Rudolphi's Burning column is released on the 15th of each month, only on News From The Coffee Shop.
Each monthly column will be archived within this dedicated page.
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News From The Coffee Shop
January 15, 2013 9:55 PM
Cut the Crap
At some point in your life, everyone comes to the realization that if you continue to eat junk food and go on prolonged benders that life might be a fairly short experience. I have recently come to this conclusion myself. Therefore I have begun to make a conscious effort in regards to my dietary choices.
With this mindset in place, I have also begun to pay a little more attention to the nutrition rhetoric that fills the newswires…and there’s plenty of it. There are all sorts of doctors and nutritionists, hungry for a buck that seemingly can’t make a name for themselves fast enough. They fill the news spouting off all sorts of facts and promises that their latest research has yielded, begging people to buy their latest book that promises life to age 120 or your money back.
With this mindset in place, I have also begun to pay a little more attention to the nutrition rhetoric that fills the newswires…and there’s plenty of it. There are all sorts of doctors and nutritionists, hungry for a buck that seemingly can’t make a name for themselves fast enough. They fill the news spouting off all sorts of facts and promises that their latest research has yielded, begging people to buy their latest book that promises life to age 120 or your money back.
Every day my wife gets up and tunes into liberal hour (The Today Show on NBC) while she is getting ready to go to work. She writes this television off as a sort of “guilty pleasure” but I am concerned that it might be wearing off a little bit—but that is a topic for another article. While she had it on, I was milling around and heard this lady talking about the dangers and drawbacks of farm raised salmon. Her argument contended that because farm raised salmon are fed a diet of…wait for it…wait for it…CORN and processed fish meal, that their meat is significantly lower in Omega 3 fatty acids (which are good for you and your heart –If you haven’t heard of these you probably need to get out a little more) than are wild caught salmon which have a different diet of wild plankton that are higher in Omega 3's?
What about the economics? The one area that always seems to go out the window is the cost. I have yet to see a nutritionist put the dollars and cents to one of their claims. Yes, wild caught salmon might have 5 grams of Omega 3s per serving vs. farm raised at 3 grams, but if wild caught costs 3x as much (which it does)…what is the true cost of Omega 3s per gram?
And finally, we need to ask the question that even if farm raised salmon is lower in Omega 3s than wild caught, is it still better for you than a Big Mac? This type of relativity is seldom discussed or rationalized. The nutritional types seem to have no room for logical middle ground such as this.
And finally, we need to ask the question that even if farm raised salmon is lower in Omega 3s than wild caught, is it still better for you than a Big Mac? This type of relativity is seldom discussed or rationalized. The nutritional types seem to have no room for logical middle ground such as this.
Getting to the PointI told you that story so I could tell you this one. As a society we have become less discerning in our information sources. We have adopted an attitude that if it is on the airwaves or published in print that it is credible, and it is not. The standards for getting something published for everyone read or hear are incredibly low (look at what you are reading right now for God’s sake!).
When I was researching wild salmon vs. farm raised salmon I had to hit “next page” on Google 3 times to find an article that actually had documented scientific research and statistics. Each article prior to finding that one (20+ articles) was written as fact, but had no citations or research to back up the claims. Each day we continue to go through life spouting off facts with an “I read it somewhere”, “I heard it somewhere”, or “Someone told me that” mentality. We need to stop and check the real facts more often.
Applying this to Ag
Fall cash prices for both corn and soybeans certainly aren’t anything to write home about at this point -not relative to what we have seen. The talk of 100 million corn acres is a constant buzz. Soybean acres will be up at the expense of cotton.
As we get ready to manage the 2013 crop, in this type of an environment when the crop is still valuable, and producers are seeking many different ways to maximize their production, there are many companies with their hand out to take your money with the promise of increased yield.
Seed treatments, inoculants, ethylene inhibitors, 18 different fungicides, bactericides, growth regulators, sea weed extracts, foliar treatments, just to name a few.
Each of these products comes with the sales pitch that they have a “½ to 1 bushel breakeven”. On the cover, this sounds great. You weigh the risk/reward and in many cases figure that it is worth taking the chance on, and many times it is. There certainly are products and treatments that are proven winners that pay dividends time and time again. There are also products that have had variable results in limited trials-beware of these.
Don’t rely on the data provided in a product pamphlet, or a promise from your product rep. It is fine to trust people and companies that you have relationships with, but understand that that the words “Results may vary” are printed on the label for a reason. For the most part, large companies have extensive legal departments that verify what claims they can make in regards to their products, the smaller and startup companies take more chances and often times make statements that are more bold and promising.
The best solution is to do some digging of your own. Seek to understand the research, ask questions of others with experience, and understand how the research was performed. The environment on your farm might not be anything close to the setting that the data was published under, and therefore it might not be realistic to expect similar results and responses.
Understand the risk and potential reward that implementing a new practice might have for your operation. Because once the purchase is made and the money is spent it, it’s pretty tough to get it back…at least that’s what someone told me.
