FARM FUTURES INSIGHT

Feb 18, 2024 | Uncategorized

3 Takeaways from the Farm Futures Business Summit, 2024

Last month, Matt Boos of Agrigrowth Consulting attended the Farm Futures Business Summit in Coralville, Iowa. Here’s what he reported back as some key insights:

  1. Utilizing the Entrepreneurial Operating System (EOS) on the farm: Jay Joy of Brideforth, LLP mentioned implementing EOS within both farms and agribusinesses and the impact that has had for transforming management. The easiest and most impactful piece of EOS to implement would be an accountability chart and holding structured, weekly meetings.
  2. Labor Concerns: “I ask my guys every summer if they are up for another harvest. One of these years they are going to say ‘NO’.” Neil, a ND farmer who operates on 7,000 acres, states labor as one of his primary issues to address going forward. In many cases, part-time retired people are the only available employees, and the only folks holding an operation together.Formulating a labor plan will be key to addressing both the short-term and long-term issues. Things like hiring an H2A worker or offering equity incentives to long-term employees are strategies that may be utilized to “fix” these labor concerns.
  3. Loan underwriters placing less weight on balance sheets. A regional ag lender mentioned they’re looking closer at the sophistication of farm operations and their management, and viewing lending as 20-30 year partnerships, with a heavier weight placed on professional farm operations. This means documenting processes and plans to be shared with lenders, and treating operations as a true multi-million dollar business will give producers a leg up in the future of ag lending.

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