Education of One’s Self

“Our past shapes us, but it does not have to define us. Trust the timing of your life while focusing your thoughts and energy on what is in your control.”

To venture deeper into your inner spirit, you have to humble yourself and acknowledge what you do not know. The more questions you have about life, the more you will improve and grow. When focusing on a change I break down the goal into the most manageable action and then I build a strategy from there.

Focusing on evolving each day becomes a unique opportunity to remove the walls in our life while liberating our minds. Educate yourself every day until your last breath. To excel, you must have the courage and discipline to show up at my very best. You compete with one person and one person only, yourself. You compete to be the greatest you can be.

On our self-discovery journey, we must free ourselves from automatic judgments that arise with every experience we have. Attempt to understand other people’s perspectives. The world unveils its secrets to us very slowly. We never know anything for sure. So roll with the discoveries while being patient and open to connecting with new people who might not look and think like you.

The road towards self-mastery is a marathon, not a sprint. As we begin to acknowledge and dismantle the self-limiting and disempowering barriers in our lives, we allow for a more authentic version of who we are to emerge. Our past shapes us, but it does not have to define us. Trust the timing of your life while focusing your thoughts and energy on what is in your control. While you may not control everything life presents, you can refuse to be reduced by it.

— Coach George Raveling

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Overcoming Barriers to Entry for the Next Generation of Ranchers

By Dan Childs
Senior Agricultural Economics Consultant

Posted Nov. 6, 2019

 

The U.S. Department of Agriculture has been saying for years that the average age of the American farmer is going up. The latest estimate of the average age is 59.3 years, as the baby-boom generation gets older. As a result, it has been estimated that 70% of the land in agriculture will change hands by 2031. This is a startling forecast and one worth contemplating in terms of how the transition will occur.

The number of farmers and ranchers in the United States has been decreasing, with the latest estimate just a bit more than 2 million in total. Fewer children are being raised on farms or ranches, too, and many of those who have are choosing other occupations, with no plans to return to the farm or ranch. Young people who have developed an interest in agriculture but do not have farm roots face a variety of barriers to entry as beginning farmers.

According to the balance sheet of agriculture, the total value of all U.S. farm assets is just over $3 trillion. When divided equally among the estimated number of farmers in the U.S., the average investment per farmer is $1.5 million, with the majority of that being in land. So how does an interested young person get started, when the day one could buy land and expect to pay for it by working it is long gone?

70 percent of the land in agriculture will change hands by 2031. This is a startling forecast and one worth contemplating in terms of how the transition will occur.USDA estimate

LAND: OWN OR LEASE?

It is generally agreed that the biggest barrier of entry to agriculture is the price of land. When the price of land prohibits entry into agriculture, what is the best alternative? Typically the answer is to lease it from a landowner. Lease payments are usually much lower than land payments, even in today’s low-interest-rate environment. However, leasing does come with challenges. Often landowners will only negotiate one- to three-year terms. It is usually not feasible to develop infrastructure through permanent structures or invest in long-term soil health improvements with lease terms no longer than three years. Aging farmers need to be more amenable to longer term-lease agreements or willing to recognize improvements lasting longer than the lease term by cost-sharing or including a refund clause if the lease is terminated.

OPERATING CAPITAL AND DEBT CONCERNS

A second barrier common among many people wanting to have their own farm is operating capital. Granted, there is a greater awareness by some lenders such as the Farm Service Agency and the Farm Credit System, which have created special credit standards for young, beginning and small farmers and ranchers to be able acquire financing. However, then debt becomes a concern. As noted in the below figure, U.S. farm income has been somewhat of a roller coaster. Managing debt in such an uncertain landscape can be very difficult.

ChartU.S. Net Farm Income 2000-2019 Source: USDA, Economic Research Service, Farm Income and Wealth Statistics

PROFITABILITY AND RISK MANAGEMENT

This brings us to a third barrier: the lack of consistent profitability. The perils present in production agriculture are many. At the end of each day, every agricultural producer must be an astute risk manager. First and foremost, weather risks could be at the top of the list, with markets or commodity prices not far below, followed by government policy, including regulations, trade, tax and labor laws. Many other risks exist that challenge consistent profitability. Considering all these factors, it becomes apparent that agricultural producers truly have a genuine passion for the work they do and the contribution they make to feed the world, despite the risks.

