Cash Cow Farmer

Tag: Grain Marketing

7 Proven Strategies to Overcome Low Commodity Prices

[vc_row][vc_column][vc_column_text]I don’t need to tell you that farms are under a lot of financial pressure right now…[/vc_column_text][vc_column_text]

I don’t need to tell you that farms are under a lot of financial pressure right now…
You’re well aware that there’s a huge supply of grain and a great harvest worldwide, and because of that…commodity prices are low. Real low.
But there’s hope…
There are ways to lean up your farming, and we’re about to show you how. We’ve compiled a list of seven proven strategies to help you come out on top, even when commodity prices are low.
At the very least, it’ll make your banker happy 🙂

[/vc_column_text][vc_column_text][/vc_column_text][ult_buttons btn_title=”SCHEDULE A FREE GRAIN MARKETING STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]

1) Preserve Working Capital:
Current assets minus current liabilities—that formula equals your working capital. It’s the most important figure that bankers use to know if a farmer will be able to cash flow their operation.
Debt on the books is a liability. Your cash today, not including your equipment, is an asset.
The idea is to put yourself in a good position, that is, on top of a fluffy financial cushion.

2) Reduce capital expenditures:
This includes any new machinery purchases or other shiny things.
There are really good deals out there. But the farmer needs to ignore those deals unless the cost of restoring the old is greater than buying the new.

3) Pay your taxes:
Farmers like to offset tax liability by capital expenditures and prepaying inputs.
You might get next year’s fertilizer now, but that means next year you won’t have any expenses, and you can say hello to a ton of tax liability.
When you have income, pay the tax bill. It’s worth it in the long run, and you’ll protect yourself against the tag-team of taxes and low commodity prices.[/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]

4) Restructure debt with longer-term loans:
Currently, there are lots of short-term loans available, but they are at a variable rate and they come with large annual payments which will put pressure on cash flow.
You can extend your payment plan on machinery. This decreases each year’s payments, leading to the most important thing during a low-priced commodity storm: increased cash flow.

5) Lock in interest rates on debt, and restructure if possible:
It’s a low interest rate environment right now. So your task is simple: take advantage of low long-term interest rates by locking them in for good.
This might take you an afternoon of phone calls, but believe me…it will be well worth it.

6) Reduce family living expenses:
Family living expenses for farms have skyrocketed based on high commodity prices from years past. Beach trips, snowmobiles, and new trucks are great, but too much high-expense living is devastating for the farm.
So hold off on large family purchases for now.
As Dave Ramsey says: “Today I will do what others won’t, so tomorrow I can do what others can’t.” (Click to Tweet)

7) Understand your farm break-evens, and make sure every field is profitable:
This is where Cash Cow Farmer becomes your best friend. You’ll need to know your production costs on every field: how many acres to produce soybeans as opposed to wheat or corn, and so on.
Also, remember that farmers don’t sell acres: they sell bushels. So you need to know your break-even cost per bushel, which is exactly what Cash Cow is made to help you do.
You can even input your family expenses, literally tracking the financial state of your entire farm.

You can get through it
For the short-term, the golden years in farming are over. Commodity prices are not in our favor. We need to focus on the business side of farming and make sure we’re going to make money, or at least not lose it.
At the end of the day, the lean farmer wins. And, as Mr. 100-Dollar Bill himself said, “If you fail to plan, you are planning to fail.” (Click to Tweet)
Are you struggling to gain financial momentum during the tough pricing season? Sign up for a 30-day free trial for Cash Cow Farmer today and let us help you make it out.

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October 12, 2016
Using Put and Call Strategies to Hedge Grain Markets (Video)
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Put and Call Option Strategies

Today’s post will be a video blog showing how to use and valuate put and call options strategies for grain hedging (watch it in HD to easily read all the data):

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[/vc_column_text][ult_buttons btn_title=”SCHEDULE A FREE GRAIN MARKETING STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]

Show Notes:

Put and call options can be very useful tools when hedging against rapid price moves in the market. See my earlier paper “Using Futures Options in Grain Marketing” for a review on how these tools work and are priced. Feel free to post questions about futures options and grain marketing in the comments below. I’d love to hear feedback and other strategies or potential topics to talk about.

