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Sourcebook 2015 cover

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September 2015 Sourcebook

Volume: 53

Edition: 7

SPECIAL REPORT:
Do You Understand Your Customers' Challenges?

Table of Contents

Table of Contents

To The Point: Which Side of Change Will You Be On?

By Mike Lessiter posted on September 4, 2015 | Posted in Precision Ag Sales & Service

Welcome to the 2016 SOURCEBOOK. We’d be remiss here if we didn’t acknowledge the year-round effort of Directory Manager Donna Schwierske in compiling this year’s annual SOURCEBOOK for you, with even more companies, products and brand listings than last year. Despite this year’s challenges, the participation shows the keen interest of a supply base still focused on connecting with you, the foot soldiers of our industry’s innovations.

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Case Studies

How Well Do You Understand Your Customers' Challenges?

September 4, 2015 | Posted in Best Practices, Operations & Finance

You’ve heard it said a hundred times before. Farmers don’t need a supplier just for their seed, equipment or fertilizer. Suppliers defined in this way are mere silos to the farmer’s greater need for holistic, interwoven solutions. Farmers need partners who understand their business, and can leverage expertise and experience to help them accomplish the goals of their entire farming enterprise. They’re demanding it today, and will demand more of it in the future.
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Case Study 1

What is Needed in Developing a Plan for Capital Expenditures?

By Mike Wiles posted on September 4, 2015 | Posted in Best Practices, Operations & Finance

A diversified farming operation made up of two partners were committed to planning and sustainable growth. At the same time, they knew they needed a conservative long-term focus that would allow them to adjust quickly to seize opportunities when they were presented.

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Case Study 2

When Should a Renter Invest in Improving Leased Land?

By Dave Kanicki posted on September 4, 2015 | Posted in Best Practices, Operations & Finance

While farmers understand they can’t control the weather, many of them do what they can to minimize its impact. Too dry? Irrigate. Too wet? Drain it. Both of these options can be effective in improving crop yields, but, typically, they are costly options that result in paybacks that can take several years to realize.

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Case Study 3

When is Investing in a New Structure the Right Decision?

By Lynn Marcinkowski Woolf posted on September 4, 2015 | Posted in Best Practices, Operations & Finance

An operation that feeds 1,500 cattle twice a day in addition to farming nearly 2,500 acres means daily responsibilities leave little “downtime” for long-term planning. However, one father and son team sets aside time and seeks counsel each December to plan for a more efficient and profitable future. A recent long-term planning session involved analyzing the benefits of a deep bedded cattle barn.
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Case Study 4

How Can Multiple Owners Establish Future Governance & Control?

By Jaime Elftman posted on September 4, 2015 | Posted in Best Practices, Operations & Finance

We all know what happens with too many cooks in the kitchen and no recipe to follow. This is also the case for a farming operation with multiple owners and no formal plan for governance or decision making.
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Case Study 5

What Can a Farmer Do to Take the Emotion Out of Spending Decisions?

By Kim Schmidt posted on September 4, 2015 | Posted in Best Practices, Operations & Finance

Running a large-scale farm and cattle operation involves more than caring for the land and animals. It is a business operation that requires sound financial records so that decision making can be based on data rather than emotion.
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Industry Q&A

Motivating Employees During Equipment Sales Downturn

September 4, 2015 | Posted in Best Practices, Department Management

During a downturn in equipment sales like we’re experiencing now, how do you motivate your employees to maintain a sense of urgency? Do incentives work in situations like this?
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People & Profits

Assessing Leadership Talent for Growth

By George Russell and Erik Thompson posted on September 4, 2015 | Posted in Best Practices, Department Management

It’s all about people.

We hear this phrase more and more as the scale of farming and farm equipment dealerships grow. We also hear it from successful dealers who must drive change in their businesses to keep pace with changes in technology, demographics and competition.

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Ahead of the Curve: Is Your Dealership Ready for Growing Use of Cover Crops?

By Dan Crummett posted on September 4, 2015 | Posted in Niche Equipment Markets

While the use of cover crops is not new, interest in the benefits they can produce is growing. U.S. farmers are on track to plant cover crops in their normal rotations to the tune of more than 20 million acres by 2020. The interest in keeping something growing on fields year round is rooted in farmers’ search for increased yields, better management of natural rainfall, reduced soil erosion, boosting soil organic matter and better overall “soil health.”

