Farm Succession is topic overlooked on many Farms

 Farm succession is the most important yet most undervalued or thought through plan that is developed on many farms.  Often the lack of planning stems from the dislike of confrontation, the potential to alter relationships or a concern about future retirement needs, etc.  If you hope to have your farm succeed with the next generation of family members or others, make sure you have the right structure in place – and set it up now not later.

If you don’t set up the plan correctly there can be huge financial or relationship costs or even needs to sell the business/land to cover fees, expenses and other items. I am going to focus on a couple of the foremost issues you may want to think about.

  1.    Start the succession process while the next generation of farmers is still young.

Successful farm succession sometimes starts from the belief that farmers do not own the farm, they are truly the caretakers for the next generation.  There can be a strong sense of pride and fulfillment to realizing that you have this opportunity and can still make a livable income or supplement another career while caring for the business. 

While developing a caretaker attitude the next generation needs to realistic about the psychological ownership of a farm.

The next generation needs to understand how to care for the farm, the family, employees, relationships and everything around that operation the livestock and the crops.  They also need to fully understand that if the business climate changes and the farm business cannot be maintained with out substantial changes they should not hold themselves solely accountable.  The pressures can be intense and sometime psychologically challenging.

 

2.    All interested parties need to understand the financial side of the business.

Full or part time farms may lack an accurate budget or not have ability to accurately follow how changes in the business model may truly impact the bottom line.  Operating with a budget which is analyzed regularly can help reduce everyone’s stress level and assist in planning for the future development or succession of the farm. Accrual financial statements can help you know your costs and monitor your actual costs against a budget, so you can adjust accordingly.  The consideration of implementing accrual accounting could be a major help.  Take time to talk to a experienced farm CPA for more information or how it may help you.

3.    Play to people’s strengths, even while they’re still youngsters.

If there is more than on member of the family expected to take over the farm business in the future, consider how to equip each person according to their talents and abilities.  Every member of the team brings in difference sill sets, aptitudes or abilities they bring to team.

Become a partner coach by providing training and coaching.

 

4.    The next generation only truly learns from a combination of responsibility and accountability.

“If you want something done right, you have to do it yourself” or “This is the way you do it” are statements put into practice far to often on many farms. Many times, it is because there’s a lack of trust that the job will be done the way the current generation wants it done.  The next generation may develop an improved way to accomplish the same task or reach the desired endpoint.  The older generation may look at it as a time-honored tradition or have other reasons to object to change however it could be looked at as using your resources wisely.

Start with small steps and build upon them, set some benchmarks.

Delegation begins with clear communications about what you expect and how you’ll determine whether the expectation is met. Great communication is the key to reducing frustration in the operation and becoming working partners with family members or employees.

 

5.    Understand that a succession plan is not linear. Adapt accordingly.

Understand that there will be changes in the plan of succession for your farm, so adopt an attitude of flexibility and review the plan to make sure that it still fits the scenario from time to time.  The plan and the thought process need to be agile and adaptable to changing internal and external factors.

Time for Forage Seedings in the Mid Atlantic

 Overseeding

Late February and March is the time frame for broadcast seeding clover on the surface of pastures and hay fields. The sod to be overseeded needs to be short (1-2 inches). Fertility and soil pH need to be adequate to encourage legume growth. Weeds need to have been killed. Seed 6-8 lbs. of red clover per acre on pastures and hay fields that will be grazed. Allow cattle to remain on the overseeded field to help cover the seed. Pulling a drag of some type behind the broadcast seeder will help. Graze overseeded pastures early to favor the legume seedlings. Cut overseeded hay fields early for the same reason.

No-Till Seeding Alfalfa and Other Forages

In sods killed last fall, most likely an application of glyphosate will be needed to kill any winter annual weeds that have appeared. Seed as soon after March 1 as possible. If seeding alfalfa, use fungicide treated seed to protect against seedling diseases. 

Killing sod this spring and seeding is risky at best. Unless it is a dense tall fescue sod that will provide a thick mulch, do not plan to kill and seed into sods this spring. Instead, kill the sod and plant a smother crop such as foxtail millet or dwarf pearl millet and seed the forage stand in late summer. Another alternative is to wait until August to kill the sod and seed.

