2022 Young Cooperators Leadership & Development Program

Page 1

Arnold Barn

Table of Contents

About Us Page 5

YC Leadership & Development Program Schedule

Pages 6 - 9 of Events

Joint Annual Meeting Schedule of Events

Hotel and Convention Center Map

Speaker Information

About the YC Advisory Council

Meet the 2023 YC Advisory Council

Finding Fairness in Farm Transition Supplement

Pages 9 - 11

Pages 12 - 13

Pages 14 - 15

Pages 16 - 17

Pages 18 - 19

Pages 20 - 76

Pages 77 - 79 Pricing Supplement

A Primer on Your Milk Check and Federal Order

An Update on NMPF’s Federal Order

Pages 80 - 87 Modernization Efforts Supplement

Note Paper

Pages 88 - 92

Steamboar Springs, Colorado

Windsor Farm Dairy

Denver, Colorado

1914
1932

AND RURAL

Farm

Credit
supports rural
communities
and
agriculture with reliable, consistent credit and financial services,
today
and tomorrow. COMMITTED TO AMERICA’S FARMERS
COMMUNITIES

to Colorado Welcome

Welcome to the National Young Cooperators (YC) Program’s annual Leadership & Development Program! We know it’s never easy to step away from the farm, so thank you for your time and attention over the next few days as we tackle some important topics.

What is the yc Program?

Managed by the National Milk Producers Federation (NMPF), the National YC Program has provided training and leadership development opportunities to beginning dairy farmers for over 70 years. The program aims to provide producers with the education, tools and resources they need to improve their profitability and resilience through year-round virtual and in-person programming.

What is NMPF?

Established in 1916 and based in Arlington, Virginia, NMPF carries out policies that advance the well-being of dairy farmers and their cooperatives. The members of NMPF’s cooperatives produce the majority of the U.S. milk supply, making NMPF the voice of dairy farmers on federal policy issues. The National YC Program is managed by NMPF and funded by its members and support from stakeholders including Farm Credit and Phibro Animal Health.

How Can I stay Involved?

This event kicks off a new program year for the National YC Program. In addition to this two-day program, the National YC Program hosts monthly webinars and two other in-person events throughout the year:

- YC Dairy Policy & Legislative Forum

June 5 - 6, 2023 Arlington, Virginia

- YCs at World Dairy Expo

October 5, 2023 Madison, Wisconsin

Schedule of events

Sunday, October 23

8:00 – 9:00 AM Breakfast

Cottonwood 8-9

With remarks from Val Lavigne, Unc Brock Farm

9:00 – 9:15 AM Welcome

Willow Lake 3-5 Jim Mulhern, NMPF

9:15 – 10:00 AM

Leadership Lesson with Marilyn Hershey

Willow Lake 3-5 Marilyn Hershey, Ar-Joy Farms

Pennsylvania dairy farmer Marilyn Hershey will share important leadership lessons that she’s gained from her roles as a business owner and chairperson of Dairy Management, Inc.

10:00 – 10:30 AM Break

Willow Lake 3-5

10:30 – 12:00 PM

Dairy Cooperatives and the Future: Adapting in a Changing World Panel

Willow Lake 3-5

Facilitated by Alan Bjerga, NMPF

Panelists include Steve Schlangen, Schlangen Dairy; Val Lavigne, Unc Brock Farm; Andy Mason, Fawnwood Farm

Tune in as industry leaders discuss the challenges and opportunities dairy cooperatives face now and in the future, why farmer-leadership is critical to cooperatives’ continuation and success, and how YCs can get and stay involved in cooperative governance.

12:00 – 1:00 PM Lunch

Adams Terrace - Outside (Weather Permitting)

1:00 – 4:00 PM

Finding Fairness in Farm Transition

Willow Lake 3-5

Elaine Froese, Family Farm Transition Expert

Fairness keeps founders awake at night. Fairness means different things to different farm team members and the non-farming heirs. Elaine will tackle the challenges most families face when trying to be FAIR during the farm transition.

YCs will receive the FAIR (Financial transparency, Attitudes, Intentions, Rebels) model:

- Understand the need to unpack financial transparency and the tools to do it (income streams, debt servicing, viability of the farm)

- Navigate attitudes towards money by encouraging families to have clarifying conversations about inheritance expectations

- Share an easy-to-use framework that will enable farm families to create clear intentions about how important decisions are made - Get insights on what to do with the rebels who are never satisfied as founders shift roles

A farm is not a piece of pie. In today’s agricultural reality, farm families cannot make all of their children economically equal. Equality is no longer part of the transition language. Elaine’s presentation will give you a new language to manage expectations and navigate finding fairness in farm transition so that everyone will be successful.

4:00 – 5:30 PM Break (and Optional “Coach on Call in the Hall”)

Willow Lake 3-5

Elaine Froese, Family Farm Transition Expert

Are you looking for courage and tools to talk to your parents or other farm team members? Do you need to know how to get unstuck with your communication?

Need some practical tips and insights for change?

Book 15 minutes for a private coaching session with Farm Family Coach Elaine Froese. She will listen, guide and empower you to create the next steps for better clarity of expectations, and certainty of timelines for your role on the farm. She has written 4 books and coached over 600 families, so she has seen a lot of scenarios.

5:30 – 10:00 PM Evening Activities

Grizzly Rose Saloon - Bus pick-up and drop-off at the Aurora Veranda Convention Center Entrance

Join us for drinks, dinner, live music and a line dancing lesson at the iconic Grizzly Rose Saloon in Denver. The Grizzly Rose Saloon opened in 1989 and is known as one of the “last great honky tonks in the world.” The venue is known worldwide for hosting some of the best country music in Denver and across the nation.

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8:00 – 9:00 AM Breakfast

Cottonwood 6-7

9:00 – 10:30 AM A Primer on Your Milk Check and Federal Order Pricing

Willow Lake 3-5

Ken Bailey, Ken Bailey Dairy Consulting

Milk pricing is complex, making it a challenge to understand your milk check. This session provides an overview. The first part will focus on commodity prices, and the second will focus on Federal Order prices and market-wide pooling. The session will end with a discussion of your milk check.

10:30 – 11:00 AM Break

Willow Lake 3-5

11:00 – 12:00 PM Dairy Market Outlook

Willow Lake 3-5

Tanner Ehmke, CoBank

The U.S. dairy industry, from producers to processors, has a bright outlook in the years ahead with growing export demand for a diversity of dairy products, reduced export competition from New Zealand and Europe, and continually resilient domestic demand. High costs of feed, labor, and transportation, though, limit the U.S.’s ability to fully capture the market potential. A future of rising production costs into 2023 limits upside growth in milk production for 2023.

12:00 – 1:00 PM Lunch

Cottonwood 6-7

1:00 – 2:30 PM Mr. Spock, Mr. Miyagi and You: A Guide to Risk Management

Willow Lake 3-5

Christine Brodeur, Dairy Farmers of America and Adam Cardwell, Land O’Lakes, Inc.

Panelists include Matt Hoff, Coldsprings Farm; Justin Leyendekker, Hoppy Cows Dairy; Brian Esplin, Diamond 3 Dairy

Learn how to live long and prosper, emphasis on the prosper side, by utilizing the many tools available to you in risk management. Adam and Christine will provide perspectives for how your business can implement an effective strategy that provides long-term milk and feed price protection. They’ll make the case for using the programs, teach you the terms you need to know, and spend some time reviewing the details for a variety of strategies. This session will also feature insights from a panel of dairy farmers who will join in a discussion of how these programs work on their individual operations.

Monday, October 24

2:30 – 3:00 PM Break

Willow Lake 3-5

3:00 – 4:00 PM

An Update on NMPF’s Federal Order Modernization Efforts

Willow Lake 3-5

Peter Vitaliano and Stephen Cain, NMPF

The Federal Milk Marketing Order program is one of the key pillars of the U.S. milk pricing system. It provides for the orderly marketing of milk for fluid use and thereby provides the same service for milk marketed in all uses. The system depends on establishing a value for milk in those various uses each month, which, for much of the system’s history, was done by simply surveying what a large group of small dairy manufacturing plants in the Upper Midwest paid for milk. This method was discontinued and replaced in 2000 by a more complex system of product price formulas, which translated market prices of several basic dairy products into milk values. To operate correctly in both dairy farmers’ and dairy cooperatives’ interests, these price formulas need to be kept current to reflect changes in the evolving U.S. dairy industry. But many of their factors have not been updated since they were first implemented twenty-two years ago. A team of milk marketing experts from NMPF’s member cooperatives all across the country has been working hard this year to develop a comprehensive set of badly needed updates to modernize the system. This program provides an overview of this effort and why it’s important for America’s dairy farmers.

4:00 – 6:00 PM Break

6:00 – 7:30 PM

Welcome to Colorado Reception

Aurora B-D

Tuesday, October 25

8:00 – 8:20 AM Welcome Remarks and Introduction

Adams A

Neil Hoff, UDIA Chair

8:20 – 9:35 AM Leadership Keynotes and NMPF Town Hall

Adams A

Randy Mooney and Jim Mulhern, NMPF

Keynote remarks from farmer and executive leadership of NMPF, followed by the NMPF Town Hall.

9:35 - 10:20 PM

Dairy Bar Break

Adams B-D

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10:20 - 11:25 AM

NMPF Town Hall, Cont’d

Adams A

11:25 – 12:00 PM

Changing Consumer Behaviors During Economic Uncertainty

Adams A

John Crawford, IRI

IRI’s John Crawford will review economic trends from a consumer lens and their impact on shopping behaviors across the store.

12:00 – 1:15 PM Lunch

Willow Lake 3-5

1:30 – 2:00 PM

Leadership Keynotes

Adams A

Barb O’Brien and Marilyn Hershey, DMI

Keynote remarks from farmer and executive leadership of DMI

2:00 – 2:45 PM Your Dairy Checkoff Podcast: The Sustainability Opportunity for Dairy

Adams A

Jill Houin, Homestead Dairy; Mark Benson, Leprino; Jamie Jonker, NMPF; Sara Dorland, Ceres

Join us for a live production of the Your Dairy Checkoff podcast featuring a candid conversation on dairy and environmental sustainability hosted by Jill Houin of Indiana’s Homestead Dairy. Featuring voices from dairy farmers, industry leaders, customers and more, we’ll answer questions head-on and address how farms of all types and sizes can be economically successful while implementing environmental solutions.

