An Urban's Rural View

Friday, 02/03/2012 4:50 PM

Back in the 1980s, when I was a foreign correspondent in Tokyo, the Japanese were complaining about "Japan bashing" -- foreigners' never-ending criticism of the country's trade practices.

By the early part of this century it was "Japan passing" the Japanese bemoaned. Foreigners had stopped paying attention to them. China was the new target of criticism. Nobody read the Japan news any more.

Actually, I did. Still do. You don't spend eight years of your life living in a country and learning its language and customs and then just walk away from it.

Farmers have reason to read the Japan news, too. The country continues to be a major importer of American soybeans, wheat, beef, pork and other ag products. Although it has been overtaken in recent years by China, Canada and Mexico, Japan is still our fourth-biggest market, buying more American ag exports than all 27 European Union countries combined.

That's why DTN/The Progressive Farmer has a correspondent in Tokyo, Richard Smith, and runs important ag wire-service stories from Japan.

Admittedly, the news from Japan, like the Japanese themselves, is somewhat predictable. Oh, sure, every now and then in the past Japan went crazy and invaded China or bombed Pearl Harbor or invented the Walkman. But today's Japan is different -- a steady-Eddie country in many ways. It settles into comfortable relationships, diplomatic and commercial, and sticks with them. It stakes out negotiating positions and sticks to them. Surprises are rare.

So, for example, it was no surprise to read that eight years after America's only two cases of mad-cow disease Japan is pondering loosening its restrictions on American beef imports -- but the study might take awhile. This is the same Slow Loris imitation Japan did in the 1980s when I was covering the U.S.-Japan beef and orange talks.

Neither was it a shock when Smith reported the other day that Japan's largest farm organization opposes a trans-Pacific free-trade agreement. News, but not shocking news. Barring the door against foreign rice is the group's reason for existence.

Nor was I taken aback by the efforts of the Japanese government to talk down the value of the yen. They've been doing that for decades, too, and for decades the yen has continued to strengthen despite their efforts.

Of course, the big news from Japan recently was the big earthquake. But it had been expected for decades, the Japanese archipelago being among the world's most seismically active places. I wrote a story in 1980 on the country's earthquake preparations. The city of Tokyo, for example, had stored 400,000 tons of water -- enough for all 12 million residents for 10 days.

A story in The Wall Street Journal recently recounted how the Japanese are striving to make foreign specialties -- French pastries, American cocktails, Spanish tapas -- better than the foreigners. The lead was an anecdote about a barista in an espresso bar who is only allowed to make lattes -- no espressos or cappuccinos -- because he hasn't spent enough years perfecting his lattes yet.

And yet even this story was but a new twist on an old theme -- the Japanese pursuit of perfectionism, their dedication to craftsmanship, their obsession with detail.

There are, as the old Japan hands at the Foreign Correspondents Club bar in Tokyo like to say, no new stories, only new reporters to write them.

Every few years, though, Japan does manage to produce a shocker, a genuine news flash. The latest one came a few days ago when the government announced that Japan ran a trade deficit last year for the first time in more than three decades.

Wow. Japanese trade surpluses have become a way of life, a given. For Japan to run a deficit, something extraordinary must have happened. And indeed something did -- the earthquake, which threw sand in the gears of Japan's export machine.

But Japan would never have been close enough to deficit for the earthquake to have that effect if underlying trends weren't eroding the country's surpluses.

High oil prices savage a country that imports all its oil. Meanwhile the strong yen has been forcing Japanese manufacturers to move production offshore, to Asia, even to the U.S.

Whether this deficit is the first in a series won't be known for years. I'd guess it isn't. But even if it is, American agriculture needn't fret. Japan is rich enough to keep importing and it can't feed itself without imports. Trade deficits won't push it from the palace to the poorhouse.

Of course even this first-deficit-in-decades story was on some level predictable. For years people had been saying Japan couldn't run surpluses forever. Well, as the late economist Herbert Stein said, "If something can't go on forever, it will stop."

Japan's surpluses just did. That's a proper surprise.