Thin grass stands in pastures can often be improved by no-till seeding grass into them in late February - early March, without first killing the sod. The existing sod needs to be very short. Fertility and pH must be adequate. Such pastures should be grazed periodically in spring to favor growth of the new seedlings.

Seedings into small grains is an excellent way to establish new stands. There are several alternatives. On is to kill the small grain stand with glyphosate when plants are 8-10 inches tall and seed. Or, remove the small grain for silage, allow 3-4 inches of regrowth, apply glyphosate and seed. Also, no-till seeding in standing small grains and then harvesting it early for silage will work.

Thin stands resulting from seedings made last fall can be very effectively "thickened up" by seeding no-till in early March. About 1/2 the normal seeding rate should suffice.

Conventional tillage and seeding is still an excellent option in low erosion-potential fields with weed problems or in need to be smoothed. It is important to prepare the seedbed and seed as early as possible. Be careful not to place the seed deeper than 1/4 to 1/2 inch deep, then firm the soil over the seed.

Thoughts from Harlan E White, Virginia Tech Extension Forage Agronomist

Solar Workshop

 

How should I adjust my hay fertilization due to high fertilizer prices?

Dr. John Fike, Extension Forage Specialist Virginia Tech

 

Fertilizer prices, particularly N, are hurting farmers in a big way. The price of nitrogen, in particular, has skyrocketed over the past year. For example, UAN28, perhaps the most popular fluid N fertilizer, started off 2021 at about $210/ton but finished the year at over $575/ton. In the same time period, potash went from about $360 to $800/ton. Similar increases occurred with phosphorus, and prices have continued to rise in the first month of January. So how does one manage around high prices? You probably can’t avoid the added fertilizer costs altogether, but if you are strategic about fertility management, you may be able to lower the impact of sky-high nutrient input costs. Here are some ideas to consider: Unless you’re a commercial hay grower, one of the best ways to lower hay fertility bills is to feed less hay.  If you’re feeding hay for much more than 60 days per year, consider working with your county agent to evaluate your situation and see how you can extend the grazing season. One of the best investments you can make in your fertility program is to test soils. Extension agents are well-known (and sometimes teased) for so often suggesting that the first step in managing field or farm is to soil test. However, as management guru Peter Drucker is often quoted, “you can’t manage what you can’t measure.” First, check your pH. Lime prices have not increased to the degree seen with synthetic fertilizers. If your soils have low pH, adding lime may provide one of the biggest bangs for the buck. Keeping pH between 6 and 7 will improve availability of phosphorus (P), potassium (K) and other nutrients. For grass and grass-clover mixes, pH above 6 will be adequate. For alfalfa or legume-based stands, pH should be 6.5 or greater. Note, however, that if you need to increase pH, it will take several months for the pH to change. Adequate pH, P and K will support legume growth that in turn will supply pastures and hayfields with  Strive to keep P and K in the medium range. Plant response to fertilizer P and K inputs diminishes as soil P and K levels increase. At today’s prices, the response to added fertility may be uneconomical if you’re applying nutrients to levels much above medium test levels. If you’re in the medium range, bide your time, hold your dollars, and wait for better prices down the road – but don’t get into a habit of not maintaining pasture and hayfield fertility! Fertilize to test. Far too often, producers have routinely applied straight blends like 10-10-10 or “triple 19” without considering a soil test. On a farm visit a few years ago, a producer was curious why their hay stand was less productive, despite continued fertilization (with a straight blend). The problem was that the added fertility inputs were not sufficient to replenish the K being removed from the hayfield. Getting a custom blend may take a bit more work, but it can be better tailored to the need, both reducing inputs and preventing overapplication of expensive and unneeded nutrients (that may also have negative environmental effects). Where possible, use alternative nutrient sources. Depending on your location (and management constraints) biosolids, poultry litter and other animal manures can offer a source of low-cost nutrients, particularly N and P, as well as organic matter. This may reduce need for N and P, but K likely will still be necessary. Feed hay back on hay ground. One may cringe at this idea given the potential to damage a hay stand. However, this can be an option and an opportunity to return nutrients to the field under the right circumstances. Feed when the ground is frozen or dry. Unrolling bales will further reduce animal impact. Many farmers may have adequate soil pH and nutrients but feel the need to add N to increase the hay crop. However, stands on fertile ground and with significant legumes may not warrant N inputs at today’s high prices. As with P and K, pounds of forage produced per unit of N input will be greater at low fertility rates. But will it pay? I dug up some numbers from a recent Kansas study looking at fescue response to N. These were newly established fields, so response to N was about 25-28 lbs. forage per lb. N. The response rate may be less in long-term, productive hayfields and pastures. If your hay field has abundant clovers or legumes, the fertility response may also be much lower.   N rate Yield lb forage   Hay value, $/ton   N cost   Value minus cost by $/ton lb/ac ton/ac per lb N   $60 $80 $100 $120   $1.03/lb   $60 $80 $100 $120         - - - - - $ per acre - - - - -       - - - - - $ per acre - - - - - 0 1.50 --     $90 $120 $150 $180   --   $90 $120 $150 $180 50 2.19 27.6   $131 $175 $219 $263     $52   $80 $124 $168 $211 100 2.83 26.5   $170 $226 $283 $339   $103   $67 $123 $180 $236 150 3.34 24.6   $210 $268 $334 $401   $155   $46 $113 $180 $247   If you do plan to fertilize cool season hay fields, try to time applications to periods of warm spring weather when forages are rapidly growing. To the extent possible, apply the fertility 1-3 days ahead of rain. Many farmers use urea as their fertilizer N source, but urea is subject to high losses (up to 40%!) from volatilization. Urea with adequate NBPT urease inhibitor will help reduce volatilization and increase use efficiency. Generally, nutrient needs for pasture soils are limited if the fields are well-managed because nutrient removal is low. However, this may not be the case where fields are overgrazed and subject to erosion. Using better grazing management can allow plants to recover and be more productive and will also improve nutrient distribution across the farm. Remember, too, that clover is the best N resource in pasture settings. Abundant and productive clovers may supply 100-150 lb. of N/acre annually.

