5 Encouraging Thoughts During a Down Cycle

Recently, my dad told me it’s not a quick game. The goal is to build net worth and be patient. Successful agriculture operations will dedicate more time focusing on finances and marketing. They may not cut back on the operations side, but find it pays to have a dedicated financial employee or hire the help. Don’t be discouraged and know that hard and smart work pays off in the long run.

A Handbook for Ranch ManagersAs Stan Parsons would put it, spend more time working on the business (WOTB) and less time working in the business (WITB). In other words, strategy vs tactics. — jtl, 419

By: Katie Hancock via AgWeb 

  Planned Grazing: A Study Guide and Reference Manual Are you discouraged and feel unrewarded for your efforts? If so you aren’t alone. It’s easy to feel hard work is not paying off when profits are minimal. There is a silver lining at the end of the tunnel though. Here are some tips to get you through:

Environmental & Natural Resource Economics: The Austrian View  Size does not determine profitability. We have all seen neighbors that use old equipment and minimal labor. From the outside they appear to be struggling. In reality, you will often find these individuals have the lowest debt and expenses. This does not mean they’re making more net money necessarily, but the small operations have the potential to shine- especially if market prices mixed with expenses result in a The Essence of Liberty: Volume I: Liberty and History: The Rise and Fall of the Noble Experiment with Constitutionally Limited Government (Liberty and ... Limited Government) (Volume 1)  The Essence of Liberty: Volume II: The Economics of Liberty (Volume 2) The Essence of Liberty: Volume III: A Universal Philosophy of Political Economy (Liberty: A Universal Political Ethic) (Volume 3)loss per acre. You don’t have to farm 10,000 acres to be successful. For example, a 2,000 acre farm could be making $30/ac whereas a 10,000-acre farm may be making $10/ac. It’s all about how well you do with what you have.

Combat Shooter's Handbook Reconnaissance Marine MCI 03.32f: Marine Corps Institute The Betrayed: On Warriors, Cowboys and Other MisfitsThere is no silver bullet. There were a few years that seemed too good to be true and they were. Good years average out. Many days I feel I’m not being rewarded for my efforts. Some like to blame my generation, but I like to see it more as a learning curve. The younger farmers like me see the success of others, but we weren’t around to see them struggle on their way to the top.

Cycles don’t last forever. All businesses have cycles. Simply put, economic activity has periods of recession, recovery, growth, and decline. You don’t have to be an expert on macroeconomics to understand high prices cure high prices. Supply, demand, and available capital influence the reaction of the market. While it’s impossible to accurately predict the term of a downturn, many experts use an average of 6 years. It takes planning and flexibly to work through ups and downs. We have to wait it out and hang on- possibly through 2018.

This is an opportunity to work smarter. It’s easy to let management slip when profits are high. There’s a sense of invincibility. Most operations tend to have a mix of conservative and aggressive personalities- which commonly reflects spending habits too.  I see this as a great opportunity for the conservative individuals to take advantage of the aggressive operator’s agreeability to fine tune the entire operation.

No one is getting a free ride. The Ag economy is not the only line of business that’s struggling. Unemployment is 5.1%, compared to 10% in October 2009. Though it appears to be cut in half, that’s not counting those that have completely given up on finding work. And the ones that have found work may not be content. Recent college grads, for example, aren’t finding the opportunities they expected, so the grass may not be greener on the other side.

Recently, my dad told me it’s not a quick game. The goal is to build net worth and be patient. Successful agriculture operations will dedicate more time focusing on finances and marketing. They may not cut back on the operations side, but find it pays to have a dedicated financial employee or hire the help. Don’t be discouraged and know that hard and smart work pays off in the long run.

Blog ImageEmail Katie at khancock@brockreport.com

Katie’s blog provides managerial input for farmers and business owners, drawing upon her experiences working with Brock Associates and helping manage her own farm business.  

Environmental & Natural Resource Economics: The Austrian View

edited by

Dr Jimmy T (Gunny) LaBaume

Is now available in both PAPERBACK and Kindle

BookCoverImageMurray N. Rothbard was the father of what some call Radical Libertarianism or Anarcho-Capitalism which Hans-Hermann Hoppe described as “Rothbard’s unique contribution to the rediscovery of property and property rights as the common foundation of both economics and political philosophy, and the systematic reconstruction and conceptual integration of modern, marginalist economics and natural-law political philosophy into a unified moral science: libertarianism.”

This book applies the principles of this “unified moral science” to environmental and natural resource management issues.

The book started out life as an assigned reading list for a university level course entitled Environmental and Natural Resource Economics: The Austrian View.

As I began to prepare to teach the course, I quickly saw that there was a plethora of textbooks suitable for universal level courses dealing with environmental and natural resource economics. The only problem was that they were all based in mainstream neo-classical (or Keynesian) theory. I could find no single collection of material comprising a comprehensive treatment of environmental and natural resource economics based on Austrian Economic Theory.

However, I was able to find a large number of essays, monographs, papers delivered at professional meetings and published from a multitude of sources. This book is the result. It is composed of a collection of research reports and essays by reputable scientists, economists, and legal experts as well as private property and free market activists.

The book is organized into seven parts: I. Environmentalism: The New State Religion; II. The New State Religion Debunked; III. Introduction to Environmental and Natural Resource Economics; IV. Interventionism: Law and Regulation; V. Pollution and Recycling; VI. Property Rights: Planning, Zoning and Eminent Domain; and VII. Free Market Conservation. It also includes an elaborate Bibliography, References and Recommended Reading section including an extensive Annotated Bibliography of related and works on the subject.

The intellectual level of the individual works ranges from quite scholarly to informed editorial opinion.

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About Land & Livestock Interntional, Inc.

Land and Livestock International, Inc. is a leading agribusiness management firm providing a complete line of services to the range livestock industry. We believe that private property is the foundation of America. Private property and free markets go hand in hand—without property there is no freedom. We also believe that free markets, not government intervention, hold the key to natural resource conservation and environmental preservation. No government bureaucrat can (or will) understand and treat the land with as much respect as its owner. The bureaucrat simply does not have the same motives as does the owner of a capital interest in the property. Our specialty is the working livestock ranch simply because there are so many very good reasons for owning such a property. We provide educational, management and consulting services with a focus on ecologically and financially sustainable land management that will enhance natural processes (water and mineral cycles, energy flow and community dynamics) while enhancing profits and steadily building wealth.
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