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Business of Selling: Looking Back and …

By Dr. Jim Weber posted on September 4, 2015 | Posted in Operations & Finance

Nearly 40 years ago, I was hired by a consulting firm whose major client was International Harvester, the once venerable leader in agricultural equipment sales. This consulting firm had designed the XL program for IH that recognized and rewarded their dealer organization for implementing a series of sensible, yet stringent, operational and financial standards. The same firm conceived and implemented a training program for the IH dealer organization that was then perceived as cutting edge.

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Featured Articles

Featured Articles

Case Study 2

When Should a Renter Invest in Improving Leased Land?

By Dave Kanicki posted on September 4, 2015 | Posted in Best Practices, Operations & Finance

While farmers understand they can’t control the weather, many of them do what they can to minimize its impact. Too dry? Irrigate. Too wet? Drain it. Both of these options can be effective in improving crop yields, but, typically, they are costly options that result in paybacks that can take several years to realize.

Read More

Case Study 5

What Can a Farmer Do to Take the Emotion Out of Spending Decisions?

By Kim Schmidt posted on September 4, 2015 | Posted in Best Practices, Operations & Finance

Running a large-scale farm and cattle operation involves more than caring for the land and animals. It is a business operation that requires sound financial records so that decision making can be based on data rather than emotion.
Read More

Case Study 3

When is Investing in a New Structure the Right Decision?

By Lynn Marcinkowski Woolf posted on September 4, 2015 | Posted in Best Practices, Operations & Finance

An operation that feeds 1,500 cattle twice a day in addition to farming nearly 2,500 acres means daily responsibilities leave little “downtime” for long-term planning. However, one father and son team sets aside time and seeks counsel each December to plan for a more efficient and profitable future. A recent long-term planning session involved analyzing the benefits of a deep bedded cattle barn.
Read More
Online Extras

Online Extras

Industry Q&A

Motivating Employees During Equipment Sales Downturn

September 4, 2015 | Posted in Best Practices, Department Management

During a downturn in equipment sales like we’re experiencing now, how do you motivate your employees to maintain a sense of urgency? Do incentives work in situations like this?
Read More

How Well Do You Understand Your Customers’ Challenges?

3 Homework Questions: Case Study 1

September 4, 2015 | Posted in Best Practices, Operations & Finance

The sustainable debt load of a business depends upon its earnings. EBITDA — Earnings Before Interest, Taxes, Depreciation and Amortization — which is calculated as Operating Revenue minus Operating Expenses. EBITDA represents the money available to spend on family living, interest and debt service. When EBITDA is larger than the amount used for those items, the residual is used to “grow” equity, which could be cash in the bank or funds to purchase other assets.

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How Well Do You Understand Your Customers’ Challenges?

3 Homework Questions: Case Study 2

September 4, 2015 | Posted in Best Practices, Operations & Finance

There are 2 simple ways to do this. One is to develop a long-term lease for added security. One issue with a long-term lease, though, is that lease terms and rents tend to fluctuate much more frequently in today’s agricultural environment. It could be disadvantageous for a producer or a landlord to be locked into specific terms for many years.

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How Well Do You Understand Your Customers’ Challenges?

3 Homework Questions: Case Study 3

September 4, 2015 | Posted in Best Practices, Operations & Finance

Generally, we’ve seen similar improvements in feed efficiencies among the three main types of cattle barns — deep bedded, deep pit and hoop buildings.

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How Well Do You Understand Your Customers’ Challenges?

3 Homework Questions: Case Study 4

September 4, 2015 | Posted in Best Practices, Operations & Finance

We often encourage family business members to identify their “guiding principles” — the key elements of their philosophy and business strategy that create the culture of the organization. A few to consider are below, and I've offered an alternative perspective for each one to help push your thinking.

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How Well Do You Understand Your Customers’ Challenges?

3 Homework Questions: Case Study 5

September 4, 2015 | Posted in Best Practices, Operations & Finance

Fully absorbed means that all expenses (input costs, variable expenses and fixed costs) are taking into account including income taxes, living expenses and term principal payments.

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Finance Scope is able to provide the best financing opportunities for equipment dealers and customers through a diverse mix of lending companies under one single platform. Our large group of lenders, allows for competitive rates regardless of credit scores. Additionally, dealers and customers have access to the industry’s best expertise surrounding finance and lease structures, for all purposes, within the agricultural and construction industries. We provide all of this into one online platform to provide our customers with the best available tailored finance solution for their equipment.

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