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Contents JANUARY 2019

ABOUT THE COVERNew year, new opportunities to manage risk. Beyond production and marketing gambles are business issues; legal, insurance, regulations and employment. The Illinois Soybean Association (ISA) is focused on raising awareness of them to ready producers for a successful future.

DID YOU KNOW?

The ISA checkoff program in 2018 hosted about 440 trade team participants from 26 countries to learn about Illinois soybean production. Laos, Romania and Sri Lanka had buyers visit the state for the first time. Such efforts help build relationships and global markets for Illinois soy.

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INSURANCE COST CUTS

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SUCCESSION SUCCESS

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A PUBLICATION OF THE ILLINOIS SOYBEAN ASSOCIATION • JANUARY 2019

THINK

Through Risk Management

VOLUME 1 • NUMBER 1

| JANUARY 2019 3

COVER STORY

Check in on ChangeRampant changes in technology, weather, markets, consumer preferences, trade and politics affect those involved in agriculture. How should change be managed so it doesn’t manage you?

Covered?With thin profit margins projected for the near future, is crop insurance a place to trim costs? Insurance and risk management experts advise critical analysis before answering that question.

The Legal TutorialAs agriculture becomes increasingly complex, so also can the legal issues surrounding the business associated with crop production. Three agricultural attorneys share advice for 2019.

Succession SuccessThe list of possible answers to what stands between parents and children on the farm is long, but differing generational mindsets is one of the most significant obstacles to a successful plan.

I Work for an IdiotIs being your own boss as good as you think? Producers can successfully navigate the perils of self-employment using these tips from the experts.

Regulation RevolutionProducers must navigate the fine line between laws and voluntary action as agriculture receives its fair share of regulations from a variety of government agencies.

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OUTSIDE PERSPECTIVE

PARTNER NEWS

VOICE FOR SOY

Departments

A PUBLICATION OF THE ILLINOIS SOYBEAN ASSOCIATION

CHAIRWOMAN

Lynn Rohrscheib, FairmountAt-Large Director

VICE CHAIRMAN

Doug Schroeder, Mahomet District 11

SECRETARY

Rick Rubenacker, McLeansboro District 18

TREASURER

Tom Kentner, DanvilleDistrict 7

ASSISTANT SECRETARY-TREASURER

Jim Martin, PontiacDistrict 6

MARKETING COMMITTEE CHAIR

Austin Rincker, MoweaquaAt-Large Director

PRODUCTION & OUTREACH COMMITTEE CHAIR

Roberta Simpson-Dolbeare, NeboDistrict 12

DIRECTORS

Paul Rasmussen, Genoa | District 1Steve Pitstick, Maple Park | District 2John Longley, Aledo | District 3Sharon Covert, Tiskilwa | District 4Stan Born, Lovington | District 5Dale Asher, Sutter | District 8Carrie Winkelmann, Tallula | District 9

Elliott Uphoff, Shelbyville | District 10Ed Murphy, Farmersville | District 13Brad Daugherty, West Union | District 14Daryl Cates, Columbia | District 15Brian Atteberry, Carmi | District 16Nick Harre, Nashville | District 17

AT-LARGE DIRECTORS

Jeff Lynn, OakfordScott Gaffner, GreenvilleJenny Mennenga, LeRoyDavid Wessell, Chandlerville

UNITED SOYBEAN BOARD (USB)

Doug WinterDan FarneyGary BergLynn Rohrscheib

AMERICAN SOYBEAN ASSOCIATION (ASA)

Stan BornDaryl CatesDavid DrosteJered HookerRon MooreBill RabenRob ShafferBill Wykes

U.S. SOYBEAN EXPORT COUNCIL (USSEC)

Sharon Covert

STAFF CREDITS

Publisher | Amy Roady, Illinois Soybean AssociationManaging Editor | Barb Baylor Anderson, Anderson and AssociatesAssistant Editor | Rachel Peabody, Illinois Soybean AssociationDesigner | Katie Range, Katie Range DesignChief Financial Officer | Brian Hansen, Illinois Soybean Association

OTHER ISA STAFF

Chief Executive Officer | Craig RatajczykDirector Strategic Market Development | Mark AlbertsonDirector Public Policy and Regulatory Affairs | Mike LevinDirector Ag Innovation and Technology Transfer | Linda KullDirector Industry Relations | Jayma Appleby

The Illinois Soybean Growers is owner of Illinois Field & Bean, a publication for Illinois soybean farmers, designed and written to provide timely and useful industry information. Illinois Field & Bean is published eight times a year by the Illinois Soybean Association, 1605 Commerce Parkway, Bloomington, IL 61704. For address corrections, contact Illinois Field & Bean at 1605 Commerce Parkway, Bloomington, IL 61704. Phone 309-663-7692. Web address: www.ilsoy.org. Email: sunderwood@ilsoy.org.Comments and statewide news articles should be sent to the above address. Advertising space reservations must be made by the first of the month preceding publication. In consideration of the acceptance of advertisement, the agency and the advertiser must, in respect of the contents of the advertisement, indemnify and save the publisher harmless against any expense arising from claims or actions against the publisher because of the publication of the content of the advertisement.

FOR ADVERTISING INFORMATIONMatt Herman Advertising Sales ManagerPhone: (612) 812-5833 Email: Matt.Herman@DTN.com

PERSPECTIVE

ISA Vision Reflects Risk Management Importance

The Illinois Soybean Association’s (ISA) vision is to enable Illinois soybean producers to be the most knowledgeable, sustainable and profitable in the global marketplace. To accomplish this task, risk management has to be a priority in our long-range strategic plan.

When I consider risk management, the first thing I think about is pricing my crops and controlling my costs. But risk management is much more.

USDA acknowledges uncertainties inherent in weather, yield, government policies and global markets contribute to our risk. Below are five general types of risk USDA identifies followed by key points from ISA’s strategic plan that shows how we are addressing risk management.

• Production risk derives from uncertain natural crop growth. Weather, disease, pests and other factors affect both crop quantity and quality. ISA’s goal is to optimize farmer profitability through yield and sustainable production practices.

• Price or market risk refers to uncertainty about prices producers receive for commodities or pay for inputs. ISA’s goal is to promote preference of Illinois soy for export markets, biodiesel and animal agriculture. We ensure Illinois soybeans and soybean products reach their intended destinations efficiently.

• Financial risk results when the farm borrows money and must repay debt. This includes rising interest rates and restricted credit availability. ISA’s goal is to optimize farmer profitability through business management.