ENSURING THE FUTURE

The U.S. has not had to depend on another country for food, and that is a great blessing. We have achieved national food security because of the work ethic and productivity of American farmers and ranchers. Yes, there are obvious reasons for the U.S. to trade with other countries and benefit from our comparative advantage. Fair trade between countries helps both consumers and producers.

Much work lies ahead for the U.S. as we navigate the transition of farmland to the next generation. It is paramount that the transition is made to people who have the same passion and dedication to production agriculture as past generations, who have made U.S. agriculture the envy of the world.

Planning With Purpose

Practical Planning

Components of Intentional Management on a Ranch

Updated 

What is intentional management? It might be easier to describe what it is not than to describe what it is. In an attempt at “tongue-in-cheek” humor, let me describe what intentional management is not.

You might not be managing intentionally if:

  • Your record-keeping system is a shoe box or a file folder in which you keep receipts until tax time;
  • Your marketing plan is to sell the largest calves each time you pen the herd, weaning the calves en route to the sale barn;
  • Your winter-feeding program is to provide cubes a couple of times a week to the herd without knowing the quality of the hay or standing forage on offer;
  • Your stocking rate was set by what the neighbor, your granddad or your real estate agent suggested, and you don’t adjust it until drought forces you to; or
  • You don’t routinely test and analyze your pasture soils, yet you routinely apply fertilizer.

I’m sure you can think of other ways of how we as producers too often go about “running” cattle with little forethought and planning. In favorable years, we can get by easily enough, but in unfavorable years (due to weather, markets or other issues), difficulties arise.

These unanticipated surprises can be costly and often difficult to overcome. Hopefully, most of us learn from our mistakes and failures and, if we survive, can laugh at them in hindsight. The secret is to fail early, fail often, but fail cheaply—and adapt our management so that we do not repeat our mistakes.

 

Manage with intent

Intentional management is the active management of the collective components of an operation toward the achievement of realistic, well-defined goals. It is a holistic and forward-focused management approach in which an operational management plan is created and used as a template to plan and prioritize activities, then to monitor and measure progress toward defined production and economic objectives.

Management plans need to be built to complement the resources of the operation—the land, facilities, personnel and production system(s) being operated. Even though there is always some uncertainty within an agricultural operation, with a management plan in place, a producer has a road map to guide him or her toward a predetermined outcome.

When variations in climate or markets or other surprises occur and force a change of course, having the plan in place helps guide a producer to either continue to navigate toward the original outcome or alter the course toward a new, more realistic or attainable goal, given the circumstances.

 

Planning brings clarity of purpose

For intentional management to be more than a concept, it takes forethought, planning and action. The biggest challenge for most producers is getting started. It is much too easy to get caught up in the day-to-day activities of running a cattle ranch or agricultural operation. It is in the intentionality of developing a management plan where clarity of purpose is achieved.

This is where a manager establishes a vision of a desired future for the ranch, identifies the key management objectives to be accomplished, devises an action plan that addresses the critical aspects of each management component, and integrates these components into the management plan for the ranch that the entire staff will implement.

The management plan for the current year becomes the template for the following year, with continual fine-tuning and adjustments over time while adapting to the changing industry, market conditions and climate variations that will occur.

Through intentional management and use of a management plan, managers are more likely to attain their desired goals, will experience fewer surprises, and are better prepared for the unexpected when it occurs. Then, instead of just laughing at mistakes of the past, we can laugh ourselves all the way to the bank.

 

Components of intentional management

Management plan

First is the management plan itself, which is the compilation and integration of the other six components.

Pasture management

Second is the pasture management plan, which includes the soils, forages and water resources. The management plan is grounded by the pasture management plan, which forms the foundation upon which the other components rest. The pasture management plan is the first component to address in intentional management.

Stocking rate management

Third is the stocking rate management plan, which entails the matching of grazing livestock numbers to forage production as well as managing and adapting livestock numbers as forage production changes within and throughout years.

 

Cattle management

Fourth is the cattle management plan. The cattle management plan includes the breeding, nutrition, health and husbandry aspects of a cattle program, which ideally complements the land resources of the operation.

