TRANSFORMING your businessBEGINS WITHTRANSFORMING yourself
Transforming your ranch into an effective business involves changes in land management, animal husbandry, money management and in the way you interact with the people in your business. But the biggest change isn’t to the land or the animals. The biggest change is in you.
IT ISN’T SUSTAINABLEif it isn’t PROFITABLE
Profit is to business as breathing is to life. A ranch that doesn’t produce an economic profit isn’t a business. It’s a hobby … an expensive hobby.
FOCUS ON effectivenessNOT EFFICIENCY
Efficiency and effectiveness are not the same thing. It doesn’t do any good to do things right if you are doing the wrong things! If something is efficient, but not effective, stop it immediately!
GET IN SYNCHwith nature
Most ranch businesses are structured to fight nature. That’s expensive and exhausting. Businesses that match enterprises and production schedules to nature’s cycles are more profitable, less work and more fun!
YOU DON’T GET harmonyWHEN EVERYONE SINGS THE SAME NOTE
In any business, especially family businesses, there are bound to be differences of opinion. Our decisions are improved when we bring different perspectives and ideas to the table and engage in constructive debate, as long as we agree that, at the end of the day, we all ride for the brand.
WORK LESSand make more
Unsustainable effort is unsustainable. Period! Planning is the key to simplifying enterprises, increasing profit and reducing labor.
RANCHINGis a business
We often act as though we have a choice between ranching as a lifestyle or a business. The lifestyle of ranching improves when the ranch is a successful business first.
WORK ON YOUR BUSINESStwo mornings a week
It’s not enough to work IN your business, you must work ON your business.
WEALTHY on the balance sheet& BROKE AT THE BANK
The misallocation of capital is the biggest financial problem in ranching. At the Ranching For Profit School you’ll learn how to capitalize and concessionize assets to increase profit and improve the financial health of your business.
RANCHING FOR PROFITis NOT an oxymoron
Many ranchers seem to think that profit is dictated by prices and weather…two things beyond our direct control. Ranching for Profit graduates prove every year that the key to profit is management.
Long periods of time off let you test people for the next role.
The majority of small business owners don’t have a succession plan, according to several surveys. While the exact percentage moves around with each survey, it’s almost always above 51 percent, and for a variety of reasons. Chief among them always seems to be that leaders are too busy doing other things to think about it.
Surprisingly, there’s a way to solve both problems at once: take a sabbatical.
Recent research, and the experience of companies from McDonald’s to Intel to the Motley Fool, has found that time off can be used to help stress test the organizational chart and experiment with potential leaders in interim roles.
In one study, researchers surveyed 61 leaders at five different nonprofit organizations with sabbatical programs. Each organization had slightly different requirements, but all required at least 3 months off and discouraged executives from visiting the office during the sabbatical period.
The researchers found the majority of leaders surveyed said that the interim leaders (those who filled in for them during their leave) were more effective and responsible when the sabbatees returned. Many even reported those interim leaders continuing some responsibilities and making the overall leader-subordinate relationship more collaborative. Some organizations even reported feeling much more confident in their succession planning since the interim leaders were able to try out the role and assess if they were qualified and, if not, what development opportunities were still needed. One firm was conducting a national search for a future executive director but ended up hiring the deputy director because she had done so well as the interim leader.
While the research on sabbaticals in the workplace is relatively new, sabbaticals themselves are not. McDonald’s has had a sabbatical program in place for their executives for several years. Many technology companies like Intel and Adobe offer them.
At the very least, having people rotate out for an extended period of time allows organizations to stress test their organizational chart. It gives potential leaders a chance to try out for the next role and it gives senior leaders a chance to see what happens when key people are suddenly not a part of the company anymore. That’s why Motley Fool has run a surprise vacation program for several years. Employees names are chosen at random and given two weeks paid vacation, but there’s a catch: it must be taken within the next four weeks. The idea is to make sure no single employee is so critical that the company falls apart.
You may not ever create a formal succession plan, with developmental goals for future leaders and a set timeline. However, by encouraging yourself and your employees to take time away…you’ll be helping prepare everyone for any sudden departures. For these and a lot of other reasons time off in the form of sabbaticals really pays off.
When you’re very good at “n”, there are probably thousands of people who are also good at “n”. But if you are good at “n + 1”, that number is far smaller.
And if you are able to add one (+1) to the equation – it increases your ability to withstand anything that comes your way in Life.