• Institutional risk results from government actions. Tax laws, regulations and support payments are examples of decisions that have a major impact on the farm business. We expand the influence and reach of ISA through member, corporate, industry and advocacy efforts that positively impact Illinois soybean farmers.

• Human or personal risk refers to health or personal relationships that can affect the farm business, like accidents, illness, death and divorce. While not a specific point in our strategic plan, ISA recently established a health insurance task force to speak to this challenge.

You can read more about these and other areas of risk management in this issue of the magazine. We look at everything from change management to crop insurance to succession and self-employment. Consider this January edition a business management guide for your 2019 season. ■

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Hopefully, readers have noticed the last three issues of Illinois Field & Bean took on a new look as well as a new content focus. With the start of calendar 2019, we also have a new name. Soy Perspectives better reflects our efforts to be thought leaders within the agricultural sphere and address tough topics that generate discussion and change. Let us know what you think! Send me an email with your feedback about the new look and fresh content at ilsoy@ilsoy.org.

New Year, New Name

RISK MANAGEMENT AND YOUR DATA

OUTSIDE PERSPECTIVE

> BY ANDREW SELCK

Andrew Selck is a senior manager in Ernst & Young LLP’s (EY) consulting practice and a member of EY’s Global Agribusiness Center where he leads its focus on digital agriculture. He has authored numerous whitepapers and spoken at industry conferences on the topic of digital agriculture and its transformative effects. The views expressed are those of the author and not necessarily those of Ernst & Young LLP or other members of the global EY organization.

Over the past century, the complexities of running a successful farming operation have evolved significantly. Adoption of sophisticated machinery, new fertility methods, and improved hybrid seed traits have required farmers to embrace new practices and technologies.

Whether it’s equipment management, soil conservation, or purchasing inputs, farmers understand the important role of asset management in a successful operation. Assets can drive productivity and profitability, but also can be a liability that carries risk.

As we enter the era of digital agriculture, farmers now have another important productive asset and risk to manage: their data. Farmers can take steps to protect and manage their valuable data.

Step 1: Find your data. The first step is to create an inventory list of all data and where the data reside. Farm data will usually fall into three categories: agronomic, operational and financial. Identify where the data are stored, which may include multiple locations. You might have yield data on an SD card, your equipment provider’s cloud solution, and with your agronomist.

Finally, explore the various ways in which your data can unlock new tools to help you manage risk. Crop insurers look to leverage your field data to assist in the underwriting and claims adjudication process, while exciting investments from crop input companies leverage data to offer you innovative risk management tools. Data is your newest asset to manage and protect. ■

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STEP 1: FIND YOUR DATA. The first step is to create an inventory list of all data and where the data reside. Farm data will usually fall into three categories: agronomic, operational and financial. Identify where the data are stored, which may include multiple locations. You might have yield data on an SD card, your equipment provider’s cloud solution, and with your agronomist.

STEP 2: SECURE YOUR DATA. While most farmers are careful to protect sensitive financial data, many neglect the security of their agronomic and operational data. Passwords and encryption are important, but managing who has access to your data is even more important.

STEP 3: RESTRICT ACCESS. Control of access is arguably the most important step to managing risk. Farmers are frequently asked for their data. Input providers, local retailers and the latest Silicon Valley start-ups all want access to all of your data.

BEFORE YOU SHARE YOUR DATA, ASK THESE THREE QUESTIONS:1. What is the value I will get by sharing my data? You

shouldn’t share data with any party if you are not clear on exactly what value you expect to receive. For example, you may want a variable rate seeding recommendation for your field.

2. What are the required data I must share to receive that value? Only provide the data that is necessary to return the value proposition. For example, if a variable rate seeding recommendation only requires access to your latest grid soil sample and previous year’s yield file, then there is no reason to send more data.

3. How does the provider make money from providing this service to me? The old adage, “There is no free lunch,” applies to digital agriculture as well. Companies, large and small, are investing millions of dollars to build and maintain these solutions. If the service is “free,” take a moment to think about how the technology provider is making money from providing you a service.

Winston Churchill once observed, “If you don’t take change by the hand, it will take you by the throat.” With rampant changes in technology, weather, markets, consumer preferences, trade and politics, how can those involved in the agriculture value chain manage change proactively so it doesn’t end up managing them?

ENGAGE AND REFRAMEMike Doherty worked as a cooperative business expert at USDA

when Vice President Al Gore undertook his famous “re-invent government” push.

As a result, Doherty went through extensive formal training to become a change management facilitator for USDA. Even then, change management was not a new idea.

“Large corporations and agencies traditionally used an old-school, top-down style, but in the 1980s and ‘90s there was a dawning realization that maybe they would be better off with a more touchy-feely approach,” he says. “Eventually, it became a whole field of study.”

Years later he still carries lessons from his experience as both a trainee and facilitator as senior economist and policy adviser for Illinois Farm Bureau (IFB).

“We, as humans, do not tend to react to change well, especially as we get older,” he says. “Going through training heightened my awareness that change is a process. There are things you can do to mitigate the downside, and it’s usually not as bad as we tend to think it will be.

“Fear is self-protective on our part. It comes about from not knowing what to expect,” he continues. “But risk can go either way: it can be positive as well as negative.”

While it’s obviously the potential for negative impacts that give change a bad name, the key takeaway from Doherty’s training was that talking it through in a group setting with all involved can have a buffering effect.

“It’s all about discussing the ‘why,’” he says, as well as anticipating in advance what issues are likely to arise as the change is implemented.

Within agriculture, he sees the communication emphasis being particularly valuable to multigenerational family businesses, since different age groups tend to see and respond to change differently. Being open to another perspective and willing to reframe how you look at something can yield breakthroughs, he points out.

BREAK IT DOWNLooking at change management as a process of walking through

a series of steps appeals to Gary Schnitkey, farm business management specialist at the University of Illinois.

“Over the last three or four years, farmers in the Midwest have moved from planting soybeans after corn to planting them before corn. That is a good example of moving from one method of operation to another in a way that requires rethinking the old paradigm,” he says.

There’s a psychological component that goes with that, he’s quick to add.

“People get in a routine. They’ve found a system that worked well for them with good results, so making a switch is hard. There is always some discomfort involved,” he says. “It’s just about getting out of that mode or attitude or belief you’ve had for a long time.”

It helps to develop some degree of comfort with discomfort and be willing to tackle it head-on. “With the reduction in returns we’re seeing, one of the things we’re going to have to do is reduce

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6 | JANUARY 2019

CHECK IN ON CHANGEThink Continual Improvement, not Change Management> BY CANDACE KREBS

our cash rent arrangements. Looking at ways to make that happen is something that can be hard to do, but it’s also necessary,” he says.