 

Marketing plan

Fifth is the marketing plan, which leverages the attributes of the cattle and management for optimum economic results. Typically, this means managing the ranch resources so there is an element of flexibility within the stocking rate for retained ownership of calves or other stocker cattle enterprises as well as timing sales with favorable cattle markets and market cycles.

 

Record-keeping system

The sixth component is a good record-keeping system for ranch operations. This is a record-keeping system that allows easy tracking and monitoring of critical production and economic information. It also provides managers the ability to conduct enterprise analyses, prepare financial statements, and develop monthly and annual operational reports.

 

Personnel management plan

Seventh is a personnel management plan, which allows a manager to intentionally develop the skills and knowledge of ranch staff to build competencies and enhance their value to the operation. A personnel management plan addresses the needs of the operation, from onboarding a new employee to rewarding valued and tenured employees. It also includes performance evaluations, goal-setting sessions, training and professional improvement. — Hugh Aljoe,

Noble Research Institute director of producer relations

The Greenlash has begun

Ladies and gentlemen, the Greenlash has begun. All along the urban/rural interface the peasants are revolting.

Those who used to cuss the farmer now flock to farmers’ markets. They cursed cows until the cow pastures were filled with grapes sucking up all the water, so now they want the cows back. They hated fossil fuels, so they bought into the hybrid and electric car craze only to discover that the electricity that powered their car came from coal, natural gas or oil. They wanted all the dams torn down until they realized they were what lit their homes and powered their Prius.

Those who destroyed the ranching, mining, fishing and timber industries now bemoan the shortage of affordable housing and the dearth of gold and silver that make their iPhones work. They complained about the high cost of beef and salmon steaks until they realized they were the ones who over-regulated the cowboys and fishermen to death.

The urbanites want the bobcats, coyotes and mountain lions protected until one eats their kitty cat. Then they want them all annihilated. They believe in man-made climate change until they realize “the cure” will raise their state taxes. Then they seek refuge in Florida, Texas, Nevada, Wyoming, Washington, South Dakota or Alaska where there is no state tax. They love trees until they are fined $100 because their kid got caught climbing one. They want to save water for fairy shrimp, suckers and salmon but not if it means tearing out their lawns or taking shorter showers. If they’re told they can’t cut firewood on public land oh, hear them rave!

The more intelligent urbanites got suspicious when “global warming” got changed to “climate change.” They got mad when they found out that The Inconvenient Truth was that their hero, Al Gore, was a capitalist getting filthy rich off carbon credit trading and solar energy. They didn’t want any forests logged or thinned until the raging fires burned their house down. They grudgingly admit that even those clear cuts acted as fire breaks and the cows and sheep did reduce the fire load. And when the nightly news showed the charred remains of endangered crispy critters killed by raging infernos it made them think that maybe, just maybe, they didn’t know as much as they thought they did.
What really got their goat was when they found that all those recyclables they’d been sorting for the past year got buried in the same dump as the rest of their garbage because China no longer wanted their melted water bottles. When they heard about the floating mass of plastic floating out in the ocean they realized that some of it was theirs.

When Edison and PG & E started turning off people’s electricity during wildfire season the urbanites got a real taste of “living off the grid” and they didn’t like it all that much. When they saw the sprawling mansions of New York Sierra Club eco-lawyers and Nature Conservancy lobbyists in Architectural Digest and on HGTV it seemed just a tad bit hypocritical.

They believed in globalism until they lost their manufacturing job to China or Mexico and now they have to work two jobs waiting tables to make ends meet. When China and India refused to rein in their contribution to “man made climate change” they realized that the big sucker in the room was the American staring back at them in the mirror.

They loved being able to rent out an extra room in their house through Airbnb until the city started making them pay hotel and motel fees. Some of the shine came off Uber when the drivers had to pay for a business license. Silicon Valley nerds bought bare ground for $500,000 per plot on which to build their dream homes someday only to learn they couldn’t build because there was an endangered snail on their land. But they still had to pay property taxes on their lots that were now rendered worthless. The snails could live there but they couldn’t! And, boy oh boy, did they love wolves … until they moved into their neighborhood.