2:45 - 3:30 PM Dairy Bar Break

Adams B-D

3:30 – 5:00 PM

Sales: Domestic & Global Opportunities for Dairy Adams A

Paul Ziemnisky, DMI; Michelle McBride, GoodSport; Taylor Montgomery, Taco Bell

The most important job of checkoff is to drive demand for dairy. We’ll share updates on partnerships, innovation and growth platforms that drive new domestic sales for dairy.

Krysta Harden, U.S. Dairy Export Council; Rodrigo Fernandez, U.S. Dairy Export Council; Shawna Morris, NMPF; Nina Bakht Halal, U.S. Dairy Export Council; Art D’Elia, Domino’s

We’ll also take a closer look at building demand for U.S. dairy and dairy products globally, examining both an established market (Mexico) and a developing market (Middle East) to better understand dairy’s challenges and opportunities on the world stage.

6:00 - 7:30 PM Cheese Reception

Adams B-D

Wednesday, October 26

8:00 – 9:45 AM

Renewing our Commitment and Connection to Kids and Families

Adams A

Anne Warden, DMI; Katie Brown, National Dairy Council; Taylor Wallace, George Mason University; Yolanda Lawson, National Medical Association; Donna Martin, Burke County, GA; Claudia Larson, NMPF; Aaron Scott, United Dairy Industry of Michigan ; Toby Amidor, Toby Amidor Nutrition

We’ll hear an array of perspectives on how we’re connecting checkoff’s science to consumer-trusted dairy champions, and helping a new generation believe in the power of dairy’s sustainably produced nutrition.

9:45 - 10:30 PM Dairy Bar Break

Adams B-D

10:30 – 11:15 AM

The Midterm Elections and Implications for Dairy

Adams A

David Wasserman, The Cook Political Report

Widely respected on both sides of the aisle for his accurate and impartial political insight and regarded by NBC’s Chuck Todd as “pretty much the only person you need to follow on Election Night,” David Wasserman will break down the upcoming 2022 election and what it might mean for dairy farmers.

11:15 – 11:45 AM

Closing Remarks and Q&A

Adams A

Jim Mulhern, NMPF; Barb O’Brien, DMI; Alex Peterson, NDB

1:00 – 8:00 PM Farm Tour and Dinner (Pre-Registration Required)

Quail Ridge Dairy - Bus pick-up and drop-off at the Aurora Veranda Convention Center Entrance Join conference attendees for an optional tour of Kraft family’s Quail Ridge Dairy in Fort Morgan, Colorado.

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Gaylord Rockies Resort &

Convention Center x125-156 x102-124 to Convention Center (Lobby Level) Rocky Grotto Ski Village Caboose x302-324 x359-382 x401-436 Porte-cochèreLOBBY x201-234 GRAND LODGE LAZY RIVER ELV CONVENTION CENTER ELV Old Hickory Steakhouse Vista Montagne Monte Jade Mountain Pass Sports Bar Pinyons Bar Aprés Ski Rockies Marketplace Rockies Trading Post x158-182 x325-355 Arapahoe Springs Bar & Grill ELV AMENITIES Relâche Spa & Salon Lower Le ve Fitness Center Lower Le ve Arapahoe Springs™ Indoor Pool Lowe Le ve Arapahoe Springs™ Outdoor Pool & Lazy River Train Shuttle Lobb y Le ve Bus Stop Lobb y Le ve Arcade Lower Le vel Firepit Recreation Area Tennis Court, Mini Golf Pickle Ball Cour COLOR LEGEND Lobby Level Lower Level Resort Footprint Convention Center KEY Concierge Front Desk Valet Bell Services Restrooms Elevator Stairs Escalator Path ELV
Colorado Ballroom - Level 3 Aurora Ballroom & Exhibit Hall - Level 2 (Lobby Level) Adams Ballroom - Level 1 Walkway to Hotel Adams Ballroom Juniper Ballroom Aurora Ballroom Aurora Exhibit Hall Summit, Crest & Valley Meeting Rooms Colorado Ballroom Red Rock, Willow Lake & Homestead Meeting Rooms Hogan Boardroom, Mitzner, Charlton & Mitchell Meeting Rooms Cottonwood, Maple & Spruce Meeting Rooms ELV ELV ELV ELV ELV ELV A B C D E The Cocoa BeanF G H I J Business Center K A B C D E G H I J K F 13

Speakers

Val Lavigne - Owner, Unc Brock Farm; Chairperson, National YC Program

Val is a dairy farmer in Schaghticoke, New York, where she and her family raise 200 dairy cows, 100 feeder steers, 50 goats and 1,000 turkeys. Unc Brock Inc. also owns two food trucks and a catering business. Val enjoys promoting dairy online and is part of NMPF’s Dairy Voice Network, an AgriMark YC officer, and a Dairy Engaged Influencer with her regional checkoff program.

Jim Mulhern - President & CEO, NMPF

Jim is a veteran agriculture and food policy strategist with over 35 years of experience working with Washington, DC policymakers and the media. Since taking over leadership of NMPF in January 2014, Jim has directed the dairy organization’s work on a wide range of important issues including trade policy, immigration reform, the farm bill, environmental policy, and more.

Marilyn Hershey - Owner, Ar-Joy Farms; Chairperson, DMI

Marilyn and her husband, Duane, own and operate Ar-Joy Farms, LLC, a Pennsylvania family farm nestled about an hour west of Philadelphia and 40 minutes north of the Chesapeake Bay. Their long family history of dairy farming is evident as they care for the land, the animals and their employees. Environmental stewardship is also a top priority for the Hersheys.

Alan Bjerga - Senior Vice President of Communications, NMPF

Since October 2018, Alan has led NMPF’s communications efforts, focusing on media relations, marketing and digital storytelling. He previously worked at Bloomberg News as its lead writer on national farm policy issues, covering topics including the Farm Bill, agricultural trade and rural economics. Bjerga is a past president of the National Press Club in Washington, D.C.

Steve Schlangen - Owner, Schlangen Dairy

Steve is a member of the NMPF Board of Directors and chairman of Associated Milk Producers Inc. Schlangen Dairy implements numerous environmentally friendly practices on their 60-cow, 200acre farm in central Minnesota. The farm incorporates over 30 conservation practices, providing a blueprint for beginning farmers and generational farms to follow.

Andy Mason - Owner, Fawnwood Farm

Andy is a member of the NMPF Board of Directors and a farmer-owner of Land O’Lakes, Inc. Together with his family, Andy operates Fawnwood Farm in Chestertown, Maryland where they farm 4,500 acres and milk 550 cows. Andy’s parents, Tom and Alice, originally started the farm nearly 50 years ago on a 150-acre rented farm.

Elaine Froese - Family Farm Transition Expert

Elaine Froese, CSP is a certified professional speaker, certified coach, and author. She’s a go-to expert for farm families who want better communication and conflict resolution to secure a successful farm transition. As a farmer and mother to the successor of their farm, she understands the culture of agriculture intimately.

Ken Bailey - Owner, Ken Bailey Dairy Consulting

Ken has devoted his entire career to the economics of the U.S. and global dairy industries. Ken re ceived a Ph.D. in applied economics from the University of Minnesota. He started his career in eco nomics while working at a policy think tank at the University of Missouri. It was there that he wrote his first textbook on the economics of milk marketing and testified before Congress.

Tanner EhmkE - Lead Economist for Dairy, CoBank

Tanner is a Lead Economist for Dairy Production and Processing at CoBank’s Knowledge Exchange research team. Prior to joining CoBank in 2015, Tanner farmed and marketed seed for his family’s seed company in western Kansas where his family homesteaded in 1885. He previously was a commodities analyst at AgResource Company in Chicago.

Christine Brodeur - Senior Director, Dairy Farmers of America

Christine serves as senior director for Dairy Farmers of America (DFA) Risk Management, a division of DFA. She began her career with the Cooperative in 2008 as a communications specialist. In 2011, she transitioned to DFA Risk Management to assist in providing members with information to better understand forward contracting opportunities available to them.

Adam Cardwell - Senior Risk Manager, Land O’Lakes, Inc.

Adam has been trading and managing commodity risk for 13 years. Currently, he is developing and implementing risk strategies for physical procurement and derivative energy trading for natural gas, heating oil, propane, and retail electricity. He also manages commodity risk for the Purina and Winfield divisions on corn, soybeans, soybean meal and wheat.

Matt Hoff - Owner, Coldsprings Farm

Matt owns and operates Coldsprings Farm in New Windsor, Maryland and is a board member of Maryland & Virginia Milk Producers Cooperative Association. The Hoff family raises more than 1,000 registered Holstein cows and farms 2,200 acres. Matt has worked all parts of the dairy, learning to do all kinds of jobs since he started when he was 10 years old.

Justin Leyendekker - Owner, Hoppy Cows Dairy

Justin is a third-generation dairy farmer and the owner of Hoppy Cows Dairy in Kingsburg, California. Since 2019, he has also served as a board member for the National Dairy Research and Promotion Board. Prior to dairy ownership, Justin had a career in information technology management for four years before realizing his passion is in agriculture.

Brian Esplin - Owner, Diamond 3 Dairy

Brian is a fourth-generation dairy farmer in Shelley, Idaho. He grew up on his family’s potato, grain, hay and dairy farm and shortly after getting married, took over management of the dairy. In 1995, Brian bought the dairy from his parents and in 2009 built a new barn and expanded the herd to 1,450 cows. The farm raises all their heifers and some steer calves.

Peter Vitaliano - Vice President of Economic Policy, NMPF

Peter is responsible for implementing, conducting and communicating all economic analysis supporting the NMPF’s programs relating to domestic and international dairy policy. Peter has extensive experience with, and knowledge of U.S. dairy markets and domestic and international agricultural and trade policy.

Stephen Cain - Director of Economic Research & Analysis, NMPF

Stephen supports NMPF through analysis of domestic dairy production and global trade in dairy products. Prior to joining NMPF, he worked as an agribusiness consultant with IHS Markit where he covered a number of commodities and specialized in economic impact analysis. Stephen jointly supports NMPF and the U.S. Dairy Export Council.