Urban Lehner can be reached at urban.lehner@telvendtn.com

(CZ/SK)

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Assess Your Marketing Proclivities

Friday, 02/03/2012 4:49 PM

OMAHA (DTN) -- "Profiling" is a well-known concept today because of the popularity and proliferation of detective shows. But finding serial killers isn't the only thing this psychological assessment is used for. Now farmers are finding that such assessments can shed light on their own strengths or weaknesses and enable them to improve performance by changing habits or hiring outside help to bolster weak points.

Anne and Don Borgschatz, dairy producers in Plainview, Minn., took a 20-minute Marketing Assessment Profile designed by Scott Stewart of Stewart-Peterson Advisory Group in 2008. They were convinced they needed to learn to better manage profits by protecting both input prices and milk sales. "I can't say we were surprised by the results -- we already knew we didn't know much about marketing," Anne told DTN. "I do think the MAP gave our adviser a better idea where we stood in our need for education." She noted that they had already taken a risk attitude assessment relating to other investments.

The MAP idea evolved from the Theory of Constraints, which had its roots in Liebig's Law, which states that plant growth is not controlled by total resources available, but by its scarcest resource -- the limiting factor, said Stewart. The MAP includes questions to identify any limitations in five areas: marketing knowledge, risk tolerance, time available for marketing, experience level and your personality type (how you react to price moves). You are rated on a numbered scale to help identify where you have room for improvement.

"You can have all the knowledge in the world, but if all your time is spent in the tractor, not paying attention to marketing, then it won't matter what you know -- and it would be a waste of time to try to learn more when time is your limiting factor," Stewart said. Or you might understand how to hedge, but if your personality can't handle a margin call, it won't work for you.

After taking the MAP, Nate Kitzinger, who farms in Titonka, Iowa, said that he realized the importance of having someone watching his interests in the grain market, especially during planting. "We make decisions in advance, then they remind me at the right time." Likewise, Anne Borgschatz likes to receive a phone call when a price trigger has been hit or a sales recommendation goes out.

LESSONS LEARNED

"From our work with producers, we've found that uncertainty leads producers to freeze and do nothing, or to make costly mistakes," said Stewart. "To be of any help, we needed to help people break down the steps to improvement."

Personality and psychology really do play into marketing, according to Stewart. "The personality traits that make a farmer a good farmer are often exactly the traits that cause him to struggle with marketing."

Stewart cites farmers' proclivity for gathering information before making decisions. "For most farm management decisions, a farmer will study a problem, gather as much information as possible, and then make what he perceives to be a good decision. That is a wise approach. In marketing, however, by the time you gather all the information necessary to be confident, the move is over. That's what makes marketing decisions so frustrating. The typical decision-making processes simply do not work."

As a result, some farmers who take the MAP assessment go into it thinking they do not have enough time to gather information, or knowledge to gather the right information, Stewart says. "The MAP reveals that those aren't actually the most limiting factors. It is the farmer's tendency to want control that is impacting marketing outcomes most."

This is eye-opening for many producers, he adds. "Once we understand the most limiting factor, we can make suggestions for how to step up their marketing to the next level."

Stewart-Peterson offers the MAP free. If you honestly feel it wasn't worthwhile, they will pay you $100. See http://gainmarketingconfidence.com/…

Linda Smith can be reached at linda.h.smith@telventdtn.com

(AG/CZ)

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Farm Labor Change Not Enough

Thursday, 02/02/2012 2:35 PM

OMAHA (DTN) -- Changes to a child labor rule that give farm kids special permission to work for their families aren't enough to satisfy members of a House Small Business Subcommittee, who said they want the rule pulled completely.

In a Subcommittee on Agriculture, Energy and Trade hearing on Capitol Hill Thursday, a Department of Labor official defended the need to update child-labor laws for farms, but highlighted changes made to ensure children can work for family members. Still, lawmakers criticized the proposal with one congressman saying he would block any funding to implement it.

Nancy Leppink, deputy administrator, Wage and Hour Division, U.S. Department of Labor, testified that the proposed rule changes were meant to "promote the viability of agriculture while respecting and upholding the values and culture of our nation's rural communities."

"Agriculture is the most hazardous industry that either adults or children work in," Leppink said. "This regulation only targets the youngest children."

Still, several subcommittee members talked about the value of working on a farm and particularly what it meant to them in their own lives. Subcommittee Chairman Scott Tipton, R-Colo., noted 98% of domestic farms are family farms and 97% of those are defined as small businesses. The rule may have been "well-intentioned" but should have never been proposed.

