Category Archives: Home-Based Business

Debt Free Education

Dave Ramsey is on a rant, but worth considering!  This video is an ad for a new product designed to give you ideas on how to get an education without incurring student debt.  I have not ordered or read the book yet.

Can a debt free education be had?  Yes, I personally know a young man who is my son’s best friend who has done just that.  He started working as a young teenager on the farm and by the time he could legally work for other people (14-16 in Missouri, depending on the job), he knocked on doors and worked.  Additionally, he started his own lawn care business and by the time he graduated high school, he had enough money to pay for a 2 year associates degree at a local college while simultaneously attending and graduating from Grand River Technical School as a welder!  Now, the next smart move, though his dream is to farm full time, he got a full time position as a welder at a shop which is allowing him to replace the savings he spent on his education.  Now, a year and a half into that, he was able to purchase a portable welder/generator so he can start his own business.  Yeah, he’s still working full time until he builds a good customer base and he is farming alongside his dad at Sycamore Valley Farm.  WOW!

North Missouri is an economically depressed area of the US, but financial success can be had with good decision-making and hard, but smart, working ethic.

Dave Ramsey “America is Being Harmed By Its Own Government

 

 

Old, Stupid, and Lazy?!

I know I promote Dave Pratt and his Ranching for Profit video blogs a lot and, even though i don’t agree with him on many points, there are a lot of good points he eloquently describes which are applicable to any business – not only ranching.

I’ve ’bout got my hobby farm to the ‘old, stupid, and lazy’ stage, but gracious, how could i attract anyone to cover for me if they thought i was needing someone old, stupid, and lazy ?  😀

Here’s another great one!

Grandpa Falconer

We all have people in our past who have helped us through the tough times and often we don’t recognise the impact they had until we are much older and those wiser ones are long past from our lives – perhaps even have died.  I didn’t know it at the time, but reflecting on the years i had with my grandpa – i realize now – he was my hero.

Sure, he wasn’t talkative or a hugger, but showed by example, a work ethic of getting up early (and making me get up early by pulling my toes to wake up), he would already have some chores done before i dragged my laziness out and ready to go do the chores that were away from the house.  The importance of finishing a job which included putting things away and cleaning up.  But, i LOVED going with him.  He’d let me drive the truck while he threw out small round bales to the cows to feed in the winter, taught me how to drive the old Farmall 460 and clip pastures with a 9 foot sickle bar mower AND how to change out a broken section.  And even when i drove (i think i was about 10) the pickup into a deep wash out along a ditch (he was on foot looking for a calf), he was more concerned whether or not i was hurt rather than upset about any damage to the pickup or that we had to walk a mile to get the aforesaid 460 to pull it out.   Additionally, he taught me how to ride and have a love for horses.  That was my passion for years.

Back from chores, every morning we stopped in at Tolly’s Garage on the western edge of Purdin, MO which had a population of 236 at the time – less now.  He would reach in for a Coca-Cola and I’d select my favorite – Chocolate Soldier.  Then i could just sit and act like i was one of the guys in the office area.  I was part of a small and important community even at age 8.

Today, my grandpa would have been 100, but he died August 9, 2008 and i continue to miss him though he corrected me a lot about how to raise cattle.  I’m still learning and still need correcting, but thankfully, i don’t make the mistakes he chided me about.

How many people get to farm or ranch the very land and legacy that his or her grandparent’s built?  Not many, but i do own and directly manage at least a portion of their legacy and i could not be more honored to carry on a tradition of land and livestock management.  I call this farm Tannachton Farm to reflect our Scottish roots and the commitment to regenerative and sustainable stewardship.

Heritage, Legacy, Tradition, Family  – cling to what is good

Cheers!

tauna

Grandpa Virgil Lee Falconer with Stanley and Stephen
Grandpa with his two sons, Stanley (my dad) and Stephen.  circa 1943

Virgil Lee Falconer tractor grinder

Grandpa Virgil Lee Falconer and tauna
Me on Danny and Grandpa on Gypsy
Jessica and Grandpa Virgil Lee Falconer 001
Grandpa with my three yayhoos, Jessica, Nathan, Dallas
Grandpa Virgil Lee Falconer
Grandpa always drove Chevrolet pickups, so do i!  Thanks to cousin, Heather for this great photo.

