By Dr. Dave Kohl, academic Hall of Famer in the College of Agriculture at Virginia Tech, contributing editor to Farm Futures magazine
There is currently a negative sentiment in the agriculture industry. Lower prices, stubborn inflated costs, and very little movement in interest rates can be very draining for both profits and emotional energy. In a recent podcast being recorded in my old stomping grounds in upstate New York, the question of the day was, “Are there any positives in the agriculture industry?”
The answer is a resounding yes! Nationwide, I conduct approximately 15 young farmer and rancher programs annually. I am fortunate because the energy of these groups and their futuristic approach without blinders actually assists me in maintaining a positive approach. These groups embrace business and financial risk management practices that will assist them in enduring the down economic cycle.
Young farmers
While much more technology oriented, young farmers and ranchers still enjoy face-to-face networking opportunities to discuss business, family, and personal practices, challenges, and actions. Some young producers will be in alignment and use technology throughout the business. Others will be very resourceful, innovative, and align with the marketplace that demands their products and services.
Diversified income
Agri-entrepreneurship is a term that best describes the new entrants in the agriculture industry. These new producers could be entering via a family farm, a start-up, or businesses that are being taken over by a non-farm family member that is multi-multitasking and using outside “gig” revenue in their financial game plan. This not only provides diversified income, but an opportunity to engage with others both inside and outside the agriculture industry.
One size does not fit all
While the agriculture industry is consolidating, this group finds that one size does not fit all. You can be a small, part-time, midsized, or a large operation and be successful if one plans, strategizes, and executes into action the written business plan and utilizes the business IQ practices.
Think outside of the box
When conducting these young farmer and rancher programs, discussion often comes up about their families and personal ambitions. The other day, a producer in upstate New York was discussing how he had a neighbor kid riding in the combine with him. He also allowed the youth, including his family and others in the area, to grow and harvest a garden and sell the produce at their farm stand. One lesson learned in this experience was that bugs can quickly wipe out the best intentions! This story reminds us of the impact that agriculture can have on people by being involved. Projects like this community garden can teach life skills, something that a standardized test in school fails to assess.
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