Dairy's Bottom Line November 2015

16
Dairy farmers love what they do. But nobody ever said it was easy. Joe Martin takes the chal- lenges of the job in stride. He keeps the perks of dairy farm- ing at the top of his mind. “I love the independence,” he said. “I get to chart my own course.” Martin and his brother, Tom, run Martin Farms LLC in Edgerton, Wis. With a bit of help from family and three full-time employees, they crop about 540 acres and manage 230 cows. Tom handles all of the feeding and is the main crop field operator. Martin takes care of AI and baby calf work, manages employees, and assists his wife, Bonnie, with farm finances. The Martin family is intent on adopting modern technol- ogy and staying on the cut- ting edge of the business. “Obviously the dairy busi- ness is a profit-driven busi- ness, and we have to keep an eye on what’s profitable,” Mar- tin said. “But we have learned there are many means to that end. We try to stay flexible.” Martin graduated from the University of Wiscon- sin-Madison in 1985, earn- ing a degree in dairy sci- ence. He turned down vari- ous job opportunities and came home to farm. “Our father was very engaging and encouraging,” Martin said. “He told me I could do whatever I chose, but that the option to join the family farm business was always available to me.” The Martin brothers represent the third generation to farm on their current site since 1917. For most of the past 100 years, Martin fami- lies milked approximately 40 cows. During the mid ‘90s, the Martins modernized and began expanding. Volume 17: Issue 7 November 2015 Optimize farm taxes – see Page 9 Farm succession planning — see Page 3 Dairy executive training — see Page 13 Sharing ideas, solutions, resources and experiences that help dairy producers succeed. Professional Dairy Producers® I 1-800-947-7379 I www.pdpw.org BOTTOM LINE Test cows’ genomes – see Page 11 Martin Farms has the attitude Joe Martin of Edgerton, Wis., encourages producers to tap into the knowledge base and resources provided. See ATTITUDE, on page 2

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Transcript of Dairy's Bottom Line November 2015

Page 1: Dairy's Bottom Line November 2015

Dairy farmers love what they do. But nobody ever said it was easy. Joe Martin takes the chal-lenges of the job in stride. He keeps the perks of dairy farm-ing at the top of his mind.

“I love the independence,” he said. “I get to chart my own course.”

Martin and his brother, Tom, run Martin Farms LLC in Edgerton, Wis. With a bit of help from family and three full-time employees, they crop about 540 acres and manage 230 cows. Tom handles all of the feeding and is the main crop field operator. Martin takes care of AI and baby calf work, manages employees, and assists his wife, Bonnie, with farm fi nances.

The Martin family is intent on adopting modern technol-ogy and staying on the cut-ting edge of the business.

“Obviously the dairy busi-ness is a profit-driven busi-ness, and we have to keep an eye on what’s profi table,” Mar-tin said. “But we have learned there are many means to that end. We try to stay fl exible.”

Martin graduated from the University of Wiscon-sin-Madison in 1985, earn-ing a degree in dairy sci-ence. He turned down vari-ous job opportunities and

came home to farm.“Our father was very

engaging and encouraging,” Martin said. “He told me I could do whatever I chose, but that the option to join the family farm business was always available to me.”

T h e M a r t i n b ro t h e rs

represent the third generation to farm on their current site since 1917. For most of the past 100 years, Martin fami-lies milked approximately 40 cows. During the mid ‘90s, the Martins modernized and began expanding.

Volume 17: Issue 7November 2015

Optimize farm taxes – see Page 9

Farm succession planning — see Page 3

Dairy executive training — see Page 13

Sharing ideas, solutions, resources and experiences that help dairy producers succeed.

Professional Dairy Producers® I 1-800-947-7379 I www.pdpw.org

Sharing ideas, solutions, resources and experiences that help dairy producers succeed.

B O T T O M L I N E

Test cows’ genomes – see Page 11

Martin Farms has the attitude

Joe Martin of Edgerton, Wis., encourages producers to tap into the knowledge base and resources provided .

See ATTITUDE, on page 2

Page 2: Dairy's Bottom Line November 2015

2 November 2015 • PDPW • Dairy’s Bottom Line

PDPW Board of Directors

President

Mitch Breunig Sauk City, Wis. 608-643-6818

[email protected]

Vice President

Marty Hallock Mondovi, Wis. 715-495-2812

[email protected]

Secretary

Kay Zwald Hammond, Wis.

