A view from Jeremy Ostrander, CEO of AgriVision Equipment & PrairieLand Partners - February/March 2025
Seeing the Light at the End of the Tunnel in the Agricultural Economy
In the ever-evolving landscape of the agricultural economy, challenges are as inevitable as the changing seasons. Weather patterns, market fluctuations, new Presidents, and technological advancements continuously reshape the terrain. Yet, within these challenges lies an extraordinary opportunity for growth, innovation, and resilience. It has been said that “Hard times create strong men, strong men create good times, good times create weak men, and weak men create hard times.” It is essential to recognize that the darkest moments often precede the dawn of new possibilities. As we navigate these times, let’s explore the role of a leader and how perseverance, adaptability, and a forward-thinking mindset can help us see the light at the end of the tunnel.
Embracing Change and Innovation
Agriculture is an industry deeply rooted in tradition, yet it is also one of the most innovative sectors. Advancements, from precision farming to new discoveries in biological crop treatments to new ECO type crop insurance tools, have revolutionized the way we grow and distribute food. We are in a window where farmers and ranchers that embrace these innovations are better equipped to weather economic storms.
We can’t manage what we can’t measure. Precision ag allows for more efficient use of resources, reducing waste and increasing yields and rate of gain. Drones, GPS technology, and data analytics enable farmers to monitor crops with unprecedented accuracy, leading to more informed decision-making. While your capital plan may not allow trading equipment, we continue to see producer investment in innovative tools that help measure and manage.
Financial Planning and Risk Management
Effective financial planning and risk management are essential for navigating the ups and downs of the agricultural economy. My son was home from K-State this weekend and he has a class where they are developing a better understanding of the farm balance sheet and cash flow. He is discovering the much needed understanding that developing a comprehensive financial plan that includes budgeting, forecasting, and contingency planning can help the farm be prepared for unforeseen challenges. I can share that our 2025 contingency plan in AgriVision Equipment and PrairieLand Partners covers a wide range of possibilities due to the volatility that we are all experiencing. While most of us would rather be out feeding cows or operating a planter or combine, the time in the office going the extra mile to explore insurance options, finance solutions, and government programs is crucial. These are all designed to support farmers and ranchers during difficult times and can provide a valuable safety net.
Understanding the financial health of the business and making informed decisions about investments and expenditures are crucial steps in building resilience. By prioritizing financial planning and risk management, we can ensure that our operations remain viable for generations to come.
The Power of Leadership
In times of uncertainty, the presence or absence of leadership is the difference of success or failure. Our role as leaders of our family, church, farm, club, or community is to inspire and mobilize people. I recently heard that “the speed of the leader determines the rate of the pack.” As I watched the Super Bowl, I thought about this. While management is required, it takes leadership to create opportunity. Management can be related to playing defense, while leadership is more like playing offense and proactively creating outcomes through others.
Our words matter. Words connect to the heart, and feelings in the heart create an attitude. We affect those around us more than we know. We can lead in a positive direction or we can create further challenges through our words and actions. When things are tough, don’t let the pressures cause you to unintentionally lead those around you in the wrong direction. Slow down, be intentional, and have an attitude that others can rally around. We are all called to lead in some form or fashion. If you are struggling with this, I encourage you to read Genesis 1:26-31…….it encourages me as I think about our place in agriculture.
Conclusion: Hope for a Brighter Future
At AgriVision Equipment and PrairieLand Partners, our vision is to “Look Forward, Adapt Often, and Lead Always.” While the agricultural economy may face its share of challenges, it is important to remember that every challenge presents an opportunity for growth and innovation. By embracing change, adapting to market trends, prioritizing financial planning, and rising to our call to be leaders, we can navigate these uncertain times with confidence and resilience.
The light at the end of the tunnel is not just a distant hope; it is a beacon that guides us toward a brighter future. Together, we can overcome the obstacles, celebrate the triumphs, and build a thriving agricultural economy that benefits us all. Let us lead forward with optimism, determination, and a shared commitment to excellence in agriculture.