Rudolphi's Burning on
News From The Coffee Shop
December 17, 2012 1:03 PM
In the Rearview Mirror
The old adage is that hindsight is 20/20. In farming there are many opportunities to look back and say to ourselves “If only”. “If only I would have sold!”.… “If only I would have waited”…. “If only I had back the money I sent the TV preacher who was screwin’ the hockey player!” (Name that movie and I’ll give you a nickel)
On the other hand, there is always enough work to be done, and enough plates to keep spinning that it is many times easier to just shrug off our bad decisions and continue plowing forward in a hurry to make more of them. I believe that it is important for all operations and producers to take a little time to sit down and really analyze what is working for them, what is not, and the reasons why.
I am not suggesting that you sit around and dwell on the past, agonizing over missed details and getting yourself into the kind of depressed state that only a 3 day bender can cure, (by all means you don’t need an excuse to go on a 3 day bender!). But rather take a hard analytical look at what went right, what went wrong, and how you can position yourself and your operation to do more things right in the upcoming year.
2012 in Review
To provide some food for thought, here is 2012 as I remember it. Perhaps other events and milestones stick out in your mind, and that is great. Feel free to share a few in the “Comments” section.
January— It wasn’t very cold, actually unseasonably warm. Not very snowy or icy either. The old crop markets were staging a rebound off of their fall lows and gaining speed due to dry conditions in South America. All in all spirits were pretty high coming off a good crop with good prices in 2011.
February— During the month we established the crop insurance guarantees. $5.68 for corn, $12.55 for soybeans. Both of which looked “Ok at best”, coming off of some of the prices received throughout the 2011 crop year, these seemed fairly mundane.
March— The news was released that farmers that the intentions of planting 96 million acres of corn. The new crop bulls were put out to pasture almost immediately in anticipation for a record corn crop. Livestock producers’ mouths began to water a little bit, while there was a little uneasiness amongst the row crop community.
April— By and large a really nice month in which a lot of work got done.
May— Just a continuation of April. Mid-late May, Iowa really looked good, work was completed in a very timely fashion, and the crop was off to the races. The first article of “Rudolphi’s Burning” was released, which will prove to be a valuable source of information and entertainment for many in the months to come.
June— We lost our dear friend Mark Pearson and it all kind of went downhill from there. The rains became increasingly scarce. We started to observe a few symptoms of dry weather that we had not seen in many years. Symptoms such as weeds escaping soil applied herbicide due to insufficient moisture for recharge; even glyphos treatment took a long time to take effect because the plants were in such a defensive mode. The hog markets rallied, the basis exploded, and despite corn inching upward, it was an enjoyable time for people selling pigs.
July— The water shut off for good. Across Iowa we had an extreme case of the “haves and have-nots” as there were pockets that received lucky showers, and other that just watched their crops wither away. Farmers begin to alter their production plans, cancelling planned fungicide and insecticide applications, content to just live to fight another day. Prices and basis levels for both old and new crops begin to climb higher and are on the brink of all time records.
August— Rains return and the air cools down providing some much needed relief. For the soybeans this is just what the doctor ordered. Most people are under the belief that the corn is toast and that the rains are just too little, too late. Corn climbs to $8.00 and stays there for a little while. Anyone with old crop corn or soybeans to sell is receiving record cash prices.
September—The combines begin to roll. Some are pleasantly surprised, others just as they predicted. Yields and outcomes are variable from field to field. The election heat really starts to turn up.
October—Harvest continues at the fastest pace on record. Yields remain fairly spotty, and the growing sentiment is that “It isn’t as bad as we thought”. Sandy hits the east coast, wreaking some havoc in the market place. We all watch on TV as a resilient group of people begin to piece everything back together after a natural disaster.
November—Harvest wraps up, the election takes place. For many the harvest outcome is better than that of the election. For the most part the markets are stagnant. While the markets are at very high historical levels, they seem boring and in need of some fresh news.
December— The legislators and the President continue to bicker, go round and round, and seem to get nothing accomplished. They seem to forget that their decisions actually do have significant impacts on the planning of the businesses that run the economy. We find ourselves discussing, worrying, and complaining about what might be the outcome of all of the last minute rhetoric.
And then the unthinkable happens; some big time loser with his mom’s guns does some really horrible stuff. We are forced to take a step back and realize just how easy it is to get caught up in our day to day battles and lose sight of just how bad things and people can be. Nobody in that classroom really cared about the fiscal cliff, tax policies, weather patterns, or the price of corn.
As you are sitting down to analyze and review what is working, and what could be working for your operation, please don’t forget to think about who is important in your life and livelihood.
Make sure they know just how important they are.
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November 15, 2012 10:44 AM
Swingin' for the Fence
Throughout the fall I have heard differing opinions on approaching the 2013 crop year and differing strategies on how to maintain and build on the momentum gathered as a result of 2011 and 2012.
