Posts by Dr. David Kohl
Perspectives on business transition planning
A major trend in American agriculture will be the acceleration of estate and transition planning. The transfer of wealth will also be a high priority item for the general population as $68 trillion of assets and equity will transfer between 2025 to 2040. With many elderly in the demographics, the agriculture industry will be the…
Read MoreOpportunities for growth come from planning
It is amazing how time flies and seems to accelerate as one grows older. When looking out the windshield, the quarter-century mark is approaching quickly. It seems like only yesterday we were discussing preparation for Y2K when the clock was going to strike midnight and computer systems would shut down. As we approach 2025, the…
Read MoreFinancial liquidity stress test
A common theme played out over the decades is that the lack of working capital and financial liquidity is often the choke point for financial and economic sustainability. This has been observed numerous times over the years in governments, households, and businesses. The financial stress of inadequate liquidity often comes very quickly. The economic environment…
Read MoreJuggling the economic triple play
In baseball, a successful triple play only occurs when the convergence of events is navigated using precision execution. Moving to farm and ranch management, global macroeconomic, geopolitical, fiscal and monetary policies are resulting in the economic triple play. Strategic operations in an agribusiness requires one to simultaneously manage prices, costs and interest rates in a…
Read MoreManaging the economic, 3-headed dragon
The economic journey that lies ahead is going to be a three-dimensional pathway full of challenges, but also opportunities for the proactive manager. Along this journey, disrupters can occur to bottom-line profits in the form of the three-headed, fire-breathing dragon. If not properly managed, it can lead to burning through profits and cash flow, then…
Read MoreProducer tips to managing the unexpected
Rising inflation, interest rate increases, a conflict in Europe, supply chain disruptions, and shifting consumer preferences are creating an environment of unexpected consequences. Managing a farm or ranch business in an economic environment with extreme volatility can be challenging, but also opportunistic. At a recent agricultural conference, Dr. Steve Isaacs, Extension professor of agricultural economics…
Read MoreFuture uncertainty will require careful management
The financial bottom line will be a key element in any farm and ranch game plan in 2022 and beyond. While the past two years have been both financially and mentally challenging, managing through uncertainty has had a silver lining. Prices for many commodities increased dramatically prior to inflating costs, which resulted in a positive…
Read MoreA view of the farm from the road, cyberville
The song, “On the Road Again,” by Willie Nelson would be very appropriate for my summer travels engaging with producers, lenders and agribusinesses. The spectrum of audiences and events ranged from multiday young farmer and rancher conferences to lending schools, online events and the occasional strategic planning venue where I have gained new perspectives and…
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