Overcoming Challenges as a Next Generation Rancher
I spent the weekend at the Illinois Beef Association Summer Conference, where I presented a workshop, “Table Truths in a New York Minute.” The theme this year is “Reclaiming our Legacy,” and I was joined on the program by several dynamic speakers including radio personality, Trent Loos, Masters of Beef Advocacy trainer, Daren Williams, and world economic policy analyst, Ross Korves. Hot topics of the event were climate change legislation, HSUS agenda, global market economics and agriculture advocacy. Throughout the conference, I met a group of incredibly dynamic individuals, including father-son due, Dale and Cliff Pfundstein of Sterling, IL. Cliff has returned home to the family’s cattle operation, and they detailed the many challenges facing multi-generation ranches. Listen to what they have to say about this topic.
The Pfundsteins identified that finding enough income to add a new partner and communicating ideas are the two biggest challenges facing mult-generation farms. What challenges do you face in your operation? How do we overcome those challenges?
BEEF Daily Quick Fact: Very few young people become farmers today; only 6% of all farmers are under the age of 35 in the United States agriculture industry today.
June 30th, 2009 at 4:29 pm
In my opinion, the biggest obstacle to the next generation of agriculturalists is death taxes. As a fourth generation cattle rancher, I inherited my uncle’s cattle operation along with a 3.5 million dollar death tax assessment for the ‘privilege’ of staying in business. It was take out a mortgage or lose the ranch. It took me 15 years to pay off the debt - during that time, monies that could have hired help, purchased equipment and supplies and improved the ranch went to interest and principle payments. This debt was incurred not because I was a bad manager or expanded too quickly, but because a loved one died. The message death taxes sends to all hard-working ambitious people is to be a success, but not too successful, because if you are too successful, we will tax the life out of you.
July 1st, 2009 at 11:27 am
Thanks for sharing, Jan. I’m sorry to hear about your loss. I think this situation happens in all too many families, forcing a lot of good cattlemen out of business. BEEF has some excellent resources to help avoid these situations with careful estate and succession planning. I hope you’ll take some time to check them out. Thanks for your readership and for sharing your story. I really appreciate it! -Amanda
http://beefmagazine.com/issue_20070215/?cid=resources
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