Goin’ Yard
One theory that I have been told is that the best is over, because farmers only have the opportunity to hit a Home Run 4 or 5 times throughout their career. Given that the typical farming career lasts approximately 50 years, under this scenario the farmer has the opportunity for windfall profits every 10-12 years on average. Another theory is that a producer needs to position themselves to hit the Home Run every 3 or 4 years, which would create the possibility of windfall profits 12-14 times throughout a farming career.
Under the first theory (4-5 homeruns in a career) it could be argued that 2 of these have been hit in the last 2 years, and 3 homeruns in the last 5 years if you go back to the 2007 crop with 2008 prices. Under this scenario, if a farmer started their career in 2006, experienced windfall profits as a result of the 2007, 2011, and 2012 crops, they have already experienced 3 of their 4 or 5 big years, and really should find a new line of work, because statistically their luck is due to run out.
One theory that I have been told is that the best is over, because farmers only have the opportunity to hit a Home Run 4 or 5 times throughout their career. Given that the typical farming career lasts approximately 50 years, under this scenario the farmer has the opportunity for windfall profits every 10-12 years on average. Another theory is that a producer needs to position themselves to hit the Home Run every 3 or 4 years, which would create the possibility of windfall profits 12-14 times throughout a farming career.
Under the first theory (4-5 homeruns in a career) it could be argued that 2 of these have been hit in the last 2 years, and 3 homeruns in the last 5 years if you go back to the 2007 crop with 2008 prices. Under this scenario, if a farmer started their career in 2006, experienced windfall profits as a result of the 2007, 2011, and 2012 crops, they have already experienced 3 of their 4 or 5 big years, and really should find a new line of work, because statistically their luck is due to run out.
The second theory (a homerun every 3-4 years) would be fairly consistent with what this farmer experienced in their first six crops. They just so happen to be batting better than average. Good players typically do.
If Albert Pujols had a crystal ball, and could look into it and foresee that he had no homeruns left, do you think he would waste anymore time playing baseball? Probably not, because he would understand that the history books will remember him as the greatest $250,000,000 flop to ever round the bases. Albert doesn’t have a crystal ball to understand his future fate, but one thing is very clear…he only will hit a homerun if he swings the bat, and he won’t get paid if he doesn’t produce.
So which theory is right? Which is more realistic? It all comes down to your tolerance for risk and your cash position. Those with a more of a stomach for risk will position themselves to hit more home runs, and if your cash is in order, risk is inevitably more palatable. However, opportunities can also be passed up because there is a cash cushion that allows a person wait for a better pitch, and sometimes the pitches just don’t come. Just like in baseball, the players that chalk up the most home runs or highest slugging percentage are typically amongst the players with the highest incidence of strikeouts.
What’s going to happen in 2013?
There are several things I don’t like about 2013. First of all, it is an unlucky number. Second, we will be installing an unfavorable president…..again! Ready or not, the CHANGE is a comin’. And it certainly doesn’t appear to be a favorable change for most involved in agriculture. Third, the gravy train has to leave the station sometime. To drive forward thinking that some way, somehow the economics are going to keep getting better is pretty far-fetched.
With commodity prices testing the limits of demand and our South American counterparts primed to produce with huge price incentive, it is hard to make a case that we will be given the marketing opportunities for the 2013 crop that we have experienced recently.
Now, with that being said, I am certainly not of the belief that a producer needs to run out and cover themselves for the next three crop years out of price fear. This would only limit opportunity as there are still way too many production and inventory variables to warrant drastic measures on that end. But, coupled with looming changes in government policy and tax law, producers do have a fair amount of strategizing to do in regard to 2013 and beyond.
The Tax Man is Coming to Town
Now, with that being said, I am certainly not of the belief that a producer needs to run out and cover themselves for the next three crop years out of price fear. This would only limit opportunity as there are still way too many production and inventory variables to warrant drastic measures on that end. But, coupled with looming changes in government policy and tax law, producers do have a fair amount of strategizing to do in regard to 2013 and beyond.
The Tax Man is Coming to Town
This is where the farm fields transform from food and feed production assets into tax-deferred savings accounts. There will be huge incentive to keep fertility levels high and the soil pH in balance due to avoiding the tax man. No matter the price of fertilizer, relative to paying more tax, it will essentially always be on sale at 25-35% off. All made possible by a coupon given to you by your Uncle Sam.
Swingin’ for the Fence
The incentive to forward purchase inputs has never been greater, and with good pricing opportunities, there has never been more incentive to throw the “Kitchen sink” at the crop. Rather than trying to be the least cost producer by trying to skimp by with the least amount of inputs, why not focus on being the highest output producer, with more emphasis on final yield-not necessarily for the least total cost per acre. In the end, the fastest way to reduce your costs per unit of grain is to increase your output.
Who knows…you might just position yourself to hit another homerun, and isn’t that the point?
