Client Stories: How K·Coe Helped Solve Business Challenges

What

matters most to You

K¡Coe Isom is dedicated to the people who entrust us with what matters most.

managing

a Well-Established Business

services that matter most • AgKnowledge Consulting • Tax Planning & Reporting • Independent Financial Reporting

Keith Koehn of 2K Feeders and Blue Mound Farms—a Wichita-based feedlot with 3500 head and row crop operation—knows that managing the 60-year old, family-run business means focusing on the financial end, gaining a deeper understanding of what the numbers mean and using that information to make good business decisions.

As his operation grew, Keith felt increasingly uncomfortable making equipment purchases, signing long-term contracts, and projecting future growth based only on his instinct and the financial data on-hand. He wanted a constant pulse on the health of his business—a reliable process for making strategic decisions. This would be critical as he planned and structured the business for bringing his sons into the operation.

• QuickBooks Online (QBO) Conversion • Entity Restructuring and Establishment • Succession Planning • Estate Planning, including Trusts

A K·Coe Isom AgKnowledge field analyst came out to the feedlot, listened to where Keith wanted to take the business, and then dove into 2K’s financials—several years of QuickBooks files, various reports and spreadsheets that Keith had developed.

An in-depth analysis uncovered the upside of restructuring a few entities, converting the company’s records to QuickBooks Online, and developing a set of tailored, meaningful financial reports that could be easily updated and reviewed each month.

The budgeting and projection process also identified where Keith could cut unnecessary expenses and generate more revenue.

Now armed with accurate financial insight into his crop mix, rental arrangements and fully absorbed break-evens of his operation, Keith knows exactly where his business is at and can manage risk wisely.

“We want to be able to measure where we’re at financially so we can manage our risk. People grow corn and say their breakeven is $3.00. But they don’t figure the farm utility bills. They don’t figure equipment cost per acre and per bushel. That’s what we want to know. K·Coe Isom brings the right team together so we get a global picture, not just of the farm, but also of the feed yard and livestock feeding. This is the financial know-how that helps us take our business to the next phase.”

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Kristin and Pat Duncanson, owners and partners of Duncanson Growers—a Minnesota-based corn, soy and hog farm—knew something was afoot when they heard the word ‘sustainability’ used at national and statewide industry association meetings. When others heard, ‘sustainability,’ Kristin and Pat heard ‘risk mitigation.’

They saw an opportunity for their farm to improve its odds of survival given market volatility and knew they needed to get started immediately.

Duncanson Growers is a working example of how paying attention to the ‘triple bottom line’ (TBL)—social, environmental (or ecological) and economic—reaps benefits.

making a difference

in your world

services that matter most • ResourceMAX ™ • CSO On-Demand • Competitive-Edge Program Design • K·Coe Conservation

“Sometimes you have to go out on a limb. That’s the only way you’re going to make a difference, in your business, in your community and in the world.

By looking at sustainability from a multi-dimensional perspective, we’ve shown that growers can mitigate their risk and use their progress for a competitive advantage.”

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Since completing a ResourceMAX™ assessment in 2014, Duncanson Growers has shared the results of operating the farm in a measurable and sustainable way with its partners, even exploring opportunities with new customers. Kristin and Pat continue to spread the word on how Duncanson Growers goes way beyond the basic questionnaire or checklist.

This ‘triple bottom line’ strategy helps Duncanson Growers make sound business decisions to tackle complex issues like natural resource challenges, win more contracts for wider distribution and gain loyal end-customers.

Establishing a

farm legacy

Since the 1880s, the Robinson family has been in the farming business, running Rob-See-Co, JC Robinson and Golden Harvest. Now, Rob Robinson, his brother Doug and his father, Ed, lead the charge at Robinson Meadowbrook, which specializes in corn seed production, crop consulting and land rental partnerships.

As the third generation, Rob oversees a sophisticated operation with multiple entities that include a partnership with Syngenta, domestic and international land holdings, numerous product lines and consulting services.