715-796-5510 [email protected]

Treasurer

Charlie Crave Waterloo, Wis. 920-478-3812

[email protected]

Directors

Brian Forrest Stratford, Wis. 715-650-0267

[email protected]

Jay Heeg Colby, Wis.

715-507-0030 [email protected]

Jeremy Natzke Greenleaf, Wis. 920-371-1968

[email protected]

Dan Scheider Freeport, Ill. 815-821-4012

[email protected]

Linda White Reedsburg, Wis. 608-393-3985

[email protected]

PDPW Advisors

Dr. Steve Kelm University of Wisconsin-River Falls

River Falls, Wis.

Steve Schwoerer Badgerland Financial

Fond du Lac, Wis.

Dr. Richard Wallace Zoetis

McFarland, Wis.

D airy’s Bottom Line is published by PDPW in cooperation with

Agri-View.

1901 Fish Hatchery Road Madison, Wisconsin 53713 Toll-Free: [email protected]

www.agriview.com

Editorial Managing Editor Julie Belschner 608-219-8316

[email protected] Advertising

Sales Manager Tammy Strauss 608-250-4157

[email protected]

AttitudeContinued from page 1

“We were transitioning from a single-family enterprise, my parents’ farm, to a multi-family farm,” Martin said. “We knew we had to modernize and update our facilities, so we decided to take the leap and expand the herd.”

Martin Farms’ herd grew from 40 to more than 200 in a matter of weeks. The family shifted their focus from cash cropping to their new cows.

“At the end of the day, we like cows,” Martin said. “Our inter-est and ability lies more in the dairy side of the farm, so that’s what we decided to focus on.”

While planning for expansion, Martin gathered opinions from PDPW members who ran small and large dairies. He related to both. He already knew what it was like to oper-ate with a few dozen animals and was on his way to learning the nuances of managing hun-dreds of cows, plus employees.

“There’s help waiting at PDPW no matter the dairy’s size or owner’s management style,” Martin said. “The concept of caring for cows to earn a living is universal among dairies.”

Martin’s advice to other dairy farmers who may be searching for a positive vibe or more insight on a particularly vexing problem: Try attending the annual PDPW Business Confer-ence. Attending the conference is what prompted him to change his calf-feeding regimen.

“If you dairy for a living, you’ll be re-energized about what

you’re doing after having attended the PDPW Business Conference,” he said. “And you’re getting access to the best people at a very reasonable cost.”

The ability to ask other pro-ducers about particular prob-

l e m s h a s b e e n invaluable to Mar-tin. He said asking for help is some-thing he had to learn along the way.

“We face the same challenges,” M a r t i n s a i d .

“There’s a knowledge base out there of how to solve these problems. If you can tap into that knowledge base, whether through an academic referral or another producer, you can sift through the information and find solutions.”

Martin’s goals for the future: 1.) Encourage the next genera-tion. 2.) Set up a business that is attractive for family members to join, if they so choose. 3.) Stay on top of best practices. 4.) Work with people who can help implement change.

“And we always want to be early adopters of new ideas,” he said.

“The concept of caring for cows

to earn a living is universal

among dairies.”

Joe Martin

March 16-17, 2016 • Madison, Wis.Business Conference

PDPW’s Business Conference is no ordi-nary experience. It’s where dairy produc-ers and industry professionals from across the country gather to network, grow pro-fessionally and inspire one another and themselves to achieve true greatness. It’s where innovative information, ideas and profit-focused solutions are shared.

In addition to having four captivating key-notes, “Inspire 2016” is where attendees have an abundance of educational choices:

• More than 30 educational sessions• More than 40 world-renowned presenters• Multiple, hands-on workshops• Hall of Ideas & Large Equipment Show

Visit www.pdpw.org or contact 800-947-7379 for more information.

Page 3: Dairy's Bottom Line November 2015

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GEORGE TWOHIGTwohig Rietbrock & Schneider

Recently, farm succession planning has become the subject of seminars and farm publica-

tions. Today’s seminars and articles have been helpful in educating and motivating the senior genera-tion to develop effective farm

transfer plans. We appreciate this increased interest as our firm has always focused on assisting farm families in planning the transfer of their family farms.