Rudolphi's Burning on
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October 15, 2012 10:45 PM
Politics & The Farm Bill
Politics & The Farm Bill
I really don’t like politics. Politics eventually make everyone a hypocrite, because all too often in order to get something done, the officials are forced to play the favor game. But given that the elections are fast approaching and at the top of everyone’s mind, below is what I’ll be considering this election year.
Master Debaters
In watching the recent presidential and vice-presidential debates I have been both very impressed and very disappointed. On the presidential side, the two candidates sparred off and debated with the enthusiasm, candor, and character that we would expect from two men competing for the top spot in the free world. It just happened that one candidate did his homework, prepared extensively, knew his stuff, had his game face on, and went home with a clear cut victory.
In all actuality, it was a very simplistic example of what can be achieved in this country if one sticks to the basics. Who knew if you work hard, have a strategic plan, and execute that plan effectively that you could actually get something done in this great country? It would seem to me; this is a lesson Mitt learned long ago.
Just as we all do each day in our operations, Mitt has done each day in his career. Every day we (and he) are charged with making decisions that affect our livelihoods and the eventual well being and success of our businesses and families. The dollars are REAL, we understand that, we value them because we generated them. As business owners we attempt to make the best decisions and take calculated risks with the resources that we have because we know where every last cent came from. Sounds like a pretty good philosophy to take when running a country doesn’t it? I really wish they would implement these kinds of teachings and philosophies into the community organization curriculum.
A debate between the two vice-presidential candidates should encompass no less integrity or professionalism than a presidential debate, and yet Biden routinely cut off and interrupted Ryan, could muster up no better rebuttal to accusations than to claim they were “A bunch of Malarkey and Stuff”, and laughed like a hyena in the face of criticism. Perhaps the single most disturbing aspect of all of this is that there is a man out there who chooses to keep Biden on his ticket!
I sure hope that someday, someone who is reading this will rise to the ranks of leadership in our country, and when you do, remember to conduct yourself with the integrity that the office and the citizens of our country deserve. Challenge yourself to take criticism seriously, learn from it, and use it as a tool in your chest of experiences to make better decisions that have a more profound impact in the future. Own up to the mistakes, the unforeseen circumstances, the ramifications of poor decisions and failed attempts, and move forward executing a strategic plan to drive the country forward.
What citizens (or I) want to see out of elected (or soon to be elected) leaders is accountability, sound reasoning, confidence that we can repair the mistakes of the past, and the ability to execute a strategic plan. If we wanted to see officials laugh off criticism, use one word “malarkey and stuff” rebuttals, and conduct themselves without regard to the proper etiquette of the western world, we would nominate Kim Kardashian for president and hope that she selected Mike Tyson as her running mate.
This type of ticket would no doubt be a “Change”, but I believe it would promise the same amount of “Hope.”
The Farm Bill…How much does it matter to you?
I have heard a lot of rhetoric and bickering over the past weeks between politicians placing blame on the other party for the stalled effort on the passage of a farm bill. Incumbents and challengers alike are professing that “Agricultural producers cannot sufficiently plan their operations without knowing what policies and safety nets are in place through the farm bill.”
This becomes a hot topic amongst Midwest legislators because it is largely the only piece of legislation that a large portion of their constituents know or care anything about. Because the farm bill includes the word “farm” in the title, a politician running for office can immediately utilize this piece of legislation to strike a nerve with voters in a predominantly rural setting.
With most of the farm bill funds allocated toward nutrition programs such as food stamps and school lunches, farmers proportionately receive a very small amount of farm bill dollars…. but what about that small amount? This is where the hypocrisy sets in!
If they would rename the “Farm Bill” the “Poor Child Nutrition and Rural Stimulus Plan” it would have gotten passed a long time ago!
Somebody get me some water…cuz we got a fire!
Rudolphi's Burning on
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September 17, 2012 8:52 AM
September 17, 2012 8:52 AM
Enough Already!
It’s high time that the debate of food vs. fuel subsided. It’s also time for the government to stop meddling in policies that fan this fire.
I understand that as a nation our “food security” is perhaps the single largest trade leverage that we have. I also do not advocate sending any more money to the Middle East for oil than we absolutely have to. With this, I do believe that it is important to promote U.S. businesses to produce as much energy as possible. But more importantly, I believe this energy needs to be produced in a free market, without mandates and unnecessary subsidization.
The livestock industry, which I might add, is critically important to our economy and well being, is somewhat stuck in a $2.00 corn mentality. For many years livestock producers operated without the fear of price volatility in their inputs. As an industry, we took this security (and profitability) for granted. We have now entered into wildly volatile era and $2.00 corn isn’t the case anymore. Will we ever see $2.00 corn again? Maybe, but it will come on the heels of great technological advancements in production, or a huge game-changing decrease in demand. So what are we waiting for? Why not explore other options to increase stocking rates through intensive grazing? Or explore more ways to make alternative resources more utilizable to a pig? Why not pinpoint the inefficiencies in the overall model and intensively manage to overcome them? The fact of the matter is, the livestock industry would rather focus their efforts on ridding the world of ethanol, as opposed to creating innovative solutions to be profitable in an era when corn is expensive.
