Succession Planning

Industry Shifts: What Cattle Producers See Coming In the Next 5 Years

Wed, 02 Oct 2024 16:03:11 GMT

Editor’s Note: This article is part of the Drovers 2024 State of the Beef Industry report, which includes an exclusive survey of cattle producers and their thoughts on numerous topics of importance to the future of their operations. To download the full report, click here .

In 2023, the State of the Industry Report asked about five aspects related to consumer pressure and expectations for change in the future: environmental impact, animal welfare, sustainable practices and desire of high-quality beef. In every instance, a strong majority of producers either agreed or strongly agreed each of those items will be increasingly important in the years to come. The numbers in 2024 line up almost exactly with 2023.

The survey report summarizes it succinctly: Producers foresee continued industry change ahead, mostly driven by consumer pressure.

Drovers State of the Beef Industry 2024 Report

(Farm Journal)

Viability is Top of Mind

Despite the challenges, producers are thinking to the future with plans to add a family member and grow their herd size. In fact, 54% of producers in this year’s survey indicate they plan to add a family member to the operation (versus 51% in 2023).

Even though it doesn’t appear the business will see rapid rebuilding , there are indications many of these operations are viable and plan on remaining that way in the future. That’s certainly a sign of brewing optimism among the respondents.

Your Next Read: Are Cattle Producers Rebuilding Their Herds Now?

John Phipps: Why Water is the New Oil for Landowners

Wed, 09 Aug 2023 13:38:50 GMT

There are signs that water is the new oil.

This is a question sent in by U.S. Farm Report viewer David Marshall of Lafayette, Indiana: “You’ve covered the subject of foreign land ownership and rightly noted that it’s a very small percentage. I think the issue that we really need to address, especially in the southwestern states, is the purchasing of farmland by corporate entities that have nothing to do with farming but who solely want to obtain the water rights that the purchase of the ground includes. Their main reason for purchasing the land is to have a resource that they can sell to the highest bidder. How long before hedge funds and corporations own all the water rights and the farmer and the public are left to be the highest bidder or do without the needed resource?”

As Mark Twain said, “Whiskey is for drinking, water is for fighting”. While our arguably arcane water rights laws have provided thousands of billable hours for water lawyers in the West, I don’t think we’ve seen anything yet.

“First in time, first in line” may have seemed like a good idea centuries ago when rivers and groundwater appeared inexhaustible, the enormous use by modern agriculture - about 80% of our nation’s resources - is testing the practicality of those laws. I can’t imagine modern lawmakers reforming our laws with the needed speed, so the backup method of acquisition for water consumers is to buy the water needed from agriculture.

Bluntly put, there is a price for every gallon, and many farmers are just now realizing how extremely valuable those gallons are.

As I have argued in every land-use debate -from solar panels to suburban development - with rare exceptions due to location or unique qualities, the rights of landowners should be preeminent to allow the market to redistribute those assets.

Consider the rapidly growing cities of the Southwest, like Phoenix. Spending millions to buy water rights from nearby farmers currently growing alfalfa in the desert to feed dairy cows, when milk is being dumped in Wisconsin, looks to me like an inefficient market hampered by regulation and unable to rationally allocate assets.

Between our outdated milk pricing programs and water laws, the outcome you describe is capitalism’s way of solving a problem. Farming may always be the optimal use for our ever-scarcer water.

I think not, but I think this is a problem being solved by accountants, not lawyers.

Pasture to Plate: A Culture-Driven Beef Business

Wed, 26 Jul 2023 17:09:52 GMT

The Ducheneaux family reconnects consumers with their food source

Kelsey Ducheneaux-Scott sat on her front porch, stared out across rolling pastures and thought, “What the hell did I do?” She had just heaved box after box into freezers in the living room, kitchen and laundry room — carefully dispensing 1,700 lb. of ground beef.

Exhausted from the haul (and hoping the circuits wouldn’t blow due to strategically placed freezers) Ducheneaux-Scott couldn’t believe the sheer amount of work before her. How was she going to sell so much grass-fed burger in three months, before her next butcher appointment? Anxiety and stress seeped in during that cold March night in 2020. Little did she know how quickly that product would move.