"This is bad for agricultural small businesses and bad for the nation's future farming needs," Tipton said.

Rep. Denny Rehberg, R-Mont., told Leppink that the department hasn't heard the last of the backlash. A member of the House Appropriations Committee, Rehberg said he will attach a rider to the Department of Labor's funding bill to block implementation of the rule. Rehberg noted he has hired children as young as 10 years old to help herd cattle with ATVs.

"I will do everything I possibly can to keep this regulation from being implemented as written," Rehberg said.

Rep. Roscoe Bartlett, R-Md., also said the regulation should be withdrawn altogether. "Farming is whole different way of life. I don't know why you are meddling with it ... Can't you find something more productive to do than hassle farmers?"

In defense, Rep. Judy Chu, D-Calif., highlighted the casualties and injuries that can occur on farms as justification for updating the rule. More than 100 children die each year in farm labor, she said.

After reviewing more than 10,000 comments, the department announced Wednesday the agency had expanded its parental exemption language. That exemption will apply in situations in which a parent "or person standing in place of the parent" is part owner of a farm as a partner or officer in a corporation which owns the farm "if the ownership interest in the partnership or corporation is substantial."

The Labor Department proposed changes to the law after citing the injury and fatality rates for children working in agriculture is four times greater than kids working in non-agricultural jobs. Further, the department had not changed its child-labor standards in 40 years and had been criticized as far back as the 1990s by the Government Accountability Office for failing to do so. Leppink noted the main bulk of language changes affect children under 16.

"We're not talking about kids who are 16 years or older who are employed on any farm, whether a family farm or a corporate farm," she said.

The rule would prevent children under age 16 from operating most power equipment on farms. The rule does include exclusions for children are working on their family's farm operation or taking classes in a vocational program. The rule largely would apply in situations where there is an employer-employee relationship involving a farmer and a child.

"We're not talking about neighbors helping neighbors in need," Leppink said. "We're not talking about kids participating in 4-H or FFA,"

She added, "In other words, a child of any age could, for example, assist a neighbor to round up loose cattle that have broken out of their fencing because that would not establish an employer-employee relationship," Leppink said.

Still, other prohibitions would prevent children from working with livestock, timber, manure pits, grain bins or pesticide handling. The regulation would not apply for children raising livestock for 4-H or similar organization.

Further, children under age 18 would be banned from working in areas involved with storing, marketing or hauling raw farm materials. So children could not work in grain elevators, silos, feedlots or stockyards.

Emphasizing training of children who are going to work on the farm, Leppink said the Department of Labor is cooperating with USDA to see what kind of programs can be developed.

"We're already in conversations with the Department of Agriculture on who we can work on those educational programs together," she said.

Full hearing testimony can be found at

http://smbiz.house.gov/…

Chris Clayton can be contacted at chris.clayton@telventdtn.com

(SK)

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Farm Bill Hearings Planned

Thursday, 02/02/2012 11:10 AM

WASHINGTON (DTN) -- Four hearings will be held in February and March in hopes of bringing a farm bill to the Senate floor before the House acts, Senate Agriculture Committee Chairwoman Debbie Stabenow told DTN on Wednesday.

Stabenow, D-Mich., said she does not know when Senate Majority Leader Harry Reid, D-Nev., would bring a farm bill to the floor, but said that she and Senate Agriculture ranking member Pat Roberts, R-Kans., "want to be able to move it as soon as we can so [House Agriculture Committee Chairman Frank Lucas, R-Okla.] has the time he needs in the House."

In an exclusive interview, Stabenow said that the hearing schedule will be:

Feb. 15 -- An overview focused on energy and rural development

Feb. 29 -- Conservation

Mar. 14 -- Healthy food initiatives

Mar. 21 -- Commodities and risk management

Even though the supercommittee on deficit reduction failed to complete its work, Stabenow said the work she and Lucas did preparing the proposal they submitted to it "was a very important process for us, very clarifying."

"I really feel like we have developed a lot of good work already," she said. "We developed relationships that are positive. We know where we still need to work."

