STEPS TO GETTING YOUR START 1. Use life experiences and your current employment to continually direct your future in the large arena of agriculture. Focus on what naturally draws your interest, gaining education and work experience. Use every opportunity to feel out different areas that will better your position if you become a producer – because a person naturally tends to excel in an area of interest, benefiting employers and yourself if farming becomes your future. 2. Align yourself with people in the industry. The saying “it’s not what you know, it’s who you know” is still key in agriculture because of the capital intensity. Look for opportunities to rent, readying yourself to develop and solidify the tenant/landlord relationship. If the land owner was once a producer or has ties to the piece of land, there is a heightened value in being transparent with the owner. There is more to a lease than rental price; if you can openly show and discuss the practices you use in farming the land, (soil test and nutrient application) and the outcomes, (yield map results verses farm practices, and potential tiling or lime programs) you will gain more than a landlord. 3. Compare this to a livestock enterprise start. You may have an opportunity to partner on ownership (say, 10-33 percent) on a group of cattle or provide labor to a finishing unit. This situation gives you entry and opportunity to prove and leverage your ability to feed and care for livestock. The partnership also benefits from your skin in the game as you prove your ability in the cattle group’s outcome. In livestock facilities, you may have an opportunity to try an enterprise, which can be beneficial before buying or building your own. There is wealth of value when you experience a variety of livestock set-ups. This knowledge is extremely hard to duplicate on your own dime. Partnering in livestock feeding can also grow into an owner’s comfort to rent or purchase their livestock improvements. I have seen this turn into a long-term opportunity to rent ground. 4. When you do start buying farm assets, focus on investing in an asset(s) that turns its value relatively quickly. Just as importantly, invest in an asset that uses your best skills to leverage its use. Consider equipment or improvements that will be used “early and often” in order to get the original value back after trading it for the next asset. (Purchase cost of asset minus salvage/trade value) divided by (total of the future stream, of each year’s net incomes (revenue minus expenses)) equal the assets turnover rate. Shoot for the lower range of the “assets turnover rate.” Repeat this step every time you approach acquiring the next asset. The faster the assets accumulate excess cash, the faster you’ll have
equity for growth and advance to the next step. 5. Use opportunities to bounce ideas off others in the industry. There’s a wealth of knowledge available from veteran producers who usually love talking farm. Mistakes are a memorable way to learn. However, there is less need for you to make each mistake when you can ask thoughtful questions of experienced people to reduce unnecessary consequences. These long-term relationships can continue as great tools in sorting through options and plans you are entertaining. 6. A commodity broker can increase your chances of success by more fully diversifying your marketing strategies. Incremental cash sales, forward contract, hedges and options are tools to advance average price outcomes and offset risk. 7. Remember to talk to a lender. Farming takes a partnership, assets are often in need of financing, and the proper terms and life of the loan is key to a plan’s success. There are several loan programs for the beginning farmer and a lower capitalized projects to be made available. Growing together with a bank in the early development of your farm’s business ownership can benefit your dreams now, and goals long into the future.
Farming Soil Microbes & Carbon Management
Does available carbon = Yields?
ACPucks Capture the power of Nitrogen with up to 40 units more N per acre of manure. Also controlling other gasses and crusting Nu Force Water Units Making water hydrate! Quality water without salt.
Verlyn Sneller: 712-441-6359 | Kevin Flammang: 712-441-2334 Dennis von Arb: 712-540-2439
Nutritional Ag | 3839 490th Street | Alton, Iowa 51003 SEE YOU AT THE PLYMOUTH COUNTY FAIR June 2022 | www.agemedia.pub | The Farming Families Magazine
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