“COVID hit and there was no beef in any of our stores,” Ducheneaux-Scott recalls. “We sold out of that 1,700 lb. in a matter of three weeks. People realized how easily local grocery stores can be disrupted here in rural South Dakota.”

(Farm Journal)

PASTURE TO PLATE

With a focus on feeding those around her, Ducheneaux-Scott is leading a transformation of her family’s operation. DX Ranch was established in the 1930s near Eagle Butte, S.D., on the Cheyenne River Sioux Indian Reservation. It began with beef cattle and draft horses.

Today, Ducheneaux-Scott and her husband, Monte Scott, work alongside her family raising quarter horses and 280 head of cow-calf pairs in a regenerative production system.

“I am a fourth-generation rancher on DX Ranch, and I’m the 125th generation to steward this landscape,” Ducheneaux-Scott says. “We’ve focused on ensuring we’re not just thinking about the livestock above ground but also thinking about the livestock below ground.”

(Farm Journal)

FATHER-DAUGHTER DUO

For her entire life, Ducheneaux-Scott has worked alongside her father, Zach Ducheneaux. That was until early 2021, when Ducheneaux was selected by the Biden administration to serve as the Farm Service Agency administrator (he received the call for the position while they were at the sale barn).

Luckily, Ducheneaux had prepared his daughter to be a leader on the ranch and in life. They are members of the Lakota tribe, which is a matriarchal society.

“My dad never let me think I couldn’t do something because I was a girl,” Ducheneaux-Scott says. “He empowered me to believe I could do things better because I was a girl and had a different perspective.”

After college, Ducheneaux-Scott wanted to be a rancher and bought into the family’s cowherd in 2016.

“I was obsessive in watching those calves grow that year,” she says. “I might as well have had names and birth certificates for every calf.”

After selling that calf crop, Ducheneaux-Scott headed back to the ranch and pondered the future.

“I drove through two counties that face food insecurity,” she says. “I thought, golly, the system is so broken. We have up to 80,000 head of cattle grazing on 3.2 million acres here on the Cheyenne River Sioux Indian Reservation, and there isn’t any local beef being packaged and made available for purchase. The beef grown here is phenomenal, but none of us get to actually eat it.”

At home, she scribbled down a bunch of ideas and started a business plan. That plan morphed into DX Beef , which has a simple mission: Provide nutritious and local beef that improves its communities.

The direct-to-consumer business featuring their 100% grass-fed beef has expanded in the past two years and is helping the family move away from the commodity market model.

“For the first 90 years of our existence, we’d largely been victim to the commodity markets just like everyone else,” Ducheneaux says. “Behind the effort of Kelsey, in 2020, for the first time, we sold more beef in the box than we did on the hoof. A tremendous advocate for buying, selling and serving

locally, she’s found a way to provide healthier, grass-finished beef to our fellow reservation residents at a price they can afford.”

In 2019, the family sold 12 head of cattle through their business. In 2020, they sold close to 80. This year the total will top 110.

All beef is processed and mostly sold through their online store. To meet local needs, it is sold by the pound or portion of the whole beef. They even do wholesale orders for nearby restaurants.

(Farm Journal)

CULTURE AND TRADITION

The hurdles of small-scale direct marketing are difficult to overcome. Yet Ducheneaux-Scott is seeing great success thanks to her marketing and organizational skills. Through storytelling, which is rooted in their Lakota culture, the family uses technology to share the story of their ranch and products.

“Family comes before the dollar in this operation,” Ducheneaux says. “We’re not solely about monetizing the value of that product, and we realize there are other values to our beef.”

(Farm Journal)

Their story is shaped by their love and respect for the 7,000 acres of tribal land they manage through a tribal lease.

“I’m a grass and soil nerd,” Ducheneaux-Scott says. “Soil health is so critical to a resilient ecosystem. Our grazing system is focused on mimicking nature. This ecosystem evolved from having cloven-hoofed bison and other wildlife graze at a pace that allowed for a robust rest period, so we practice rotational grazing.”

The DX Ranch herd is an Angus base, influenced with breeds that will help the cattle handle the sometimes-brutal central South Dakota climate, Ducheneaux-Scott says. From changing their calving season to May to decrease cattle stress to steadily increasing soil health, the Ducheneaux family aims to work with Mother Nature.

