Friday, May 18, 2018

Benedict T. Palen Jr. - Turning Around A Struggling Farm


In 30 plus years of agricultural advisory work, I have encountered a number of farms that were successful, but also a fair number that were experiencing difficulties.  Each situation is unique, but there are some common, broad, themes that are applicable across almost all of those farms having issues.  While inherent in the notion of a struggling farm are financial issues, this essay takes aim at three basic things that, in some combination, lead up to financial issues.  There is a tendency in a struggling business to look for a panacea, or in the case of agriculture and its current rapid evolution of technology, the newest and greatest “big idea.”  Unfortunately, the quick cures and big ideas often miss the underlying basic issues.

Benedict T. Palen, Jr.


The first item is the soils.  The understanding of soils has come a long way from the time when NRCS soils maps were developed, which, in the case of many parts of the US, was 30 or more years ago.  There are now several more precise ways to evaluate soils on a farm, and then to better understand their capabilities and their limitations.  A starting point, for example, is using the Veris technology to map a field by zones; once those management zones are established, then soil samples are taken in each  of the zones, and prescriptions can be devised to match input usage with soil capabilities within each zone. 

Another factor for the soils is how they have been managed on a long term basis in terms of farming practices.  I have found otherwise productive soils to have serious issues with, say, hardpan layers, that will limit optimal results no matter the amount of money that is put into inputs for them, or the amount of water applied (if irrigated).  Correcting bad soil management practices requires patience, but it first demands the level of detailed understanding of the soils that can only occur by way of careful zone mapping of the fields. 

Benedict T. Palen, Jr.


An example of the above is a current project on a large irrigated farm where a one size fits all fertility and water management program has been used for years on various crops. The farm is failing, and our initial analysis has revealed exactly the kinds of soil related issues that I have just noted.  Crop yields are 50-60% of the true capability of the soils.  Water use efficiency is 20-25% less than what it should be because the years of poor farming have taken their toll on the ability of the soil to absorb water.   Steps are being taken to do the Veris mapping, zone specific soil testing, and then a prescription farming program will be put into place so that each field can be managed at a micro level basis.  While an ultimate goal of the program on this particular farm is very focused on no till practices, all fields are being deep ripped as a means of breaking up two hardpan layers that severely limit root development, and water movement.

The second factor is water management.  In a non irrigated situation, this generally means limiting tillage—which depletes plant available water with each pass over the field—and relying more on a no till or minimum till program.     It also means making frequent use of soil probes to check stored soil moisture prior to making planting decisions, and then during the growing season as a means of assessing crop potential, and the wisdom (or not) of applying additional fertilizer to achieve a certain yield goal.  Further, it means looking at the varieties of crops that can be planted, and determining whether evidence suggests that some varieties are more water efficient than others.   This goes hand in hand with understanding the soils because the water holding capacity of soils varies, and hence, one may make cropping decisions related to how water is available in some soils at differing levels than in others.

Benedict T. Palen, Jr.


On irrigated farms, I have found a fairly wide variance in the understanding of the importance of water management.    This is not just a question of applying X inches of water per acre. The key is making the water available where it is needed—at the ground level for the plants.  Many irrigated areas of the world have high evapotranspiration rates, and it continues to amaze me that inefficient irrigation techniques are still in use in a number of those areas.   What this comes down to is making a water budget for the farm, on a field by field basis (taking into account the aforementioned system of zone mapping of fields), looking at more efficient ways to get the water to the ground, and then tracking water use during the season, along with making good judgments on irrigation scheduling.  This is not a simple process, and there are several moving parts, but systems are available, at reasonable cost, for a farmer to tighten up water management.   In my experience, I have found instances where water use efficiencies could be improved from the 60% range to the high 80s with a few simple, and low cost changes to hardware.  In some of those examples, the updates paid for themselves with one season of use.

Benedict T. Palen, Jr.


The third item is people.  I like to say that all of the technology in the world will not fix a failing farm unless there is a sea change in one place—between the ears.  That’s right—attitudes have to change, to reflect the reality of tight margins in this business.   It involves going back to the basics, to the two most critical assets on the farm—soil and water resources—and how they are managed. Everything flows from them.   There are generational issues that get in the way of clear thinking in some cases. There is the attitude of “well, we have always done it this way.”   I tell my clients that we are starting with a clean sheet of paper, and that taking a step back and realizing that they have been stuck in a rut for a long time, will go a long way towards finding solutions.  As I said earlier, all of the hottest new tech out there will solve nothing if a farmer fails to sharpen his or her focus on the basics. Get them right, and then good things will start to fall into place.

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Benedict T. Palen, Jr. is a fifth generation farmer who works in an advisory capacity with farmers, investors, and others, involved in agriculture. He can be reached at 720-626-7661.               

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