Why have so many organiza-tions and advisors now joined PDPW in realizing the impor-tance of this topic? During the

1980s farm bust, many other-wise qualified children left the farm. The farm was then viewed as a seven day per week career

challenged by ongoing high debt and interest rates, limited net income from low milk and commodity prices and low val-ued farm real estate.

Still, most farm owners fought through the 80s and 90s, often with a child or chil-dren willing to take on the chal-lenge. Many of today’s farmers are now reaching retirement age and being forced to recog-nize the need to transfer their family farms.

Fortunately, many farms (large and small) have grown, developed and remain compet-itive and sustainable. Modern farming techniques and new technologies have placed even greater stress on the quality of management, rather than just the daily labor of farming.

When it’s time for the last milking Farm succession planning topics and mistakes

George Twohig

See SUCCESSION, on page 4

Proper planning ensures that dairy farm businesses can successfully transition to the next generation.

Page 4: Dairy's Bottom Line November 2015

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SuccessionContinued from page 3

For these farmers, their next generation can objectively view the farm as a meaningful and chal-lenging career and an opportunity for financial security.

Even with the increased focus on farm succession planning, consider the following common mistakes that affect the planning process:

• Procrastination. Many farmers make the mistake of put-ting off their succession planning because they are busy managing the farm or do not recognize the benefit of starting early.

However, starting early gives direction to both generations and motivates involved children to make a real commitment to the farm. The senior generation should recognize the farm’s transfer can assure that their

long-term needs are adequately met and the farm they worked so hard to build will continue to flourish. The time to start plan-ning and acting on that plan is before your last milking is done.

• Resistance to Change. Most farmers do not want to think about slowing down, retirement, disabil-ity or death. However, the transfer of the farm to the next generation requires leadership, which should come from the senior generation.

Farm transfers first require the next generation’s participation in management decisions, increas-ing transfer of responsibility over time and eventually, the transfer of earned equity based on the next generation’s commitment and achievement as farm manag-ers.

Involved children have the expectation that they will have increasing and meaningful involvement in management decisions and play an important

role in the farm. Leadership means moving from the “I” of a sole proprietorship to the “we” of working as partners.

The next generation needs to be ready to manage, in the event of a parent’s death or disability. An effective farm transfer is not an event, but a long-term pro-cess of identifying and selecting successors, grooming and test-ing them while gradually increasing their levels of

responsibility.• Lack of Formal Plan. In

any occupation, most people do not like to think about being replaced. Successful people often develop a sense that they may be irreplaceable. But the future of the family farm must be based on the understanding that the farm will transfer to someone. Hope-fully, that someone is a commit-ted and qualified family member.

See SUCCESSION, on page 6

It’s never too early to begin your family’s farm succession journey.

Page 5: Dairy's Bottom Line November 2015

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SuccessionContinued from page 4

This means facing the fact that succession planning is an essential component of farm management. It also means working with all family mem-bers in developing an effective written plan, communicating mutual commitment and gain-ing everyone’s acceptance.

A key part of the transfer plan is the development of an effec-tive business plan that outlines the farm’s mission, each family member’s business and per-sonal expectations, and the present and evolving roles, responsibilities and authorities of the successors. An environ-ment must also be established where the successors learn to work together as a team to meet a common goal for the farm.

A CEO of a large company

once wrote: “Most companies are personality driven. Compa-nies built to last are principle- and process driven. Succession is largely impossible in the for-mer, and relatively straightfor-ward in the later.”

• Relying on a Will. The estate plan is effectively the contingency plan for transfer of farm assets, not transferred before death. An effective farm transfer requires ongoing stra-tegic planning for the farm and its profitability, management sharing, establishing the best business structures, and trans-fers of equity during the senior generation’s life with equity transfer being delayed until death only when beneficial.

Farmers should realize that living trusts can assist in avoid-ing the delays, public exposures and added expense of probate. Most importantly, estate plans must be updated, from time to

time, to deal with changes in objectives, laws and the farm and family situation.

• Relying on an LLC. Most farms are now operating as a limited liability company (LLC) and elect to be taxed as a part-nership. The LLC may have been formed, in part, to facilitate transfers of equity to the chil-dren who are active in the farm.