Not only do you have the ability to withstand life’s events – when you add that +1 it increases your chances to build upon your current situation.
An example of this would be your hours getting cut at work – by having that +1 you are now able to make up for the loss and find new opportunities to expand and grow. You have now made yourself indispensable.
Indispensable not only to yourself but to any and all persons around you. With your increased skill set your hours may never be cut in the first place.
By Charlotte Smith / September 10, 2018 /
You’re Not Selling What You Think You’re Selling…
Most farmers think they sell grass-fed beef, or raw milk, organic chicken or fresh flowers.
But when it comes to marketing, that language won’t help you stand out.
It looks just like your competitor!
What you’re selling is a solution to your customer’s problems.
You’re selling ‘that thing’ your product does for your customers — the reason they buy it.
If I Google “Grass-fed beef near me” I find things like this:
“Beef — 100% grass fed and grass finished. Versatile Dexter breed. Call to purchase”
…or, “We raise our cattle on pasture that’s been fortified with minerals that most soil is lacking. The cows are rotated to fresh grass every 24 hours and they are never fed any grain.”
Unless you’re a farmer and you know this lingo, your eyes have glazed over and you’re ready to click on Facebook for something more entertaining.
But you stumble on my farm’s website and read through everything, finally landing on my Products Page where I describe what I sell.
You read, “Ground Beef: Easily the most versatile product we provide — you should always have plenty to spare for those nights you feel totally and completely uninspired and have no intention of getting there. Grill it, loaf it, fry it up with some kale and sweet potatoes for the ultimate Paleo dinner without much effort.”
And then, “Pastured Chicken: The ultimate in buying bulk, one of our chickens will feed your family for two nights with the effort of only one. Roasted chicken the first night, lettuce wraps, enchiladas, or soup the next. You’ll have enough time on the “leftovers” day to schedule that pedicure your toes are desperate for. And the family still eats!”
In this case, I’m NOT selling Ground Beef and Pastured Chicken.
I’m selling the solution my product offers: quick, easy, healthy meals that any busy mom can make.
How do I know what my product does for people?
I ask them!
When I ask you what you sell, I don’t want to hear that you sell grass-fed beef. I can run down the street to my local grocery store and find grass fed beef, so there’s no reason to drive out of my way to buy from you.
But if you sell a way to get a super healthy dinner on the table fast…or a way to feed their adopted baby formula when they can’t nurse… you are selling so much more than the products you raise.
You are selling a solution your customers are desperate for!
Since this may be a new concept for you, I’ve created an email template for you with the exact questions you can ask your customers to help you discover what your products do for them. Once they respond, you can use their words to market your product to all your other ideal customers.
You can download the email template here. You’ll also find a video I did about how other farmers are using this knowledge and language in their marketing and how they’re attracting new customers because of it. The video is only available for a limited time, so if you’re interested be sure to head on over!
In today’s world, where everyone is looking online for solutions to their struggles and help reaching their goals, you need to make sure your words on your website, your Facebook page, and your Instagram posts, are all connecting with your potential customers in this way.
So, if you’re ready to stand out from every other farmer, grocery store and home delivery meal service, check out the email template and video, and let’s get started.
As always, thanks for being here
Buying Used Tractors is Tempting, but Are You Really Saving Money?
Effective grazing management on pastures not only ensures high forage yield, sustainability, animal health and productivity, all of which impact cost of production, it also benefits the pasture ecosystem. Innovations in pasture management give producers greater control to support the environment (e.g. biodiversity) but also allow them to better use pasture resources for food production.
Pasture is a critical resource in the cattle industry. An effective management plan requires clear understanding of forage production, realistic production goals, effective grazing strategies and timely response to forage availability and environmental changes. Managing grazing lands so that they are productive and persist over time requires knowing when to graze certain species, if they can withstand multiple grazings/cuttings within a single year and how much recovery time is needed to prevent overgrazing (which is a matter of time not intensity)
Rest and Recovery
Developing a Grazing Plan
Grazing Management Terminology and Calculations
The efficiency with which plants convert the sun’s energy into green leaves and the ability of animals to harvest and use energy from those leaves depends on the phase of growth of the plants. Plants go through three phases of growth that form an “S” shaped curve (Figure 1).
Phase I occurs in the spring following dormancy or after severe grazing where few leaves remain to intercept sunlight forcing plants to mobilize energy from the roots. The roots become smaller and weaker as energy is used to grow new leaves.
