Tag Archives: generations

The Three Secrets for Increasing Profits

Farmers and Ranchers seldom spend time WOTB, but now that it is too hot outside to be working in the business (WITB)  cutting trees, spraying brush, etc, now it’s time to sit back and listen to David Pratt, owner of Ranch Management Consultants, and the dvd i just received entitled, “The Three Secrets for Increasing Profits” and begin WOTB.  (Working On the Business).

Happy 4th of July!!!  be safe out there!

Cheers

tauna

“If our farms are not fun, not profitable, or are too much work, our children won’t want them…. Romancing the next generation is the ultimate test of sustainability.” Joel Salatin, Polyface Farms

Ultimate Test of Sustainability?

Will Your Operation Succeed to the Next Generation?

It’s been said that a farm or ranch is not truly sustainable unless it employs at least two generations. I believe it’s imperative that as producers we recognize that even if we become both ecologically and economically sustainable, but fail to pass our mission and work on to the next generation then we’ve failed the ultimate test of sustainability.

According to the most recent census of agriculture: from 2007 to 2012 there was a decline of over 95,000 farms in America. A quick look at the current trends tell us that most of today’s family farms and ranches will not succeed to the next generation.

I believe there is hope for a bright future.

This hope is not based on wishful thinking but rather a ground swelling of innovative farmers that are indeed beating the odds and are building thriving operations. A few names you may recognize are operations like Joel Salatin’s Polyface Farms in Virginia, Gabe & Paul Brown of Nourished By Nature in North Dakota, as well as Will Harris’s White Oak Pastures in Southern Georgia. These are just a few of the many operations that are shining a bright beacon of hope to the greater agricultural community.

If you visit any of these operations there is a very obvious, but all too often overlooked, common thread of success. Each of these operations spring forth with a multigenerational team of people that bring intellectual diversity to each acre of their land.

Most of us in agriculture are at a road block because we’re too narrowly focused on a production mindset and we’ve lost sight of people and relationships. We must make the critical distinction that people create profits – profits don’t create people.

Those of us pursuing regenerative agriculture understand the value that biological diversity brings to our land, but we often forget about the value that human creativity and diverse intellectual capital can bring to our land.

At Seven Sons Farms we’ve stacked multiple enterprises on only 550 acres. By creating synergistic relations between our land, livestock and people, we are able to employee over 10 full time people as well as several part-time positions. We refer to our team as our intellectual human polyculture:

Human Pollyculture

Any successful leader knows that their organization’s most valuable asset is having the right people in the right place.

Zig Ziglar offered this belief: “You don’t build a business – you build people – and then people build your business.”

If the above statement is true then it begs the question – how is agriculture as a whole doing at building people? The graph below shows a plummeting decline in the number of human minds in agriculture.

The erosion of human capital:

1482013689_5855bbf99fc0d.jpg

SOURCES: Agriculture in the Classroom, 2014; BLS, 2014; NASS, 2014a,b; U.S. Census Bureau, 2014a,b; USDA, 2012

Over the course of time we have eroded much of our land’s precious resources in the form of minerals and soil organic matter. But no greater erosion has taken place than the depletion of human minds from each acre of our land. In the early 1970s we reached a critical point – for the first time in the history of American agriculture the number of human minds per acre involved in agriculture fell to a negative ratio.

Interestingly, it was around this same time period that the farmer’s share of the food dollar began to plummet as well.

The erosion of the food dollar:

There are many factors at play but it only stands to reason that if we want to capture a wider diversity of the food dollar, it requires wider diversity of intellectual talents. This is exactly why at Seven Sons Farms we have sought to foster synergistic relationships with people that enable us to capture a greater diversity of the food dollar.

To sum up the past half century of agriculture, one could say that in pursuit of production, we’ve attempted to trade people for profit. In the end we’ve yielded neither profit nor people.

At Seven Sons we believe that the people connected to the land represent the most valuable asset a farm could ever possess. To illustrate this point, imagine for just a moment if you were to remove Joel Salatin, Gabe Brown, or Will Harris from their respective farms. These farms would look nothing like what they do today without the creativity and vision that each of these leaders bring to the land that they are called to steward. The same holds true for your farm as well. The beliefs you operate from, the vision you put forth and the people you inspire to join you – these are the game changers that will empower your operation to beat the odds and succeed to the next generation.