On the other hand, ethanol is no longer an industry struggling to break out of its infancy. The support structures that were put in place initially to aid a fledgling industry have long overrun their course. Poor business planning and market volatility has all but weeded out the smaller, farmer owned, cooperative ethanol plants that were an attempt by local corn growers to add value to their corn. Repeated insolvencies and improper risk management by the initial wave of ethanol plant owners have led to an industry dominated by oil companies and major agricultural conglomerates…they don’t need mandated support to prop up their businesses. They will produce and blend ethanol as long as economically feasible as a part of their long term business plan.
It is certainly time to put these two industries on a level playing field and let the strong survive. But policy makers need to have caution on when, how, and what the ramifications will be when the field is leveled up.
Coming off of the worst drought in decades, perhaps the single greatest risk of policy change to corn producers is right around the corner.
Release the mandate…just not in October
Most analysts seem to be in agreement that a release of the biofuels mandate will not have a large impact on the price of commodities (namely corn) through the 2012-2013 marketing year. However, in a somewhat stranded market that is seeking solid information (God knows the recent USDA data hasn’t provided any real stable footing!), news of this release during the wrong month could create enough short-term panic in the marketplace to drastically impact a 30 day price average.
Who would ever lobby your elected officials to release such a mandate during a price averaging period? Perhaps companies facing the largest anticipated payout in the history of the business, payouts that could negate 40 years of gains. Did someone say crop insurance providers?
In today’s volatile markets it is not unrealistic to believe that an announcement such as this could affect the corn market by as much as $1.00-1.50/bu in the short term. Ironically, by the time the market regained the short-term set back, the fall crop insurance pricing period will be over and insurance companies will be laughing all the way to the bank. What could this mean to the producer? Let’s do the math for a good producer with 1500 acres:
From the crop insurance industry’s standpoint we’ll tame the number down, realizing that a 180 bushel proven yield is high for most areas. If one uses the predicted national average of 122 bushels, relative to the initial prediction of 166 bushels/acre…((166 bu x 85%)-122) x $1.50= $28.65/acre x 95 million corn acres=$2.7 billion in saved payouts. Where I come from that’s a lot of jack! Enough to buy the Yankees! And certainly enough to pull in some lobbyists (which really are just glorified prostitutes), dress them up in suits, and place them directly underneath your legislator’s desk. But hey, we are talking about Washington…What else is new?
The Wrap Up:
With changes in policy on the horizon, it will be increasingly important for both producers of grain and livestock to understand the implications of those changes. Weigh the risk and reward associated with this, and position your operation to be protected from, or ready to capitalize on the change.
As for food vs. fuel: What both the livestock and biofuels industries need to realize is that what is growing in the fields of the Midwest is not “their” corn; it’s not their “feedstuff” or their “feedstock”. What is growing in the field is strictly energy, and whether that energy goes to fuel animals or automobiles, that energy is for sale to the highest bidder.
Somebody get me some water…cuz we got a fire!
Rudolphi's Burning on
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August 15, 2012 8:02 AM
Iowa State Fair- The Tradition Continues
Iowa State Fair- The Tradition Continues
The Iowa State Fair is finally here! After waiting an agonizing 355 days, we once again will be treated to the greatest annual tradition that is the showcase of our state. Over the past few years I have made it a personal mission to scour the fairgrounds from one end to the other, seeking out the best food, coldest beer, and most interesting and entertaining exhibits. In no particular order here is what I have come up with:
Stockman’s Inn
There are several “good” watering holes strung throughout the fairgrounds. Each of these establishments puts forth a fairly similar offering of beer selection, with two main themes: cold and expensive. Drinking beer at the Iowa State Fair is going to be a little pricy; it’s just a fact of life one has to accept prior to letting the good times roll! And for me, they usually roll the best at The Stockman’s Inn. Located at the junction where the cattle, swine, horse, and sheep barns meet, for anyone in agriculture, this is the hub. The crowd, consisting of various Ag people is inherently fun. Due to the nature of who you will run into here (neighbors, old college friends, etc) many people have “come for one” and end up eating breakfast across the street at the Dinner Bell.
I’ve eaten A LOT of corndogs in my day, polished off chicken on a stick, and put several deep fried Twinkies down the ol’ hatch. Even with all of the junk food available at the fair, the best food, at the best prices, and also with the least amount of calories is located at the venues of the Iowa producer groups. Visit the Iowa Pork Tent, the Cattlemen’s Beef Quarters, the Iowa Turkey grill, or the Iowa Dairy Barn, and you are guaranteed to leave happy. The passion and creativity of these groups to bring fairgoers great tasting, fun to eat items is amazing. Stop by and pay a visit to the hardworking livestock producers and while you are there, let them cook you dinner! When you think you have eaten enough, just remember…nothing washes down a milkshake like a hot beef sundae, and there is nothing like a pork chop on a stick to dip into your milkshake!