They worshipped Hollywood eco-celebrities like Leonardo DiCaprio until they read that his personal jet was spewing more greenhouse gas in one takeoff than they would in their entire life. ❖

Testing New Futures

Testing New Futures

Holistic Ranch Management More Than Grass

Dan Miller
By  Dan Miller , Progressive Farmer Senior Editor

“No. You missed that,” Scott Johnson says, correcting a caller. He and his wife, Jean, were traversing a part of eastern Colorado on one end of a long-distance struggle with cell service. The caller had entirely missed the point Scott made about holistic management. It is much more than grass.

The template of holistic management laid over the Johnson family’s Flying Diamond Ranch, Scott explains, is a collaboration of moving parts. It considers the harsh seasons of Colorado’s semiarid eastern plains and the sustainability of the ranch’s composite Angus herd. It is management of predatory coyotes, of spring calving and scrutiny of meat markets. Most of all, it is family — this one taking its first steps into a sixth generation with five grandchildren, four born in 11 months.

“Do you follow my way of thinking?” Scott asks. “If our ROI [return on investment] is great, but someone is maimed, we wouldn’t be real proud [of our performance]. We will give up profit for safety or harmony,” he says. “The focus is on the whole. If we’re not getting along as a family, if we’re not safe, then the rest of this really doesn’t matter,” he explains. “It’s its entirety. Its wholeness. Its balance. Not perfection. But, bottom line, [we are] profit-oriented. Business is business.”

The Flying Diamond’s clean and highly viewable website uses six words to articulate holistic management: “Ranching with family. Working with nature.”

BORN ON A CATTLE DRIVE

Flying Diamond is 112 years in the making. Charlie Collins, Scott’s great-grandfather, fell in love with the land when, as a teen in the late 1800s, he trailed cattle near the banks of Big Sandy Creek on a drive from Mexico to Montana. By 1907, Collins had moved his family from Kansas to Kit Carson, where the ranch is still headquartered today.

The ranch is dominated by a shortgrass and sand sage landscape. Thick riparian areas border the Big Sandy and Horse creeks, tributaries of the Arkansas River. Culls are based on a female’s ability to wean a calf every year beginning at age 2 and succeed in 13 inches of precipitation and temperatures running the scale from below zero to above 100ËšF.

The cattle winter on corn circles in Kansas and Nebraska. “We like to rest our pastures during the winter. It’s healthier for our grass to have the cattle off and let it rest, and get a little more growth,” Jean says. Scott adds, “Having cattle on cornstalks, our day-to-day chores slow down a little bit in the winter. We can give family a little breather.”

Flying Diamond is an operation run by a family of type A personalities, Scott allows. “We’re not real chitchatters. We socialize. We have good times. We want to maintain excellent family relations. But, we’re not sitting around drinking a lot of coffee.”

GENERATIONS MANAGE TOGETHER

Scott and Jean anchor the Flying Diamond’s fourth generation. Their four adult children represent its fifth. Ownership is based on a meritocracy. The more a family member contributes, the more they own.

Jen Livsey, married to Jay, is the oldest. She is a Princeton University undergraduate and the first female graduate from the King Ranch Institute for Ranch Management. She recently opened Eastco Group, a livestock and drought insurance business. Jen oversees the rotational-grazing plan and analyzes purchase and lease opportunities.

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Will and Lauren Johnson live full-time on the ranch. A Marine Corps veteran, Will is CEO of Flying Diamond Ranches Inc.

Myles Johnson and his wife, Katie, live in Idalia, Colorado, where Myles is the K through 12 superintendent of schools. Myles is the ranch’s administrative officer, managing compliance, meetings and corporate records. Katie is a certified public accountant and manages the ranch books.

Charlie Johnson and his wife, Kaitlin, live in Kit Carson. He is chief operating officer (COO) of Flying Diamond Ranches Inc. He partners with Jen in livestock and drought insurance.

Business is organized around communications—face-to-face, weekly conference calls and a monthly executive committee meeting. Quarterly board meetings are a newer function Kirk Samuelson, Scott’s cousin, brought to the ranch. Samuelson served as COO of Fortune 500 Kiewit Corp., in Omaha, until he retired. He and Scott are cochairmen of the board for Flying Diamond. Quarterly board meetings are formal. “Ten years ago, I was the dictator,” Scott admits. “Now, no one is comfortable with that. When we talk about family harmony, that’s not to suggest there aren’t red faces and pounding on the table.”

