DOLLARS & CENTS
Views From the Road
Dr. David Kohl energizes agricultural
lenders,
producers
and
business
professionals with his keen insight
into the agricultural industry through
extensive
travel,
research, and
networking around the globe. He
is a Professor Emeritus of Agricultural
Finance
and
Small
Business
Management and Entrepreneurship
at Virginia Tech, Blacksburg, VA.
Dr. Kohl has traveled over 8 million
miles in his career and conducted over
6,000 workshops and seminars for a
variety of agricultural audiences.
Additionally, Dr. Kohl’s personal
involvement
with
agriculture
provides a unique perspective into
the future trends of the agricultural
industry and economy.
10 HEARTBEAT | FALL 2018
My intense travel schedule conducting meetings and conferences with
producers, lenders, and agribusiness and government leaders provides
a treasure chest of perspectives, observations, and actions. Agriculture
is in major transition as a result of the six-year economic reset. Given
this backdrop, let’s examine a few observations from the road that may
influence strategies and tactics as the agriculture industry knocks on the
door of the third decade of the 21st century.
During my recent visits to agricultural businesses, farms, and
ranches, I saw firsthand the power of technology and information. Typical
managers use technology and automation to replace labor; however,
better managers use the information to drive efficiency and align with
the marketplace. For example, I visited a family owned greenhouse and
vegetable processing plant that uses robotics. The investment was used
to replace labor. However, it also improved uniformity and the ability to
trace specific items that were sold to wholesale and retail markets. This
technology allowed the company to differentiate and gain an advantage in
market alignment.
Interestingly, much of the automation technology adopted by
agribusinesses originated in Europe. This type of automation has been
in place for nearly half a decade. However, the recent tariff and trade
disruptions are playing havoc on both the cost of the investment and the
ability to access the new technology.
One of the major challenges faced by the agriculture industry is
the ability to attract and retain workers. To combat this issue, some
organizations and farms are offering flexible hours, where appropriate.
Other companies have found ways to energize their workforce by
establishing job descriptions, roles, and accountability with transparency.
One observation noticed amongst the elite farms and agribusinesses was
the hands-on approach and the family like business culture as a means of
motivation. These businesses are able to maintain their culture, while still
striving to improve the bottom line.
In addition, I noticed that there was compassion and engagement
with the people at all levels in the organization. They were able to strike a
balance between the head, which represents the numbers, and the heart,
which represents passion for the business. One business that I encountered
hired and fired their employees based upon their alignment with the
company’s core values. Two longtime senior managers were dismissed
because of their lack of integrity and alignment with the core values. These
employees were destroying the culture of the workplace. In one case, the
dismissed employee was a family member.