The commodity title "is the area where we have the most work to do," Stabenow acknowledged. Noting that commodity groups are meeting this week to discuss their differences and try to reach consensus, she said, "I have been urging them to get together."

"We can't sustain direct payments with prices high," she said, but added that it is very important to maintain a safety net "because there is nothing more risky than farming."

"We don't want any farmer losing the farm because of a few days of bad weather," she said. "It is not in our security interests as a country."

Reacting to Lucas's statements that it would be hard to develop a single program that will work for all commodities, Stabenow said she has heard "loud and clear," including at the farm bill hearing she held in Lansing, Mich., that crop insurance is "the No. 1 management tool," but crop insurance is not available for all crops.

"That is where the challenge comes in.," she said. "I am very confident we can come together on a set of tools."

She said crop insurance doesn't work for every commodity.

"What we need is continued input and discussion," Stabenow said. "I am confident we can come together around an approach that will be effective for all of our growers."

(CC/CZ)

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Sanow's Market Sense

Thursday, 02/02/2012 11:08 AM

It has been difficult to find something fresh to talk about regarding wheat for some time due to cumbersome stocks and a general lack of interest from either side (commercial, noncommercial) of the market. Chicago wheat in particular has taken its cue mostly from the U.S. dollar index and corn's direction.

In fact, just last week at the Sioux Falls Farm Show, I talked about how bearish wheat was fundamentally and how there was little hope for significantly higher prices unless the dollar came under renewed pressure and corn gave the market a huge assist.

My, how quickly things can change. The greenback has trended lower ever since the Fed announced they would keep interest rates low until early 2014. Mother Nature has reared her ugly head once again, affecting global grain production. The winter crops in Ukraine and Russia have been hit with frigid temperatures. In areas lacking adequate snow cover, the general consensus is that winter kill has occurred. Wednesday afternoon saw Ukraine's weather forecaster estimate 42% to 58% of the winter crop could be lost due to a combination of severe drought and freezing temperatures. According to DTN Ag Weather, crops in Poland, Germany, Romania and France are at risk as well.

Before any of this weather was on the radar, Russia was already in the process of planning to put export duties in place to protect domestic reserves. Ukraine may not be far behind. Remember what happened the last time the Black Sea Region's crop was decimated? U.S. wheat farmers benefitted, with export business of almost 1.3 billion bushels. USDA currently projects 950 million bushels for the 2011-2012 marketing year.

The market has certainly paid attention as the nearby March contract rallied to its highest level since September on the continuous weekly chart during Wednesday's session. This was a more-than-$1.00 rally from the mid-January low of $5.90 to Wednesday's high at $6.83 3/4. This healthy advance has been sparked by strong buying interest from both sides of the market.

Only two short weeks ago, noncommercial traders held a record net-short futures position of 62,545 contracts. Look for that number to be significantly lower in Friday's CFTC Commitment of Traders report as investors scramble to cover their positions, in the wake of diminishing global production.

The scope of this rally wouldn't have been possible if not for strong interest from commercial traders as well. Since the week of January 9, the March-to-May futures spread has weakened about 8 cents. But don't get overly excited -- this still represents over 100% of full commercial carry (67% or greater is considered bearish). However, the May-to-July futures spread is approaching neutral territory at about 75% of full commercial carry.

The other intriguing factor that needs to be noted is DTN's national SRW basis. Remember a time not that long ago when basis levels were well over $1.00 under the nearby contract. As of Wednesday's close, national basis had firmed another one cent to 17 cents under the March contract. This number continues to run well above the five-year maximum, reflecting solid interest from end users.

Current USDA estimates project stocks-to-use ratios both domestically and globally at historically comfortable levels. However, the action by spreads recently and firming basis hint at major revisions in future monthly WASDE reports. If realized, all three wheat classes should continue to find support from both sides of the market.

Of course, headlines can change, and anyone who has ever grown wheat knows it is the cockroach of grains -- in other words, hard to kill. But if basis levels remain firm and spreads continue to weaken, it will indicate commercial traders are legitimately concerned, something that should support wheat prices for months to come.

John Sanow can be reached at john.sanow@telventdtn.com

(CZ/AG)

© Copyright 2012 DTN/The Progressive Farmer, A Telvent Brand. All rights reserved.