Thanks for watching and good luck in the grain markets!

Scott

Some other useful reads are:
- The Impact of the US Dollar on Grain Markets
- How to Determine if Commodity Prices are Too Low to Market Grain
- Subscribe to “Grain Markets Wizards” and get daily market comments and analysis
[/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”40″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”40″ screen_tablet_spacer_size=”30″ screen_mobile_spacer_size=”20″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”MAXIMIZE PROFITS WITH CASHCOW FARMER!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]POWERFUL FARM FINANCIAL SOFTWARE THAT IS AFFORDABLE & EASY TO USE![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE 30 DAY TRIAL” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

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October 4, 2016
Using Futures Options In Grain Marketing
[vc_row][vc_column][vc_column_text]I just sold my grain and then the market went up!!!! GRRRRR!!!![/vc_column_text][vc_column_text]Has that ever happened to you? Many farmers use minimum grain market pricing strategies such as futures contracts, forward contracts, and hedge-to-arrive contracts to set prices for their commodities. But what happens when we do the right thing and lock in profit; and then the market makes a bullish move up? Well, a marketing tool known as Options can help capture that upside.

What are Futures Options and how can I use them?

Futures options are the option to buy (a call option) or the option to sell (a put option) an underlying futures instrument for a given period of time at a specific price.

What are “put” and “call” options?
- Put options are the right to sell one futures contract at a given price for a certain period of time.
- Call options are the right to buy one futures contract at a given price for a certain period of time.
All options are bought and sold for a price called a premium. The premium is determined by several factors as follows:
- Time – the longer the time duration the higher the price. The writer of the option demands a higher premium because the probability is higher that the option will become profitable (in the money) given the longer time duration
- Strike Price – the strike price is the price at which the option will become profitable (in the money). Option prices are adjusted based on the difference between the options’s strike price and the underlying futures contract it’s derived from
- Volatility – the greater price fluctuations in the market create higher risk to the options seller; therefore, the higher the price. For example, if corn just limited down two days in a row then the price of the options for corn are going to be extremely high
- Supply and Demand – all markets consist of buyers and sellers. The difference between the number of people interested in selling the options as opposed to those interested in buying the options also has a great effect on price.
[/vc_column_text][ult_buttons btn_title=”SCHEDULE A FREE GRAIN MARKETING STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]What are some basic strategies farmers can use to hedge their crops?
1. Buying a put option. When you buy a put option, you are agreeing to sell the futures contract at whatever strike price you chose as well as whatever expiration date you chose. This will hedge you against a dramatic down move in that futures contract. Assuming you are still holding the commodity in your field or in your bins, you will be able to capture the upside if the market moves up deducting the premium you paid for that contract. It’s like an insurance policy; just because you own a fire policy on your house, you aren’t hoping it will burn down. You want the price to increase more than your premium so you can expand on your profits but can sleep at night because you know if the market decides to fall off a cliff, you are protected.
2. Buying your crop back with a call option after you have made a forward contract. Your forward contract set the minimum price for your grain, but the market may still go up. This is where re-owning your grain with a call option may come in handy. The call option gives you the ability to capture more profit in a bull market if the market has moved above your strike price (plus your premium paid for the call option).
There are countless other ways to use options but the two above are the most popular hedging tactics. Many of the other option strategies such as selling calls and puts would be considered very speculative and can also be considered “weapons of farmer destruction” if used incorrectly. The two strategies above allow insurance for a given period of time should the market quickly get away from you.[/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]
Lets try a few examples:

The following image is the futures options quotes for December 2015 corn, next year’s harvest:

Lets analyze each strategy for this snapshot in time:
1. Buying a 450 DEC 15 PUT – the last price was 58.75 (0.5875 in cash terms). That will give you 4.5 – 0.5875 = 3.9125 as a futures price. Now to convert that to cash, deduct your expected harvest basis and the brokerage charge for that. 3.9125 – 0.85 – 0.01 = 3.0525, that’s your final cash price not including the normal shrink, dockage, and moisture discounts. If corn goes below 3.0525 you’re a genius. You would also be able to capture any gains above your options costs (premium + brokerage fee) 0.5875 + 0.01 = 0.5885. This is saying a couple of different things:
  
  You’re hoping the price of corn goes up more than 0.5885. Many supply and demand imbalances can cause this.
  