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About the YC Advisory Council

What is the role of the YC Advisory Council?

The Young Cooperators (YC) Advisory Council helps guide the National YC Program toward its stated mission by providing key information and making recommendations on topics and activities of interest to YCs. The Advisory Council is responsible for providing topic and speaker recommendations for the YC Leadership and Development Program, the program’s monthly webinars and for the YC Dairy Policy and Legislative Forum.

What are the eligibility requirements to serve as a YC Advisory Council member?

Each NMPF member cooperative is eligible to have at least one seat on NMPF’s YC Advisory Council. To be eligible for participation, the Advisory Council member must meet the following criteria: - Nomination by NMPF member cooperative; - Employment on and/or ownership of a dairy farm that is a member of one of NMPF’s member cooperatives; and - Approval from member cooperative.

What is required of a YC Advisory Council member?

YC Advisory Council members are nominated by their cooperative to serve a one-year term. The 2022-2023 YC Advisory Council term will begin at the YC Leadership and Development Program in Oct. 2022 and end in Sept. 2023. Expectations for YC Advisory Council members include:

- Participation at two 90-minute virtual planning meetings

- Attendance at two or more in-person events

- Engagement at virtual Advisory Council leadership bootcamp

- Participation in at least three of the National YC Program’s monthly webinars

- Writing thank-you notes to program sponsors

Members of the advisory council also elect a chairperson and vice chairperson to lead the group. The chairperson will represent the National YC Program at events and meetings throughout the year, and report program updates to the NMPF Board of Directors. The vice chairperson is invited to attend NMPF Board of Directors dinners alongside the chairperson and will fill in as needed for the chairperson at meetings and events.

Contact your co-op’s YC coordinator to learn more!

Meet the National YC 2023 Advisory Council

Nate Carlson Northwest Dairy Association

Nate is a dairy farmer in Addy, Washington where he and his family milk 140 Holstein and Jersey cows, farm 1,300 acres, run 140 cow/calf pairs and manage a 400-head feed lot. When he’s not busy at Carlson Farms, Nate is a member of his local school board, where he has served for 15 years, and is active in Northwest Dairy Association’s YC Program.

Rachel Holtz

Upstate Niagara Cooperative, Inc.

Rachel manages Willow Bend Farm, LLC in Penn Yan, New York. The farm is home to 5,200 cows and 4,800 young stock across three sites in the Finger Lakes. Willow Bend also manages 9,000 acres of crops. Rachel has been involved with a number of dairy leadership programs including the Young Dairy Leaders Institute and Dairy Girl Network.

Isabel Mullin

Agri-Mark

Isabel Mullin is a dairy farmer in the coastal town of Kittery, Maine, where she milks 80 cows in a tie-stall facility, raises 80 heifers and farms 300 acres. Through her involvement in the National YC Program, Isabel hopes to “learn as much about the industry as possible” in order to “contribute to it in the long run.” She is a member-owner of Agri-Mark, Inc.

Carl & Heather Olson

First District Association

Carl and Heather milk 130 cows and farm 400 acres at Sunny Side Dairy in Mayer, Minnesota. They both serve in several leadership positions including roles within the Minnesota Milk Producers Association, Farm Bureau, DHIA and First District Association. The pair recently started their own cheese company called Sunny Side Creamery.

Katelyn Packard Michigan Milk Producers Association

Katelyn works alongside four business partners on Horning Farms LLC, a multi-generational dairy in Manchester, Michigan. The farm milks 400 cows and farms 1,000 acres. Katelyn is the dairy superintendent for her county’s 4-H Youth Show and coaches the local 4-H Dairy quiz bowl, judging, and skillathon teams.

Lorilee Schultz Prairie Farms

Lorilee milks 60 registered Holsteins and manages over 200 acres at Mil-R-Mor Farm in Orangeville, Illinois. She has been involved in a multitude of leadership and community activities and is passionate about teaching kids about agriculture. She recently interacted with more than 200,000 school children through the Adopt-A-Cow program.

Amber & Ben Selman Prairie Farms

Amber and Ben milk 60 Holstein and Jersey cows, farm 1,500 acres of crops and manage a 250-head cow/calf beef herd in Maquoketa, Iowa. The farm focuses on genetics and breeding, calf care and milk production. The pair both hold degrees in Dairy Science from Iowa State University and met while on a dairy-focused study abroad trip to New Zealand.

Justin & Hannah Watt

Maryland & Virginia Milk Producers Cooperative

Justin and Hannah are dairy farmers in Keymar, Maryland where they milk 280 Holsteins and farm 700 acres at Cedar Knoll Dairy LLC. The pair has been extensively involved in various leadership and community activities including roles with their cooperative, Farm Bureau, the Holstein Association and many more.

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For farm families who want better communication and conflict resolution to secure a successful farm transition. +1 204 534 7466 | elaine@elainefroese.com | www.elainefroese.com | Find harmony through understanding 20
+1-204-534-7466 | elaine@elainefroese.com | .elainefroese.com | Find harmony through understanding Page 1 of 56 21

Please select in each pair of attributes the one which is most typical of your personality. No pair is an either-or proposal. Make your choice as spontaneously as possible. There is no wrong answer.

1.I like action.

2.I deal with problems in a systematic way.

3.I believe that teams are more effective than individuals. 4.I enjoy innovation very much.

5.I am more interested in the future than in the past. 6.I enjoy working with people.

7.I like to attend well organized group meetings. 8.Deadlines are important for me.

9.I cannot stand procrastination. 1O. I believe that new ideas have to be tested before being used.

11.I enjoy the stimulation of interaction with others. 12.I am always looking for new possibilities.

13.I want to set up my own objectives. 14.When I start something I go through until the end.

15.I basically try to understand other people's emotions. 16.I do challenge people around me.

17.I look forward to receiving feedback on my performance. 18.I find the step-by-step approach very effective.

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19.I think I am good at reading people. 20.I like creative problem-solving.

21.I extrapolate and project all the time. 22.I am sensitive to others' needs.

23.Planning is the key to success. 24.I become impatient with long deliberations.

25.I am cool under pressure. 26.I value experience very much.

27.I listen to people. 28.People say that I am a fast thinker.

29.Cooperation is a key word for me. 30.I use logical methods to test alternatives.

31.I like to handle several projects at the same time. 32.I always question myself.

33.I learn by doing. 34.I believe that my head rules my heart.

35.I can predict how others may react to a certain action. 36.I do not like details.

37.Analysis should always precede action. 38.I am able to assess the climate of a group.

39.I have a tendency to start things and not finish them up. 40.I perceive myself as decisive.

41.I search for challenging tasks. 42.I rely on observation and data.

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43.I can express my feelings openly. 44.I like to design new projects.

45.I enjoy reading very much. 46.I perceive myself as a facilitator.

47.I like to focus on one issue at a time. 48.I like to achieve.

49.I enjoy learning about others. 50.I like variety.

51.Facts speak for themselves. 52.I use my imagination as much as possible.

53.I am impatient with long, slow assignments. 54.My mind never stops working.

55.Key decisions have to be made in a cautious way. 56.I strongly believe that people need each other to get work done.

57.I usually make decisions without thinking too much. 58.Emotions create problems.

59.I like to be liked by others. 60.I can put two and two together very quickly.

61.I try out my new ideas on people. 62.I believe in the scientific approach.

63.I like to get things done. 64.Good relationships are essential.

65.I am impulsive. 66.I accept differences in people.

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67.Communicating with people is an end in itself. 68.I like to be intellectually stimulated.

69.I like to organize. 70.I usually jump from one task to another.

71.Talking and working with people is a creative act. 72.Self-actualization is a key word for me.

73.I enjoy playing with ideas. 74.I dislike wasting my time.

75.I enjoy doing what I am good at. 76.I learn by interacting with others.

77.I find abstractions interesting and enjoyable. 78.I am patient with details.

79.I like brief, to-the-point statements. 80.I feel confident in myself.

COPING WITH OTHER CO NIC TION T E

A.Communicating with an action-oriented person:

Focus on the results first (state the conclusion right at the outset). State your best recommendation (do not offer many alternatives). Be as brief as possible. Emphasize the practicality of your ideas. Use visual aids.

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B.Communicating with a process-oriented person: 1 2. 3.

Be precise (state the facts).

Organize your presentation in a logical order; background present situation outcome

Break down your recommendations. Include options (consider alternatives) with pros and cons. Do not rush a process-oriented person. Outline your proposal (1, 2, 3, ... ).

C.Communicating with a people-oriented person:

Allow for small talk (Do not start the discussion right away). Stress the relationships between your proposal and the people concerned. Show how the idea worked well in the past. Indicate support from well-respected people. Use an informal writing style.

D.Communicating with an idea-oriented person:

Allow enough time for discussion. Do not get impatient when he or she goes off on tangents. In your opening, try to relate the discussed topic to a broader concept or idea (in other words be conceptual).

Stress the uniqueness of the idea or topic at hand. Emphasize future value or relate the impact of the idea or the future.

If writing to an idea-oriented person, try to stress the key concepts which underlie your proposal or recommendation right at the outset. Start off with an overall statement and work toward the more particular.

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Scoring your

communication Style

Each selected item has to be reported on the four scales reproduced below. In other words, if items 1, 4, 6, have been selected, the same numbers on the four scales should be circled again.

Style 1 = 1-8-9-13-17-24-26-31-33-40-41-48-50-53-57-63-65-70-74-79 =

Style 2 = 2-7-10-14-18-23-25-30-34-37-42-47-51-55-58-62-66-69-75-78 =

Style 3 = 3-6-11-15-19-22-27-29-35-38-43-46-49-56-59-64-67-71-76-80=

Style 4 = 4-5-12-16-20-21-28-32-36-39-44-45-52-54-60-61-68-72-73-77=

TOTAL:

Each style line of circled items should be added UP (not the figures but the number of selected items). The maximum is 20 per style and the total for the four styles should be 40.

Style 1 is ACTION oriented communication style.

Style 2 is PROCESS oriented communication style.

Style 3 is PEOPLE oriented communication style.

Style 4 is IDEA oriented communication style.

