define Success

2024 Top Producer Summit
Feb. 5 to 7
Kansas City