 

 

 

The Lunatic Farmer -Joel Salatin

Joel Salatin, a self proclaimed lunatic farmer, is one of many real farmers i enjoy reading.  Nearly all of his blog entries, books, speeches, Ted Talks, and all around rantings are nuggets of truth and being politically incorrect (thank goodness!) he proclaims them for all to hear, digest, and test.

Another insightful writer (and personal friend) is the bloke he mentions here, David Schafer.  

INSPECTION FARCE is one of his most recent blogs that will be interesting to most consumers.

INSPECTION FARCE

            Anyone who thinks meat and poultry inspection actually makes safe food hasn’t been in a processing facility to see what goes on.  Yesterday I toured two of David Schafer’s Plant-in-A-Boxes (PIB) with him here in Vermont and Massachusetts.  Founder of Featherman Plucker and quintessential idea man and entrepreneur in the small-scale poultry processing space, he’s one of my greatest sources of inspiration.  When we get together, it’s heavenly.  I’m flying back home today.

             This is a trip I’ve wanted to take for some time because at Polyface we’re starting to bump our non-inspected poultry exemption that allows us to do 20,000 birds per year.  The reason we’ve gone this route is because it removes us from the hassle of inspection.  Inspection means a government agent tells you when you can start, when you can stop, what is blemished and what is not.  It requires substantial paperwork and calibration.  But more than that, it doesn’t improve anything and puts you under bureaucratic supervision rather than your own personal brand integrity.

             Before anyone retorts “well, not everyone is as honest as you,” let me tell you, the system can be gamed a million different ways.  Dishonest people find ways to express dishonesty no matter what you do.  For example, to make sure you have a negative E.coli test, you can just dip the sample birds in pure chlorine.  If you think “getting by” with a traffic violation is fairly easy, you ain’t seen nothin’ in a processing plant.

             David and I have come away from this quick tour of two of his facilities with more questions than answers.  Both of us are pretty savvy about regulations and both of us travel extensively and listen to the stories of other small operators around the country.  What’s obvious is that the stories don’t jive.  Clearly, different inspectors have different interpretations of the regulations.

             Same set of rules, but completely different interpretation.  This means procedures that work in one area with one inspector do not work in another area.  The tragedy is that nobody, I mean nobody, is there to hold the Food Safety Inspection Service (FSIS) accountable.  If they write you up with a non-compliance infraction, you dare not complain because if you do, they retaliate.  It’s the worst case of emotional extortion you can imagine, and it’s ongoing across the country.

             Yesterday we met a new inspector in training and she said the line speeds at the big processors are 1.3 seconds per bird.  Yesterday, in these little facilities, inspectors had 10 seconds or more to examine each bird.  And yes, I watched them miss a lot–fecal contamination on the carcass, etc. Who spotted it and took care of it?  The well-trained employees down the line, that’s who.  Their brand reputation was on the line.

             The amount of anti-microbials used in the industry is nothing short of epic.  The clear prejudice of the FSIS against small plants creates nightmares for small operators.  The testing in a small plant is the same as in a big one, meaning that the percentage of birds sampled is exponentially higher in small facilities.  It’s a prejudicial and unfair playing field that protects the biggest players.

             I’ve said it before but it bears repeating.  When I testified before the U.S. Congress hearings into the meat industry a decade ago, convened by then Congressman Dennis Kucinich, I couldn’t believe my ears at what the head of the FSIS said.  He actually touted the progress the FSIS had made in efficiency, measured in pounds of product per inspector hour, due to the fact that so many small facilities had gone out of business.  I didn’t know they were inspecting for pounds per hour; I thought it was about food safety.  But his testimony let the cat out of the bag, The real goal of the FSIS is to increase through-put per inspector.  If that doesn’t make the FSIS a farce for food safety, I don’t know what does.