  You’re insuring against a price below3.0525 assuming the basis is 0.85 at harvest. This can also happen however your insured against it.
2. Forward contracting your grain at 4.20 futures 0.85 basis for a cash price of 3.35 and buying a 420 DEC 15 CALL – you locked in your minimum price at 3.35, but you want to capitalize on a drought or some unknown factor that may drive these markets back up to 8.00. You buy the call for 36.75 (0.3675). Total costs of the premium plus the 0.01 brokerage are 0.3775. Deduct that from your 3.35 to get a new minimum price of 2.9725. This is a little lower than the put in the earlier example, but you will receive upside faster with the call.
Lets compare these two strategies:
- Your call position will give you a minimum price of 2.9725 and will let you run with the bull market above 4.5775.
- Your put will give you a minimum price of 3.0525 and let you join the bulls at (current futures price (4.21) + premium and broker fee (.5885) = 4.7985.
- The minimum price is lower by owning the call but you can get back in the race, if there is one, much sooner than you could by owning the put.
That was pretty interesting! Options can tell you what direction the market is expected to move based on the analysis we just did. We have a spreadsheet that will simplify this calculation if you just put in your prices and basis.

Thanks so much for reading about Futures Options! I hope the information was helpful and can be used as a tool in maximizing the profits on your farming operation! Good luck in the Grain Markets!

For more resources please have a a look at:
- Marketing Specialist at the University of Minnesota Ed Usset’s Blog
- Test out your Commodities Trading with the Commodity Challenge developed by Ed Usset
- FINBIN – great for farm financial data and production numbers
- How to determine if commodity prices are too low to market grain
[/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”40″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”40″ screen_tablet_spacer_size=”30″ screen_mobile_spacer_size=”20″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”MAXIMIZE PROFITS WITH CASHCOW FARMER!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]POWERFUL FARM FINANCIAL SOFTWARE THAT IS AFFORDABLE & EASY TO USE![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE 30 DAY TRIAL” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

NO CREDIT CARD REQUIRED. START TODAY!

[/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”10″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”10″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”15″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”FREE GRAIN MARKETING STRATEGY SESSION!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]DON’T LET THE MARKETS WIN…SCHEDULE YOUR FREE SESSION TODAY![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

SCHEDULE YOUR FREE SESSION TODAY!

[/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”10″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”10″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”15″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][/vc_column][/vc_row]
October 4, 2016
How To Make Your 10 Year Old A Multi-Millionaire by 40 and a Multi-Billionaire by 70
[vc_row][vc_column][vc_column_text]As parents, we are role models for our children and one of the most important lessons we can teach our kids is the value of saving and the art of compounding interest. Whether you’re a farmer like me, doctor, single parent or anything else; I want to share the following conversation I had with my son about this extremely important lesson.

The other day I was explaining to my 10 year old son about saving his money and the art of compounding. I told him that if he could make $100 per week he should save half of that money and invest it. He was not excited about this, of course, but his eyes lit up when I showed him how this $50 per week sacrifice could make him a Multi-Millionaire by the time he was 40 and a Multi-Billionaire by 70.

Our conversation went a little like this:

[/vc_column_text][ult_buttons btn_title=”SCHEDULE A FREE GRAIN MARKETING STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]Dad: Son, you like playing Call of Duty and your computer right?

Son: Yeah

Dad: Well, Activision (ATVI) which makes those epic games; and Intel (INTC) which makes the processor for your computer are public companies, which means anyone can purchase shares and own a little piece of those companies, They even pay dividends which is part of the profit they make when you and your buddies buy games and new computers.