STRIVE FOR CONTINUAL IMPROVEMENTMichael Langemeier, professor of agricultural economics

at Purdue University, proposes replacing the term “change management” with the phrase “continual improvement.”

In other words, be positive and proactive rather than putting all your energy into avoiding negative outcomes.

“The idea there is to always ask ourselves, is there something we could do better next year? To do things better, do we need to learn a new skill or purchase new technology? That’s a self-evaluation we should probably put ourselves through at least once a year,” he says.

A simple tool for that is a written skills assessment. Langemeier developed checklists in key areas that include production and operations management, financial management, general business management and personal decision-making. Working through each is a way to individually or collectively identify weaknesses and skill gaps and then set goals for how to address them.

Of the four categories, Langemeier believes finance is the area that tends to be least popular and most neglected by farmers.

“I think most people would admit we could do a better job in this area, especially with the current economic climate and the size of the assets at stake. It’s obviously a more important topic than it was five years ago,” he notes.

The main tasks associated with this category are generating good financial statements, conducting routine financial analysis and budgeting effectively.

RAMP UP OR LINK UPDanny Klinefelter grew up on a farm in Illinois and started

his career in Springfield before going on to a 30-year business and academic career, mostly with Texas A&M University. He retired last year and now co-edits a web-based newsletter, Gray Hair Perspectives, targeted to bankers, farm managers and financial planners.

He’s best known for developing The Executive Program for Agricultural Producers (TEPAP) into one of the most respected farm business training programs in the country.

Being change oriented and quick to adapt are defining characteristics of the 2,500 farmer-leaders who have participated in TEPAP over the years, but Klinefelter also chose to make cultivating those traits central to his curriculum.

“People have to realize if you want to succeed, and not just survive, you have to be continually learning and making improvements. The person who enjoys that has an advantage over someone who resists change,” he says.

He recommends creating a culture of learning within a business and constantly seeking to identify possibilities that have not yet become obvious to everyone else. Spend as much time analyzing what to stop doing as evaluating new opportunities.

In the current climate, it’s especially important to find ways to get more out of the same resources, he adds. He knows farmers who have hired someone to work a second shift on the planter to double-up use of the equipment or added backhauls to their deliveries.

“A guy I know farms in 12 states. Not only does he diversify his weather risk but he can move people and equipment around seasonally to take full advantage of them,” he says.

Many farmers are also collaborating and pooling resources to get access to the best machinery, technology or management expertise.

“More people are realizing one person can’t do it all. It takes a team,” he concludes. ■

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| JANUARY 2019 7

“PEOPLE HAVE TO REALIZE IF YOU WANT TO SUCCEED, AND NOT JUST SURVIVE, YOU HAVE TO BE CONTINUALLY LEARNING AND MAKING IMPROVEMENTS. THE PERSON WHO ENJOYS THAT HAS AN ADVANTAGE OVER SOMEONE WHO RESISTS CHANGE.”

CONSULTANT DANNY KLINEFELTER

8 | JANUARY 2019

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> BY LAURA TEMPLE

While Illinois leads the nation in soybean production, it typically ranks much lower in crop insurance claims. Most Illinois producers choose federal revenue protection for soybeans, according to USDA Risk Management Agency (RMA) data, but early 2018 reports showed claims on only eight percent of soybean acre policies.

With thin profit margins projected for the near future, is crop insurance a place to trim costs? Insurance and risk management experts advise critical analysis before answering that question.

“Risk management is a long-term strategy,” says Don Preusser, president of Precision Risk Management, LLC, a federal crop insurance provider based in Sioux Falls, South Dakota. “Producers shouldn’t consider insurance a single-year expense. They should plan and customize crop coverage to fit their overall, long-term risk tolerance, accounting for factors across their entire operation that change over time.”

Federal crop insurance provides a base for risk management, covering yield and price volatility.

“Crop insurance premiums should be considered an annual known loss in exchange for an unknown future loss in size or timing,” explains Ken Harrison, risk management consultant with Sheer Simplexity, Inc., based in Overland Park, Kansas, who has past experience with the RMA. “With the 2014 Farm Bill, Illinois soybean producers pay about 40 cents for every dollar of federal crop insurance with subsidies covering the other 60 cents. Illinois may get less compared to other states based on claims, but that’s a good deal to protect against losses.”

EVALUATE RISKPreusser and Harrison recommend honest farm risk analysis to

develop the best risk management approach for any operation. “Start with a financial balance sheet analysis,” recommends

Preusser. “Where is money spent? What capital and income levels need to be protected? Then choose insurance and risk management strategies and products that align with those needs.”

Harrison stresses the importance of understanding insurance. “Ask how effective federal crop insurance is relative to farm risk,” he says. “Producers should analyze how their farms behave relative to the RMA program, which calculates coverage using 10 years of individual farm yields times chosen coverage level. In recent years, yields have generally exceeded 10-year averages.”

Harrison points out that crop insurance claims are greater in southern Illinois compared to the rest of the state. That impacts federal calculations done at the county level, varying benefits of the program depending on farm location.

“Calculate odds for various risks and the losses the operation can bear,” Harrison continues. “Remember that production agriculture losses add up quickly.”

Both specialists note countless factors figure into risk evaluation, from soil type and crop production management, to market demand and geopolitical affairs.

Layering precision production data and controllable decisions like variety selection with unpredictable factors like weather and global demand clarifies the picture of risks to manage.

“When evaluating risks, make sure to account for current yields,” says Harrison. “Soybean yields were stagnant for years, but recently they have been increasing, especially in Illinois. A 10-year history may not reflect current expectations.

“Then ask what the biggest risks are, and consider supplemental

Managing farm risk starts with crop insurance, but savvy managers look deeper

COVERED

“Data availability will change everything. The abundance of farm-level and aggregated data will allow for deeper understanding of risk probabilities. And from that, new business models for risk management will emerge.”

KEN HARRISON, Sheer Simplexity, Inc.

“Precision farming technology is now helping set the stage for crop insurance to change. Digitized agricultural data may soon provide the ability to provide a farmer with a customized insurance product that reflects their unique farming operation and management practices with precision pricing of solutions calculated to reflect individual farmer risk.”DON PREUSSER, PRECISION RISK MANAGEMENT, LLC

WHAT DO AG TECHNOLOGY AND PRODUCTION MANAGEMENT ADVANCES MEAN FOR FUTURE RISK MANAGEMENT?

| JANUARY 2019 9

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options that address them,” he continues. “For example, some producers need crop insurance to manage operating loan risk.”