There are unprecedented opportunities ahead of us…

I believe we have unprecedented opportunities ahead of us when you consider many of the recent breakthroughs in regenerative agriculture as well as the rapid shifts we’re seeing in our food culture.

So if you’re looking to exchange new ideas and be challenged to think outside old paradigms then I encourage you to join myself and hundreds of likeminded people at this year’s Grassfed Exchange in Albany New York.

The very mission of the Grassfed Exchange is to catalyze the exchange of practical knowledge, ideas, and strategies that you can take home and begin applying on your operation. Bring a family member, friend or budding young agripreneur who is looking for their way forward in agriculture.

What The Grassfed Exchange Is About:
Click here to register for the 2017 Grassfed Exchange

Reprinted from Grassfed Exchange

A Great Place To Raise A Family by Dave Pratt

Dave Pratt, owner of Ranch Management Consultants (formerly known as Ranching for Profit) hits it on the head again with another great blog entry.  Although his niche is specifically ranching, the ideas he shares are often for any business.

 

Home > A Great Place To Raise A Family

A Great Place To Raise A Family

I occasionally lead workshops I call Hard Work and Harmony: Effective Relationships In Family Businesses. In it I like to ask participants to explain to the person next to them why they ranch.  Some say they love being their own boss, or love working outdoors and with livestock. Almost all of them say something about loving the lifestyle. Near the top of most people’s lists is, “It’s a great place to raise a family.”

I agree. I grew up on a small place. The biology lessons I learned from tending livestock were more influential than any I ever had in a classroom.  I learned other lessons too. I learned how to work hard and how to be resourceful. But it wasn’t just about work. Our place was a great setting for any adventure my imagination could conjure up. My mom sold it when I was in college and it just about broke my heart.

A ranch can be a great place to raise a family, but it isn’t always. I worked with a rancher shortly after my son, Jack, was born.  When we broke for lunch he asked about my new baby. I told him that when they placed Jack in Kathy’s arms for the first time, I could hardly see him for the tears of joy streaming down my face.  Tears welled up in his eyes too, but they weren’t tears of joy. Trying to hold back a flood of emotion, he told me how he had worked sun up to sun down to build a place “for the generations to come.”  He said that he hadn’t been as involved in his children’s lives as he should have been. As we sat on the hill, he told me that now he rarely hears from his adult children, who want no part of the ranch. A ranch can be a great place to raise a family, but it is not a substitute for our active involvement in family life.

Many ranchers are addicted to work. I’ll bet you’ve even heard some of your colleagues brag about how long and hard they work, proudly proclaiming things like, “I haven’t taken a vacation in 20 years.” They say it as though it is something to be proud of.  When I hear things like that I shake my head wondering, “Are things that bad?” You can’t run a sustainable business on unsustainable effort.

Intentional or not, work can become an excuse to avoid working through the issues every healthy family faces at one point or another.  When work consistently takes precedence over family needs, we set ourselves and our families up for trouble. Engaging in what may be uncomfortable conversations when issues first come up can keep them from growing into big problems.

In the last few months I’ve met a number of people who are learning that lesson the hard way. After decades of avoiding uncomfortable family issues they are facing extremely difficult challenges regarding succession.  Now, without any experience working with one another to resolve small issues, they are hoping to work through the most difficult challenges many of us will ever face. The conversations are made even more difficult because of the hurts that have gone untended and the resentments that have grown from not taking care of the family in the family business.   It’s a tough way to learn that success has more to do with healthy relationships than with conception rates and balance sheets.

I don’t mean to suggest that the physically demanding work that ranches require can be ignored, but it doesn’t have to be all consuming. Many Ranching For Profit School alumni have discovered that the ranch was all consuming only because they allowed it to be that way. After the school they restructured the business to increase profit and liberate their time to put more life in their work/life balance. They still work as hard as anyone, just not as long. Their ranches are great places to raise their families, andthey actually take the time and make the effort to be directly involved in raising them.

To hear how one RFP alumnus decreased the work required to run their ranch while increasing profit and improving their quality of life, click here.