Dr. David Kohl, Professor Emeritus in Agricultural and Applied Economics at Virginia Tech, gave a webinar in July 2016, entitled “The Good, Bad and Ugly of Agriculture and Agri-Lending”. Dr. Kohl listed four key areas producers need to pay attention to: 1) keep open lines of communication with spouse, partners, lenders, and agribusinesses; 2) “sweat the small stuff” as there is no silver bullet; 3) develop and use a team of advisors and keep education a top priority; 4) do a variance analysis or stress test with respect to projected vs. actual income and expenses.
As I listened to Dr. Kohl talk, it hit me that these four things are at the heart of the services provided by Kansas Agricultural Mediation Services (KAMS). First, the mediation process at its core restores relationships and the lines of communication fundamental to the success of the operation and the progress of the family. Second, our farm analysts with the K-State Research and Extension (KSRE) Farm Analyst Program provide objective/realistic numbers through the detailed FinPack™ computer analysis allowing producers to easily find out what “small stuff they need to sweat”. Third, KSRE farm analysts and Kansas Legal Services (KLS) attorneys are an excellent team of advisors to empower the family to communicate and negotiate effectively by educating themselves on their options, rights and responsibilities. Fourth, KSRE farm analysts efficiently run a variance analysis with FinPack™ in any number of scenarios to identify what the best strategy might be to deal with a continued downturn.
KAMS services, in existence since 1988, are designed to help Kansas farmers and ranchers endure the cycle. It is important to be proactive and establish communication before problems develop. Lenders especially appreciate this so that there is time to generate workable options. Call KAMS at 800-321-3276.