             Have you ever fallen for the duplicitous idea that we need more “government oversight” to insure food safety?

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← TRUSTWORTHY TESTINGEVERYTHING IS DIFFERENT →

Let Them Eat Weeds!

Kathy Voth, Fred Provenza, and others have long promoted letting cows eat weeds.  There are few weeds that are poisonous and unless cows are starved, they won’t eat them anyway.  Many farmers and ranchers clip or mow pastures and weeds, especially this time of year preparing the paddocks to grow for winter stockpile.

I like to mow pastures – i’ve clipped pastures with a 9-foot sickle bar mower bouncing around (sweating and burning) on a modified wide front end Farmall 460 for years.  The result is a beautifully laid down forage that allows the new growth to pop through and look like a lush lawn.  It’s a good feeling —but i now question its profitability and no longer mow.

Alan Newport recently wrote on an article (Who’s Afraid of Weeds and Brush?) on this very thing.  Greg Judy espouses the benefits of weed grazing in his books and videos.

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Another example of mature forage laid down by decent grazing and trampling pressure.
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This photo is just terrible, but it shows on the left the cows have eaten even Kansas (lanceleaf) ragweed.  The right side of the fence has yet to be grazed.
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Well rested tall grass nicely laid down by trampling and eating.
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If my cows are getting this much grazing out of ragweed, i don’t see much point in mowing it except to lay down those stalks for better microbe use.  But can i afford to own and run a tractor to mow it?  What is left here, the cows will snarf it down once it’s dried down this winter.
IMG-6115
This is a thorny locust tree sprout practically stripped by my cows and calves.  I’ve owned sheep and they do a good job as well, but not any better than my cows.

Who’s afraid of weeds and brush?

In the right system, cattle grazing under ultra-high stock density will eat most “problem” plants and thrive doing it.

Alan Newport | Jun 05, 2019

 

Over the past year I have been grazing beef cattle at high stock density, and at times at ultra-high stock density grazing (UHDG), and I am regularly amazed at the things they eat.

A few examples are: Most of the leaves from buck brush (aka Indian currant), almost all the leaves they can reach from most trees, the top half or more of sericea lespedeza, a fair bit of ironweed and most ragweeds, and at least the top half of goldenrod. In fact, they clean up or at least take part of nearly everything in their environment. And they do it by choice. These plants are sometimes the first things grazed, sometimes the last things grazed, and sometimes taken in the middle of the grazing period. In other words, they are not eaten in desperation or starvation.

I’m sure some of you are asking what qualifies as UHDG. Johann Zietsman, the Namibian rancher and consultant who pioneered UHDG back in the 1990s, says a stock density of 1,000 to 2,000 animals per hectare. If we consider that one hectare is 2.47 acres and that Zietsman and his “disciples” typically run cows that weigh closer to 700 pounds than the 1,500-pound average for modern cattle, this helps us figure out a stock density of maybe 283,000 to 567,000 pounds of stock per acre — or higher. This generally matches my own definition that UHDG starts somewhere around 250,000 pounds per acre, while high stock density or very high stock density probably runs from 60,000 to 250,000 pounds per acre.

Anyway, last night my wife and I turned the cows into a really small paddock with tall and dense forage, in which I’d estimate from past experience they were grazing at well over 500,000 pounds of stock density. The little calves and the cows were all eating almost everything in there. There were still some cheatgrasses, some bermudagrass, a smattering of other warm- and cool-season grasses, and quite a bit of both lambsquarter (pigweed) and giant ragweed of the knee-high to thigh-high variety. They took it all out. It appeared to me each animal was eating a little bit of everything, switching from one plant type to another as they grazed. It’s pretty much what I’ve seen time and again under UHDG or even high stock density.

These are the same results I’m hearing from people all over the globe, on every continent. All are connected through Zietsman’s website and app-based discussion groups he runs. Their pictures and comments they share from their own ranches tell me volumes.

I’ll remind you the first goal of this type management is maximum sustainable profit per acre, which actually incorporates inseparably the goal of land improvement with beef production.