From: Casse, Pierre Training for the Cross-cultural Mind. SIETAR 1981 .Used by permission from Manitoba Mediation Services Trainers.

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Page 7 of 56 27

DECISION/ACTION TAKEN

Plan day to day work

Make annual crop/livestock plans

Decide the mix and type of enterprise in the long run

Decide the level of inputs to use Decide the timing of operations

Decide when to sell crop/livestock

Negotiate sales of crop/livestock

Decide when to pay bills

Decide type and make of machinery and equipment

Negotiate purchase of machinery and equipment

Decide when to hire more help

Recruit and select employees

Decide amount and quality of work Supervise employees

Decide work method/way jobs are done

Decide and plan capital projects

Identify sources and negotiate loans and financing

Livestock management

Keeping farm records

BY Operator alone Shared between operator and successor Successor alone 1 2 3 4 5
Page 8 of 56 28

Delegation of Managerial Tasks:

One objective of the International Farm Transfer Study was to examine the process of the transfer of skills and knowledge to the next generation. Respondents were given a list of task and skills that are important to farm management. They were asked to identify the extent of transfer that has taken place for a certain skill or task. Respondents were asked to identify numerically on a scale of one through five. A response of one meant that the operator had retained power over that task or skill, and five meant the successor had complete control over that aspect of the farming operation. The tasks included technical, tactical, strategic planning, marketing, supervisory, managerial, and financial aspects of the farm business.

from: Iowa Farmers Business and Transfer Plans, Iowa State University, May 2009, Public

+1-204-534-7466 | elaine@elainefroese.com | .elainefroese.com | Find harmony through understanding Taken
Domain Page 9 of 56 29

Build relational capital…what do you really want?

Get out of the neutral zone, a place of high stress. What needs to begin?

Understand the power of “WHY”…your intent. You can’t read minds!

What is the one thing you need to talk about at your business but are avoiding?

Understand that your age has certain tasks that if frustrated cause conflict:

Age 20…independence… the decade of making it.

Age 30 success, mastery…exhausted .

Age 40 taking charge…security, ownership, and control.

Age 50 quality of life issues…simplify, competency.

Age 60 legacy, starting over…future income streams, health.

Age 70 mentoring.. meaningful life.

Age 80 elderhood, blessing….deal with death.

Age 90 hand it all over.

Why folks won’t talk about the Undiscussabulls: scared

last great idea was shot down emotional bank account is dry self-worth is based on action or net worth timing is different avoid conflict at all costs

What’s your conflict style? avoidance accommodating competing compromising collaborating

Is the resistance coming from the head, heart or gut?

Understanding, emotion or trust issues?

Page 10 of 56 30

Find out your key communication style:

Action people want directness and results orientation. Process people want options, order, and not to be rushed. People styles want relationship building before business talk. Ideas people want to tell you the big picture without interruption.

Key challenges audit sheet

Farm families find this Audit Sheet to be helpful in identifying areas in their business that need focus and coaching attention. Use the spaces to the left below to indicate with an 'X' the challenges that your farm family business is currently facing.

A better understanding of how to be fair to family members.

Getting clearer about recognizing the value of contribution and sweat equity to the farm.

Becoming better organized to have both succession life plan & estate death plan in order.

Explaining more effectively why certain decisions/family decisions are made

Recognizing the income stream that we require when the farm transfers.

A better understanding of what is enough to live on.

Dealing more effectively with residence needs.

Hearing more about off-farm income streams

Increasing my expertise in financial planning.

Becoming more aware of what’s risky in changing ownership of the farm.

Defining the actual financial snapshot of the viability of the farm operation.

Becoming more aware of what’s next for me after the farm transfers.

Having more fun in my life.

Building a more workable succession plan.

Better honouring of the timelines we have agreed to.

Decreasing anxiety over the uncertainty of the future.

Avoiding the typical mistakes farmers make in farm transfer planning.

Becoming clearer about who does what in the daily farm operation.

Learn better conflict resolution skills.

Better understand how to clarify my intent

Express my thoughts more effectively

Becoming a better listener

Better understanding of how to build trust

Dealing more effectively with resistance

Learning to deal with difficult feedback

Be better equipped to identify tension triggers

Other

Page 11 of 56 31

Tools for Discussing the Undiscussabull… the tough issues:

1.Take CHARGE…the bull by the horns

Take responsibility for changing you. Only you change you. Change is inevitable, but growth is optional. Timeliness is key…greater options if time is with you.

2.Come from curiosity

I’m curious about…don’t be judgmental or defensive.

Identify your conflict style and possible triggers. Control anger. Seek common ground and “make a request”.

Clarify, seek information, do reality checking, brainstorm, and move from positions to interest… What is important to you about that?

3.Ask deeply

Balance the speaking and listening…ask open-ended questions. Explain - describing your own feelings and interests. Be soft on the person and hard on the problem…just like toilet paper!

4.Play with possibility

Use a talking stick, have family biz meetings. Avoid the downward spiral…be positive. Don’t pre-judge other’s goals and dreams.

5.Really LISTEN. “When I listen, people talk.”

Build understanding through checking out assumptions Explore interests and feelings Guess what is motivating the other person. Check out thinkingforresults.com

6.Ponder and perk not prod.

Digest, sift, and give yourself space and time to think. Consider the other’s perspective.

Ask “Is there anything else?”

"Is that right?" “What would you like me to do differently?"

7.Cultivate Trust

Build confidence in the relationship. Walk your talk, accountability. Culture of fairness, respect, commitment.

Page 12 of 56 32

8.Respect boundaries

Clear roles…dad or boss? Family or business role?

Guidelines for performance, jobs.

Be clear about expectations. Confidentiality. Cut gossip.

9.We all end up in a box.

Death will happen, come to terms with life, plan for it!

Face the aging process…sustain emotional & physical health.

Reconsider your future.

10.Extend the olive branch.

Create the legacy of open communication and relationship.

Forgiveness to be able to move forward.

Pass on authority and learn to let go.

Effective family business meetings: REGULAR, on the calendar!

Talking stick and stress squeeze toys. Undiscussabull™ cards..on index cards.

Guidelines for respect. White board agenda collector.

www.elainefroese.com/blog

Check here for recent articles to encourage your family.

Search “farm family coach” on youtube.com to see Elaine’s videos.

Page 13 of 56 33

Action Item

Date List Tactics

to Status

Target
Assign
Page 14 of 56 34

Farm families find this Audit Sheet

be helpful in identifying areas in their business that

focus and coaching attention. Use the spaces to the left below to indicate with an ‘X’

challenges that your farm family business is currently facing.

A better understanding of how to be fair to family members.

Getting clearer about recognizing the value of contribution and sweat equity to the farm.

Becoming better organized to have both succession life plan & estate death plan in order.

Explaining more effectively why certain decisions/family decisions are made.

Recognizing the income stream that we require when the farm transfers.

A better understanding of what is enough to live on.

Dealing more effectively with residence needs.

Hearing more about off-farm income streams.

Increasing my expertise in financial planning.

Becoming more aware of what’s risky in changing ownership of the farm.

Defining the actual financial snapshot of the viability of the farm operation.

Becoming more aware of what’s next for me after the farm transfers.

Having more fun in my life.

Building a more workable succession plan.

Better honouring of the timelines we have agreed to.

Decreasing anxiety over the uncertainty of the future.

Avoiding the typical mistakes farmers make in farm transfer planning.

Becoming clearer about who does what in the daily farm operation.

Learn better conflict resolution skills.

Better understand how to clarify my intent.

Express my thoughts more effectively.

Becoming a better listener.

Better understanding of how to build trust.

Dealing more effectively with resistance.

Learning to deal with difficult feedback.

Be better equipped to identify tension triggers.

Other

    +1-204-534-7466 | elaine@elainefroese.com | .elainefroese.com | Find harmony through understanding
to
need
the
Page 15 of 56 35

Please

+1-204-534-7466 | elaine@elainefroese.com | .elainefroese.com | Find harmony through understanding
scan this back to elaine@elainefroese.com (confidential) This checklist will help you understand your key issues for coaching. Name: Date: Email: Phone: Page 16 of 56 36

Personal Profile

Name:

Code:

Marital Status:

Employment:

Stage in Farming Career: (N/A); (Starting Expansion); (Slowing Down); (Retired)

Main desire for coaching is:

Long and Short Term Goals:

Retirement (When? Where? With how much?)

is it re-invention?

   +1-204-534-7466 | elaine@elainefroese.com | .elainefroese.com | Find harmony through understanding
Date: Phone: Home: Cell: Farm Name: Address: Postal
Email: Fax: Age:
Spouse: Present
Career:
or
Page 17 of 56 37

Lifestyle Goals...(finances,

Other Goals:

Interest in the Farm Business, expectations about inheritance

Changes considered, actions to take:

How much risk are you prepared to take?

Scan this page back to elaine@elainefroese.com

This profile is for your personal use,

confidential.

+1-204-534-7466 | elaine@elainefroese.com | .elainefroese.com | Find harmony through understanding
housing needs)
and is
Page 18 of 56 38

Short-term

Help: Longer-term Help: SOP'S: Passwords: Page 19 of 56 39

Keys:

Personal Trusted Advisor:

Mentor:

Professionals

Accountant:

Family Doctor:

Dentist:

Childcare Provider:

Counselor:

Financial advisor:

List of RRSP's, TFSA and other investments:

Page 20 of 56 40

Lawyer:

Loaning Institutions/manager:

Insurance agents and policies:

Farm Operations

Processors (ie sales barns manager):

Elevator manager: Commodity broker: Suppliers:

Veterinarian:

Page 21 of 56 41

Equipment:

Trusted realtor:

Association representative:

Vendor list (Do you have one to send out a blanket email?)

The Fix-It Folks

Mechanic:

Dealerships:

Electrician:

Plumber:

Furnace repairs:

Septic system/well & locations:

Page 22 of 56 42

Equipment:

Welder: Security systems:

Other stuff (Sleds, Pool, Camper, Snow removal):

Paper

Will(s): Where is a copy? Is it up to date? Reviewed in the last 5 years?

Power of attorney:

Executor:

Guardian:

Page 23 of 56 43

Organ donation:

Cremation:

Funeral arrangements:

Business agreement(s): Where is a copy? Is it up to date?

