Have we seen this movie before?

That was the question posed at Bell Bank’s recent AgViews Live seminars, held once again in Fargo, Sioux Falls, and Wisconsin Dells. The 10th annual event drew a record number of ag producers and other attendees from the world of agribusiness to hear from me and Dr. David Kohl, an author and national speaker on agricultural finance and the overall economy.

Every year, I always enjoy seeing, hearing from and talking to AgViews Live attendees, who range in age from their early teens to some well into their 90s. Watching this wide range of folks show interest year after year is one of the most satisfying and rewarding aspects of the event. It clearly reinforces that, whether or not we live or work on a farm or ranch, we all have a vested interest and connection to agriculture.

Nolan Keleher attended AgViews Live in Wisconsin Dells with his father, and had this to say:

“I enjoyed the experience and information I was able to take away from this opportunity. I am considering pursuing a degree in finance/economics, and this gave me some insight into this field.”

Brit Miller, vice president of First National Bank in Philip, S.D., traveled over 250 miles to attend AgViews in Sioux Falls and wrote: “It was well worth my time and it was a great investment for my bank. I have attended 15 years of agriculture conferences, spending anywhere from 2-3 days, and this event lasting four hours had more information and knowledge than many of those conferences I have attended.”

Thanks to Nolan, Brit and everyone else who attended this year’s events!

Tips for Managing Through Challenges

At this year’s events, Dr. Kohl and I discussed how current conditions in parts of the agricultural economy are starting to feel similar to the years following the last super cycle, which ended in 2013. At the time, producers faced lower prices, but without the added stress of high interest rates or higher costs. Now, prices are once again low, but input costs and interest rates are both up. Despite the economic headwinds many ag producers may be facing, recent highly profitable years coupled with record farmland values put most ag producers in a strong financial position going into this expected downturn.

To manage through these challenges, Dr. Kohl and I stressed the importance of heeding lessons learned a decade ago, some of which included:

• Pay close attention to your financials. Know your cost of production and breakeven points, monitor your cash flows, and have a banker you can trust and lean into when times are tough.
• If you need to refinance to rebuild your liquidity, “Make sure you’re building a bridge to financial stability rather than a pier that just takes you out into deep water where you drown in additional debt,” said Dr. Kohl.
• Set goals for yourself. Goal setting is an important practice for when times are tough. According to some figures, 80 percent of Americans have no goals, 16 percent have goals but only have them in their head, and only 4 percent have actually written their goals down. Take the time to develop both your short-term and long-term goals, which can help you stay focused when obstacles arise.
• Similarly, model potential scenarios for your business. Look at all possibilities, including best-case, middle and worst-case scenarios. This can help you be prepared no matter what happens.
• Being successful is often not about doing one big thing better – rather, it’s about being 5% better in a number of key areas.

Read more about the top takeaways from AgViews Live that we’re watching as the calendar turns to fall.

This article appeared in the Q3 2024 issue of our AgViews newsletter.