REDUCE RISKAccurate evaluation identifies areas where risks – and

coverage needs – may have decreased. “Over time, producers have adopted technology, business

and agronomic management practices that improve production,” says Preusser. “As they make investments that may reduce risk, insurance coverage should be adjusted to align insurance expense with exposure.”

He offers well-maintained or new equipment as one example, because risk of breakdowns during optimal planting and harvest windows decreases.

“Forward contracting soybeans can also manage risk because it locks in the price,” he says. “And, coverage is available in case production doesn’t fill the contract.”

The bottom line?“Don’t guess on crop insurance needs,” says Preusser.

“Set a strategy, understand how to manage and reduce risk through operational practices while consistently evaluating and executing the business plan.” ■

FARM OPERATION FACTORS FOR RISK MANAGEMENT ANALYSIS

PRODUCTION

PROFIT

INPUTS MARKETING

SOURCE: KEN HARRISON

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The Legal TutorialIssues That Should be on Every Producer’s Radar in 2019

> BY KATHY MEYER

10 | JANUARY 2019

“Farmers need a three-prong approach to manage legal issues, and give thought to how these three aspects work together.”Cari Rincker, Rincker Law, Champaign, Ill.

ESTATE PLAN. Legal documents should include a last will and testament with advance directives and power of

attorney. It’s needed not only upon death, but also when someone is incapacitated. It’s quicker, easier and less expensive than to have a guardianship proceeding.

SUCCESSION PLAN. Document how the farm will transition from one generation to the next (see related story page x). Develop an operations manual that guides new roles. Include vendors, phone numbers and other information needed to make all decisions.

BUSINESS PLAN. A trust is often a recommended legal device because it bypasses probate, which can stall transitions for six to 12 months. A trust insures estate matters remain private. Without a legal plan, an estate that goes into probate court is public information.

IN A NUTSHELL. Get all agreements and plans in writing. Draft legal documents, ask for contracts, document buy-and-sell decisions. Oral agreements can cause problems and misunderstandings.

“We live in an age with complex genetics and crops. To avoid problems, communicate with your neighbors to learn what they’re growing and the pesticides that can be safely used nearby.” Todd Janzen, Janzen Ag Law, Indianapolis, Ind.

WHAT’S UP WITH NEIGHBORS. Share crop plans and visit https://fieldwatch.com/. FieldWatch provides information about

specialty crops and nearby beehives to help avoid disputes.

CONTRACT THIRD-PARTY APPLICATORS WHEN IN DOUBT. Hire custom spray applicators with a contract that assumes liability for any negligence or wrong-doing. The more complex the cropping scenario, the easier it is to shield against liability by engaging a third-party applicator. Keep easily accessible records and substantiate everything planted and applied.

SECURE LAND LEASES AND LINES OF CREDIT. Have a written agreement with landlords and provide information they need to feel secure about management. Don’t wait to talk to a banker when you sense trouble on the horizon – even though it may be a tough discussion.

“Don’t let legal requirements fall off the radar. You can get into the weeds quickly.”Tiffany Lashmet, Texas A&M Extension

ENVIRONMENTAL PROTECTION AGENCY (EPA) DICAMBA EXTENSION AND NEW LABEL REQUIREMENTS. Become familiar with changes for 2019. One key difference: only those with certified training can apply dicamba. Previously, if an application supervisor took the training, it was enough. “I urge applicators to not simply go through the motions to obtain the Continuing Education Unit credit. Note critical changes and prepare to implement,” she says.

EPA DEFINITION OF U.S. WATERS. EPA is expected to publish a new definition and take comments in 2019. “This legal definition requires

federal permits for some actions taken on private property, including certain discharges and activities involving moving dirt. The scope of federal jurisdiction related to water is important to all landowners. In Illinois, the 2015 definition is in effect, yet farmers need to watch it in 2019,” she says.

COMMERCIAL HAULING REGULATIONS. The Federal Motor Carrier Safety Administration (FMCA) established new rules of commercial truck hauling that may require an electronic logging device. These new regulations may affect farmers’ trucks used to haul grain, livestock, fertilizer and other agricultural property. Currently, there’s an exemption in place making an electronic logging device requirement inapplicable to livestock, but that could change in 2019.

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From promoting the profitability of using high-quality soybean meal in India to training animal producers on nutrition in Colombia, the soy checkoff is working behind the scenes to develop more market opportunities for U.S. soy. We’re looking inside the bean, beyond the bushel and around the world to keep preference for U.S. soy strong. And it’s helping make a valuable impact for soybean farmers like you.

See more ways the soy checkoff is maximizing profit opportunities for soybean farmers at unitedsoybean.org

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Brought to you by the soy checkoff. © 2018 United Soybean Board. Our Soy Checkoff and the Our Soy Checkoff mark are trademarks of United Soybean Board. All other trademarks are property of their respective owners.

IL AD_8.25 x 10.75_11-8-18.indd 1 11/8/18 8:53 AM

Succession success — have those two words become an oxymoron like jumbo shrimp or small crowd? What stands between farmers and a smooth transition of ownership from parents to children? The list of possible answers is long, but experts often point to differing generational mindsets as one of the most significant obstacles to a successful plan.

The Pew Research Center defines millennials as those born between 1981 and 1996. Since the oldest millennials are now well into their thirties, the time is now to start addressing generational mindset gaps. Failure to account for the unique perspectives and life goals of millennials could put owner-parents at a distinct disadvantage when putting together a plan that will ultimately benefit everyone in the family.

WHAT ARE MILLENNIALS THINKING?While generalizing about millennials — or any other generation

— brings inherent risks, understanding unique mindsets can make it easier to map a seamless transition.

“Millennials are motivated in general terms less by a desire to build up assets and a balance sheet than previous generations. Material things simply aren’t as important to them, at least not in the same ways,” says Mark Shiller, succession planning expert, Certus Legal Group in Milwaukee.

At the same time, Shiller cautions, “It’s important not to characterize millennials as lacking an entrepreneurial spirit. There are plenty of hard-working, entrepreneurial-minded millennials.”

The way each generation views the business of farming may also be shifting. “Agriculture has always been a handshake culture.

The younger generation tends to view it as more of a business that just so happens to be a farming business. For them, contracts must be written like in any other business, says Cari Rincker, Illinois attorney specializing in agricultural estate planning.

As field sensors, imagery and other sophisticated tools continue to make inroads on farms, Rincker also sees a greater comfort among millennials with all forms of technology.