However, an advantage of this type management that has occurred to me lately is the reduced need for goats and sheep to eat the things cattle normally won’t eat. Maybe a little work by goats will be needed at times, but the cattle graze and browse almost all the plants. (Cedars and full-sized trees, of course, will require other control methods.)

Further, as I watch cattle of all ages graze/browse every imaginable kind of plant, I can only imagine what kind of quality they are building into their bodies, therefore their meat and milk.

Debi NewportCalf eating tree leaves

Even calves like fresh tree leaves that haven’t been exposed to grazing, therefore haven’t built up high tannins.

A few weeks ago, I published a blog about the importance of secondary and tertiary compounds in the quality and healthfulness of beef and other meats. It was called Here’s how grassfed beef really could be superior. If you haven’t read it yet, I recommend you do so. Fred Provenza and others recently published a great paper on the importance of these compounds particularly to humans eating meats from animals adapted to diverse, native habitats.

So, besides achieving the highest sustainable stocking rate, the fastest rate of soil and rangeland improvement, and the highest potential profit in a cow-calf operation, you’re also getting the best weed and brush control possible with cattle and the greatest consumption of plants providing a wide variety of nutritional benefits. And by the way, once they learn to eat these plants they will continue eating many of them even when grazing at lower stocking densities.

The caveat is that conventional cattle of today are very poor at this job. They have been bred to graze selectively under continuous grazing and generally to receive large amounts of hay and supplement through large portions of the year. We need to breed cattle suited to this task.

And incidentally, they will have good carcass quality because any beef animal that can thrive under this kind of grazing, laying on fat for winter survival, then fattening in the spring on green grass for calving and reproduction. Any animal that can get fat on grass has great potential to produce a quality carcass, and the US Meat Animal Research Center carcass data on the African Sanga breeds, as well as other testing, has indicated this is true.

The innovators and early adopters of grazing management and now cattle breeding are leading the way. I’m watching.

TAGS: BEEF WEEDS PASTURE

 

What a landowner looks for in a lessee

What A Landowner Looks For in A Lessee

Helpful article in the April 2019 Issue (4) of Progressive Cattleman.

Online article.

 

What a landowner looks for in a lessee

Jenny Pluhar for Progressive Cattleman Published on 25 March 2019
Frank Price (left) and Grant Teplicek

“Is this Jenny?”

“Yes. …”

“This is John Q. Public. I heard you have a ranch available for lease, and I run some cattle. …”

That opening line pretty much guaranteed I was not going to consider that offer to lease. Most likely John Q. had a job in town. He may have been the pharmacist, owned the hardware store or been a schoolteacher. But in my neck of the woods (Texas), “running cattle” is the ultimate sexy, cool, cowboy thing to do.

The mere fact so many think it is easy offends me. That fellow on the other end of the phone hoping to lease from me needs to be managing a complex ecosystem and ensuring sustainability into the future. He is running a business where profitability is closely linked to stewardship of the land. He is not just “running cattle.”

This was not my first rodeo. I have changed lessees for these owners twice before over 24 years. We tend to choose carefully and hope to have long-term relationships. I have been threatened: “I will pay more than John Doe; aren’t you supposed to make the most money possible for the owners?” “You’ll never find someone to go along with all your stipulations.” “If I lease your place, I will decide how to operate it.” “Give me the owner’s number; I will tell him I will pay more.”

Nope, yep and nope. By all means, call the owner. He will hang up on you, guaranteed. My goal was to find the right lessee, someone who wanted to manage that complex ecosystem, strive for sustainability, make a profit. The happy ending is: Although I received the above-mentioned phone call probably a hundred times, I had four outstanding candidates to lease the ranch, and another four queued up if the first four opted out.

Serious about stewardship

What to look for in a lessee? How to find the guy or gal who can manage a complex ecosystem and steward the rangeland resource while still making a profitable living for their family? Face it, if we don’t take profitability into account, the goal of stewardship becomes just another buzzword.