Lease agreements: Land (deeds):

Quota:

Page 24 of 56 44
+1-204-534-7466 | elaine@elainefroese.com | .elainefroese.com | Find harmony through understanding Houses: Bank accounts: Mortgages: Vehicle ownership: Page 25 of 56 45
Page 26 of 56 46
Page 27 of 56 47
Page 28 of 56 48
Page 29 of 56 49

The following lists represent specific job duties, areas of responsibility, and decision-making grouped by occupational specialties. This listing should assist managers in defining what tasks or job functions to delegate or assign to individual job positions on the farm. These detailed lists are followed by six sample job descriptions that encompass all the duties delegated on a farm with crop, livestock and timber operations.

General Management Responsibilities

Coordinate annual operating and strategic planning, consolidate cashflow planning efforts and report periodically to the management team on cash flow and overall financial performance.

Organize workforce, assign responsibilities, and coordinate efforts of personnel.

Oversee hiring, training, and orientation of full and part-time help.

Evaluate employees and coordinate personnel self-improvement strategies.

Oversee compensation program and adjustments. Execute contracts.

Manage estate plan implementation (wills preparation, stock sales and payments, etc.).

Negotiating & Administering Relations ips

Negotiate leases, serve as primary liaison with landlords, make annual distributions of landlord crop shares, and maintain records on lease advances and crop shares.

Monitor federal farm program provisions and insure compliance in annual cropping plans, file necessary crop plans, production reports, and landlord distribution information with FSA and other regulatory entities.

Negotiate joint ventures and strategic alliances with other farms and businesses.

Oversee rental houses, advertise vacancies, collect rents, perform maintenance as needed.

Page 30 of 56 50

Secretarial, Legal, Support unctions

Oversee office maintenance, supplies, and equipment servicing & replacement.

Administer records retention and disposition program; dispose of records when holding periods are met.

Maintain corporate minutes, by-laws, and resolutions.

Capital Purchases Analysis and Procurement

Analyze the feasibility of capital investments and negotiate new purchases. Shop for capital purchase items based on specifications approved by authorizing body.

Crop Production Management

Develop annual cropping plan including rotational strategy and variety selection.

Prepare annual inputs for cashflow budget preparation concerning crop plan and major expense areas (i.e. chemicals, fertilizer, seed ).

Supervise procurement, storage, cleaning, and treatment of seed.

Coordinate seeding operations and maintain seeding records.

Determine the timing and scope of farm equipment operations for major tillage, cultivation, and harvest operations.

Operate farm machinery in all phases of crop production.

Perform maintenance and overhaul responsibilities of farm machinery and crop-related structures.

Monitor inventory of shop tools, supplies, gas, diesel, and equipment parts maintained on hand; and coordinate restocking as needed.

Monitor crops for weed and insect problems; arrange for and/or apply chemicals for weed and insect control.

Arrange for collection of soil samples for fertilizer program and arrange for fertilizer application consistent with annual cropping plan.

Maintain field records on all production inputs and applications.

Oversee operations of custom seeding, spraying, fertilizing, trucking and harvesting.

Coordinate field crew rock removal activities.

Grain Storage and Mar eting

Oversee delivery, dumping, weighing, and load-out operations for grain storage operations. Negotiate grain storage and shipping arrangements with market and storage outlets.

Supervise elevator storage, maintenance, aeration, and fumigation activities.

Monitor grain and livestock markets and market commodities. Develop and execute marketing plans. Track inventory levels and market crops.

Page 31 of 56 51

Service Manager/Machinery Maintenance

Train and oversee the new and part-time employees on proper servicing procedures. Develop and maintain service guidelines for all major farm vehicles and motorized equipment. Perform general service, maintenance, and overhaul of farm machinery.

Oversee maintenance and repair work subcontracted off the farm. Keep service records on equipment maintenance, overhaul, and servicing.

Assist in identifying winter overhaul or maintenance agenda; keep maintenance needs list updated during the year.

Provide direction and technical assistance to other employees performing overhaul duties. Assure that the farm shop is properly stocked to perform normal maintenance and repair activities.

Monitor shop and equipment operating environment for safety and environmental regulations compliance; insure proper disposition of toxic and other waste products.

Bookkeeping and Financial Management

Pay bills and perform banking responsibilities.

Prepare monthly and annual farm financial reports; distribute to appropriate audiences. Coordinate with the accountant the preparation of individual and corporate tax returns. File periodic payroll, truck road mileage, and gas tax reports.

Arrange loans for operating and capital purposes.

Supervise pension plan investing, serve as plan trustee and prepare required reports. The coordinated annual financial planning process. Prepare cash flow budget projection using input from responsibility center managers and report periodically to officers and managers on cash flow performance.

Prepare quarterly fuel and road tax returns. Prepare interpretive managerial reports including ratio analysis, profit center analyses, etc.

Risk Management/Insurance Programs

Manage insurance coverage levels (crop, casualty, disability, medical, and life). Keep records concerning claims history.

Coordinate coverage levels on rolling stock for farm vehicles and personal vehicles insured under farm policies; insure liability certificates are maintained in vehicles.

Page 32 of 56 52

Livestock Operations

Feed and take of cattle and horses.

Oversee birthing activities (farrowing, calving, foaling).

Arrange for delivery or deliver marketed livestock to market outlets.

Monitor condition of pastures; move livestock to new pastures as needed.

Put out salt, mineral, and face fly bags as needed during pasture grazing seasons.

Monitor stocks of veterinary equipment and supplies feed, supplements, salt, and mineral; restock supplies as directed.

Assist in coordinating branding and replacement heifer number identification processes.

Perform spring and fall vaccinations of mature livestock and new production.

Conduct or assist vets in pregnancy, semen, and trich-testing activities.

Monitor breeding stock conditions (bulls, replacement heifers, and brood cows); make recommendations for purchasing replacements and selling culls.

Monitor herd health in pastures and feedlots; make treatments where feasible or arrange for vet services as needed.

Perform routine maintenance on barns, corrals, fences, and salt and hay feeders.

Assist in stocking, sharpening, and treatment of posts and poles.

Participate in hay harvest; deliver surplus hay for sale.

Oversee care of horses, and insure shoeing needs are met.

Keep barns clean and remove excess manure from feedlots and feed ways.

Monitor condition of springs and troughs; develop or improve water sources as needed.

Oversee pasture weed spraying program.

Develop work plans and make repairs to fences, corrals, and livestock improvements.

Maintain and operate haying equipment.

Assist in other general farm work activities as directed.

Timber Management

Prepare timber management plans.

Negotiate timber sales and supervise custom logging operations.

Oversee timber harvest, slash clean-up, and reclamation activities, including grass seeding and tree re-replanting.

Conservation Practices and Drainage Systems Management

Interact with NRCS and other conservation organizations for conservation programs.

Oversee farm compliance with environmental regulations.

Oversee the design and implementation of structures and practices to improve environmental stewardship of the farm.

Plan, develop, inspect and maintain field drainage systems and sediment ponds.

Page 33 of 56 53

Sample Job Descriptions for Select ositions

Position: President/General Manager/Managing Partner - Finance, Marketing

General Management Responsibilities

Coordinate planning of overall workload.

Organize workforce, assign responsibilities, and coordinate efforts of personnel.

Arrange for additional personnel when necessary.

Execute contracts.

Operating Responsibilities-Finance & Marketing

Pay bills and perform banking responsibilities.

Negotiate leases; serve as primary liaison with landlords; make annual distributions of landlord crop shares, and maintain records on lease advances and crop shares.

Monitor federal farm program provisions and insure compliance in annual cropping plans; file necessary crop plans, production reports, and landlord distribution information with ASCS and BIA.

Analyze the feasibility of capital investments and negotiate new purchases.

Monitor grain and livestock markets and market commodities.

Maintain farm financial records.

Coordinate with an accountant on the preparation of individual and corporate income tax returns.

File periodic payroll reports and gas tax refund requests.

Manage insurance program coverage for crop, casualty, medical, and company-funded life purposes.

Arrange loans for operating and capital purposes.

Supervise investments for a pension plan, serve as plan trustee and prepare periodic reports required by law.

Manage estate plan implementation (wills preparation, stock sales, and payments, etc.)

Coordinate annual financial planning (cashflow preparation) and report periodically to other officers on cashflow performance.

Maintain corporate minutes, by-laws, and resolutions.

Supervise employee activities related to cattle operation; feed and monitor calving activities at Home Place.

Supervise timber harvest, clean-up, and re-seeding.

Page 34 of 56 54

Position: Service Manager and Equipment Operator

Primary Responsibilities

Train and oversee new and part-time employees on proper servicing procedures. Develop and maintain service guidelines for all major farm vehicles and motorized equipment. Perform general service, maintenance, and overhaul of farm machinery.

Oversee maintenance and repair work subcontracted off the farm. Keep service records on equipment maintenance, overhaul, and servicing. Assist in identifying winter overhaul or maintenance agenda; keep maintenance list updated during the year.

Provide direction and technical assistance to other employees performing overhaul duties. Assure that the farm shop is properly stocked to perform normal maintenance and repair activities.

Monitor shop and equipment operating environment for safety and environmental regulations compliance; insure proper disposition of toxic and other waste products.

Secondary Responsibilities

Operate farm equipment as needed. Oversee off-loading and hauling out operations at grain storage site.

Position: Grain Operations Manager

Primary Responsibilities

Propose an annual cropping plan in cooperation with other officers. Prepare annual inputs for cashflow budget preparation concerning crop plan and major expense areas (i.e chemicals, fertilizer, seed, and repairs).

Supervise procurement, storage, cleaning, and treatment of seed for grain operations. Coordinate drilling operations and maintain seeding records.

Operate farm equipment for major tillage, cultivation, and harvest operations. Determine periodic needs for various tillage, cultivation, and harvest of crops. Perform maintenance and overhaul responsibilities of farm machinery and structures. Monitor inventory of shop tools, supplies, gas, diesel, and equipment parts maintained on hand; and coordinate restocking as needed.

Serve as liaison with SCS for soil conservation activities. Monitor crops for weed and insect problems; arrange for and/or apply chemicals for weed and insect control.