“In the last five to 10 years, there has been an uptick in young farmers wanting to get involved in the family farm. I think farming is becoming cool again. Consumers are feeling more connected and aware of where food comes from. A lot of young farmers are wanting to get involved in social media and really tell their stories to consumers,” says Rincker.

Erin Herbold-Swalwell, succession planning expert with Brick Gentry LLC in Des Moines, echoes this sentiment.

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> BY BILL STADICK

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ESTATE PLANNING AND THE MILLENNIAL MINDSET

SUCCESSION Success

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“The tech-savviness of millennials can create a generational gap since available technology resources have changed drastically, even in the last five to 10 years,” she says.

In addition, Herbold-Swalwell observes millennials can be more risk-averse than their parents and may require coaching to help them understand how to weather the ups and downs of the farm economy. She recommends Iowa State University’s Ag Decision Maker website as a valuable resource to help risk-averse millennials understand what farm ownership might entail.

“In farming, we know there will be times when you need to take significant risks. Now that we are going through a downturn in the farm economy, it’s interesting to consider that many millennials are now experiencing for the first time what the older generation lived through in the 1980s. I think that’s something the older generation doesn’t always consider,” she says.

“WE’LL TALK AFTER HARVEST”What proactive succession planning steps should families take to

work through potential differences in motivation and long-term life goals or to align perspectives on technology and risk? How can they bridge generational gaps and smooth the entire process?

The first step is both deceptively simple and extremely difficult: Do something.

“Too often the traditional ‘plan’ is to put one’s head in the sand and hope it all works out — and you can tell this is a bad idea by the failure rate of succession planning,” Shiller says. “It’s best for the senior generation to initiate the conversation because it could come across as presumptuous for the younger generation to take the lead.”

While the process may seem overwhelming, it’s important to have crucial conversations early and often to determine how things will inevitably change as the younger generation gets more involved. “The plan is always to talk after harvest, but then it’s the holidays, and then life gets busy all over again,” says Herbold-Swalwell.

This rings true to Rincker’s experiences as well. “People will come up to me at cattle shows or agriculture fairs and say they need to do this [planning] and then I don’t hear from them for a few years. Nothing feels urgent,” she says, suggesting families treat succession planning like any other business deadline and put a date on the calendar.

A MEETING OF THE MINDSETSAfter the initial conversation, the experts suggest tapping into

several resources for help bridging any potential generational divides. Rincker encourages families to talk to the professionals they’re

already working with, such as accountants or financial planners, and look for transition guidance from Extension education or various non-profit and for-profit groups.

Three distinct, but overlapping, disciplines — estate, succession and business planning — must all work together if a family hopes to overcome generational challenges and achieve succession success. At any given time, one of these disciplines could affect the others. Examples include estate tax law changes or significant family life events, such as marriages, divorces or births.

Finally, Rincker adds families should never view the succession planning process as one-and-done. “I encourage clients to look at the estate plan and its interplay with the other two every three to five years or whenever there’s a significant change, including land sales,” she says.

These reviews also have the benefit of continuing the conversation about potential generational mindset differences. If significant issues remain, Rincker says families can use ag mediators to help families work through potentially awkward conversations among different generations.

REACHING SHARED GOALSIs succession success an oxymoron? Will a generational divide

between millennials and their parents stand in the way of smooth transitions of ownership?

According to Herbold-Swalwell, this doesn’t need to be the case. “Millennials are very thoughtful about how they want to live their lives and what quality of life they want. And while the millennial mindset may be different in many ways, the goal of making sure the farm stays in the family is often the same,” she says. ■

| JANUARY 2019 13

USEFUL SUCCESSION PLANNING RESOURCES FOR MILLENNIALS AND THEIR PARENTS

• AgLaw Today Podcast on Agricultural Mediation Programs: https://youtu.be/3GZhVyULQA4

• AgriLegacy Farm Legacy Questionnaire: https://agrilegacy.com/

• Iowa State University Ag Decision Maker: https://www.extension.iastate.edu/agdm/

• Transfer and Estate Planning, University of Minnesota Extension: https://extension.umn.edu/business/transfer-and-estate-planning

I WORK FORAN IDIOT

> BY JOY BENNING

Ask any producer why they farm, and a common response is, “I get to be my own boss.” That begs the question – are you a good one? It’s a fair question, especially in this industry. Roughly 160 farm

businesses have closed their doors every day for the last 83 years, as the number of farms dropped from 6.8 million in 1935 to 2.05 million today, according to the USDA Economic Research Service.

In fact, today’s average producer, who makes up a mere two

percent of the U.S. population, has survived one, possibly two (depending how you view 2018) farm crises, the worst financial collapse since the Great Depression and major trade wars affecting agricultural goods.

So, how do you maintain rights to that #1 Boss coffee mug and continue to thrive in a seemingly cut-throat industry? By wising up, successfully navigating three major risks to self-employment.

14 | JANUARY 2019

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Tips for navigating the perils of self-employment

NUMBER CRUNCHING > TAXESFor business owners, taxes can be overwhelming and time-consuming. On top of that, there are many farm-specific rules that don’t apply to other industries, leaving room for missed opportunities, says Paul Neiffer, CPA with CliftonLarsonAllen (CLA).

“Most producers try to get income to $0 — or even less — because they think that’s best,” he adds. “However, at that point, there are several credits you can’t take advantage of. Having some income allows you to, at the very least, soak up the 10 percent income tax bracket, which will likely never be that low again.”

BOSS TIP: TAKE ADVANTAGE OF THE 10 PERCENT TAX BRACKET TO OPTIMIZE TAXABLE INCOME.

SELLING YOUR PRODUCT > SCENARIO PLANNINGWhen it comes to crop marketing, the producer can often be his or her own worst enemy.

“When do I pull the trigger?” “Am I selling too soon?” Markets can be unpredictable, leaving producers to ask these questions. That’s why Naomi Blohm, senior market advisor with Stewart-Peterson, recommends producers take the time to scenario plan.

“It can be an hour or less a week — read market news, brokerage newsletters and other content that’ll help you answer the question, ‘What could make the market change?’” she says.

Taking emotion out of the process, applying critical thinking and understanding tools available makes producers smarter about navigating the art and science of marketing their own product.

BOSS TIP: WINTER IS A GREAT TIME TO GET CURRENT ON MARKETS. DO SCENARIO PLANNING FOR 2019.

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HR MANAGEMENT > EMPLOYEE ON-BOARDINGA farm operation is only as good as its people, which is why HR management shouldn’t fall to the backburner. Every small business owner — whether in agriculture or another industry — faces universal challenges in people management, says Laura Backe, HR director for MRA — The Management Association, an employers association in the Upper Midwest.

