Test the Next Generation's Mettle

Test the Next Generation's Mettle

One of the challenges for younger producers, is the lack of experience in downturns of agriculture. If you think about it, it has really been a while since agriculture faced serious down times.

Globetrotting Emeritus ag econ professor from Virginia Tech Dr. Dave Kohl explains more.

Kohl: “It’s real interesting, in our super cycle we’ve been in a 10-year commodity super cycle -- two and half times longer than we’ve ever experienced. So a young person under 40 years of age -- they were 10 years old when we had the last farm crisis. But a person under 30 years of age, they have never experienced an economic crisis in agricultural-- for the most part. And so one of the defining aspects of the next generations will be are they be able to take an economic punch and will they be able to bounce back.”

So what can young producers do to prepare for the inevitable down cycle?

Kohl: “A good sound business plan that includes your goals and objectives. A good operational, marketing, financial plan is going to be very, very critical. But you know what the other element is? Is to make sure that the young person and their spouse or significant other have good solid credit ratings or credit scores. One of the things that young people are going to have to do is build a real good case; but if they do there is a lot of opportunity out there.”

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