However, LLCs are only a component of the transfer planning process. As part of ongoing transfer planning, LLCs and all other components of the succession plan needs to be reviewed on a timely basis.

There are many other tax, business and transfer planning techniques that may be, or become, advisable for a farm family’s unique situation. Each planning tool needs to be con-sidered as there is no one-size fits all approach; each farm and family is unique.

• Selecting the Wrong Advisors. Farmers should rec-ognize that there are attorneys, accountants and financial advi-sors who have focused their careers on working with farms and farm families. Qualification should be based on experience and reputation.

You will be dealing with your farm’s management challenges, such as differing management styles, communications, con-flict management, as well as, the unique legal, business and tax planning issues related to farm transfers. Fortunately, most families work on an ongo-ing basis with an experienced farm accountant and/or farm financial consultant who has substantial knowledge of the family and farm. It is our prac-tice to team with these profes-sionals because their experience with the farm and family is crit-ical in farm planning.

6 November 2015 • PDPW • Dairy’s Bottom Line

Page 7: Dairy's Bottom Line November 2015

November 2015 • PDPW • Dairy’s Bottom Line 7

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Page 8: Dairy's Bottom Line November 2015

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Herdsmen, feed managers, feed spe-cialists and others who help manage a dairy herd’s food sup-ply—this one-day conference is for you. Speakers will dig in deep on today’s feed tests, dry cow diets, fungus disease in silage and how to grow herd production aver-age beyond 90 pounds of milk per cow.

Presenters:• Randy Shaver, PhD, Uni-

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will address how to avoid neg-atively impacting milk yield, somatic cell count and other measures of udder health—and you’ll be given practical suggestions to best manage these types of bedding.

The webinar will be pre-sented live noon to 1 p.m., with a recorded session avail-able to those unable to partic-ipate at noon. Pre-registra-tion by Nov. 11 required for live and/or recorded session.

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Page 9: Dairy's Bottom Line November 2015

November 2015 • PDPW • Dairy’s Bottom Line 9

ANDY MCCARTYBadgerland Financial

At this time last year I wrote an article discussing record milk prices and the tax strategies that

could be utilized to help minimize the tax burden. What a differ-ence a year can make.

This circum-stance shows the importance

of using a long-term strategy to develop short-term goals. Compared to most other busi-nesses, dairy farmers have very little control over input prices. They also have little control

over their revenue and the price they get for their product.

Couple this with the vital role dairy farmers play in our econ-omy and feeding our country and it is easy to understand why the tax code has been written with special rules for farming businesses.

However, the tax savings resulting from using these spe-cial rules are not guaranteed unless you implement the proper strategies and file a tax return correctly.

Why is tax planning important if my income is way down due to the drop in milk prices?

One strategy in tax planning

is to try to remove the large up and down swings in income year over year. By doing this, tax brackets are fully utilized to help keep client’s tax as a per-centage of their income as low as possible.

Due to the record high milk

prices last year, many dairy farmers prepaid as many expenses as legally possible. We even saw clients entering into deferred payment contracts on their December milk checks to push that revenue off into 2015.

Fine-tune tax strategies for 2015

Andy McCarty

See TAX, on page 10

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Page 10: Dairy's Bottom Line November 2015

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These items have caused tax-able income to be much higher this year than what clients may expect if they forget we did this. We meet with each client to make sure they don’t make too much or too little in 2015.

What are some things I should be paying attention to when it comes to manag-ing my tax situation?

Capital Gains Rates on Culls

Our current tax code gives reduced tax rates for property t rea te d a s ca p i ta l ga i n s. Income not subject to capital gains rates is taxed at ordinary income rates. Refer to the table to see rates for a “married fil-ing jointly” filing status for 2015.

It is important to know that raised cows two years and older are subject to capital gains rates. Not all income is created equal when it comes to taxes.

Income from the sale of cull cows will generally be taxed at a lower rate than income from milk or grain sales due to the preferen-tial capital gains treatment. A common strategy is to incur enough expenses to offset farm income excluding cull cows.

By doing this, we preserve the lowest taxed income and avoid “wasting” deductions that could be worth more in the next year.