After working with K·Coe Isom on restructuring the entities to maximize working capital, Rob asked for estate planning ideas. K·Coe Isom’s Next Gen team met with Rob and his wife, Cheryl, to better understand their goals and family dynamics. Because the plan would have a ripple effect, K·Coe Isom spoke with all the family members and key employees in the operation.

K·Coe Isom also collaborated with Rob’s attorney, who was a seasoned estate planner himself. Rob has an estate plan that meets his goals: preserving the assets he and his parents built for the next generation.

services that matter most • Farm Program • Entity Restructuring • Tax Planning • Independent Financial Reporting • Estate Planning

“Our farm operation is complex with a lot of moving parts. So whether it’s tax planning or estate planning, one thing will undoubtedly impact another.

The people at K·Coe Isom are true professionals that know financials in the context of ag operations. They did a great job explaining the tax consequences and options. They made it understandable so we could get group consensus.”

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The Sidwell family farms in Northern Colorado and Southeast Wyoming. Several years ago they rented a sizeable irrigated farm in Northeast Nebraska. At that time, they applied for Direct Decoupled (DD) payments on the farm given the historical crop base and yields, and received these payments with no indication from the Farm Service Agency (FSA) there might be a problem.

Imagine the family’s surprise one day when they received a letter from FSA saying they did not qualify and FSA wanted a six-figure payment returned. Not only that, but the agency indicated that two additional years would be reviewed. The family had to get the situation corrected or risk losing the farm.

The Sidwells spoke with a Colorado attorney that knew of K·Coe Isom’s specialty work in farm programs.

turning the tide

back in your favor

services that matter most • Farm Programs

K·Coe Isom’s farm program team immediately recognized the complexity of the case. After considerable research and several meetings with the Sidwells, we established that they had met the requirements. This was wonderful news but now our team had to convince FSA. K·Coe Isom built a comprehensive appeal record, met with all the parties to the case and explained how the Sidwells met the requirements.

“We would not be farming today if not for Wayne’s efforts.”

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The Sidwells not only won their appeal and avoided returning their past payment but the FSA also dropped its audit of the other two years. K·Coe Isom’s 40 years of farm program experience and our reputation with FSA made the di erence.

Imagine living in the middle of more than half a million acres of the world’s finest and most productive almond orchards in California’s fertile Sacramento River Valley.

Two well-known agriculture families—the Koehnens and Paivas—had their roots in this land of plenty.

In 2004, they joined forces. Their vision: to provide first-class processing, packaging and shipping to customers worldwide.

The families brought together over 100 years of experience in farming, beekeeping and hulling/shelling.

With that much industry knowledge, they knew what it would take to be successful. For Riverwest, it meant going international.

staying productive,

profitable and independent

Riverwest called on K·Coe Isom to identify tax strategies and innovative tools for reducing their risk while venturing into foreign territory. By using an IC-DISC (Interest Charge Domestic International Sales Corporation), which provides a tax break for qualifying U.S. exporters, Riverwest injected working capital into the operation, securing the livelihood of hundreds of workers while enabling the company to reach a highly lucrative international market.

Committed to remaining independent, the founding families asked K·Coe Isom’s consultants to lead them through the process of setting up trusts that ensured the next generation would be set up to carry on the family business.

Today, Riverwest is one of the biggest, family-run, nut processors, shipping natural California-grown almonds from their backyard to destinations around the globe.

services that matter most • IC-DISC for Exporters • Succession Planning • Independent Financial Reporting • Estate Planning

“As owners, we have made strategic moves to grow the business. Each time we do, we call our business advisors and K·Coe Isom is definitely one of them.

They always come up with creative legally sound ideas for keeping money in the business. And that’s what lets us stay locally-owned.”

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At K·Coe Isom—the nation’s largest consulting and CPA firm dedicated to the food and agriculture industry— we focus on what matters most to you. And we know your business because many of us grew up on farms and are actively involved in our own farms and ranches. & The firm is embedded throughout the U.S. food-supply chain—from policy to plate—working with people just like you—producers, input suppliers, processors, packagers, distributors, biofuel manufacturers, equipment dealerships, landowners, lenders, and many agencies and policy organizations—to positively impact the future of farming and food production in America.

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