Phase II is the period of most rapid growth. When regrowth reaches one fourth to one third of the plant’s mature size, enough energy is captured through photosynthesis to support growth and begin replenishing the roots.
Phase III material is mature and nutrient content, palatability, and digestibility is relatively poor. Leaves become shaded, die and decompose. During this phase new leaf growth is offset by the death of older leaves.
Adjust grazing and rest periods to keep plants in Phase II. Do not graze plants so short that they enter phase I as regrowth is very slow. Nor should plants be permitted to mature and enter phase III as shading and leaf senescence reduces photosynthesis. The harvest of energy is maximized by keeping plants in phase II.
Figure 1: The sigmoid (S) growth curve of a typical forage stand indicates how yield, growth rates and rest periods change over the growing season. (Voisin 1988).
The timing of the growth curve for each forage species is unique and these growth characteristics are an important factor in determining proper season of use for grazing (Figure 2). For example, crested wheatgrass begins growth relatively early in the growing season while native grass species grow later in the season. Based on these characteristics, crested wheatgrass is best grazed early in the season with native rangelands better suited for use in the summer or fall. It is important to recognize that forage species may be grazed outside their optimal season of use however, the subsequent rest period must be extended to allow plants adequate time to recover.
Figure 2 – Average relative yield and period of growth of native grass and seeded pastures in Saskatchewan.
Overgrazing is a function of time and occurs when a plant is grazed (defoliated) before it has recovered from a previous grazing event. This occurs by either leaving grazing animals in a paddock too long or bringing them back too soon, before plants have had a chance to recover and regrow. Rest is key to prevent overgrazing and must occur when the plants are actively growing, not during dormancy.
The length of time that a plant needs to recover following grazing depends on several factors including the type of forage species, plant vigour, and the level of utilization (i.e., how much plant material has been removed). Recovery time also depends on the season or time of year which determines conditions such as daylength and temperature. Fertility and moisture also impact plant growth rates.
When plants are growing slowly, such as in late summer, the required recovery or rest period will need to be longer than when plants are growing rapidly. This relates to the “S” shaped growth curve discussed above. Understanding the phase of the growth curve, the corresponding rate of growth, and the timing of the growth period for each forage species, is critical to management decisions related to adequate rest and recovery periods.
Figure 3: the required recovery or rest period will need to be longer than when plants are growing rapidly
Determining the number of days of rest required is unfortunately, not a simple calculation. Rather, watching and evaluating how pastures regrow and recover will provide the best information. With experience will come the knowledge needed to determine when a pasture has recovered and is ready for grazing. As a general rule of thumb a minimum recovery period is estimated to be at least 6 weeks.
Maintaining a pasture stand in good condition is critical to a successful grazing plan. Desirable species provide high quality forage and production for a large part of the grazing season. Typically, the desirable forages are hardy grasses and legumes that regrow quickly. Undesirable species are those that are typically unpalatable to the grazing animal or may contain anti-nutritional components. Plant diversity is also important to maintain a productive pasture throughout the entire landscape and growing season. If only one kind of plant exists, diversity is narrow, and production will be limited. If many plant varieties are present, diversity is broad. High plant density must also be maintained as bare and open spots are unproductive and allow for weed encroachment and soil erosion.
Management of a forage stand relies upon the level of utilization that allows for maximum grazing of forage without damage or negative impact to the vegetation, including both above and below ground growth. Determining the optimum amount of forage to remove versus leave behind is not an easy task and depends upon plant, animal and environmental factors. Research findings and professional judgement help provide guidelines for determining appropriate level of utilization, but experience is the best guide. A general guideline often employed by grazing mangers employs the ‘take half, leave half’ rule or 50% utilization by weight (biomass) of the key available forage species in a stand. This level of utilization fits a moderate level of grazing intensity and is a good starting guideline to employ. However, it is important to adjust utilization rates based upon site-specific variables including forage species, time of year, available forage, and overall management goals.
The overall condition of a forage stand impacts the number of animals that a pasture can support and the length of time that grazing can occur. Factors such as previous grazing management, species of forage, age of stand, soil type, texture, fertility level and moisture conditions all influence forage yield and quality and consequently stocking rate. Understanding these factors and implementing a grazing system is key to effective grazing management.
An interactive Forage Species Selection Tool is available to assist land managers in selecting the correct forage species best suited their land. Seeding rate and seed cost calculators are integrated as well.