Of the calls I received, only one was actually a credible possibility – and only because I had lost touch with the young man. I knew and respected him but was out-of-date on his progression in the ranching industry. The viable candidates were people I contacted, folks I knew from field days, ranch tours, word-of-mouth. I knew them to be serious about stewardship, profitable, eager to learn and progressive-type operators. I had observed them in action, often at Texas Grazing Land Coalition activities, Texas and Southwestern Cattle Raisers School for Successful Cattlemen, local workshops.

My initial concern was that none of them would want to consider this property. It is remote and, frankly, was beat up – continuously grazed, overstocked, infrastructure needing attention, definitely a ranch in rehab. Lucky for me, I had four respectable land stewards who were interested.

After a bad experience with past lessees, the owners and I were determined to make a good selection. We were in no hurry, which was key to a successful process.

I spent a day on the ranch with each potential lessee. We climbed on the side-by-side and attempted to see as much as possible. Thirty-thousand acres is a lot of ground to cover, but I wanted them to see the good, the bad and the ugly. And I wanted to gauge their goals. The owners and I have some specific goals, focusing primarily on improving rangeland conditions.

It is a mighty challenge, and I needed to know if the candidates were up to the task and aware of the degradation of the resources. Those hours on the ATV allowed me to quickly assess their mettle. Did they know the plants? Did they know how much water a cow-calf pair or a stocker needed daily? Were they savvy on stocking rates, animal unit equivalents, grazable acres and harvest efficiency?

Then I turned the tables. I asked to see country each candidate leased – in my book, that’s the “résumé” of a rancher. What does the place you operate look like? So I spent a corresponding day with each of them, riding around, looking closely at how they conducted business.

Following the days on the ranch, I asked each to tell me what they saw. I developed a few questions. What did they see as the shortcomings of the ranch? And how would they overcome those obstacles? What about the advantages? How would we collaborate, communicate? How would they handle the necessary labor?

Why would we care about the labor? The ranch is remote. School is nearly a 50-mile bus ride away with the potential for the ability to transfer to the school district only 20 miles away. Sadly, substance abuse is a real problem among ranch cowboys in the Texas Panhandle. This location is not for everybody. Leasing this ranch and putting someone out there with a young family or a fast crowd of friends is not going to get the job done. “Cowboys” who have limited skill sets and want to drive around or spend aimless time horseback are a dime a dozen. We recognize the need for the labor to be able to manage the resource, not just cake the cattle in the winter and ride a horse all summer.

Up for a challenge

By now you are thinking, “Man, she put these potential lessees through a bunch of hoops just to ‘run some cattle’.” It was exciting to find four candidates who found the opportunity to improve the conditions, something that excited and challenged them. They provided potential solutions to our challenges, grazing and monitoring plans, communication plans and really showed off their eagerness and enthusiasm. Anyone who says there are not young, enthusiastic ranchers wanting a chance to get started or expand in the business hasn’t looked around very hard.

Finally, the owners and I interviewed them together. That face-to-face meeting is important. It also allowed the potential lessees to gauge if they wanted to enter into a challenging ranch rehab and do business with the owners. These things go both ways. Our extensive process allowed for plenty of time for both sides to assess the situation and evaluate the potential.

The best advice for folks looking to lease land is really pretty simple. Think of it as a job interview. What do you bring to the table? How will you work with the landowner? Plan to forge a relationship, stewarding the land for the good of the owner and your own profitability. If you are just looking to “run some cattle,” put that phone down and go look for something else to do.

Ranching is the management of a complex ecosystem, grazing animals all with the goal of economic and environmental sustainability. It’s not rocket science. Literally. It’s way more complicated.  end mark

PHOTO: Frank Price (left) of Sterling City, Texas, explains the improving forage conditions on a lease property to Grant Teplicek of USDA-NRCS. Photo provided by Jenny Pluhar. 

Jenny Pluhar

When Assets Become Liabilities

 

When Assets Become Liabilities

 

by Dave Pratt

Look up the definition of asset in Webster and it’ll tell you an asset is “anything owned that has value.” But Webster has it wrong.  If I put a down payment on a ranch, financing the balance, the full value of the land shows up in the asset column of my balance sheet, but I don’t own the whole ranch. The bank probably owns more of it than I do. No, an asset isn’t necessarily something you own. An asset is something you have. Your net worth (Assets-Liabilities) is what you actually own.