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Telecom Officials Challenge Grassley

Wednesday, 02/01/2012 2:25 PM

OMAHA (DTN) -- Despite suggestions by U.S. Sen. Charles Grassley that a company linked to telecommunications company LightSquared may have offered a quid pro quo in exchange for the senator backing down from his inquiry into LightSquared, an attorney for LightSquared's majority owner said in a letter to Grassley's office Tuesday that what really happened doesn't match the description of events Grassley offered to the press last week.

LightSquared proposes to provide broadband service to rural areas via satellite signals. Its plan has drawn fire from the U.S. military, telecommunications companies, agricultural equipment companies, farmers and politicians over concerns Lightsquared's service could interfere with GPS signals.

Last week Grassley, R-Iowa, alleged improper contacts made with his office by a LightSquared investor and the chief executive officer of another telecommunications company.

Grassley said in a news release that Harbinger CEO Philip Falcone and Fine Point Technologies CEO Todd Ruelle may have been trying to influence the senator to back down from questioning the project. Last week Grassley released emails and other information about contacts made by Falcone and Ruelle.

In a letter to Grassley on Tuesday, however, Mark R. Paoletta, an attorney for LightSquared majority owner Harbinger Capital Partners, said the senator's description of the events was "inaccurate."

"Your staff member contacted Michael Bopp, and asked about the relationship between Mr. Falcone and/or LightSquared and Mr. Ruelle," the letter said. "Contrary to what your letter states, Mr. Bopp did not ignore the question but instead told your staff that he did not believe Mr. Ruelle was a paid employee or counsel to Mr. Falcone, LightSquared, or Harbinger, but acknowledged that there had been communications with Mr. Ruelle."

The letter said Ruelle does not have a business relationship with LightSquared or Harbinger, but that Ruelle "on occasion" has given Falcone "business advice." Lewis Phelps, a spokesperson for LightSquared and Harbinger told DTN that Ruelle was not authorized to speak to Grassley on the company's behalf.

Deere and Company, along with other equipment manufacturers in Grassley's home state and farm groups have opposed the LightSquared project based on concerns that the system would interfere with GPS-based precision agriculture equipment.

In the letter, the attorney said Falcone had contacted Ruelle because of previous contacts Ruelle had with Deere officials.

"Mr. Falcone was primarily interested in Mr. Ruelle's relationship with Deere and Company and believed he could facilitate a meeting between LightSquared and Deere to address issues related to LightSquared's satellite augmentation services and potential interference with GPS devices," the letter said.

Ruelle made his first public statement on the allegations in a letter to Grassley's office Wednesday, calling the senator's allegations "erroneous" regarding contacts Ruelle had with Grassley staff member Christopher Lucas.

"First, I did not ask, nor imply, that you should 'pull punches' in your personal staff's investigation of the FCC," the letter said.

"This is confirmed expressly in my email of Jan. 6, 2012, 1:57 p.m., Attachment #2 to your letter, in which I stated: 'As I said on the phone. Conduct the investigation. You should. That is an issue you need to run separately and to be blunt run it hard.' I do not see how that statement could be interpreted to suggest that you should 'pull punches' in the investigation of the FCC.

"Second, my comment concerning call centers in the Midwest arose in response to Mr. Lucas' statement that LightSquared's LTE network would not create rural jobs for America. This point is confirmed by my email of Jan. 6, 2012, 2:05 p.m., Attachment #2, in which I stated: 'BTW, the subject (call centers) came up when you referenced the L2 plan had no real rural component.'

"A quid pro quo was not intended, nor in my view, even suggested, by my statement."

MEDIA CONTACT

The company's attorney said he was concerned about the way Grassley has addressed the events in the media.

"On Jan. 12, LightSquared personnel received a call from a reporter at Bloomberg News with information that your staff had contacted him suggesting a story related to an alleged quid pro quo involving a purported request that you drop the investigation of LightSquared in exchange for a call center in Iowa -- an allegation that your staff member never mentioned to Mr. Bopp at the time," the letter said.

"It concerns me that Senate staff would propose such an unsubstantiated story without giving Harbinger and LightSquared an opportunity to address the allegations, especially as your office's version of the story ties together Mr. Ruelle's actions and those of Mr. Falcone despite a lack of evidence supporting such a tie, and particularly in light of the fact that your staff member knew that Mr. Bopp was looking into the nature of the relationship with Mr. Ruelle and had promised to get back to your office."