“Business owners are smart to take notice of what happens between hiring and separating employment with an employee,” she says. “The biggest HR mistake I see is owners not giving feedback to underperforming employees and letting them languish. That’s bad for business.”

Regardless of the business size, business owners should have an on-boarding process, adds Backe, including necessary documentation and orientation to how the business runs.

“That holds true for a family-owned business,” she says. “Employed family members should understand the vision for your business and how they can help you succeed in the day-to-day.”

BOSS TIP: CHECK IN WITH NEW EMPLOYEES AFTER A FEW WEEKS TO ASK HOW IT’S GOING, IF IT’S WHAT THEY EXPECTED AND WHAT MORE THEY NEED TO KNOW. THIS WILL PAY OFF IN THE LONG RUN

– BOTH IN EMPLOYEE PERFORMANCE AND SATISFACTION.

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> BY LAURA TEMPLE

“Do I haaaave to?”Such whining commonly is associated with kids avoiding

homework or cleaning their rooms. But business owners and leaders — including those in agriculture

— often broadcast slightly more professional complaints with the proposal and implementation of new regulations.

Agriculture receives its fair share of regulations from the U.S. Department of Agriculture (USDA), Food and Drug Administration (FDA), Environmental Protection Agency (EPA) and other government agencies. These regulations come with good reasons to protect public interests, like food safety and resource conservation. But over-regulation is a common concern.

“Regulations provide certainty, a playbook or rulebook for agriculture to follow,” says Roger Bernard, senior policy analyst for IEG Vantage. “The industry needs regulations to make sure common sense is followed in areas like food safety, personal and worker safety and environmental safety. They prevent a patchwork of practices that can lead to less-than-desirable outcomes and uncertainty. Concern grows when regulations go beyond common sense.”

Many in agriculture anticipated regulatory relief under the Trump administration. One of the first executive orders issued instructed agencies to examine their regulations and determine what was needed and what could be rolled back.

“I’ve observed that over time the regulatory pendulum swings back and forth, sometimes toward more regulations, then back toward less regulations,” Bernard says. “In recent years, agriculture identified

regulations and their costs among their biggest challenges. The current administration definitely is moving toward fewer regulations that impact the cost of doing business, and that’s one reason it has received strong support from a significant segment of agriculture.”

But when asked about the impact of this approach on agriculture, many voices in this article choose to focus on voluntary efforts that address issues under regulatory scrutiny in ways that support their business and underlying goals.

“I consider agricultural producers the first environmentalists,” Bernard explains. “Farmers and ranchers need healthy soil and clean water to produce the food and fiber that supplies the country. They voluntarily identify ways to benefit their operations and profitability.”

The Illinois Nutrient Loss Reduction Strategy exemplifies the flexibility of voluntary efforts compared to regulations. This strategy outlines best practices to help Illinois producers reduce nutrient runoff from their fields and encourages adoption of those that best fit each field, according to the Illinois Council on Best Management Practices (CBMP). Many Illinois agricultural organizations support this approach over state or national regulations.

It’s an approach that resonates throughout agriculture. Perspectives from four diverse producers and ranchers about regulations and voluntary efforts uncover similar themes where agriculture and public interests intersect.

REGULATORYControlled or directed by a law, rule or other order prescribed by authority.

VOLUNTARY Done, brought about, or undertaken of one's own accord or by free choice.

REGULATION REVOLUTION

Navigating the Fine Line Between Laws and Voluntary Action

| JANUARY 2019 17

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ONGOING IMPROVEMENT

Maria Cox raises soybeans, corn, cattle and hay near White Hall, Illinois. She joined the family farm as the sixth generation after

college and a few years of off-farm experience. She asks questions about management practices and requirements to figure out ways to improve the farm.

On Regulations“We use management practices that we believe will be best for our farm – not because of regulations. Curiosity and desire to continuously better care for our land while maintaining profitability drive changes on our farm more than regulations.”

On Voluntary Efforts“We use cover crops to manage erosion and improve soil structure. We have much less nutrient runoff, and we haven’t seen any decrease in our cash crop yields. It’s been exciting to try new things and find what works best for our soil types and hilly ground. But our focus is improving our land and production.”

ESTABLISHING AND UPDATING SCIENCE-BASED REGULATIONS

David Eliason, president of the Public Lands Council and fourth-generation commercial cattleman from Snowville, Utah, runs cattle on Bureau of Land Management and Forest Service allotments. He sees many conflicts between agriculture and public interests, with regulations at the center.

On Regulations“Regulations need to be balanced and based in science. The current system allows them to be weaponized and used against agriculture, allowing judges and popular opinion to have more weight than science. Efforts to modernize key regulations, like the Endangered Species Act, benefit everyone and provide opportunities for collaboration. For grazing, red tape and rules put people out of business, but rollbacks of regulations have been successful.”

On Voluntary Efforts“Take care of the land, and the land will take care of you. Often what is best for the land is also best for agriculture. For example, grazing manages plant biomass to help reduce potential fuel load for wildfires. We would value freedom to find win-win solutions like this on public land.”

ENSURING FOOD SAFETY

Cecil Pratt raises a wide variety of high-value irrigated vegetable seed crops, cotton and cattle near Yuma, Arizona. He also is on the county Farm Bureau board and teaches high school agriculture.

On Regulations“Food safety comes with regulations intended to protect health. For example, FDA regulations provide a foundation to look at the source of E. coli outbreaks. Issues like this can come from both places we can control and places we can’t, but their findings can help farmers improve where we can.”

On Voluntary Efforts“We choose management practices that make sense for our business — and food safety. Planting crops that animals like at the edges of our fields helps keep wildlife that could carry pathogens out of our high-value crops.”

CONNECTING ECOLOGY AND AGRICULTURE

Eric Mader farms in Washington state and works as the pollinator conservation co-director for the Xerces Society for Invertebrate

Conservation, an international non-profit organization. He works with farmers to find a balance between species protection and productive farming.

On Regulations“Regulations like those drawn from the Endangered Species Act have benefits and put a process in place to address complex issues. For example, declines in insect populations mirror declines in wildlife populations and biodiversity around the world. Agriculture is part of the reason, with use of insecticides and habitat loss to production.”

On Voluntary Efforts“Showing clear economic benefits and return on investment for conservation practices that integrate conservation and restore biodiversity encourages farmers to participate in voluntary efforts. Wildlife benefits farms in several ways, including pollination, weed suppression and pest control. For example, our research documents how natural pollinator habitat increases yields.”