The board meetings are to play a role in the ranch’s vitality. “You go to workshops, and you hear horror stories,” Jean says. “Families won’t talk to each other. Ranches divide. That is a threat. How do you keep a 100-year-old ranch together for the next generation?”

The board meetings have a start-stop time and a structured agenda. They often include talks by outside experts. Assignments are given before the meeting—budgets, range management, cattle movements, fertility testing and branding, selling bulls, commodity markets and new market opportunities. “There is an element of accountability brought into the operation that we didn’t have before,” Jean says. “You are held accountable. What did you say you were going to accomplish? Did you do it?”

AGREEMENT IS KEY GOAL

Flying Diamond’s meetings are collaborative. The goal is consensus. “At the end of the day, we want to come up with a compromise we can all live with. This is a new concept for us,” Scott explains.

New is a continuing education standard. Time spent in continuing education is measurable and reported quarterly toward an annual goal of 300 hours. Safety is one component. Jean is the ranch’s safety officer. She has organized horse- and cattle-handling courses. “We specifically do safety training, communicate safety and track safety by hours per year.”

Calving runs from March through May. “We try to mimic nature,” Scott says. “We calve when the deer and the antelope and the elk calve.” Cows graze on spring grasses and not supplemental feed, and the calves generally miss late-season blizzards. Predation is better managed. Calves invite coyotes in the dark of winter. Coyotes have a wider menu in the spring, when the ranch’s wildlife also is giving birth.

“Deer and antelope spend zero dollars, and their offspring have a 50 percent survival rate,” Jen told ColoradoBIZ in a February article about Flying Diamond Ranch. The goal of the ranch, she explained, is to improve the odds of survival among the calf crop but mimic nature to lower production costs.

And here, an example of holistic management: “Our guys aren’t out in blizzards. The weather is better for the calf and better for us,” Scott says.

PATH TO PRODUCTIVITY

Cattle graze only 5% of the ranch’s ground at any one time. Nearly 200 miles of single-strand electric interior fence mark paddocks typically less than 300 acres in size. Cattle graze in some paddocks no more than three days in a growing season. Stocking rates once ran 40 acres per cow/calf unit. Today, it is 30 acres per unit. “We are able to run 30% more animals. Maybe we’ll be able to get to 20 acres per cow/calf unit with more intensive grazing,” he says.

Scott traces his land-management practice to several days spent 35 years ago with Allan Savory, the guru of grazing lands holistic management. Savory’s notion was to move cattle frequently—as bison moved themselves—by way of intensive, human-directed management.

Flying Diamond has laid out 20 miles of water pipeline with the assistance of Natural Resources Conservation Service’s Environmental Quality Incentives and Conservation Stewardship programs. Seven wells pump water to 23 stock tanks. The family has an eye to tightening its grazing practices—that cattle would graze no more than 1% of the ranch’s acreage at any one time.

Few ranches are as intense, Scott says. “Everything gets more intense the more intense we get. More monitoring, quicker moves. We are not know-it-alls. But, it can be a big benefit to the resource and a big benefit financially.”

ONE GENERATION TO THE NEXT

Holistic management is one of many parts. Flying Diamond Ranch has won its share of acclaim for this approach as the recipient of the Colorado Leopold Conservation Award and regional Environmental Stewardship Award, the latter partially sponsored by the National Cattlemen’s Foundation.

Awards recognize achievement. Flying Diamond Ranch tests new futures. Its organic cuts, for example, are finding customers in San Francisco. As a member of its advisory committee, Jean learns how the College of Agricultural Sciences at Colorado State University studies water conservation, sustainability, even urban farming. But also, meatless meat.

“It sounds like science fiction to us, but maybe it’s something that’s coming,” says Jean, not setting aside opportunity perhaps born of a petri dish. The future does not discourage Flying Diamond Ranch. “We’re bullish on agriculture,” Scott says.

The Flying Diamond Ranch evolves and grows and shifts for a time beyond Scott and Jean, and perhaps beyond Jen, Will, Myles and Charles—from today to a time for five grandchildren: Collins, Sofia, Clint, Stella and Henry, growing up among the hills of Colorado’s plain.

One generation builds on another. “We think,” Scott says, “that future is pretty bright.”