Son: Really?

Dad: Yeah, so if you help uncle Nick at the restaurant and me on the farm, you could make around $100 bucks per week. Then you can set aside half of that and buy shares of those companies.

Son: Or I could buy the new Call of Duty game and a new mouse for my computer…

Dad: How much do you think that $50 per week will be worth by the time you’re 40?

Son: I don’t know, a hundred thousand dollars…

Dad: Well, there are 52 weeks in a year and you’re 30 years from being 40. Fifty dollars each week for 40 years for 1,560 payments.

Son: That’s not even a hundred thousand dollars when you take 1,560 multiplied by $50. That’s not much for saving for 30, years dad. I still think I should buy the new game.

Dad: Well we haven’t figured the interest and how it compounds over time. Let’s say those companies will grow your money by 10% per year on average which would include the dividends. You can leverage that by two with most brokerage accounts which will bring your annual return to 20%. Let me get the financial calculator and plug it in.
- Interest = 20% per year or .3846% per week. We are working in weekly payments so we will use the weekly interest rate
- Periods = 1,560 since there are 52 x 30 periods
- Payment = $50 each period which is weekly
- Present Value = 0 since we are starting with the first payment next week
What do you think the future value is with the interest???

Son: I don’t know, two hundred thousand?[/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]Dad: $5,171,560.73 Yeah, that’s well over 5 million dollars.

Son: NO WAY!!! That’s not possible!

Dad: Yes it is son. That’s the art of compounding.

Son: That’s Crazy! I’d be RICH!!!

Dad: Yeah! Do you want to save $50 bucks a week now?

Son: What if I saved $75???

Dad: That would be almost 8 million at $7,757,341.09; and if you held it until you turn 50 it would be worth $57,223,988.93 over 57 million!

Son: WHAT???

Dad: If you invested $75 per week, at 70 years old your investment would be worth over 3 billion dollars.

Son: What! How is that possible? That’s so much money! I’ll start saving now!

Dad: Good plan son!

The art of compounding is a beautiful thing, especially when a great deal of time is given to let it build. Teaching our children about saving and financial discipline is one of the most important lessons we can pass down to them. Imagine how much savings could be earned if the weekly payment was increased as the earning potential grows… Check out Cash Cow Farmer and see how you can increase your profits and start building your billion dollar nest egg…[/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”40″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”40″ screen_tablet_spacer_size=”30″ screen_mobile_spacer_size=”20″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”MAXIMIZE PROFITS WITH CASHCOW FARMER!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]POWERFUL FARM FINANCIAL SOFTWARE THAT IS AFFORDABLE & EASY TO USE![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE 30 DAY TRIAL” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

NO CREDIT CARD REQUIRED. START TODAY!

[/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”10″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”10″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”15″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][/vc_column][/vc_row]
September 26, 2016
How to Determine if Commodity Prices are too Low to Market Grain
[vc_row][vc_column][vc_column_text]Knowing whether or not the present commodity prices are too low for your farming operation is key to avoiding grain marketing mistakes.[/vc_column_text][vc_column_text]How low can you go?

Knowing whether or not the present commodity prices are too low for your farming operation is key to avoiding grain marketing mistakes.

The first question you need to answer is: What Are My Production Costs?

With variable rate seed and fertilizer programs as well as ever changing farm programs; these production costs can change greatly from field to field. Some fields may cost $50 per acre for fertilizer while others cost $150 greatly altering the breakeven price for that field. Fertilizing and planting technologies have made the production costs vary greatly from field to field. Tilled vs no-till fields will also greatly change the breakeven commodity price on your farming operation. Do you know what that tillage pass is costing you in fuel, labor, depreciation, maintenance, etc.? It won’t be the same as another field that doesn’t require tillage.

[/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]The formula is simple right?

