Farm Bill Complexity: Complete fARCe or Cluster PLuC

I've spent the better part of a day studying and trying to understand the latest Farm Bill. Learning the differences between PLC and ARC. There are two sides to my thinking as I dig into this convoluted monstrosity:

1. If I can crack the code and figure out the nuances of these programs, I can gain a huge advantage over competing cash renters. In turn, I could parlay that opportunity into significant profits. I can really benefit from this.
   
2. Why does such a simple and honest goal require such a complicated package? Who could possibly participate in this and sleep soundly in the confidence of their enrollment decision?

The first farm bill was intended to provide certainty for a nation's food supply and a safety net for it's most vulnerable producers. At least that's the idea we'd all like to believe.

Corn harvest in Iowa - October 2014

More, More, MOAR!

Every farmer wants more.

More bushels, more acres, more pounds, more gain per day.

More deductions, more pre-payments, more Section 179, more 0% financing.

More trait stacks, more disease resistance, more drought tolerance, more chemicals crop protection.

More storage, more $B $G $F $W, more precision, more data.

But does any of it guarantee more profit, more bottom line?

The advertisements want to help you get more of what THEY are measuring, but does that make YOUR business better?

What if the program for more bushels per acre meant less profit per acre?

What if the requirements for more pounds per calf meant less profit per cow?

Know what you're measuring and why.

Increasing An Average

Grain farmers: Do you put more focus on tweaking/optimizing highest yielding fields or improving your lowest? Why? #AgChat
— Kristopher Hauswirth (@kfhauswirth) December 1, 2014

Ways To Increase An Average

• Push the highest outlier even farther out, into the long tail.
• Pull the lowest outlier in, towards the fat part of the curve.
• Nudge most or all of the instances a little step higher.

Which option provides the greatest benefit?

What does each option cost?

Do you even have enough information to know?

Because math is fun!

It’s Okay, I Need The Deduction

It's that time of year again.

No, not Thanksgiving. Not Christmas shopping.

If you're a business owner, especially a farmer, you're staring into the face of one full month of "Year-End Tax Deduction" season, specifically my inanimate arch nemesis: Section 179.

Many well meaning sales people and tax advisors will suggest making purchases this December to take advantage of Section 179, calling it wise tax planning. It certainly can be useful under the right circumstances. But remember that even in a best case scenario, accelerated depreciation is only a tax deferral tool. It is never a tax avoidance mechanism.

Bring Me What You Have

“What do you have,” he asked?

“Not enough,” they answered. “Nothing compared to what it will require.”

“No, listen carefully,” he said calmly. “I’m not asking if you have enough. Just bring me what you have. Set it down right here,” pointing to the ground by his feet.

“Bring me what you have; lay it down," he repeated.

“Now here, take what I give you. This will be enough,” he assured them.

[Read four accounts of the whole story here, here, here, and here]

Arbiter of Violence

Ray Rice, Adrian Peterson, and Anthony Schlegel.

You are probably familiar with the first two names and recall some recent news headlines. Mr. Schlegel, if you haven't already seen or heard, is an Ohio State University strength and conditioning coach now best known for his body slam technique.

As I watch the photo and video of Schlegel tackling the unruly spectator circle through the social media cycle, I can't get this question out of my mind:

Who gets to decide when violence is accepted and when it is abhorred?

What facts can help us determine when something is awesome versus when it is awful?

Are there aspects of the offender or victim in the incident that are relevant, like skin color or gender?

Does the apparent ability of a grown man to take a punch, so to speak, negate the offensiveness of the violent act?

Do not misconstrue. I'm not defending Rice or Peterson. Furthermore, I think the guy running on the field got exactly what was coming to him. I think he deserved every pound of force in that body slam and every blade of field turf in his face.

It feels like one of these three situations is okay and the other two are not, but it bothers me that I cannot explain why that is.

Insurance Quote

I met with a life insurance salesman a few weeks back. During the course of the meeting he matter-of-factly defended a certain mutual fund as a no brainer, easy money investment and said, "that fund did 18% last year, now where you gonna put your money that can beat that?"

Crawl Before You Ball? More Like Saul Before You Paul.

I learned something from Paul last weekend.

No, not this Paul -- although I think he's hilarious.

I mean the Paul who was Saul before he was Paul.  That guy in the Bible, Book of Acts (and several other books also).

I was listening to the start of a sermon, mentally preparing myself for a pretty typical message about the stark 180 degree change of direction that happened when Jesus met Paul on the road to Damascus.  If, like an old school comedian, the Pastor would have said, "stop me if you've heard this one," I'd have raised my hand.

But as I was settling in and mentally unwinding, a new perspective met me that changed the way I think about Paul and, as a result, the way I think about myself.

Are We In This Together?

It's interesting that many entrepreneurs begin their career as an employee. They exchange time and effort for a salary and experience, meanwhile perfecting a vision, plan, and resources. Then, at some point, the budding capitalist decides to launch out on his or her own venture. The entrepreneur chooses personal best interests over the employer's best interests.

Hopefully, after a successful launch and a period of growth, the entrepreneur looks around the workplace to find a bunch of really talented employees. Employees who were carefully vetted and hired based on what they could bring to the company and how they can contribute to the company's interests.

As cynical as it may be, the economy is just a huge group of people making choices in the best interest of themselves. A boss can talk about being a team, having each others' backs, and being in it together. In truth, in it together is just a matter of convenience where everyone's what's best for me is mutually beneficial.

Manage your company towards the sweet spot that optimizes the interests of your clients, your capital, AND your employees. Making decisions in the best interest of your employees might start paying dividends towards the best interests of your customers and capital.

Give Me Discontent

Give me discontent.
Give me uneasiness.
May it sting, burn, and tear me apart.

Give me dissatisfaction.
Give me restlessness.
May a yearning for something uncertain take residence in my heart.

Take my appetite.
Take my comfort.
May a disruption of my routine refine my desires and provide clarity of mind.

Let it launch me forward.
Let it increase my faith.
Now is the time to learn, to grow, to seek, and to find.

Go With The Flow

A professional athlete hoists the league championship trophy and proclaims, "I just went with the flow and look where it took me!"

The entrepreneur after the closing bell of IPO day says, "I never really had to do anything out of the ordinary during my career, I just sort of went with the flow and here we are!"

God tells us through scripture that he knit us together in our mother's womb. I suppose it's logical that He just slaps a "go with the flow" label on about 95% of his human widget inventory.

I suppose God only desires that maybe 3 to 5% of the humans He creates are actually implanted with a dream that they should chase and achieve.

I suppose it's God's design that most of the population simply blend in and ride the current, not making any waves.

Yeah, I bet God hates the wake created by people motoring toward His calling.