Free Stage Entertainment
Free Stage Entertainment
Suck it Grandstand! Until you can get acts that are better than the county fairs of this great state, I’ll be sticking to the free stages, thanks! While it is arguable that the ISF is lacking in the grandstand entertainment department, there is some really good entertainment to be had on the free stages this year-available to all fairgoers. No tickets needed! On the free stages you will have an opportunity to see up and coming talent, acts that have run their course in the big time, and local folks with big time talent. The best thing about the free stages, other than the good music and cold beer, is that if you aren’t enjoying the act…you can leave!
The Slap of the Steer
The greatest tradition within the livestock arena. The crowd waits in anticipation as the judge circles the arena of Pioneer Pavilion and erupts in wild cheers when his hand finds the back of his selection. Described by some as the best fat steer show in the country, this contest is a testament to the great stockmen and the livestock of Iowa. The cattle on display will amaze even the most novice cattlemen with their power, beauty, and masterful presentation. Get to the pavilion early as seats fill up quickly but it is not too bad waiting as the pavilion is recently air conditioned and quite comfortable.
Little Hands on the Farm, Knapp Center
Little Hands on the Farm, Knapp Center
For the more family oriented fairgoers, these additions to the fair are pretty cool. In the Knapp center, youngsters can get acquainted with several types of livestock and witness several types of birthing displays. Little Hands on the Farm walks families with kids through the entire agricultural process—from planting the seeds to selling the livestock. Different stations allow kids to “milk” cows, “drive” tractors, and turn in their bountiful crops for their “paychecks” allowing them to get a Popsicle, milk, cookie, etc. This has proven to be so popular, walk by the starting point and you will think it is a parking lot for strollers.
Challenge
Challenge
We have got a slap in the face to deal with. The Iowa State Fair…the great celebration of agriculture and the gluttony of our products are under a sneak attack. In an attempt to be “equal opportunity” PETA has been granted booth space underneath the grandstand. Their campaign this week is against turkey production, and they are showcasing a video of a farm worker shouting profanity while euthanizing a turkey.
The trend in the industry right now is to play nice with these extremist groups ….”Engage them in dialogue”….I’m tired of playing nice. They are extremists, sometimes terrorists, and should be treated accordingly.
Somebody get me some water…cuz we got a fire!
Rudolphi's Burning on
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July 15, 2012 3:36 PM
"It's not personal...It's just business"
A few years ago when I was selling machinery, I was dealing with a contractor on a skid loader. Through the years he and I had developed a good business relationship. On this skid loader, we spent a lot of time demonstrating several different machines, visited about features and price levels, and eventually nailed it down to what machine would be the best fit for him. We then dialed in the price, arranged for financing, and signed the purchase agreement."It's not personal...It's just business"
When I showed up on his jobsite a few days later to deliver the machine and sign the finance documents, I was stunned to find a brand new skid loader of another color sitting there. I asked what was going on, and he informed me that he received such a good deal on the other machine that he could not pass it up, and wouldn’t be purchasing from me after all. Due to the time, efforts, and resources that were put toward getting this deal done I was pretty disappointed (Ok, just downright pissed off!) and I let it be known! He then replied with a big grin on his face… “Hey, it’s not personal….it’s just business!”
“It’s business” is the universal cop-out to get the upper hand in a negotiation. In saying this, one seemingly excuses themselves from all professional courtesy and opens the floodgates for all negotiating tactics. I believe that this phrase would be more accurate if people proclaimed, “It’s not personal… I’m just an asshole!”
“Business” is the word that brings the gloves off. Often times this is a mere caveat for a person to flex their muscles, lever the situation, and tip the table in their favor. So why hide behind “business”? Why not just come out and admit it? Sometimes you have to be a jerk to get stuff done. Consider this; most private business owners pour their heart and souls into their companies. When you choose to do business with them, it can’t help but get personal. Like it or not, business is personal.
I’m not advocating that anyone should be a pansy in regards to negotiations , however it is important to consider that not all transactions are the same, and thus do not always warrant the same approach. Let’s explore a couple different types of transactions, all of which have their appropriate place in the world.Win-Win
In a win-win deal everyone leaves with a feeling of satisfaction that a fair agreement was put into place. More than likely at the negotiating table each party stood firm on certain topics, made concessions on others, and came to a compromise that made profitable sense for both businesses. Due to the nature of this type of agreement, one could realistically expect additional benefits to go along with the deal such as personal service and timely attention to needs.
Win-Lose
In a win-lose deal the “winning” party effectively out negotiates and leverages the other. The “losing” party often times concedes to the terms of the agreement out of urgent necessity, lack of choice, or as a last ditch attempt to keep the business. The winners in these agreements must often times commit to being self sufficient and not reliant on the services that often times come with a sale, must be flexible on when the services can be performed or delivered, and live with the fact that they and their organization are “difficult to do business with.”