Although your banker would disagree, there is a completely different way to define assets. In his best seller, Rich Dad, Poor Dad, Robert Kiyosaki defines assets as “things that put money in your pocket” and liabilities as “things that take money out of your pocket.” Between monthly principle payments, interest, insurance, maintenance and repairs, most of the things your banker calls assets are, according to Kiyosaki, really liabilities.

Ironically, the fancy cars and homes that we see as the trappings of wealth are actually huge constraints to generating wealth. That doesn’t mean we can’t enjoy the finer things in life, but until we build a wealth generating machine as our foundation, buying “liabilities” will slow, and may block, our ability to create wealth.

There is an even bigger problem with assets.

In the final chapter of his wonderful book, Nourishment, Fred Provenza writes about taking a sabbatical to Australia with his family. To finance the trip he needed to sell their home in Utah. He explains that he didn’t build the house himself, but had done a lot of work on it and had “a lot of skin in the game.” Unfortunately, at the time of the sale the housing market was very depressed and, while they got their investment back, they didn’t get much more. Between the time of the sale and their trip to Australia, they rented a smaller house Fred called “the dump.” At first he was resentful of having to give up owning his “castle.” But after a couple of weeks in the dump he began to realize that he hadn’t owned the house he’d helped build. He explained,  “It owned me.” It owned him financially, requiring huge monthly payments. Even after the sale, it owned him emotionally.

Assets can clutter our space and minds, causing distractions and stress. They make it more difficult to clean and organize. They tie us down. The biggest constraint to moving for some of us is the burden of taking all of our stuff with us.

The things we own trap us. I recently had lunch with a couple who’d been ranching for about 10 years. They both worked off-farm to make ends meet. Over the last several years they’d bought a small place, secured several leases, and built up a herd of a couple hundred cows. But now, with a young family, significant debt and the off-farm jobs, they seemed stuck.

After subtracting the liabilities from their “assets” their net worth came to $1,300,000. On the back of a napkin I wrote them a “check” for $1.3 million and asked them, “If you had nothing but this check and the clothes on your back, and still wanted to achieve your dream, would you use this money to recreate the situation you are in? If not, how would you deploy this money to accelerate progress toward your dream?”

Their expression changed almost immediately. While they’d made progress over the last 10 years, the business they created was going to make it difficult if not impossible to achieve their dream.  Rather than a stepping stone, their operation had become an obstacle to further progress. They set out to use the wealth they’d created to change their course.

I went through the identical exercise with another couple whose net worth was closer to $3 million. When I asked if they would recreate the situation they were in, they immediately and in unison said, “No.” But, when I met with them again a year later, they hadn’t changed anything and resigned themselves to “staying the course.” Rather than using the assets they owned to create the lives they dreamed of, they were owned by their assets, which they used as an excuse to stay stuck. Chuck Palahniuk, author of Fight Club, described it perfectly when he wrote, “The things you own end up owning you. It’s only after you lose everything that you’re free to do anything.”

Listen to New England Executive Link member, Pat McNiff, explain the cost of keeping assets and the process they used to determine what they needed to keep and what to discard or sell.

4 Responses to “When Assets Become Liabilities”

March 27, 2019 at 2:31 amjames coffelt said:

I believe a personal financial statement is the best tool to measure wealth creation. It considers cattle and land appreciation. Update it twice per year, every bank has one. We measure the wealth creation relative to equity. We further measure the wealth creation against the 8% we can average in the stock market, passively.

Reply

March 27, 2019 at 10:11 am, Roger Ingram said:

Excellent article and video. Should be required reading and viewing for all chapters!

Reply

March 28, 2019 at 1:48 pm, Keith said:

Good article, wouldn’t mind to be receiving such every now and then

Reply

March 28, 2019 at 2:03 pm, Richard Smart said:

Please remember to deduct the tax man’s share when calculating what liquidating your assets will yield.

Reply

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