Production costs = (planted acres * (planted population / 80,000 x cost per unit of seed)) + (planted acres x (average pounds of fertilizer per acre for each type / 2,000 x cost per ton of each fertilizer)) + (planted acres x (average chemical ounces per acre for each chemical type x price per ounce)) + (planted acres x average overhead costs per acre) + (planted acres x all the other stuff broken down per acres x the price of that other stuff)

This needs to be done on every field on the farm to make the big grain marketing decision. Each field has to validate is production costs in order to stay in production.

Clearly this can become very complicated and confusing. That’s why we created Cash Cow Farmer where all these complicated formulas and conversions are done in the backend of the website and your productions costs are easily calculated for you.

Here are some other resources for farmers to get production costs:
- FINBIN – Farm financial database
- Center for Farm Financial Management
[/vc_column_text][ult_buttons btn_title=”SCHEDULE A FREE GRAIN MARKETING STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text] What if commodity prices are below my costs of production?
- #1 Rule of Marketing: Don’t sell below the cost of production!
- Be patient
- Decrease costs by knowing which fields raise your average cost of production
- Make a marketing plan
- See a consultant
- Utilize tools such as Cash Cow Farmer to improve your marketing decisions and manage your farming operation efficiently
In Summary:

The best and most profitable farmers manage their farming operation like Warren Buffett manages his investments. Each field is looked over carefully to determine what the best plan of action to take on that field will be. Occasionally there are a few losses but the majority of losses can be avoided when taking the time to analyze your operation like Buffett.[/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”40″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”40″ screen_tablet_spacer_size=”30″ screen_mobile_spacer_size=”20″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”MAXIMIZE PROFITS WITH CASHCOW FARMER!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]POWERFUL FARM FINANCIAL SOFTWARE THAT IS AFFORDABLE & EASY TO USE![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE 30 DAY TRIAL” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

NO CREDIT CARD REQUIRED. START TODAY!

[/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”10″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”10″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”15″ screen_tablet_spacer_size=”10″ screen_mobile_spacer_size=”10″][/vc_column][/vc_row]
September 22, 2016
5 Key Steps To Run Your Farm Like A Fortune 500 Company

[vc_row][vc_column][vc_column_text][smart_track_player url=”http://traffic.libsyn.com/cashcowfarmer/5_Key_Steps_To_Run_Your_Farm_Like_A_Fortune_500_Company_Master.mp3″ title=”38: 5 Key Steps To Run Your Farm Like A Fortune 500 Company” social=”true” social_twitter=”true” social_facebook=”true” social_gplus=”true” ][/vc_column_text][vc_column_text]Something like 90% of businesses fail within the first two years.[/vc_column_text][vc_column_text] The main reasons? Structure, strategy, and accountability.
When you’ve got millions of shareholders you have to report to (like Apple, for example), Wall Street analysts break down your company and try to out-predict you, and you’re on a whole other level of business. Most small businesses don’t have that same pressure to perform, though, which can be both good and bad.
With my background on Wall Street, helping businesses raise money from investors, I’ve learned a lot of strategies that Fortune 500 companies use. In this post, we’re going to apply those to the common farm.
You can take these five steps to whatever level you want, but they’re essential to maximizing your business. (more…)