Depreciation Law

We are once again left waiting and hoping for congress to act on Section 179 expensing and the 50 percent bonus deprecia-tion write-off. As of 1/1/2015 the Section 179 limit reverted to $25,000 and bonus depreciation expired.

Keep an eye out for this valu-able deduction to be reviewed and extended before the end of the year. A good tax plan should address your options if the law is not passed.

Repairs and Supplies

Repair and maintenance reg-ulations have been in place for more than a year. Among other items, these regulations clari-fied what should be capitalized and depreciated versus what can be expensed as repairs. Make sure to review any ques-tionable items with your tax preparer.

Friendly Reminders

Taxes are unavoidable, but that doesn’t mean you shouldn’t have someone in your corner watching out for your best interest and trying to lower your tax bill by as much as legally possible.

Also, it is important to evalu-ate your tax situation over mul-tiple years rather than one year at a time. Having up-to-date and accurate records are vital if you want to have an accurate tax strategy and tax return. By aligning yourself with people you trust and can rely on you will be able to focus your efforts more on the farm and less on the financials.

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TaxContinued from page 9

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Page 11: Dairy's Bottom Line November 2015

November 2015 • PDPW • Dairy’s Bottom Line 11

DR. KENT WEIGELDept. of Dairy Science UW–Madison

Some thoughts about genomic selection and replacement heifers on an October morning... Genomic selection has revolutionized dairy-cattle breeding in the past seven years, with more than 1.1 million animals tested to

date in North America and more than 30,000 new calves tested every month.

For those that are selling e l i te b re e d i n g s to c k , ge n o m i c te s t i n g i s a no-brainer. But what about the 99 percent of dairy

farmers who are focused on selling milk?The most obvious use of genomic

information, and the one that provides the most immediate payback, is the deci-sion of whether to keep or cull a potential replacement heifer at weaning. Due to improvements in cow comfort and tran-sition cow health, along with the avail-ability of sexed semen, many dairies have excess heifer calves.

Culling a genetically inferior calf that is unlikely to improve your herd’s bottom line

two years from now can generate some income today (enough to cover the $40 to $50 genomic test of the calf and several of her herdmates), as well as future savings in feed costs, manure handling, housing space, and breeding and veterinary bills.

But, is this technology for everyone, and how should you use it? The first question is: “What is the genetic level of my calves and heifers?” If the answer is that most are at or below breed average, then you should seriously consider investing in

semen from higher quality bulls first.At minimum, you should use bulls in the

75th to 90th percentile, at least $450 to $500 Lifetime Net Merit for Holsteins or $415 to $475 for Jerseys, and hopefully a lot higher. Don’t be afraid of young, genome-tested bulls with lower reliability values – their high genetic merit is worth the risk.

A good rule of thumb is that the reli-ability of the average of three genome-tested bulls is equal to that of one progeny

Unlocking potential of genomic testing

Kent Weigel

See GENOME, on page 12

Genetic testing is a tool to consider when making culling and marketing decisions.

Agri-View

Agstar Financial Services

Alforex Seeds

American Foods Group

ANIMART

Arm & Hammer Animal Nutrition

Atten Babler Commodities LLC

Bayland Buildings

BMO Harris Bank

BouMatic

CP Feeds LLC

Dairyland Seed Co., Inc.

DeWitt Ross & Stevens

Diamond V

DuPont Pioneer

Elanco Animal Health

FarmFirst Dairy Cooperative

Focus on Energy

Foremost Farms USA

GEA Farm Technologies, Inc.

Greenstone Farm Credit Services

Investors Community Bank

Merck Animal Health

Pacific Ag

Progressive Dairyman

Quality Liquid Feeds, Inc.

Roto-Mix

Rural Mutual Insurance Company

Twohig Rietbrock Schneider & Halbach, S.C.

USAgNet LLC

Van Beek Natural Science

Westway Feed Products

Wisconsin Cheese Makers Association

Zoetis

PDPW Corporate Sponsors

Page 12: Dairy's Bottom Line November 2015

12 November 2015 • PDPW • Dairy’s Bottom Line

tested bull, so just spread the risk over three times as many bulls. And if you’re worried about calving ease, just use genome-tested bulls that are a year older and already have calves on the ground.