When contacted by DTN, a Grassley spokeswoman said the senator stands by the allegations made in the Jan. 23 letter to Falcone.

"Senator Grassley's letter was and is accurate and fully reflects the contact to his office and his subsequent efforts to seek the companies' perspective before sending his letter," she said. "Those efforts prior to the letter were not fruitful. And the companies still have not fully explained their relationship with Mr. Ruelle or provided the documents that they previously committed to provide."

Grassley's office turned over all communications with Falcone and Ruelle to the Senate Ethics Committee, according to a news release last week.

GRASSLEY CONCERNS

Grassley expressed concern about two separate incidents during which Falcone and Ruelle "implied a desire to have Grassley 'pull punches' in his investigation," according to a Grassley news release. He said that he "won't be a part of that." Falcone also is the CEO of Harbinger Capital Partners, the majority owner of LightSquared.

In an email to Grassley's office, Falcone wrote that since LightSquared is already in the political "arena," it could be made a "win" for Grassley, LightSquared and the consumer.

"The second contact was from someone who intimated that he represented LightSquared in a call to Grassley's staff," according to a news release from Grassley.

"The individual, Todd Ruelle, said he 'only gets paid if this deal goes through' and hinted that if LightSquared were allowed to proceed, Grassley's home state of Iowa could get a 'call center.' Grassley's office advised Ruelle not to contact the office further and called the Senate Ethics Committee regarding the contact."

INTERFERENCE CONCERNS

Concerns have been raised that LightSquared's project would interfere with existing military and aviation equipment and even precision-agriculture equipment. The Federal Communications Commission has put the project on hold until more information is available.

Phelps told DTN that despite the FCC decision, "LightSquared intends to continue pursuing approval of its plan by every possible means until approval is obtained."

Phelps said no other companies are offering or proposing to offer broadband service "accessible to rural America."

"A couple of satellite TV companies offer satellite-based access to the Internet, but it's not accessible from mobile devices -- smart phones and iPads," he said.

In April 2011 Grassley began reviewing what he said was the FCC's "rushed approval" of the LightSquared project. Grassley claimed it was done without "adequately exploring what turned out to be widespread concerns of interference with the global positioning system devices widely used by the military, first responders, aviation, precision agriculture, and consumer navigation."

Phelps said LightSquared has been above board for a decade, working through the process with the FCC.

The Coalition to Save our GPS formed in March 2011 to oppose the LightSquared project, http://www.saveourgps.org. The group consists of 226 members and associate members from an array of telecommunications companies, U.S. oil industry interests, the airlines industry, agriculture equipment companies and others.

For additional LightSquared coverage by DTN, follow the links below: http://bit.ly/…, http://bit.ly/…, http://bit.ly/…, http://bit.ly/…, http://bit.ly/…, http://bit.ly/….

Todd Neeley can be reached at todd.neeley@telventdtn.com.

(GH/AG/CZ)

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Klinefelter: By the Numbers

Wednesday, 02/01/2012 11:24 AM

In the most recent week-long session of The Executive Program for Agricultural Producers (TEPAP), one subject that kept coming up was management succession and transition. This isn't a new issue at these week-long management courses for agricultural producers but it is one where the process is often flawed.

I want to begin with two quotes from people I have a great deal of respect for and then look at one area that I believe needs to be part of the process, but too often isn't.

"Successful management transitions don't just happen...they are planned." -- Dr. David Kohl

"Sixty percent of failed management transitions are due to unresolved family conflicts and communication issues." -- Dr. Mark Voeller, author of "Exit Right"

One of the critical starting points is the development of a common vision for the business. Because it includes addressing and working through both personal and family issues, it typically doesn't get done.

In part, this is because people, even from the same family, often have different goals, priorities and vested interests. We talk about and strive for separating business and family issues and decisions, but the reality is they are intimately connected. This is even more true when some of the owners are actively working in the business and some are essentially outside investors. Everyone may agree on the costs and benefits of a decision, but still disagree on what to do because of the sharing of risks and rewards.