September 6, 2016
4 Key Skills to Farm Like A Navy Seal
[vc_row][vc_column][vc_column_text] Don’t have time to read, listen to the podcast below or subscribe on itunes[/vc_column_text][vc_column_text][smart_track_player url=”http://traffic.libsyn.com/cashcowfarmer/4_Key_Skills_to_Farm_Like_A_Navy_Seal_Master.mp3″ title=”34: 4 Key Skills to Farm Like a Navy Seal” social=”true” social_twitter=”true” social_facebook=”true” social_gplus=”true” ][/vc_column_text][vc_column_text]How to run an elite farming business[/vc_column_text][vc_column_text]In most categories of life, there’s that one elite group. In business, there’s the Fortune 500. In the military, there are the Navy Seals. I just read a book called Unbeatable Mind by Mark Divine, who was not only a Navy Seal, but graduated as the top Navy Seal—which is insane. In the book, he teaches how to become what you want to be in life. All entrepreneurs—farmers included—should have an understanding of the mental state and conditioning he teaches in the book. When you read this, think about your grain marketing strategy, farm structure, human relations, work/life balance and if those are all where you want them to be. Elite status being optimal. Specifically, there are four skills I learned that will help you farm like a Navy Seal. [/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]1) Breath control Believe it or not, the most important skill to become like a Navy Seal is not strength or ingenuity—it’s your ability to control your state of being or state of mind, which Mark does through box breathing. When you’re stressed out, your breathing is very short. Just by changing your breathing, you can take yourself from a stressed-out state into a state of comfort and focus. Steady breathing turns off the body’s fight or flight response and calms you down. I recommend that everyone get the book, if for nothing more than an awesome appendix at the back. It talks about “box breathing,” or “five-count breaths”:
1. You count to five breathing in
2. Hold it for a five-count
3. Breathe out for a five-count
4. Then hold it for another.
Do that for a minute or two, and you’ll be amazed at how your stress level comes down. This is amazingly helpful if somebody gets stuck in the tractor in the middle of the night, or some other crazy circumstance happens at the farm. Focus on that breathing and your entire mental state will be in a better place to handle crises. The decisions made in a crisis are usually the most impactful so make sure you are in the best state of mind. 2) Positive language Think of all the negative language that comes to mind when you or someone else makes a mistake. You probably do everything but say the language out loud—and sometimes you do say it, especially when it’s an employee and the mistake just cost you $10,000. Mark created these trainings called Kokoro Camps in California, basically modeled after Hell Week in the Navy Seals. During Hell Week, 80-100 people who come wanting to be Navy Seals drop like flies, and only about 15-20 move on. In the Kokoro Camp, the first thing participants do is a 45-minute plank. Most people can hold a plank position for 30 seconds to a minute. Some of these guys have never even done one before, yet the very first thing they do at the Camp is to plank for 45 minutes. Mark sees this opening exercise as a great way to immediately teach the four skills. He tells them to focus on their breathing, and he uses positive language: “This is gonna be an easy day; we got this.” Imagine somebody plugs a planter (I’ve done this), which leads to three hours of hard work, scraping the mud out of every tire. Instead of seeing your day as ruined, you can say, “All right, this is a calorie-burner. I get an epic workout today.” By changing the way you say things, the hard circumstances don’t have the same ability to discourage you and your employees. You’ll be able to break through old productivity records with positive language.[/vc_column_text][ult_buttons btn_title=”SCHEDULE A FREE GRAIN MARKETING STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text]3) Imagery In the planking example, Mark tells participants to imagine they are a steel beam. They’re feeling a lot of pain in that plank position, but it helps to imagine themselves as something strong and unyielding. When I workout, I often picture myself as a steam locomotive going up and down across the track for my rep goal. You can apply that exercise to anything that’s challenging in farming. Imagine you’re JP Morgan, George Soros, Warren Buffett or one of the greatest Wall Street investors of all time. You can then manage sales and grain marketing like you’re one of the greatest of all time. People are going to write books about how brilliant you are. Physical stress is easier to do because you can imagine concrete things, but when it comes to day-to-day challenges picture yourself as Cornelius Vanderbilt or Steve Jobs or Warren Buffett, especially when you have a business challenge come up. You’ll see your mood change and the answers start to come to you. 4) Micro goals I’ve written about this in the past, but it helps to make small goals every day (and sometimes every hour) in order to get that overall big goal accomplished. Give yourself little rewards, too. When you’re trying to plank for 45 minutes, you won’t make it unless you break your goals down into one, two, or five-minute checkpoints. Three other important Navy Seal outlooks 1) Teamwork Teamwork is extremely important. In trying to be a Navy Seal of farming, it’s not just about you; you have to manage your team well and teach these skills to them. You can’t have guys freaking out and flying off the handle working for you. If they refuse to change their demeanor, you’ve got to get them off the bus or the whole bus will crash. We’re going to go over how that looks in the next post. 2) Failure This is where I see farmers as already like Navy Seals. Farmers don’t fail: they find a way and make a way. That’s called perseverance. As Yoda says, “Do or do not: there is no try.” Farmers are the hardest-working, most resilient people in the world besides Navy Seals, in my opinion. I remember springs where I was living in the tractor, and people asked why I did it. I didn’t know: my only answer was “because I’m a farmer.” We do what other people aren’t willing to do so we can live like other people can’t. 3) Just a day in the life… Navy Seals go in, do the job, then wait for the next job. In the Captain Phillips rescue, ghost ops came in for a rescue then vanished into the background. They said it wasn’t a big deal; it was just a normal mission. Farmers are the same way. People are amazed at how hard farmers work in the planting season, but for farmers, that’s just a normal day. That’s just what we do. If you want tools to help you become the next Navy Seal farmer, register for a free grain marketing strategy session or farm financial software trial. It’s a Fortune 500 tool for farmers, so you can run your farm like an elite business. [/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”40″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”40″ screen_tablet_spacer_size=”30″ screen_mobile_spacer_size=”20″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”MAXIMIZE PROFITS WITH CASHCOW FARMER!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]POWERFUL FARM FINANCIAL SOFTWARE THAT IS AFFORDABLE & EASY TO USE![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE 30 DAY TRIAL” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