Visit the Rangeland and Riparian Health page for more information, including videos, related to pasture condition and health assessments.
A grazing plan that matches animal numbers to predicted forage yields should be carried out before animal turnout.
An important first step in developing a plan includes defining goals and objectives for the entire grazing operation. This includes profitability measures, lifestyle choices, and biological outcomes such as soil health, forage production, ecosystem impacts and animal performance.
Conducting an inventory of resources is essential. How much forage is available and at what times during the grazing season? Is the forage source able to meet the intended animals’ nutritional requirements? How long is the intended grazing season? What physical infrastructure is available or needed?
This process of completing an inventory and evaluating resources is critical to developing and implementing a successful grazing system. The Pasture Planner: A Guide to Developing Your Grazing System provides an excellent resource to assist producers with planning, development and/or modification of their grazing system. It includes a number of worksheets and templates useful in the inventory and planning process.
A grazing system is the way a producer manages forage resources to feed animals, balancing livestock demand (both quantity and quality) with forage availability and promoting rapid pasture re-growth during the grazing season as well as long-term pasture persistence.Grazing systems will vary with the climate, plant species, soil types and livestock. Systems that are commonly used in Canada include continuous grazing or controlled grazing systems which are numerous and varied, even in their terminology, including but not limited to: rotational grazing, forward grazing, creep grazing, strip grazing, limit grazing, stockpile grazing and extended grazing.
A number of resources exist which provide an excellent overview of the types, development, and implementation of grazing systems. Examples include:
With continuous grazing, animals will naturally graze the most palatable plant species most frequently. Root reserves are eventually exhausted, and plants may die. In highly stocked continuously grazed pastures, regrowth will be grazed quite frequently. Lightly stocked continuously grazed pastures consist of patches of plants in phase I and phase III. If animals are forced to eat phase III material, their daily intake will drop, reducing animal gains.
In a controlled grazing system, animals only have access to relatively small parts of a pasture for a period of time. Pastures are divided into paddocks where the land is grazed for relatively short periods of time following which, livestock are removed to ensure the plants have adequate time to recover before being grazed again. Because this requires more knowledge of forage plants and pasture-animal interactions, controlled grazing is often referred to as management-intensive grazing (MIG).
Whether managing native rangeland or tame forage species, four basic principles of management apply:
- balance the number of animals with available forage supply
- obtain a uniform distribution of animals over the landscape
- alternate periods of grazing and rest to manage and maintain the vegetation
- use the kinds of livestock most suited to the forage supply and the objectives of management.
Stocking rate histories on similar fields in the same area can be very useful in setting initial stocking rates. The optimum number of animals on a pasture makes efficient use of the forage but leaves enough plant material behind to allow a quick and complete recovery.
When developing a grazing system, paddock shape should be determined by the topography, soil type, and species differences to reduce problems with uneven grazing and varying recovery time. If a paddock has a lot of variation in it, some areas will be underutilized while others are severely grazed.
The size of individual paddocks should be determined by the projected herd size based on forage production potential and preferred stock density to keep the frequency of cattle moves consistent. As productivity of the land increases, paddock size should be reduced to achieve desired levels of utilization. Generally, square paddocks offer more uniform forage utilization and better manure distribution compared to long narrow shapes.
Developing a practical water distribution system is an important consideration in designing an efficient grazing plan and paddock design. Access to water impacts grazing patterns of livestock and understanding this will assist in managing forage utilization. It is recommended that pasture systems be designed to provide water sources within 600 to 800 feet of all areas of a paddock for optimum uniformity of grazing2. Portable water systems are a powerful tool for managing grazing distribution and manure cycling. If water cannot be provided in each paddock, laneways designed to bring the stock to the water source are the next alternative. Plan the pasture layout to minimize laneway length and keep laneway width within 16 –24 feet to reduce the amount of loafing by animals3. Similarly, minimizing the common area around a water source will reduce the amount of time that animals spend congregating at the site.
Proper livestock distribution, achieved by spreading grazing animals over a pasture management unit to obtain uniform use of all forage resources, can increase production. Grazing distribution varies with the kind and class of grazing animal, topography, location of water, salt and mineral placement, forage palatability, vegetation type, forage quality, forage quantity, location of shade and shelter, fencing patterns, pasture size, grazing system, stock density, and prevailing winds.