Arrange for collection of soil samples for fertilizer program and arrange for fertilizer application consistent with annual cropping plan.

Maintain field records on all production inputs and applications.

Page 35 of 56 55

Secondary Responsibilities

Assist in cattle operations where needed.

Assist in setting up an annual crop insurance plan.

Feed cattle during winter months.

Serve as trustee for pension plan.

Position: Asst Mgr-Crop Operations

Primary Responsibilities

Operate Mack truck and perform the maintenance required to keep in good working order.

Operate farm machinery during planting, fertilization, chemical application, tillage, spraying, and harvest operations.

Perform maintenance duties on farm equipment and improvements.

Keep maintenance records up to date as activities are completed.

Assist in the treatment of seed, fumigation, and clean-up of the elevator.

Make recommendations on fence repairs needed; assist in repairs.

Assist in feeding cattle as a backup at the shop and other locations.

Assist in monitoring crops for weed and insect problems.

Assist in haying operation as needed.

Coordinate field crew efforts for rock removal.

Secondary Responsibilities

Prepare quarterly fuel and road tax returns.

Perform other general farm work activities as directed.

Page 36 of 56 56

Position: Cattle Operations Foreman

Primary Responsibilities

Prepare annual cashflow budget planning input related to livestock operations.

Feed and take of cattle and horses and oversee calving activities. Deliver marketed livestock to market outlets.

Monitor condition of pastures; rotate livestock to new pastures as needed.

Put out salt, mineral, and face fly bags during pasture grazing and wintering seasons.

Monitor stocks of feed, supplements, salt, and mineral; restock supplies as directed.

Assist in coordinating branding and replacement heifer number identification processes.

Perform spring and fall vaccinations and assist vets in pregnancy, semen, and trichinosis testing activities.

Monitor breeding stock conditions (bulls, replacement heifers, and brood cows); make recommendations for purchasing replacements and selling culls.

Monitor herd health in pastures and feedlots; make treatments where feasible or arrange for vet services as needed; and, insure that essential veterinary equipment and supplies are on hand

Perform routine maintenance on barns, corrals, fences, and salt and hay feeders.

Assist in stocking, sharpening, and treatment of posts and poles. Make recommendations for improvements needed to fences and other cattle improvements; assist in major fence repairs.

Participate in hay harvest; deliver surplus hay for sale.

Assist in timber harvest, slash clean-up, thinning, and re-seeding operations; perform selective brush clearing.

Oversee care of horses, and insure shoeing needs are met.

Keep barns clean and remove excess manure from feedlots and feed ways. Monitor condition of springs and troughs; develop or improve water sources as directed.

Secondary Responsibilities

Operate farm machinery and assist in other areas of farm and ranch operation when available around cattle duties.

Operate swather during harvest season for select crops (i.e. grass seed, lentils, canola).

Page 37 of 56 57

Position: Cattle Management Advisor

Primary Responsibilities--offer advise and provide assistance in the following areas:

Fencing: priorities, development of work lists, locating fence post supplies.

Cattle Marketing: timing and selection of stock to sell (i.e. bulls, cull cows, feeder's calves).

Pasture utilization: number of head to the place, desired season of use; dates to move.

Branding: identifying heifers to be shoulder branded for potential replacements.

Replacement Heifer selection: what breed combinations are needed to maintain breeding herd mix.

Bulls: when to cull and replace; recommended sources for purchasing replacements.

Breeding Season: when to turn bulls out; which bulls to match with cowherds.

Cowherd: location placement-which cows to place in each breeding or wintering location.

Winter feeding program: feeding recommendations, numbers to feed at each location.

Feed: tonnage needed, the desired mix in the ration, delivery time desired.

Herd Health: recommendations for timing and nature of vaccinations needed; face fly bags, etc.

Cattle Records: maintain updated lists of calving records; cow records on historical calving. performance; bull management data; replacement heifer data; and other data relevant to management of cattle operation.

Job Description/Operating Responsibilities

Pay bills and perform banking responsibilities.

Prepare monthly and annual key financial reports and distribute relevant reports to board, management, and responsibility center managers.

Prepare cash flow budget projection using input from responsibility center managers and report periodically to officers and managers on cash flow performance.

Analyze the feasibility of capital investments with a focus on optimizing procurement strategy. Maintain and update farm Management Information System including historical operating and financial data, trend comparisons, and ratio analysis in key performance areas. Coordinate with an accountant on the preparation of individual and corporate income tax returns.

File periodic payroll reports and fuel tax refund requests.

Arrange loans for operating and capital purposes. Make annual distributions of landlord crop shares, and maintain records on lease advances and crop shares.

Page 38 of 56 58

(Optional) Monitor grain and livestock markets, keep updated records of current inventory positions and future production to be marketed; market commodities.

(Optional) Maintain corporate minutes, by-laws, and resolutions.

(Optional) Manage insurance program coverage for the crop, casualty, medical, and companyfunded life purposes; maintain the history of claims experience, loss to premium ratios.

(Optional) Monitor federal farm program provisions and insure compliance in annual cropping plans; file necessary crop plans, production reports, and landlord distribution information with FSA, NRCS, other entities.

(Optional) Supervise investments for a pension plan, serve as plan trustee and prepare periodic reports required by law.

(Optional) Manage estate plan implementation (wills, stock buyouts, payments, etc.)

(Optional) Serve as Technology Coordinator for the farm; keep computer hardware and software updated; perform regular backups and maintain information security systems.

(Optional) Oversee office maintenance, supplies, and equipment servicing & replacement.

(Optional) Administer records retention and disposition program; dispose of records when holding periods are met.

(Optional) Shop for capital purchase items based on specifications approved by authorizing body.

+1-204-534-7466 | elaine@elainefroese.com | .elainefroese.com | Find harmony through understanding Page 39 of 56 59

Midwest Farm Wives 2022 #63 https://player.fm/series/midwest-farm-wives/ep-63-preparing-for-thefuture

Farm4profit: June 6, 2022 Episode 183 and 184 https://intro-tofarm4profit.simplecast.com/episodes/hayes-familytransition-plan-w-elaine-froese

Are you a Gen 2 Successor? Do you feel like your farm succession/transition plan is stuck in neutral? Maybe your parents refuse to discuss the subject, leaving you frustrated, resentful, and fearful for your future? If so, this episode is right for you. First off, it doesn’t need to be this way. Secondly, you don’t have to travel this path alone. I’m here to help get the next generation unstuck. Tracey Brunet of Impact Farm Marketing is passionate about successful succession planning. You can listen to my pointers for generation 1 and generation 2 here:

Episode #98 Gen 2: https://www.farmmarketer.com/Resources/ResourceItem?resourceItemId=220

Episode #97 Gen 1: https://www.farmmarketer.com/Resources/ResourceItem?resourceItemId=219

Episode #41 Culture Beats Strategy: https://www.youtube.com/watch?v=F 2SrdLUKxA&feature=youtu.be

Episode #15 Fair and Equal: https://www.farmmarketer.com/impact-farming-show-elaine-froese-fairand-equal

Working Cows Podcast: Episode 192 Elaine Froese, and Episode 216: https://workingcows.net/? s=Elaine+Froese

Ag State of Mind podcast: Episode 124 and 125 https://globalagnetwork.com/agstate-of-mind-with-jason-medows/podcast

60

I’ve also been podcasting with the University of Wisconsin to encourage farmers. Check out their RURAL Realities podcast: https://datcp.buzzsprout.com/1160120

Finding Fairness in Farm Transition: https://datcp.buzzsprout.com/1160120/5032997-findingfairness-in-farm-transition?play=true

Discuss the Undiscussabull: https://datcp.buzzsprout.com/1160120/4546769-discussing-theundiscussabull?play=true

Farming’s In-law Factor: https://www.youtube.com/watch?v=aXqMfaldVFw

Not sure you should be watching YouTube while you drive large equipment, but give a listen to a presentation on Sparking Conversations: https://youtu.be/SwWaYxyeQ_4

And a BIG THANKS to all of you who subscribe to my YouTube channel, Elaine Froese Farm Family Coach. The Finding Fairness in Farm Transition video is a great coaching tool to listen to before you meet as a family.

Here’s the link: https://www.youtube.com/watch?v=dVgmMQC95rc

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DATE: PURPOSE: FACILITATOR: NOTE-TAKER: ATTENDEES:

REGRETS (ABSENT):

DATE OF NEXT MEETING: TIME OF NEXT MEETING:

ROLES FOR NEXT MEETING: FACILITATOR: MEETING EVALUATION:

NOTE-TAKER:

AGENDA ITEM

PRIME PERSON DUE DATE

NOTES/ACTION REQUIRED
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PERSONAL FAMILY FRIENDS COUPLE WORK COMMUNITY Call or text 204.534.7466 www.elainefroese.com Page 45 of 56 65

A common challenge that we encounter in succession planning is the concept of sweat equity, and the opinions vary as widely as the definition of it. Recently one old codger that we began working with put his opinion very bluntly, he summarized it as follows. "Boys if you can’t prod it or poke it, ride it or smoke it, it ain’t real and you can’t use it!" On the other hand, we have worked in situations where the parents want to give a multi-million dollar farm to one child because they have worked on the farm since graduating. We thought we would take the opportunity to share with you some common rationales that we have seen farm families use to justify fairness to other siblings in completing their succession plan.

Ned Needshalp found himself in a pickle when his hired man of 15 years, Steady Teddy, retired. Ned operates a sizeable grain farm that has very high seasonal labour requirements. Ned is 55 years old and was faced with the decision to downsize, quit or begin training new help. His son Fred expressed an interest in the farm but was concerned with the capital requirement and risk associated with purchasing the entire operation. They reached an agreement in which Fred would work on the farm for a salary they agreed upon of $50,000 per year $30,000 of which Fred uses to live upon and $20,000 which remains invested in the farm with a 7.5% return. This investment is kept track of and if Fred decides to take over the farm someday this will form part of his down payment.

S. Jobbs has held a number of prominent executive positions in the corporate world, he has climbed the corporate ladder two rungs at a time, however, he felt torn between continuing his prominent corporate career and returning to the family farm. After much soul searching, Mr. Jobbs decided to give the farm a chance. His parents, in an effort to encourage and support his decision, felt that a fair approach to the situation was to offer him the same executive salary he was making in the corporate world. His drawings from the farm were only a ¼ of the salary, however it was expected that he pay fair market value for the farm. Similar to the previous example, the difference between the salary and the drawings would remain invested in the farm.