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August 30, 2016
US Special Forces Army Ranger to Rancher

[vc_row][vc_column][vc_column_text]Reinventing Ranching With Wagyu Beef[/vc_column_text][vc_column_text]
Don’t have time to read? Listen here:
[smart_track_player url=”http://traffic.libsyn.com/cashcowfarmer/US_Special_Forces_Army_Ranger_Cash_cow_Master.mp3″ social=”true” social_twitter=”true” social_facebook=”true” social_gplus=”true” ]

Patrick Montgomery went from ranger to rancher in the span of a few short months.
His story is unlikely, but inspiring. I had the privilege of interviewing him on the Cash Cow Farmer Podcast recently, and I’ll be summarizing his story here in the rest of this post.

From Army Ranger to Rancher
Patrick Montgomery dropped out of school his sophomore year and joined the army in 2010. He bounced around a few places but was deployed soon afterwards to Afghanistan.
A month after deployment, his brother-in-law was killed in Afghanistan. It shaped Patrick into the ranger he became and the man he is now.
He eventually did a second deployment with the U.S. Special Forces Army Rangers. Army Rangers are considered the direct action contingency of the Army, so they work hand in hand with all special operations in the other branches of the military. As you can imagine, being a ranger taught Patrick the work ethic and principles that would later aid his efforts as a businessman in the civilian world.
About a year before his end-of-service date, he was debating whether he should re-enlist. His wife suggested veterinarian work, because he loves animals, and when he did research he found tons of other fields to study in that space. He loved what he did in the Army, but with all the politics floating around the military he decided to get out, and he found a second calling: animal science.
Initially, his plan was to go to university to become a veterinarian, but he soon realized that wasn’t something he wanted to pursue long-term. He discovered his two greatest passions were cattle and business, and he started working on an MBA.
He had a buddy who’d been out of the Army for four years and had set up a successful wagyu beef operation in Austin, TX. The man was slaughtering about one head a week, and since the meat is expensive, he was doing well for himself.
His farming operation inspired Patrick to do the same. He began to raise cattle and sell wagyu beef, and he’s now on the cusp of beginning a business that couldn’t be much further away from what he was doing just a few years ago.

Q&A w/ Patrick Montgomery
What’s the difference between the beef we’re used to seeing and wagyu beef?
[/vc_column_text][ult_buttons btn_title=”TRY CASHCOW FARMER FREE FOR 30 DAYS” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2F30daytrial||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text] The main difference is in the marbling. It’s actually a genetic mutation that the Japanese have collected on for 100 plus years. Wagyu beef has a lot more omega-3s and omega-6s because of the mutation, which strips off hydrogen normally deposited by saturated fat. This is why a lot of heart-healthy people don’t eat beef, but are more open to eating wagyu.
Wagyu is also a super tender cut with a very different flavor profile from American and European beef as well.