Ideal grazing distribution occurs when the entire pasture is grazed uniformly to an appropriate degree within a predetermined time frame. Cattle, being creatures of habit, rarely graze uniformly when left alone. They graze convenient areas, especially those near water and easily accessible. Livestock do not graze randomly and must be forced or enticed to seldom used areas.
Improving grazing distribution results in higher harvest efficiency because livestock consume a greater proportion of the available forage. It also spreads defoliation effects across a greater proportion of available forage plants.
Methods for improving livestock distribution include:
- managing stock density and/or season of grazing;
- forcing animals to specific locations by fencing;
- using grazing management strategies such as rotational grazing;
- enticing animals to specific locations with water, salt, supplemental feed, or rub and oiler placement; and
- using the kind and class of livestock best suited to the terrain and vegetation characteristics.
Placement of water developments is probably the most important factor affecting grazing distribution as water is the central point of grazing activities. Near water, plants are heavily used and forage production drops. Reducing pasture size and reducing the distance to water can significantly improve livestock distribution. Salt and mineral should be placed away from water and used to distribute animals more uniformly.
Topography is an important cause of poor grazing distribution. Where possible, pastures should be fenced to minimize variability in topography, plant communities, and timing of plant growth.
Shade is another important factor of animal distribution as animals will migrate towards these areas during the hot times of the day to stay cool and to avoid insect irritation.
Legumes as part of an annual grazing plan can be advantageous as these plants can help restore soil nitrogen, increase forage yields and extend pasture carrying capacity. Improved animal performance may also be achieved when grazing stands containing legumes. However, legume grazing requires increased management efforts to ensure optimal stand persistence and animal performance.
Producers are often hesitant to seed alfalfa for grazing purposes due to fears of bloat even though yield and productivity could be increased. To gain the benefits of grazing this legume, careful management is critical. To reduce the risk:
- do not move cattle onto new pasture when it’s wet with heavy dew, rainfall or irrigation water. Grazing alfalfa when it is wet increases the possibility of bloat, so it’s better to move animals to a new pasture in the afternoon rather than in the morning.
- never allow animals to stand hungry before turning them into an alfalfa pasture, as it can lead to overconsumption of fresh alfalfa.
- wait until alfalfa is in full bloom to graze. Bloat risk is highest when alfalfa is in vegetative to early bloom stages of growth. As alfalfa enters the full bloom or post bloom stages, soluble protein levels decrease, plant cell walls thicken, lignin content increases, and the rate of digestion of alfalfa in the rumen decreases.
- do not graze alfalfa for three days to two weeks following a killing frost. Frost may increase the incidence of bloat by rupturing plant cell walls, leading to a high initial rate of digestion. Delay grazing alfalfa until the stand dries. The time required to dehydrate varies by location and weather.
The risk of bloat when grazing pure alfalfa stands can also be reduced through the selection of reduced bloat varieties (e.g. AC Grazeland) and the use of products including Bloat-Guard, the Rumensin CRC bolus, or Alfasure.
Many producers prefer to avoid bloat by seeding alfalfa-grass mixtures. Depending on the percentage of alfalfa in the mix, this can reduce the risk of bloat but maintaining alfalfa within the stand can be a challenge. Over time plants disappear from the stand eliminating many of the benefits including increased fertility.
A study in Swift Current, Saskatchewan4 showed that alfalfa and sainfoin plant counts both dropped by 50% over the four-year grazing trial. Research conducted near Brandon, Manitoba also found that the alfalfa percentage in a mix declined from 75.4 – 84.1% to 32.5 – 40.3% over a four-year period5.
The following management techniques can help to maintain legumes in a stand:
- in the spring, wait until alfalfa is three to four inches tall before grazing. After the spring grazing period ends, allow the alfalfa to regrow for about 25 to 40 days before grazing again or cutting for hay.
- allow plants rest during September and October, or control grazing to maintain at least 6 to 8 inches of standing alfalfa at all times.
- avoid reducing stubble height to less than 2 or 3 inches in late fall to help protect alfalfa from winter damage.
- allow plants to grow without cutting or grazing for at least four to six weeks prior to the first killing frost.
There are many other legume species that in more recent times are seeing increased use within grazed pasture stands. This includes sainfoin, cicer milkvetch, birdsfoot trefoil, alsike clover, red clover, white clover, kura clover, sweet clover, and purple or white prairie clover. These legumes may not have the yields of alfalfa but may better suit the land, soil type, or management system. Legumes including sainfoin, birdsfoot trefoil, purple prairie clover and white prairie clover contain condensed tannins which can reduce protein breakdown in the rumen and prevent bloat. Having protein digested in the small intestine instead of by the rumen bacteria contributes to more efficient animal growth. If these tannin-containing legumes are seeded in a mixture with alfalfa they will “actively” reduce bloat risk. Cicer milk vetch does not have tannins but is slower to digest so will not cause bloat.
