March 3, 2016

Northwest FCS News

Numerous commercials on television and other media discuss the many challenges to a good night’s sleep. Between the 24/7 world of technology and increasing life demands, a good night’s sleep can seem like a rare luxury today.

Recently, I conducted a session with over 800 peer producers who answered questions using individual “clicker” technology that presented anonymous results. One question for the group was “What keeps you awake at night?” I believe the answers present several interesting factors that may sound familiar.

First, the likely suspects of too much caffeine or food were not the culprits of a poor night’s sleep, according to this group. Surprisingly, many of these farmers, ranchers and agribusiness professionals indicated business transition was robbing their sleep as of late. Examining this stress factor, one finds numerous farms and ranches transitioning to the next generation. In this part of the business cycle, often the variables fall to the head of the group, which can be extremely stressful. Another factor in agricultural business transition is the fact that 21 percent of producers have no next generation with whom to transition. As opposed to estate planning, transition planning is a transfer of management and skills. Often, it is a long-term process that requires time for each party to make significant steps as well as concessions. The difficulty of this process will continue to grow as businesses become larger and more extended family members become engaged in the process. Again, this can be a major source of stress for all involved.

As a close second to business transition, regulation, taxes and overall government environment and encroachment registered high on the list of worries. Many cited the attention and paperwork involved in these activities, along with the newest rules and regulations that tend to create a lot of uncertainty and require a great deal of valuable time.

Not surprisingly, rising input costs and labor supply were also elements blamed for sleepless hours. Indeed, the uncertainty of a qualified labor force is a worrisome factor. Agricultural businesses require a high degree of aptitude for labor in order to successfully and sustainably manage either a crop or livestock operation. Other factors cited as challenges to sound sleep include declining global economy and the strong U.S. dollar’s impact on profitability and sustainability of the business. One additional element that got more attention than in the past was climate change. Weather extremes in the U.S. and around the globe play such a significant role for agricultural commodities that more producers and professionals are concerned about potential, wide-spread impacts.

Well, that is the short list of what keeps your peers up at night. How do you compare? Use your energy to create proactive solutions, quiet those worries and reclaim your valuable hours of sleep. Remember the old adage, “Worry is like a rocking chair; it keeps you busy but does not get you anywhere.”