KOHL-laborations

Mindset: The Competitive Edge

Commentary, wisdom, and perspectives from globally renowned agricultural economist, Dr. David M. Kohl.

At a recent conference, I had an engaging and enjoyable lunch with a large animal veterinarian in his eighth decade of life. Similar to many other large animal veterinarians who provide services to our family dairy, his opinions are based off many facets of life and experiences from interacting with agriculture producers. However, he did strike a chord when discussing what he observed his successful customers did over the decades. The theme of our conversation was mindset and attitude.

Recently, I also had the pleasure of engaging with a group of agricultural leaders representing all facets of the agriculture industry from production to agribusiness, education, and policy. What mindsets did these individuals bring to the table to be successful?

One such mindset was that agricultural leaders need to be more transparent with the consumer, the public, and the general economy connecting with the agriculture industry. As the general public in the U.S. and abroad become more distant from the agriculture industry, transparency will be increasingly important and challenging. Recent lawsuits against the agriculture industry by non-governmental organizations is only in its infancy. While connecting to those outside of agriculture is a challenge, it is also an opportunity for those that have the skills and can articulate and play an educational role in connecting with the majority of the population who are disconnected with agriculture.

Participating in groups and making your voice heard by using technology and engaging with youth such as 4-H, FFA, and other leadership groups will be necessary with the public, government, and in all areas of life.

A critical mindset will be to educate yourself on better ways to run the business. Complacency and getting into a rut are killer mindsets in business. Adaptability, embracing change, and more collaboration with individuals with a positive, but inquisitive attitude will be critical. One young person had a great quote, “No one ever lost money listening to an idea!”

A mindset of focus and commitment will not be an option, but a requirement. A three-step process outlined by a young conference attendee provided a capsule slogan: preparation, execution, and follow through. This threestep process works for professional athletic coaches, teachers, agribusinesses, and agricultural producers.

A focus on knowing one's numbers, whether it is production, marketing, risk management, or finance will be key. Developing your system and skill base while aligning your products or services to the market will be a baseline for success. Having a proactive attitude to execute the plan, realizing “base hits” with occasional “home runs” in profit expectations, may be the call to order. Finally, being able to follow through and monitor outcomes with an objective mindset, rather than an emotional mindset, can keep the business and personal finances out of the ditch. In a world that has a surprise around every corner, the young leaders were utilizing advisory groups including their agricultural lender as a sounding board and networking team.

A final mindset that permeated amongst the group was to think globally, act locally. Awareness of global trends and positioning your business and personal life to take advantage of opportunities to build a financial fortress for challenges that will occur will be critical. Being careful not to place all your bets on the next big thing or the next commodity economic super cycle and playing the game of life within realities, while not glamorous, can be a long-term sustainable plan. In other words, think steady like a turtle rather than quick like a rabbit. Life is not a sprint, but a marathon.

Mindset and attitude are difference makers, which the older large animal veterinarian whom I met with suggested. Maintaining a strong network of people who are collaborative and can critically think will be the seed and fertilizer needed for your business and life.

Dr. Kohl is Professor Emeritus of Agricultural Finance and Small Business Management and Entrepreneurship at Virginia Polytechnic Institute and State University.