Lose-Lose
Pretty self explanatory. I’d just recommend trying to avoid these types of deals if you can. These usually start out as something else, but due to unforeseen circumstances, develop into a bad situation for everyone. Please reference deals such as Solyndra or Iowa Quality Beef for examples in this area.
Making the Distinction
Sometimes you might see an opportunity to use multiple approaches to the same end. After all, there is more than one way to skin a cat!
Each operation is different and has different capabilities and needs. Understanding your needs and capabilities can help you in maximizing the effectiveness of your approach to the marketplace when negotiating agreements with vendors.
Tomorrow my wife and I will celebrate one year of marriage-Happy Anniversary Tara! With that, I’m reminded of a discussion that we had a few years back when we were first talking about getting hitched. With her having a professional degree, and me having worked for several years already, I proposed that we should look into a pre-nuptial agreement…you know…heaven forbid. This idea was met with a lot of opposition and even a few tears. So assuming the attitude that you have to have faith in something, I relented.Well, fast forward to 2012, and I overhear her agreeing with one of her girlfriends that pre-nups are indeed a good idea. So I called her out on it, suggesting that she really had a change in perspective over the last couple of years! At which point she looked into my eyes ever so sweetly and exclaimed, “It’s not personal…it’s just business!”
Somebody get me some water…cuz we got a fire!
Rudolphi's Burning on
News From The Coffee Shop
June 15, 2012 8:27 AM
Lessons From a Great Man
This month’s article carries a much more somber tone than that of last month. In recent weeks the agricultural community has had to deal with the extremely heartbreaking loss of one of our greatest advocates: Mr. Mark Pearson.
Mark touched each Iowa agriculturalist through many different avenues, and in many different ways.
First and foremost, Mark loved people. His gregarious personality and witty sense of humor forged instantaneous friendships—thousands of them. No matter what mood you were in, or what kind of a day you had been having, Mark’s voice immediately brought a smile to your face.
Tara and I had the opportunity to get to know Mark over the last several years. In grieving his passing, we began to think of the many different lessons in life that Mark had taught us. Here is what stood out the most.
You can’t afford to have inhibitions about who you are
In the past week I have heard Mark referred to as a “Ronald Regan caliber communicator”. Communicating to groups of people was indeed his forte. He leveraged this talent to its fullest extent through radio, television, and entertaining thousands as the keynote at many events. Always being full of new and progressive ideas, I wonder what other “Reganesque” feats he might have had ambition to accomplish using his talents.
The world values you for your talents, abilities and qualities. Not because you can closely replicate the abilities of someone else. Thus, one need not waste time replicating, rather hone the god given strengths that you have and leverage them for the greatest amount of good. Conversely, your weaknesses will probably always be weaknesses no matter how hard you try to overcome them. So stop trying and get on with it!
Push the limit/ Push the envelope
Take a look at all of the irons Mark had in the fire…The Big Show, Market to Market, an Edward Jones shop, farming, speaking engagements, and his top priority; his Family. Yet, with all that he had going on, Mark was continually innovating and adding to his ever busy schedule.
One day he pitched the idea of a “Great Antique Tractor Ride” …A gathering of hundreds of farmers to socialize, show off their prize machines, and tour different areas of the state. Can you imagine the skepticism that this idea was met with initially? Think of all of the organization and planning that it would take to pull something like this off. Yet with all that he had going on, he continued to drive the project forward and develop the Great Iowa Tractor Ride into the annual success that it is today.
People who toe the line seldom get very far. However, people who push, challenge, and occasionally cross the line go down in history as one of (or a combination of) three types: Geniuses, Innovators, and Rebels. All of which are better than being boring.
Ask questions
Being a journalist by trade, Mark routinely asked many questions. He carried this much further than his profession as he was genuinely interested in learning about people and finding out what was going on in their life, what was important to them, and what made them tick. Seldom did he talk about himself or his accomplishments, rather found ways to ask more questions of you. Mark was absolutely masterful in the art of conversation.
In the book How to Win Friends and Influence People; by Dale Carnegie; (my mom made me read it in 5th grade as my teachers kept complaining that “Rob just doesn’t play well with others”) the author outlines that the majority of people enjoy and are comfortable talking about themselves. Therefore, ask lots of questions, keep the conversation focused outside of yourself, and people will instantaneously warm up to you and enjoy your company. On top of that, inquisitive people dig for and gather information. Information drives progress.
Laugh at yourself regularly
Mark loved to laugh and he loved to make people laugh. Humor came very naturally to him, and he was always quick with a joke or witty comment. His jokes always went over incredibly well as they were usually directed at, or a result of a personal blunder in his life, not the life of someone else. Topics such as machinery mishaps, uncooperative livestock, travelling struggles, and generally inconvenient circumstances made it to top of the joke list.
Some folks take life way too seriously. When bad luck finds them they get upset, fail to find the humor in the situation or the error in their judgment, and ultimately are not a lot of fun to be around. In dealing with people and developing relationships, be it business, personal, or otherwise, jokes and stories around personal/self inflicted blunders and mishaps are well received and great ways to soften the tone and engage others.