Does the stress level of cattle at death-time affect the taste of the meat?
Supposedly, the stress hormone in cattle taints the meat, and some species are more prone to it than others. There’s not a lot of science that goes behind that, but I believe that you can taste the difference when the animal is treated humanely. There isn’t research to back it up, but I feel like I can taste the difference.

How are you going to take on Arnold Schwarzenegger now that he’s telling people to eat less meat?
That’s the great thing about wagyu. There’s a lot of research into it being much lower in saturated fat. It has the fat you want to consume on a regular basis. [/vc_column_text][ult_buttons btn_title=”SCHEDULE A FREE GRAIN MARKETING STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-small” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][vc_column_text] What are you looking at doing right now?
Currently, I’m applying for the Missouri Value Added Grant. That will help me out a lot.
Side note: As a farmer, if you haven’t heard of federal value added grants, check them out. The worst that happens is you don’t get it, but the best is that you get $200,000 from the U.S. government that you don’t have to pay back.
I’m working on getting some sales in the rural Kansas City area. I’m shooting for February-March of 2017 for getting my beef on the market.

How can people get ahold of you if they want to reach out and give you a ton of money?
I’m currently building my website. For now, you can reach me at p.montgomery@kccattlecompany.com or hop on social media and search for KC Cattle Company.

This post was based on an episode of the Cash Cow Farmer Podcast. You subscribe to it on iTunes here.
Or if you don’t use iTunes, you can listen to every episode here.[/vc_column_text][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”40″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”40″ screen_tablet_spacer_size=”30″ screen_mobile_spacer_size=”20″][/vc_column][/vc_row][vc_row dfd_row_config=”full_width_content” dfd_row_parallax=”off” dfd_row_responsive_enable=”off” dfd_enable_overlay=”off” css=”.vc_custom_1470889834038{background-color: #2d2d2d !important;}”][vc_column width=”3/4″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][ultimate_heading heading_type=”customizable” heading_tag=”h3″ heading_content=”FREE GRAIN MARKETING STRATEGY SESSION!” main_heading_default_weight=”400″ main_heading_color=”#ffffff” subheading_type=”customizable” subheading_tag=”h5″ sub_heading_default_weight=”400″]DON’T LET THE MARKETS WIN…SCHEDULE YOUR FREE SESSION TODAY![/ultimate_heading][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”25″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”25″ screen_tablet_spacer_size=”15″ screen_mobile_spacer_size=”10″][/vc_column][vc_column width=”1/4″ column_responsive_mobile_classes=”dfd-remove-right-padding” column_responsive_mobile_resolutions=”dfd-apply-mobile” css=”.vc_custom_1470810100672{padding-right: 2% !important;}”][dfd_spacer screen_wide_resolution=”1280″ screen_wide_spacer_size=”15″ screen_normal_resolution=”1024″ screen_tablet_resolution=”800″ screen_mobile_resolution=”480″ screen_normal_spacer_size=”0″ screen_tablet_spacer_size=”0″ screen_mobile_spacer_size=”0″][bt_animation animation_type=”_flipX” duration=”2″ repeat=”2″ allow_margins=”yes” scroll_offset=”5px” no_hide=”yes”][ult_buttons btn_title=” FREE STRATEGY SESSION” btn_link=”url:https%3A%2F%2Fcashcowfarmer.clickfunnels.com%2Fmarketing-strategy||target:%20_blank” btn_align=”ubtn-center” btn_size=”ubtn-large” btn_title_color=”#ffffff” btn_bg_color=”#00ab61″ btn_hover=”ubtn-fade-bg” btn_bg_color_hover=”#ffffff” btn_title_color_hover=”#00ab61″ btn_icon_pos=”ubtn-sep-icon-at-left” btn_border_style=”solid” btn_color_border=”#ffffff” btn_color_border_hover=”#00ab61″ btn_border_size=”2″ btn_font_size=”18″][/bt_animation][vc_column_text]

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January 12, 2016