BOARDROOM BRIEF
Greetings from the Board Room:
It’s time for toughness.
They say when the going gets tough, the tough get going. 2018 has
provided ample opportunity for Missouri’s farmers and ranchers to
exhibit their toughness! As producers we are faced with drought, low
prices, reduced yields, increased costs to maintain grazing livestock and
a rising interest rate environment. From the perspective of an ag lender
here at FCS Financial, 2018 is somewhat of a “perfect storm.”
How will you get tough? Twenty-nine years ago I asked my young bride
to make me this promise – that anytime I come in with a frown and
Kenny Bergmann, Chairman
begin to complain about how hard I had worked and what little I had
to show for the effort, that she would remind me that with just one
call to an auctioneer there would be a line of people competing to acquire my misery. She has been faithful.
Throughout the highs and lows my love of farming remains, a common bond among farmers and ranchers of
their land and lifestyle.
What does it mean to get tough? It may mean an operation needs to analyze all resources and make the tough
decision to eliminate or add an enterprise. Many livestock grazers are facing the tough choice of paying
extremely high prices for hay or changing feeding systems in lieu of partial or full liquidations. Is your genetic
investment worth the cost? Could this be an opportunity to sell older cows and firm up the genetic base? It is
times like now that should hone our focus, make us dig deep and answer the tough questions of “Why do we
do it this way?” “Do I know my cost of production?” “Do I need to farm more acres or less acres?” “What am I
willing to give up to survive?” “What must I learn to thrive?” These are a few tough questions each of us must
answer, and the answers won’t be the same for all.
Here at Valley Ridge Farms we have implemented our drought management strategy, weaning spring calves
at 350 pounds to reduce nutritional needs on the cowherd. A neighbor driving by as we moved a herd
commented that the dust cloud reminded him of an old western movie! We will begin interseeding winter
annuals and turnips in dormant cool season pastures to extend the grazing season assuming more normal
rains this fall. If drought persists we have set a date upon which to evaluate feed stocks and adjust cow
numbers accordingly, having already determined which groups leave first. Until next time,
Get Going!
Kenny
HEARTBEAT | FALL 2018 19