As a non-bloating legume, animal gains on sainfoin pastures can be as efficient and rapid as on alfalfa pasture. Sainfoin is resistant to the alfalfa weevil, grows earlier in the spring and later in the fall. Researchers at AAFC Lethbridge have been selecting sainfoin for improved yield, regrowth and survival in alfalfa stands, and have found that sainfoin’s survival depends partly on the alfalfa variety it is grown with, as well as where it is grown.
More information about legume grazing strategies and research being conducted can be found in the following BCRC Factsheets:
A working knowledge of grazing management terms and calculations is an extremely useful tool when planning and developing practical, successful grazing plans. The ability to prepare and estimate forage utilization means less uncertainty when dealing with management decisions in ‘real time’ once animals are grazing pastures.
The animal unit (AU) is a standard unit used in calculating the relative grazing impact of different kinds and classes of livestock. One animal unit is defined as a 1000 lb (450 kg) beef cow with or without a nursing calf, with a daily dry matter forage requirement of 26 lb (11.8 kg).
An animal unit month (AUM) is the amount of forage to fulfill metabolic requirements by one animal unit for one month (30 days). One AUM is equal to 780 lbs (355 kg) of dry matter forage.
Forage requirements change with the size and type of animal. Metabolic weight (live weight to the 0.75 power) accounts for significant variation in dry matter intake among animals of different size and provides a more accurate estimate of forage demand. Animal Unit Equivalents (AUE) have been calculated for various species and sizes of animals. Table 1 provides beef cattle size categories and corresponding animal unit equivalents.
Table 1: Beef cattle size categories and corresponding animal units
Stocking rate is the number of animals on a pasture for a specified time period and is usually expressed in Animal Unit Months (AUM) per unit area. For example, an area that supports 30 (1,000 lb) cows for a four-month grazing season has a stocking rate of 120 AUMs for that area. If the pasture is 100 acres in size, the stocking rate would be expressed as 1.2 AUM/acre (120 AUMs divided by 100 acres). Your stocking rate will not stay the same year after year, so you will need to adjust the number of animals you intend to graze to achieve the desired stocking rate for each pasture within your grazing system.
Stock density is the number of animals in a particular area at any moment in time and increases as the number of animals in a paddock increase or as paddock size decreases and is based on level of grazing management. For example, a herd of 30 (1,000 lb) cows on a 2 acre paddock fenced off within the larger 100 acre land base has a stock density of 15,000 lbs/acre (30 cows x 1,000 lbs/cow divided by 2 acres) or 15 Animal Units/acre (1 AU = 1,000 lb therefore 15,000 lbs/acre divided by 1,000 lb = 15 AU/acre), even though the stocking rate for the entire 100 acre pasture is 1.2 AUMs/acre. The difference between these two values is the time factor.
Carrying capacity is the average number of animals that a pasture can support for a grazing season. It is a measure of a pasture’s ability to produce enough forage to meet the animal requirements over the long term and is expressed in AUMs.
Calculation of stocking rates or grazing acreage needed is done by the following steps:
- estimate the production of each paddock as it is about to be grazed each time to acquire a total production estimate. Include the appropriate rate of utilization (e.g., managing pasture to utilize 50% of the forage available).
- estimate animal consumption (per day) – nursing cows (with calves) and growing steers or replacement heifers consume approximately 2.5% of body weight (1 AU requires ~ 26 lb forage/day) as forage dry matter.
- calculate stocking rates (animals/acre) by multiplying your average forage yield (lb/acre) by utilization rate, then divide by the amount an animal unit is expected to consume per month. The formula would look like this:
Stocking rate (AUM/acre) = (Forage yield [lb/acre] x (Utilization rate [%] ÷ 100)) ÷ 780 lb/AU/month
9 Steps To Getting More Family Harmony on the Farm
By Elaine Froese
The coaching theme lately has been older brothers and young brothers (a good bit younger) trying to figure out how to farm together. It is a bit of trick since the older brother typically has a bit more equity because he has been on the farm for a decade or more.