Page 46 of 56 66

Ed Jimcated ran a successful farm his entire life on a grade 9 education and was successful doing it. He placed no value on formal education. In an effort to keep his son, Ed Junior, on the farm and avoid the cost of sending him for post-secondary education he offered his son the value of the education in equity on the farm. Ed had 2 other children which he sent to the big city for some schooling and it cost him $15,000 in room, board, tuition, and books in addition he figured $25,000 per year was missed if the children had been working full time. He offered Ed Junior $40,000 per year for 5 years a total of $200,000 with a 7.5% return if he would stay home and work with him on the farm for 5 years. At the end of the five years, this sweat equity could be rolled into ownership on the farm or he could take his money and run!

Kary Kepitgoin is a fourth-generation farmer and can’t imagine selling the farm on his watch! He wanted someone in the family to take over the operation and was willing to give it all away to see the operation continue on. There was one problem, his wife wanted some sense of fairness to the children who decided not to farm. Their son enjoyed the farm work however had very realistic expectations of profit on the operation and because they were at established jobs his wife was not willing to take the risk without some certainty that they would own the necessary assets for a sustainable farm in the future. Kary and his wife agreed that they would sell the farm in the future at a reasonable price that would easily cash flow and the difference between this price and market value would be called sweat equity. This was discussed with the other siblings and everyone was in agreement.

In summary, the four situations demonstrate four different examples of calculating sweat equity. The decision to use or not to use sweat equity is very individual. However, if you are going to use sweat equity it is important to pre-determine its value. Where we have seen major problems is in situations where an open discussion has not taken place and there are vastly different expectations of sweat equity value and terms within the same business team.

+1-204-534-7466 | elaine@elainefroese.com | .elainefroese.com | Find harmony through understanding Page 47 of 56 67

One snowy day at a beautiful ranch home in southern Alberta, around the expansive kitchen table, the farm team said: “Elaine, you should make a list of your top phrases that you use in coaching.” “Okay,” I said, knowing that many of the best projects are started by attentive practical ranchers and farmers who call it like they see it.

It is your farm. Your family. Your choice.

This is my essential message as a coach. I want farm folks to build new scenarios for the new chapters in their lives that suit their values and goals. Many folks who feel “stuck” have not stopped to talk with themselves about what they really want in their life, their family, and their farm business.

Are you sensing a new chapter coming up in your life? What choices do you have to make some new experiences happen?

You et the eha ior you

accept.

So why are you putting up with bad behavior? Folks, you do not have to allow abuse, profanity, or nasty behavior on your farm. Stand up for what you believe is right. Find support beyond your farm gate.

That was then, an this is now.

(Attributed to my mother-in-law, Margaret Froese). Meaning that things change and you might need to make a new decision for the present and the future. Some founders make promises to successors that have to be broken when the financial reality dictates that the founders need more money for their reinvention years. Plans can change, but the basic trust doesn’t need to be harmed if the parties can all be honest, transparent, and agree to talk about their disappointment.

A farm is not a piece of pie.

This means the critical mass of assets needs to stay with the farm owner or shareholders. Create another wealth bubble for your non-business heirs or have great agreements that allow access to the land for the farm operation. Parents are not responsible for ensuring that all of their adult

Page 48 of 56 68

children are economically equal. Many adult children have wealth creation goals that don’t demand large gifts from hard-working founders. Perhaps if you sat down with your children you’d discover that their main desire is for you to have some rewards now to be able to enjoy the fruit of your labour.

Change is inevitable growth is optional.

Change is going to happen, but are you ready to embrace it and work through the necessary steps to achieve your goals in a timely fashion and meet the needs of your team? The Hudson Institute gave me a great map called the “cycle of renewal” that helps families navigate change and make minitransitions to get aligned again with their vision and goals. Life is not a straight line, and we are more resilient to the bumps in the road when we take a “learner” approach.

You are

good enough.

This is a take on Brene Brown’s work where she says “You are enough.”

Many young farmers feel that no matter how hard they work it is never “good enough.” All of our farms could use more intentional affirmation. Lately, I have been asked to speak about “encouraging the heart of your farm.” We all need more affirmation and appreciation on our farm teams.

Divorce on farms does not have to happen.

This saying provoked a profane outburst at one of my seminars, but I meant it. Love and respect for all players and spouses on your farm will go a long way to avoiding the divorce courts. Sometimes I think people don’t ask for professional help soon enough, and then the pain and wounds are far too deep to be healed.

When is it her turn to get what she needs?

This is the uncomfortable question posed to the aging founder who has been married for over 45 years and still cannot see what his wife is longing for in a new chapter of life beyond the farm. She wants to move away from the main yard (Grand Central Station) and spend more time with her hobbies and friends in town. She is tired. She knows her husband still wants a role on the farm, but now it needs to be different as the next generation becomes the main manager.

A conversation is not a contract.

My friend Jolene Brown likely coined this term first, and she is right. Many promises as conversations will not hold up when challenged. Families in business are wise to write things down in agreements that keep a record of what was decided and promised.

Page 49 of 56 69

Love does not read minds.

I think I was told this as a young bride by our minister, and I used this phrase recently in a coaching call. It was powerful when I saw the young farmer’s binder page with the quote in BOLD block letters. He is planning to make it into a wooden plaque for his kitchen.

You have options; you can leave.

A young frustrated farm woman asked me in a seminar Q&A what to do with a father-in-law who was not treating her with respect. I quickly said, “Just leave.” She did not leave, but the notion that she did have the option to choose a different path gave her the freedom to make her current situation different. She now blogs about agriculture, and we had the pleasure of reuniting a few months ago. I had no idea of the power of the phrase until she told me her story. You can find out more about “necessary endings” in our book Farming’s In-law Factor. Chapter ten talks about what to do when things don’t work out.

Conflict resolution is a business risk management strategy. Discuss the Undiscussabull.

I believe that conflict avoidance is one of the huge boulders holding agriculture back. Many founders have a fear of conflict, so they procrastinate and do not have courageous conversations. Attack an issue without attacking the person, and get a resolution. Don’t waste emotional energy on “drama”. Learn to focus on solving problems with effective, focused management.

Elaine Froese, CAFA, certified coach, is the author of four books dedicated to helping farm families and has coached over 600 farm families and helped many others with her online programs and resources. She parents 2 millennials, one who is her successor. Visit www.elainefroese.com to learn more about her services and products and to see more great articles and tools to assist your farm family.

| elaine elainefroese.com | .elainefroese.com | Find harmony through understanding

+1-204-534-7466
Page 50 of 56 70

Organize

Page 51 of 56 71

Discuss your core values and principles and how they impact who you are, and what you want for the future.

What are the core values and principles of your family farm?

Why does your farm exist, what is the purpose of the farm?

What energizes you about your business?

Why are you there ? Why do you continue to operate a farm business?

Page 52 of 56 72

What is your common interest going forward:

...Where would you like the farm to be in...

…5 years?

…10 years?

…15 years?

What do you see as the main focus of your farm business?

Create a brief statement that ties together all of the above thoughts to summarize what is really important to your family and farm. Where are you going with the farm?

Page 53 of 56 73
This vision is a communication tool to portray the big picture and energize you. Talk about your cherished beliefs and values. List the big six values you hold: +1-204-534-7466 | elaine@elainefroese.com | .elainefroese.com | Find harmony through understanding FCC AgriSuccess Vision and goal setting course. Page 54 of 56 74

Sometimes in the process of pushing for what we want, we forget to figure out what exactly we do want. Instead of pushing hard and fast, spend some time thinking about what you can “live with” and can you live with the worst-case scenario. Answer the questions below to help you prepare your next well timed discussion!

What I know.

What I need to know.

Who can help answer it?

What I want.

What I don’t want.

What do we agree on. What I could “live with”.

Page 55 of 56 75

What is the worst that could happen if...?

How can I prevent it from going

What is the best that could happen if...?

be done to minimize the impact

it does go wrong?

+1-204-534-7466 | elaine@elainefroese.com | .elainefroese.com | Find harmony through understanding
wrong? What can
if
Page 56 of 56 76

Announcement of Class and Component Prices

Email us with accessibility issues regarding United States Department of Agriculturethis report.

Agricultural Marketing Service Dairy Program

Market Information Branch

CLS - 0722 August 3, 2022

July 2022 Highlights

Class II Price was $26.66 per hundredweight for the month of July 2022. The price per hundredweight increased $0.01 from the previous month. Class III Price was $22.52 per hundredweight for the month of July 2022. The price per hundredweight decreased $1.81 from the previous month. Class IV Price was $25.79 per hundredweight for the month of July 2022. The price per hundredweight decreased $0.04 from the previous month.

Announcement of Class and Component Prices for July 2022

Class II Price:

Class II Butterfat Price: Class II Skim Milk Price ¹:

Class III Price:

Class III Skim Milk Price:

Class IV Price:

Class IV Skim Milk Price: Butterfat Price: Nonfat Solids Price: Protein Price: Other Solids Price:

Somatic Cell Adjustment Rate:

Product Price Averages: Butter

Nonfat Dry Milk Cheese

40-Pound Blocks

500-Pound Barrels ² Dry Whey

$26.66 $3.3670 $15.42 $22.52 $11.15

$25.79 $14.54

$3.3600 $1.6160 $2.9116 $0.3596 0.00110

(per hundredweight) (per pound)

(per hundredweight) (per hundredweight) (per hundredweight) (per hundredweight) (per hundredweight) (per pound)

(per pound) (per pound) (per pound)

(per 1,000 somatic cell count)

$2.9461 $1.8001 $2.2019 $2.1622 $2.2054 $0.5482

(per pound) (per pound) (per pound) (per pound) (per pound) (per pound)

¹ June 2022 Advanced Price Announcement ² Adjusted to 38-percent moisture 77

Email us with accessibility issues regarding this report.

Announcement of Advanced Prices and Pricing Factors

United States Department of Agriculture

Agricultural Marketing Service Dairy Program Market Information Branch

ADV - 0722

July 2022 Highlights

23, 2022

Base Class I Price was $25.87 per hundredweight for the month of July 2022. The price per hundredweight was unchanged from the previous month.