The next question is: “Do I have extra heifer calves, and if not, am I willing to invest in sexed semen to create a sur-plus?” If no, then nothing will be gained by genomic testing, at least in terms of culling decisions.

If yes, then you have an opportunity to make more informed decisions with genomic testing.

If you only want to cull the bottom 10 percent to 15 percent of your calves, then it probably makes sense to test only the bottom half, assuming their pedigree information is com-plete and accurate. On the other hand, the extra investment in testing all of your calves will allow additional uses of the genomic test results.

Decisions such as whether or not to mate a certain heifer or cow with sexed semen (if she is good) or beef semen (if she is not), or which potential mating sires will lead to less inbreeding and reduce the chance of a lethal genetic defect, can pro-vide additional returns several times throughout the life of an animal once she’s been tested.

Based on data from more than 800 animals at UW-Madison and a nearby commercial farm, heifers that ranked in the top quartile, based on genomic predictions, as calves produced 5,000 pounds more 305-day mature equivalent milk in first lactation than their herdmates that ranked in the bot-tom quartile. That’s a huge differ-ence, and one that we knew about

two years earlier!There is no single recipe that

will work for every farm. Your herd replacement protocol should be specific to your goals, and it should address very clearly if, when, and how you will:

1) Use sexed semen to gener-ate extra calves from above-av-erage heifers or cows

2) Use beef semen to generate feeder calves from below-aver-age heifers or cows

3) Use genomic testing to cull the poorest heifer calves

4) Use genomic testing to identify optimal mating sires

Your protocols should also spell out your sire selection cri-teria in detail, to ensure consis-tent genetic progress. Assisted reproductive technologies, such as ET or IVF, might come into play down the road if you iden-tify a truly elite heifer through genomic testing, but it’s import-ant to walk before you run.

Lastly, if you decide to invest in genomic testing, make sure you use the results in every way pos-sible to improve your farm’s bot-tom line. This seems obvious, but last year I was asked to consult with a farmer who had stopped genomic testing because it wasn’t working on his operation.

Upon reviewing the farm’s records, the problem was clear – he hadn’t used the genomic information in any breeding or culling decisions and was essentially ignoring the results.

Genomic testing isn’t a magic bullet and it isn’t for everyone. But it is a technology that will allow you to identify, accurately and at a young age, the groups of animals on your farm that are the best candidates for various breeding, culling and management actions.

If you make the investment and use the results wisely, you’ll make slightly better decisions each day, and this can add up to significant profits in the long run.

GenomeContinued from page 11

Page 13: Dairy's Bottom Line November 2015

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November 2015 • PDPW • Dairy’s Bottom Line 13

In his book “The 21 Irrefut-able Laws of Leadership: Follow Them and People Will Follow You,” leadership expert John Maxwell states, “Leadership ability is the lid that determines a person’s level of effectiveness. The lower an individual’s ability to lead, the lower the lid on their potential. The higher the lead-ership, the greater the effective-ness.”

Business coaches agree that, many times when owners, man-agement or team leaders are stuck on a certain plateau, it’s not a reflection of their abilities but an indication that they have reached their “leadership lid.”

The good news is that every leader’s lid can be raised, and Managers Academy for Dairy Professionals™ is the ideal place to obtain the tools and

insight to raise that lid. Developed by the Professional

Dairy Producers®, this unique business training is designed specifically for CEOs—dairy owners and managers, industry directors, processors, marketers and distributors—and provides a format where professionals from throughout the food sys-tem and across the country can gather to grow and gain a spe-cialized edge to proactively position the security of their business’ brand.

Dates of the executive-level training are Jan. 19-21, 2016. The location is in warm and sunny San Antonio, Texas.

Because management and conflict go hand in hand and unresolved conflict can result in loss of productivity, Day 1 of

2016 Managers Academy to raise lid for leaders

See ACADEMY, on page 14

If you have the heart of a leader and the mind of a manager, this event is for you

Page 14: Dairy's Bottom Line November 2015

Twohig RietbrockSchneider & Halbach“Attorneys for Agriculture”

(920) 849 - 4999

Legal, business and planningsolutions for Wisconsin’sfarms and agribusinesses.