The dilemma of how to give each sibling what they need as a successor sometimes breaks a mother’s heart. She loves all of her children, as does Dad, and she is trying to figure out the way ahead so that the family will be in harmony, and the farm will have a strong team.
What can be done to increase family harmony?
It could be adult children who show up as loving adults, responsible, respectful and ready to create solutions. It is the farming successors who show that family relationships are the core value to be protected, and the farm is a business, not a monster to be fed.
9 Suggestions for All Members to Create Family Harmony on the Farm
1. COME TO THE TABLE
Be willing to discuss ideas and options. What is your big picture vision of farming with your parents and your siblings?
The accountant can give you some creative share structure options, partnership and operating agreements once you are clear about what each sibling needs. Share your “why” or intent for the things you are asking for.
2. INVOLVE THE DAUGHTER-IN-LAWS
Readers have been asking for an article on daughter-in-laws who farm. I am her. I am a farm partner who supports the farm team. Some daughters-in-law are more active agronomists, livestock keepers, and bookkeepers. Everyone’s role can look different, but all are important. In my books, the farmer’s spouse can be a daughter-in-law or a son-in-law. The daughter-in-law needs to understand what kind of debt is going to be serviced and be clear that she is willing to help bring in cash or income for family living. If she is a homemaker, that is fine, but the farm will have to cash flow more revenue for debt-servicing. Is this viable?
3. KNOW YOUR FAMILY LIVING COSTS
You need to eat and be clothed. Parents cannot be expected to give you a free ride with free house rent or utilities forever. Once you cover your basic living costs, what do you have left for servicing debt or buying assets? You need disposable cash to grow.
4. REALIZE THAT YOU WILL ALWAYS BE THE OLDEST, MIDDLE OR YOUNGEST CHILD
You cannot change your birth order or become older to “catch up” to your older farming sibling. You can grow up, be mature, and make responsible choices with your time, resources, and energy. I know a young rancher who worked hard with neighbors to make hay arrangements for his growing cattle herd, and he also bartered his labor to get ahead. He was not using his youth as an excuse to just coast.
5. VISIT YOUR LENDER AND FIND OUT WHAT YOU ARE GOOD FOR REGARDING LOANS
Do you know your net worth? How much money could you come up with quickly to leverage some debt for an awesome opportunity to gain assets to farm? You might not be able to afford land, but can you access some rented land and pay for inputs? Your mom would like you to be independent with your living (laundry, meals, etc. ) and ready to be independent financially.
6. BE PATIENT
It took your parents 40 years to get where they are today. It is 2016, and farming has big dollars attached to the adventure. Be open to learning more about financial transparency. Negotiate what you are willing to commit to and for how long. If your parents are going to roll over or gift assets, they want to know that their wealth will be protected. They also want your marriage to be strong and enduring. Set some reasonable timelines and dates on paper so that everyone can digest what a workable timeline is for everyone to get closer to their farming goals.
7. REMEMBER TO BOOK TIME FOR FUN
Strong families celebrate. I wish you could see the tears in Mom’s eyes (and Dad’s) at the end of a family meeting when she tells her adult farming children that she is proud of them and loves them dearly. Appreciation and encouraging the heart of your farm business is done with words of affirmation, gifts, and time spent together with gratitude. Don’t kid yourself that all the stuff you collect in your house is important; life is not about things. Write your folks some nice words in a card this year.
8. DECIDE EVERY DAY HOW YOU ARE GOING TO INTENTIONALLY ADD TO YOUR FARM FAMILY’S EMOTIONAL BANK ACCOUNT
When siblings farm together, especially at different stages of the family life cycle, they need to recognize that they will always be in different phases of that cycle. Parents are not responsible for making all of their children economically equal, yet their heartstrings are pulled to want to help each child achieve success. Farm owners may want to help the younger siblings, just as they have helped the older farm and non-farm siblings in their own way. This is not an easy dance. The founders need to take care of their own income streams for the next 30 years and protect their wealth as they make the transition of ownership gradually. It also helps if there is a “personal wealth bubble,” as Merle Good says, to help draw non-farm cash for living needs as we age.
9. YOUR MOM WILL ALWAYS BE YOUR MOM
Someday mom and dad may also be your business partner. This is where role confusion really mucks people up. They cannot switch “hats” as they relate to each other in the different roles they play. Practice saying, “As your child, I feel valued and respected as a member of this family, and as your future business partner I am looking forward to creating solutions to make a great future for my own family .”