Coming Grassland Renewal Workshops

 Check out the coming Alliance for Grassland Renewal workshops. Producers will have three opportunities to attend a tall fescue renovation workshop this year:

1) Virtual Workshop – March 8th – (https://tfvirtual2022.eventbrite.com)

2) TN Workshop – March 23rd – (https://TallFescueTN2022.eventbrite.com)

3) MD Workshop – March 30th – (https://TallFescueMD2022.eventbrite.com)

Natural Area Management Training

 

Virginia Cooperative Extension and Virginia Department of Forestry offers webinars on natural area management for Green Industry Professionals.

 Professionals looking to expand their services to include working in woodlands and meadows can benefit from a series of webinars on natural area management offered by “The Woods In Your Backyard Partnership”.

 The webinars will be held from 2 p.m. to 4 p.m. on three consecutive Thursdays — March 10, 17 and 24. “Natural Area Management Services Series: A Case Study” is also designed for land managers and interested landowners.

 The three-part series will provide in-depth instruction on managing a small-acreage property. Using a case-study approach, instructors will demonstrate how to utilize a checklist to assess a property, develop a land care plan and implement various land management practices.

 The webinar series will cover how to:

 — Improve tree health through management of existing tree canopies.

— Control invasive plants.

— Convert unused lawn area into woods and meadows, creating a haven for wildlife.

— Assess and mitigate deer impact on vegetation.

 According to organizers, the program is aimed at informing and equipping green industry professionals with knowledge and skills to provide additional services to clientele while improving ecosystem health. A resource manual and specialized checklist tool complement the training and help green industry professionals determine which enhancement practices suit a given property.

 A certificate of attendance will be provided to participants who attend the live sessions. These certificates can be used to obtain professional development credits. No credits will be available for listening to recordings.

 The webinar series is provided by The Woods in Your Backyard Partnership, which includes Penn State Extension, the University of Maryland Extension, Virginia Cooperative Extension, the Virginia Department of Forestry and the Alliance for the Chesapeake Bay Forests for the Bay.

 Registrations will be accepted through March 9 at $15. Registration is required to receive the link to access the webinar. Registrants also will receive access to webinar recordings. More information can be found at the Trees Virginia Website: https://treesvirginia.org/events

 

EDITORS: For more information on program content, contact Adam Downing, Extension Forester, at 540-948-6881 or adownign@vt.edu.

 

Optimizing Grazing