14 November 2015 • PDPW • Dairy’s Bottom Line

Charlie Arnot

Managers Academy training will zero in on “Building Bridges.” Trainer Dr. Becky Stew-art-Gross will share research-

based informa-tion and use s m a l l g r o u p interaction and learning activi-ties to help par-ticipants recog-nize conflict, understand its nature and the

five myths surrounding anger and conflict and provide the tools and information to resolve conflict.

Tuesday evening’s dinner speaker, Charlie Arnot of the Center for Food Integrity will address the need fo r i n d u s t r y transparency, which he calls

“the new currency of trust.”With consumers skeptical of

dairy farm processes, Arnot will provide insights into consumer expectations, and more impor-tantly, what can be done to

increase transparency that builds consumer trust in today’s products and processes—and a company or industry brand.

Day 2: Glean Ideas for Out-side Industry

Day 2 of Managers Academy will take participants out of the classroom, on the road and into three very different out-of-in-dustry businesses. These tours are not your typical tourist ven-ues; they are insider-only stops where participants will interact with management and examine the business from conception to current challenges and suc-cesses.

Stop #1 will be HeartBrand Beef Inc. that has developed a niche market for its highly mar-bled Akaushi beef. Aligned with its vision to “create a world where beef can be enjoyed with-out compromise,” this small business focuses on the farm-to-table concept; markets high-quality cuts of beef, as well as heart healthy beef sau-sages, to high-end restaurants and grocery stores and discern-ing consumers; and conveys their story directly to consum-ers. In an effort to build con-sumer confidence, they also bring chefs and consumers to the ranch to see their cattle,

AcademyContinued from page 13

Becky Stewart-

Gross

Page 15: Dairy's Bottom Line November 2015

Members of the Professional Nutrient Applicators Associationof Wisconsin, PDPW & DBA. Excellent working relationship withDATCP, DNR, and UW-Extension personnel.

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• Pit Design Consultation

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Let Us Spread It For You

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November 2015 • PDPW • Dairy’s Bottom Line 15

hear their story and connect with animal agriculture.

Stop #2 will be a fami-ly-owned business that grows and provides its customers with fresh, high-quality mushrooms year round. Kitchen Pride takes the mushroom business from A to Z—not only growing the mushrooms but delivering its fresh mushrooms daily to many Texas markets using its own trucks. This family knows the devil in is the details, takes quality-control to the max and builds consumer trust via sus-tainability and other values that speak to consumers.

Stop #3 will be the Tejas Rodeo Company that has numerous entities: a rodeo, live country music and dancing venue, mechanical bull riding, horse boarding, riding lessons, cowboy church and even a restaurant. Managers Academy participants will learn what led the Tejas Rodeo Company to expand from its start as a rodeo for the public to other venues—and how this business uses its rodeo to not only entertain rural and non-rural audiences of all ages but to educate and inform the public about the uses of animals in their show.

D a y 3 : B e i n g C r i s i s Prepared

Leadership abilities are in greatest demand when the situ-ation is most confusing, uncer-tain or unknowable, and few things in life are more confus-ing, uncertain and unknowable than when a crisis strikes.

To function in this uncertain world, leaders have to be able to see a larger picture and see the crisis from others’ eyes. Leaders must be able to act as quickly as possible and move with confi-dence and skill. All of this requires conducting advance work in order to minimize damage.

Day 3 of Manager Academy

will put dairy executives back in the classroom w i t h p u b l i c relations and crisis manage-m e n t g u r u s L i n d a B a s s e Wenck and Jane Duke, both with MorganMyers. This duo will prepare dairy executives so they can handle a crisis rather than it handling them. Manag-ers Academy participants will gain the information and skill-set to know what to say and do when a crisis hits, plus will learn how to say it and to whom to say it.

T h e 2 0 1 6 M a n a g e r s Academy isn’t for everyone. It’s dairy busi-ness training of the highest cali-ber and is spe-

cifically for individuals owning or managing a company or team within the dairy industry who want to acquire critical compe-tencies needed to drive their business forward—and remain sustainable in a crisis.

The academy is limited to the first 100 registrants. Visit www.pdpw.org or contact 800-947-7379 for more information.

Linda Basse Wenck

Jane Duke

Page 16: Dairy's Bottom Line November 2015

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