“We have flexibility in our management so we can listen to what the landscape is telling us because she knows better than we do,” Ducheneaux-Scott says. “We

are simply another biological species that’s a part of this greater ecosystem.”

Listen as Kelsey Ducheneaux-Scott discusses her operation with Andrew McCrea on the “Farming the Countryside” podcast:

OTHERS BEFORE ONESELF

As a producer, business owner and member of her nation, Ducheneaux-Scott says she is driven by the opportunity and honor to feed others.

“I’ve come to appreciate having someone tell say your beef tasted good or how they brought their family together around our product,” she says. “Those are the experiences that make feeding cows in a blizzard, slopping through the mud to check calves and sleepless nights all worth it.”

(Farm Journal)

Snapshot of DX Ranch

Operation: DX Ranch includes quarter horses and 280 head of cow-calf pairs in a regenerative production system on the Cheyenne River Sioux Reservation near Eagle Butte, S.D. The ranch is also home to DX Beef, a direct-to-consumer business featuring their 100% grass-fed beef.

Family: Following in the footsteps of her father, Zach Ducheneaux, Kelsey Ducheneaux-Scott is the fourth generation of her family to ranch. She and her husband, Monte Scott, work with several members of her family in the operation.

Leadership: Ducheneaux-Scott is the director of programs for the Intertribal Agriculture Council, which provides a voice for the Native American community on ag policy and programs. In 2021, Ducheneaux was selected to lead the Farm Service Agency, where he oversees 10,000 employees.

Travel to Gettysburg, S.D., and virtually visit DX Ranch.

Farm Succession Planning Gets A Boost From An Ethical Will

Wed, 18 Nov 2020 03:05:51 GMT

This article is from the Top Producer 2019 Executive Women in Agriculture Conference. Learn more about the 2020 EWA Conference agenda and register here: https://bit.ly/30jjkwY

Thirteen years ago, Mitzi Perdue says an experience changed the trajectory of her life.

At a meeting of wealthy, high-profile people who belong to what she describes as the “Famous Last Names Club,” she heard nearly everyone share a story about how they weren’t getting along with their family. Perdue, who grew up as part of the Sheraton hotel family, the Hendersons, and later married Frank Perdue, the poultry giant, was puzzled.

“I couldn’t really relate,” she recalls. Both of her families had been what she describes as high functioning. Plus, their respective businesses had thrived through multiple generations, an unlikely feat given that 70% of family businesses don’t survive beyond the first generation.

“I started studying why some families are high-functioning and others are not,” she recalls. “Why do some families want to help each other be all they can be?”

That question sent her on a quest during the next decade to find the answer. She read books, she attended conferences, she watched programs on YouTube and talked with tens of experts.

Her conclusion, she notes, could be summed up in one word: culture.

“Culture is a road map that guides us in what’s right or wrong,” she says. “The families that don’t [succeed] left their culture to accident. The strong ones invest in and teach their children values.”

She shared three things with attendees at the 2019 Executive Women in Agriculture (EWA) Conference that she says saved both of her families and their thriving businesses through the years.

“We keep our quarrels in the family,” she says. “We know that being part of a family requires sacrifice. Relationships are more important than money—what good is it to succeed financially but fall apart as a family?”

Along with those three factors, she says the Perdue family made five additional decisions that it continues to use. She recommends these to help other families that are wanting to survive and thrive in the future. They are:
1. Create an ethical will
2. Encourage and cherish traditions
3. Have awards that reinforce your culture
4. Write newsletters just for children
5. Produce a “What It Means to Be Us” book

Upon his death in 2005, her husband, Frank Perdue, left the following “ethical will” for his children and grandchildren, which she says the family still uses today. It reads:
1. Be honest always.
2. Be a person whom others are justified in trusting.
3. If you say you will do something, do it.
4. You don’t have to be the best, but you should be the best you can be.
5. Treat all people with courtesy and respect, no exceptions.
6. Remember that the way to be happy is to think of what you can do for others.
7. Be part of something bigger than yourself.
8. Remember that hard work is satisfying and fulfilling.
9. Nurture the ability to laugh and have fun.
10. Have respect for those who have gone before; learn from their weaknesses and build on their strengths.

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