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FUNDED BY THE ILLINOIS SOYBEAN CHECKOFF

© 2018 RedEagle International LLC. Always read and follow label instructions.Valor is a registered trademark of Valent USA Corp. Envive and Enlite are registered trademarks of E. I. du Pont de Nemours and Co.

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ingredients, like Valor® XLT, Envive® and Enlite®. But the market doesn’t reward that. No matter what price beans fetch in the market, they still need a premier, residual dual mode-of-action treatment that can knock out tough, often resistant weeds right from the start. RedEagle’s Flu- Rimuron also has more residual herbicide per ounce than Envive® or Enlite® so you can pay less per ounce and get more residual herbicide.

Wouldn’t you rather save several dollars per acre using the same combination of two proven pre-emergence, residual herbicides with different modes of action? Can you afford not to do it? The choice is yours, so ask your dealer for RedEagle’s Flu-Rimuron. Or send us a note at info@redeagleinternational.com and we’ll put you in touch with someone who will help you get Flu-Rimuron.

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| JANUARY 2019 19

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Illinois Soybean Leaders Elected to National Biodiesel Board

Illinois soybean producers Jeff Lynn and Rob Shaffer were recently elected to the National Biodiesel Board (NBB). As governing body members, Lynn and Shaffer will serve two-year terms, working to secure strong markets for biodiesel fuel made from soybean oil. Current ISA director Lynn from Oakfield, Ill., and past ISA director Shaffer, El Paso, Ill., come on to the board as fellow Illinois farmer leader Mike Cunningham retires as vice chairman of NBB.

STC Explores Innovative Containerized Shipping Option for Inland Waterways

A new maritime vessel offers potential to transport soybeans via shipping containers along the nation’s inland waterway system to the Gulf of Mexico. If realized, the new supply chain will enable farmers and local elevators to more directly access international customers.

American Patriot Holdings, LLC (APH) developed the vessel, which can transport 2,375 twenty-foot length containers (TEUs) traveling 13 miles per hour with virtually no wake – mitigating shoreline erosion. A traditional barge flotilla travels upriver at four to five miles per hour.

The Soy Transportation Coalition (STC) has released a report by Informa Economics IEG, comparing the cost, speed and quality preservation of the vessel to currently used container options and found up to a 45 percent cost savings and up to a 14-dsay shipping advantage. The analysis builds upon earlier research commissioned by the ISA checkoff program.

CFI Coalition for Responsible Gene Editing Introduces New Resources

The Center for Food Integrity (CFI) Coalition for Responsible Gene Editing in Agriculture has created communication resources to help those researching, developing and using the technology support an informed dialogue about gene editing in food production.  The materials provide guidance on how to convey the benefits and science in a meaningful way and include links to additional communication resources: websites, videos and blogs.     

 The Coalition collaborated with universities, associations and others conducting research on consumer perceptions about gene editing. To download the resources, visit foodintegrity.org. The ISA checkoff program partners with CFI in educating consumers about food issues.

PARTNER NEWS

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New Metrics Available to Quantify Farm Stewardship

Field to Market: The Alliance for Sustainable Agriculture and Land O'Lakes SUSTAIN are integrating the latest version of Field to Market's Fieldprint Platform with the Truterra Insights Engine. The integration of Field to Market's sustainability metrics provides crop producers and the supply chain with a way to assess sustainability performance and document and demonstrate stewardship at the field level. The Fieldprint Application Programming Interface (API) will connect eight sustainability metrics and associated algorithms from the platform to the Truterra Insights Engine, so farmers can gauge management practices against regional, state and national benchmarks for key indicators. The ISA checkoff program is a Field to Market supporter.

Commodity Leaders Join Forces on Sustainability Research

The National Pork Board (NPB), United Soybean Board (USB) and National Corn Growers Association (NCGA) have announced a sustainability research platform that will benefit all three organizations and their producers. The program will include sharing completed research, coordinating current and planned research and defining ways to share and communicate results with each organization’s members. Through combined efforts and outreach, the organizations hope to increase the education, capacity and motivation of farmers to adopt conservation measures that deliver benefits to the environment and to farm resilience and profitability. A task force of farmer representatives will be formed and responsible for managing and evaluating activities, tracking progress and evaluating value and impact upon completion.

2019 National Biodiesel Conference> January 21-24 • San Diego, CA

ILSoyAdvisor Soybean Summit> February 5 • Springfield, IL

ISA Meeting> February 11-13 • Bloomington IL

Commodity Classic> February 28-March 2 • Orlando, Fla.

Calendar of Events

Whether shipping by river, road or rail, the soy checkoff is committed to ensuring America’s infrastructure is a significant advantage for U.S. soybean farmers. We’re looking inside the bean, beyond the bushel and around the world to keep preference for U.S. soy strong. And it’s helping make a valuable impact for soybean farmers like you.

See more ways the soy checkoff is maximizing profit opportunities for soybean farmers at unitedsoybean.org

MAINTAINING OUR REPUTATION

TO DELIVER

unitedsoybean.org

Brought to you by the soy checkoff. © 2018 United Soybean Board. Our Soy Checkoff and the Our Soy Checkoff mark are trademarks of United Soybean Board. All other trademarks are property of their respective owners.

IL-57247 Checkoff Education Ads 8.25 x 10.875.indd 2 10/23/18 3:02 PM

Whether shipping by river, road or rail, the soy checkoff is committed to ensuring America’s infrastructure is a significant advantage for U.S. soybean farmers. We’re looking inside the bean, beyond the bushel and around the world to keep preference for U.S. soy strong. And it’s helping make a valuable impact for soybean farmers like you.

See more ways the soy checkoff is maximizing profit opportunities for soybean farmers at unitedsoybean.org

MAINTAINING OUR REPUTATION

TO DELIVER

unitedsoybean.org

Brought to you by the soy checkoff. © 2018 United Soybean Board. Our Soy Checkoff and the Our Soy Checkoff mark are trademarks of United Soybean Board. All other trademarks are property of their respective owners.

IL-57247 Checkoff Education Ads 8.25 x 10.875.indd 2 10/23/18 3:02 PM

| JANUARY 2019 21

VOICE FOR SOY

A Look to the116th Congress

The last few months of 2018 were filled with numerous policy debates that affect agriculture, including trade, immigration, taxes and, of course, the farm bill. The 115th Congress still had a few outstanding issues to tackle last month during the lame duck session. And with so many items up in the air, it is difficult to predict what next steps will be.In positive news for farmers, the 2018 Farm

Bill was passed in December. The Senate overwhelmingly voted for passage with an 87-13 vote, which was the largest margin of support for a farm bill. The next day, the House easily passed the bill with a vote of 369-47, with the entire Illinois delegation voting yes. The bill then moved to the President’s desk for signature.With the farm bill now complete, the 116th

Congress and, specifically, the Agriculture Committee will shift focus to farm bill implementation. Other priorities for the year could include Commodity Futures Trading Commission (CFTC) reauthorization, a review of checkoffs and market access programs and dietary guidelines oversight.The 116th Congress formally convened on

January 3. Washington, D.C., will once again see a divided government, as the Democrats control the House and Republicans control the Senate.