In the near future I am sure we will hear new voices behind the microphone and new faces on television, but the spirit and memory of Mark Pearson will live on in the hearts of those he touched forever. Mark loved American farmers, especially their tenacity and progressiveness, and I am sure is cheering each one of us on as we continue to drive our industry forward. This summer when you are walking your fields or greasing your machinery, take a few seconds to look up and give Mark a wave. I’m sure he will be smiling and waving right back down at you.
Rudolphi's Burning on
News From The Coffee Shop
May 15, 2012 7:31 AM
The mission of the column is to advocate agriculture, entertain (provided that you are entertainable), serve as a catalyst for critical thinking, and challenge the status quo amongst the agricultural community.
OFFENSE and DEFENSE
Throughout my professional career, I have been involved in sales as well as production agriculture.
The similarities between the two are striking. There is the need to know and understand your market place, the importance of pre-planning and thinking ahead, and the ever important ability to put that plan into action at the critical and opportune time—the ability to “strike while the iron is hot” so to speak.
However, the stark difference between the world of sales (and the rest of the business world that functions on God’s green earth) and production agriculture is the view and animosity between competition in the marketplace.
In sales and industry it is all about MARKETSHARE. We strive everyday to offer a better, more innovative, or more competitively priced product or service to our customers than does our competition. Likewise competitive companies focus their efforts in the same place, and we routinely go to battle each and every day to gain new business and even take business away from our competitors. It’s expected; we embrace it, and accept this as an ethical means of doing business in a competitive marketplace.
In production agriculture this is seldom the case. Under most circumstances we tip-toe around our neighbors and competitors, respecting their landowner-tenant relationships without challenging the market or advocating our individual businesses. Now, in recent years this has changed somewhat, but routinely producers who advocate for more acres to expand their business at the risk of displacing the current tenants and operators are viewed as cutthroat tyrants because they have the audacity to challenge the system and upset the proverbial applecart. If a producer rents a farm away from another, in many cases this aggressive producer would fall under less local scrutiny had they kidnapped their first born child, and burned down their house!
Never is this more the case than when shirt tail (or not so shirt tail) relation is involved. Let’s consider the following scenario:
Farmer A has rented 200 acres from their Great Aunt Ethel for the past 20 years. Over time a relationship has been developed, and favors such as snow removal have been performed routinely as “part of the rent” to go along with cash payment that has escalated to a whopping $175/acre. Above all Farmer A has grown somewhat complacent and developed a feeling of “entitlement” to farming Ethel’s land.
Ethel who is fairly sharp (as most ladies are), but also very kind, has heard rumors of high cash rents, but has chosen to not deal with the conflict prior to this. Now, she sees an immediate opportunity to realize a much better return on the asset that her family spent so many years sacrificing and working diligently to pay for. On top of that, the increase in rent revenue could buy her a new shiny Cadillac that would for sure be the talk of her red hat club for months to come!
Ethel then approaches her nephew-Farmer A with the offer. She requests that he match it, or she will be forced to make a tenant change.
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| Contact Brett at Vogel Crop Services by Cell: 319-240-8979 or Web: www.iowasoilsampling.com |
We know where this going; Farmer A flies off the handle, makes all sorts of excuses as to why that is way too much money, runs around town bitching to nearly everyone that will lend their ear, and seeks every opportunity to completely lambast Farmer B for having such nerve!
While situations such as this may seem like a straightforward example of the most basic economics, they are not. Producers take this stuff personally. It’s not just a rent offer, it’s a personal attack, a shot across the bow, and they full well know that they have not taken the proper precautions to defend it. Had Farmer A been willing to pay close to market price all along, it would be much easier to defend such an offer.
This stuff happens, people get mad, some even get shot (just go to Warren County)! And like it or not, these situations are going to continue to happen more frequently. The idea of a competitive market place for rented land is one that every farmer needs to come to grips with…pretty damned fast!
Production agriculture has always been and will continue to be a very fast changing, evolving, and improving industry. Entitlement and complacency has no business in an industry that is charged with the responsibility of providing a growing, hungry world, with the resources it needs to sustain itself.
As far as I am concerned, aggressively approaching land owners and renting additional acres is simply playing offense. As a producer, if your cost structure, marketing plan, and cash flow can justify the risk; go for it! If you happen to lose a rented farm; accept the fact that you were just not playing defense well enough.
On the other side of the coin, if you need to beef up your defense…here are a couple of take-homes to consider:
· Be at the market. If you are paying close to market price year in and year out, it will solidify your role as a tenant.
· Differentiate yourself. Make sure that the landowner knows and understands the value that you as a client bring to the table as a result of operating their asset.
· Understand your values as well as the values of the parties you do business with. At the end of the day, if the values and business principles of you and your landowner do not align: it will probably not be a very productive relationship for very long and it is unrealistic to expect any different.
Somebody get me some water…cuz we got a fire!
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