fcs financial closing comments
TRANSCRIPT
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2011 Commercial Farmer’s SymposiumDaryl Oldvader, CEO
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The Changing Demographics In Agriculture
• Agriculture is getting smaller. Although we have approximately 2 million farmers, 10% of those produce 90% of the total value of agriculture.
• Traditional farming is no longer traditional. Driven by economics, family farms have become more specialized or niche-market oriented.
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• Bimodal distribution continues in agriculture. The traditional farm sector is evaporating into either the larger commercial sector or the smaller part-time farm sector.
• Selective Farming: Commodities vs. Products. It’s no longer simply #2 yellow corn or a pound of meat or milk, rather it’s a product with distinguishable traits produced for a specific audience.
The Changing Demographics In Agriculture
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• Commercial producers are linking into value chains…to extract additional product margins by becoming part of mega complexes and networks.
• Commercial vs. Lifestyle Farming: Is the country big enough for both? Environmental and animal welfare regulations will continue to challenge production agriculture.
The Changing Demographics In Agriculture
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• The rural infrastructure continues to regionalize based on locations of primary employers, health care and educational opportunities.
• E-commerce will hasten disintermediation in agriculture. The trend will shift more from shopping prices to acquiring products.
The Changing Demographics In Agriculture
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Top Ten Suggestions for Managing Volatility
1. Control your destiny, or at least plan like it.2. Develop a dashboard and monitor it.3. Remember risk.4. Sell for profit, not for bragging rights.5. Seek several sources.6. Beware of bubbles.7. Tell your story.8. Success makes a lousy teacher.9. Never let your ego exceed your intelligence.10. Farm for a living; don’t live for farming.