Those working in the business tend to be more focused on reinvesting in the business and future growth, while those outside the business see it more as an asset on their balance sheet which isn't generating much of a return. Even within the business, the CEO and the successor may differ because of the stage in their life cycle. The CEO often has more equity at risk and is concerned about long-term security, particularly if his retirement is going to be funded out of the business.

As a starting point, one exercise that I encourage both the CEO and the successor to do is for each to independently write out their thoughts in response to the questions in the following seven areas, and then share and discuss their ideas. Among the priorities they need to establish are:

1. Core Values

-- What is important to me?
-- What is acceptable?
-- What is not acceptable?

2. Vision

-- What does my future for the business look like?
-- What do I want from the business?
-- What do I hope will happen?
-- What am I afraid might happen?

3. Mission

-- What is the purpose of the business?
-- Why am I here?

4. Goals

-- What do I want the business to accomplish?
-- What do I want to do or achieve personally?
-- What sacrifices am I willing to make in order to make it happen?

5. Objectives

-- How will I measure both the business's and my own performance and progress?

6. Strategies

-- What is my plan or approach for accomplishing the goals I have set out?

7. Tactics

-- How do I propose to implement these strategies?

Some of those reading this column will say the list is too academic. I can only tell you that the leaders of some of the most successful family businesses in the country have gone through the exercise and learned a great deal from it.

On the other hand, if you recognize the need, but are concerned about opening wounds or exposing painful differences too difficult to work through alone, consider using a professional facilitator. Family business mediators, accounting firms or even the Family Business Institute can give you names and suggestions of consultants who work in your area. The main thing is to start the conversation.

Editor's Note: Danny Klinefelter is a professor and extension economist with Texas AgriLIFE Extension and Texas A&M University. He also directs The Executive Program for Agricultural Producers (TEPAP), a management short-course for farm producers held each January, and its alumni association, AAPEX. For information about a DTN scholarship to attend 2012 TEPAP go to http://tepap.tamu.edu/…

(MZT/AG)

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USDA Announces CRP Sign-Up

Wednesday, 02/01/2012 11:10 AM

OMAHA (DTN) -- Landowners will be able to enroll acres in the Conservation Reserve Program beginning March 12, USDA announced Wednesday. The four-week sign-up will end April 6.

As of Feb. 1, about 30 million acres are enrolled in CRP, including both general and continuous sign-up. That's down 1.5 million acres from a year ago and 4.9 million acres from 2008 when the farm bill was enacted.

Contracts on about 6.5 million acres will expire Sept. 30, 2012, according to USDA. That's more than double the acreage expirations expected in any year up to 2020, USDA stated.

Acreage has slipped even though rental rates for CRP land have gone up from a national average of $50.76 an acre to $57.26 an acre over that time.

Further, just 10 states account for 4.85 million acres expiring, or just a hair under 75% of those contracts. All of those states suffered major federal disaster declarations in 2011: North Dakota, Texas, Colorado, Kansas, Montana, Missouri, Minnesota, Washington, Iowa and South Dakota. Only Colorado CRP would have faced a multiple-year step-down to 25 million acres under a farm-bill blueprint created by the House and Senate agriculture committees last fall. While the committees are starting over on the farm bill process, it's likely that recommendation or one similar will be added to the farm bill, partially to create budget savings. Expectations are that CRP could face a 7-million-acre cut in authorized enrollment in the next farm bill.

Hunting and wildlife groups have pushed back against efforts to trim CRP, fearing loss of wildlife habitat. Commodity and production agriculture groups such as the National Grain and Feed Association have policies advocating more investment in conservation on working lands and lowering the acreage cap on CRP.

"It is USDA's goal to ensure that we use CRP to address our most critical resource issues," said Acting Undersecretary for Farm and Foreign Ag Services Michael Scuse when making the sign-up announcement. "CRP is an important program for protecting our most environmentally sensitive lands from erosion and sedimentation, and for ensuring the sustainability of our groundwater, lakes, rivers, ponds and streams. As always, we expect strong competition to enroll acres into CRP, and we urge interested producers to maximize their environmental benefits and to make cost-effective offers."

A fact sheet on USDA's CRP program can be found at

http://www.fsa.usda.gov/…

Chris Clayton can be contacted at chris.clayton@telventdtn.com

(CZ/SK)

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