Each will immediately begin re-organizing their committees and leadership ranks. In the Democratic House, the agenda likely will be dominated with oversight hearings. Other issues to tackle include ratifying the

U.S.-Mexico-Canada Agreement (USMCA) and addressing the steel and aluminum tariffs and retaliation by Mexico, Canada and China. Other large issues include immigration, healthcare and debt limit suspension, which ends March 1. In the Senate, nominations and confirmation

hearings will continue, as numerous Cabinet members are expected to leave. Last Congress, 55 percent of all Senate roll call votes were on confirmations, which only detracts from other legislative business. Though 18 months away it is important to

mention that conversations, as well as schedules, will be dominated by an increase in attention on the 2020 Presidential elections. The first democratic primary debate is set for early spring of this year. With a unique policy environment and year

ahead as a backdrop, I want to reiterate the importance of the role Illinois Soybean Growers plays on behalf of producers. What happens in D.C. ultimately impacts the way business is done. We will ensure your voice is heard in 2019.

ISG POLICY SESSIONAll ISG members are invited to attend the ISG

Policy Session Tuesday, Feb. 12, 2019, at the ISA office located at 1605 Commerce Parkway, Bloomington, IL 61704, from 2 p.m. to 4 p.m. The purpose of this session is to allow ISG

members and the ISG Board of Directors to review the current American Soybean Association (ASA) Resolutions for changes and amendments that will be presented at Commodity Classic in Orlando, FL on February 28-March 2, 2019.The resolutions are available for viewing

at www.ilsoygrowers.com by clicking on "Download 2018 ASA Resolutions" at the top of the home page. You may also contact Andrew Larson at larsona@ilsoy.org or at 309-808-3612 and he will email you the file.

ISG ANNUAL MEETING OF MEMBERSPursuant to Article III, Section 3, of the Bylaws

of Illinois Soybean Growers, notice is hereby given that the annual meeting of the members of the Illinois Soybean Growers will be held Thursday, Feb. 12, 2019, from 4 p.m. — 5 p.m. at the Illinois Soybean Association office located at 1605 Commerce Parkway, Bloomington, IL 61704. All ISG members are invited.   The purpose of the annual meeting is to

provide reports on association activities, approve the acts and deeds of the directors and staff, and to transact such other business as may properly come before the meeting.

DATED THIS 13TH DAY OF DECEMBER 2018

Sincerely,

> BY KERRY LYNCH, Michael Torrey Associates

Corporate PartnersEXECUTIVE> ADM

PRINCIPAL> Cargill Inc. > Monsanto/Asgrow

CORE> DowDuPont> FMC Corporation

ASSOCIATE> Syngenta> Valent U.S.A.

AFFILIATE > Rumbold & Kuhn Inc.> Compeer Financial> The Mosaic Company

SUPPORT> Big River Resources > The Andersons> Ursa Farmers Co-op> BASF> Beck’s Hybrids> Farmers Business Network> FLM Harvest > GROWMARK Inc. > Informa Economics Inc.> MorganMyers> Osborn Barr> U.S. Borax Inc.

OTHER SUPPORTERS> Farm Progress> Grain & Feed Association of Illinois> HighQuest> Mercaris> Midwest Shippers Association

To learn more information about ISA’s Corporate Partner's Program visitilsoy.org.

RICK RUBENACKER, ILLINOIS SOYBEAN GROWERS SECRETARY

“Risk specialists have traditionally focused mostly on important causes of risk such as weather, disease and natural calamities, and ways to deal with the risk. Risk management has paid little attention to human resources and human resource calamities such as divorce, chronic illness, accidental death, or the impact of interpersonal relations on businesses and families. Including human resources in risk management reflects the fact that people are fundamental to accomplishing farm goals. Human resources affect most production, financial, and marketing decisions. People can help or get in the way of accomplishing what managers have planned.”

BERNIE ERVEN ❘ Ohio State University professor emeritus

“Sound strategic planning requires assessing strategic risk, which involves the sensitivity of a farm’s strategic direction, and the ultimate vulnerability and sustainability of the farm to uncertainties in the business climate. In uncertain environments, the natural tendency is to continue down the same path we have been on and not spend much time evaluating alternatives. However, during uncertain times, opportunities often arise.”

MICHAEL BOEHLJE ❘ Purdue University ag economist

“The benefits of improved agricultural risk management are multifold. Reducing production losses helps boost productivity. Curbing volatility can help protect rural jobs, incomes and household food security. More diversified production systems and improved management of natural resources (e.g., soil, water, rangelands) can help strengthen biodiversity. By taming uncertainty, agricultural risk management also helps create a more predictable environment for investments and sustained sector growth.”

STEPHEN P. D’ALESSANDRO ❘ The World Bank ag specialist, “Why we can’t afford to ignore agricultural risk”

LEADERSHIP

“A frequent argument is that agriculture should receive favorable treatment because it is more ‘important’ than other sectors of the economy. There are claims we need subsidies for food security. These arguments likely arise due to the fact that producers provide a necessity to the public (i.e., food) but there is no real explanation though as to what problem is being addressed by the federal government that could not be addressed through private means…For policymakers to take a step back and genuinely consider why the numerous subsidies exist in the first place would be an important step in determining the proper role of government when it comes to agricultural risk. When they do, it will be clear that maintaining the status quo needs to end.”

DAREN BAKST ❘ senior research fellow in ag policy, Roe Institute for Economic Policy Studies, The Heritage Foundation, “Addressing Risk in Agriculture”

“The agricultural Internet of Things has been heralded primarily as a way to improve operational efficiencies. But in today’s environment, farms can also benefit greatly by seeing it as a tool for finding growth and unexpected opportunities. In the future, successful agriculture companies will use the IoT to capture new growth through three approaches; boost revenues by increasing production, creating new hybrid business models and exploiting intelligent technologies to fuel innovation and transfer.”

KIP TOM ❘ U.S. Representative to the U.N. Agencies for Food & Agriculture at the Forbes AgTech Indiana Summit 2018

DisruptiveInsights

| JANUARY 2019 23

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