Base Skim Milk Price for Class I was $14.64 per hundredweight for the month of July 2022. The price per hundredweight decreased $1.02 from the previous month.

Announcement of Advanced Prices and Pricing Factors for July 2022

Base Class I Price:

Base Skim Milk Price for Class I:

Advanced Class III Skim Milk Pricing Factor:

Advanced Class IV Skim Milk Pricing Factor:

Advanced Butterfat Pricing Factor:

Class II Skim Milk Price: Class II Nonfat Solids Price:

Two-week Product Price Averages: Butter

Nonfat Dry Milk Cheese

40-Pound Blocks

500-Pound Barrels ¹

Dry Whey

Special information for Appalachian and Southeast: Diesel Fuel Price

Mileage Rate Factor

¹ Adjusted to 38-percent moisture

$25.87 $14.64

$13.07 $14.72

$3.3543

$15.42 $1.7133

$2.9414 $1.8202

$2.3502

$2.3254

$2.3485

$0.6182

$5.455 $0.00550

(per hundredweight) (per hundredweight) (per hundredweight) (per hundredweight) (per pound) (per hundredweight) (per pound) (per pound) (per pound) (per pound) (per pound) (per pound) (per pound) (per gallon) (per hundredweight per mile)

June
78

United States

Department of Agriculture

Agricultural Marketing Service Dairy Program

CENTRAL

Tel.: (913) 495-9300 --- Fax: (913) 888-9207

Mailing Address: email: market.administrator@fmmacentral.com website: www.fmmacentral.com

PO Box 14650 Shawnee Mission, KS 66285-4650

STATISTICAL UNIFORM PRICE ANNOUNCEMENT

Percent Pounds

Class II Class I

Class III

Class IV

Total Producer Milk

11.94 56.37 6.79 24.90 159,652,441 753,663,340 90,784,227 332,935,084 $27.87 26.66 22.52 25.79

Minimum Class PriceProducer Milk 1,337,035,092100.00

Computation of Uniform Price (per cwt @ Jackson County, MO)

Producer Price Differential

Class III Price

Statistical Uniform Price

Statistical Uniform Price

(@ 3.5% Butterfat) (@ 3.5% Butterfat) (@ Average Pool Component Tests)

COMPUTATION OF PRODUCER PRICE DIFFERENTIAL

Class I

Nonfat Solids ButterfatClass II

Component Prices

$1.79 Butterfat Price

Other Solids Price Protein Price$22.52 $24.31 $25.87 1.6160 0.3596 2.9116 $3.3600 /lb /lb /lb /lb

Nonfat Solids Price

Other Solids Protein Class III

Class IV

Butterfat Butterfat

Nonfat Solids

Total Classified Value

Overage - All ClassesAdd:

Inventory Reclassification - All Classes Other Source Receipts

Product Pounds Price per cwt / lb Component Value Total Value

Location Adjustment to Handlers Butterfat Skim Milk 325,351,499 7,583,585 9,337,229 7,495,943 30,267,894 23,558,433 43,687,211 4,307,034 14,323,428

$16.64 3.3743

3.3670 1.7133 3.3600 2.9116 0.3596 3.3600 1.6160

$54,138,489.43 25,589,290.87

Total Pool Value

$80,253,056.44

31,438,450.06 12,842,799.15 101,700,123.84 68,592,733.49 14,471,634.24 23,146,659.63

15,709,921.07

186,002,778.40

Less: 525,276.14 44,281,249.21 37,618,293.87

$348,155,377.92

3,715.50 (14,690.04) 95,799 5,163.57

Less: (121,016,708.79) (27,854,631.47)

Value of Producer Somatic Cell

1,640,847.20Somatic Cell Adjustment - Classes II, III and IV

$349,790,414.15

Value of Producer Butterfat 51,495,742 3.3600 2.911641,563,645 (173,025,693.12) 0.359677,460,043 Value of Producer Protein Value of Producer Other Solids (323,921,630.55)

0.00110 212

SCC Adj Rate (1,000 cells) (2,024,597.17)

Location Adjustment to ProducersAdd: One-half Unobligated Balance - Producer Settlement Fund Producer Settlement Fund - ReserveLess:

Total Pool Milk (w/URSP) & PPD Value 1,337,130,891

Producer Price Differential Statistical Uniform Price

$24.31 $1.79

(Selected pool and price statistics on next page)

Todd

$25,868,783.60

(2,127,045.36) 774,390.69

Total PPD Value before Adjustments (581,486.00)

$23,934,642.93

JULY 2022 FEDERAL MILK ORDER NO. 32
MARKETING AREA
D. Wilson, Market Administrator
Released: August 10, 2022
Page 1 of 4 79

Calculating Class I Price

for more details, see the next page.

United States Department of Agriculture Page 1 of 2
United Department Agriculture
Agricultural Marketing Service 80

Calculating Class I Price: Details

Monthly advanced commodity prices and the Base Class I Price are announced on or before the 23rd day of the preceding month and use the most recent two weeks of price data available at that time. Monthly final prices are announced on or before the 5th of the following month and use the most recent four or five weeks of price data since the last publication of Class and Component Prices.

Class prices are announced as dollars per hundredweight. CWT= hundredweight, 100 pounds.

Formula Details

To calculate the Base Class I Skim Milk Price, both the Class III and IV Advanced Skim Milk Pricing Factors must be calculated. These calculations are identical to those used to compute the Class III and IV Skim Milk Prices announced on or before the 5th of the following month, except for the time series of data used. The average of the Advanced Class III and IV Skim Milk Pricing Factors, plus $0.74, determines the Advanced Base Class I Skim Milk Price.

$0.1715 = Manufacturing cost to produce 1 pound of butter, excluding cost of raw milk ($/lb).

1.211 = Factor representing pounds of butter that can be made from 1 pound of butterfat (lb butter/lb butterfat).

To calculate the Advanced Butterfat Pricing Factor, use the Butter Price from the Advanced Prices and Pricing Factors series released on or before the 23rd of the preceding month. This price series uses the most recent two weeks of price data available at that time.

0.965 = 96.5 pounds of skim in 100 pounds of milk (cwt skim/cwt milk).

3.5 = 3.5 pounds of butterfat in 100 pounds of milk (lb butterfat/cwt milk).

For more information on the Price Formulas, visit www.ams.usda.gov/resources/price-formulas

For more information on Advanced Prices & Pricing Factors and Class & Component Prices, visit www.ams.usda.gov/rules-regulations/mmr/dmr

Agricultural Marketing Service, October 2019.

USDA is an equal opportunity employer, provider and lender.

Page 2 of 2
81

Calculating Class II Price

more details,

the next page.

United States Department of Agriculture Page 1 of 2
United Department Agriculture for
see
Agricultural Marketing Service 82

Calculating Class II Price: Details

Monthly advanced commodity prices and the Base Class I Price are announced on or before the 23rd day of the preceding month and use the most recent two weeks of price data available at that time. Monthly final prices are announced on or before the 5th day of the following month and use the most recent four or five weeks of price data since the last publication of Class and Component Prices. Class prices are announced as dollars per hundredweight. CWT= hundredweight, 100 pounds.

Formula Details

$0.70 = Class II skim milk differential ($/cwt).

$0.007 = Class II butterfat differential ($/lb).

0.965 = 96.5 pounds of skim in 100 pounds of milk (cwt skim/cwt milk). 3.5 = 3.5 pounds of butterfat in 100 pounds of milk (lb butterfat/cwt milk).

For more information on the Price Formulas, visit www.ams.usda.gov/resources/price-formulas

For more information on Advanced Prices & Pricing Factors and Class & Component Prices, visit www.ams.usda.gov/rules-regulations/mmr/dmr

Agricultural Marketing Service, October 2019. USDA is an equal opportunity employer, provider and lender.

Page 2 of 2
83

Calculating Class III Price

United States Department of Agriculture Page 1 of 2
United States Department of Agriculture for more details, see the next page. Agricultural Marketing Service 84

Calculating Class III Price: Details

Monthly commodity prices are announced on or before the 5th day of the following month.

Class prices are announced as dollars per hundredweight. CWT= hundredweight, 100 pounds.

Formula Details

$0.1991 = Manufacturing cost to produce 1 pound of dry whey, excluding cost of raw milk ($/lb).

1.03 = Factor representing pounds of dry whey that can be made from 1 pound of other solids (lb dry whey/lb other solids).

$0.1715 = Manufacturing cost to produce 1 pound of butter, excluding cost of raw milk ($/lb).

1.211 = Factor representing pounds of butter that can be made from 1 pound of butterfat (lb butter/lb butterfat).

1.17 = Assuming standard cwt of milk components (3.5 lb butterfat and 2.99 lb protein), 1.17 pounds of butterfat are associated with 1 pound of protein.

$0.2003 = Manufacturing cost to produce 1 pound of cheese, excluding cost of raw milk ($/lb).

1.383 = Factor representing pounds of cheese that can be made from 1 pound of protein (lb cheese/lb protein).

1.572 = Factor representing pounds of cheese that can be made from 1 pound of butterfat (lb cheese/lb butterfat).

0.9 = Factor accounting for the butterfat retained in the cheese manufacturing process (90 lb butterfat in cheese/cwt of butterfat used). Accounts for the fat lost in the whey stream.

3.1 = Pounds of protein in 100 pounds of skim milk (lb protein/cwt skim).

5.9 = Pounds of other solids in 100 pounds of skim milk (lb other solids/cwt skim).

0.965 = 96.5 pounds of skim in 100 pounds of milk (cwt skim/cwt milk).

3.5 = Pounds of other solids in 100 pounds of skim milk (lb butterfat/cwt milk).

For more information on the Price Formulas, visit www.ams.usda.gov/resources/price-formulas

For more information on Advanced Prices & Pricing Factors and Class & Component Prices, visit www.ams.usda.gov/rules-regulations/mmr/dmr

Agricultural Marketing Service, October 2019. USDA is an equal opportunity employer, provider and lender.

Page 2 of 2
85

Calculating Class IV Price

for more details, see the next page.

United States Department of Agriculture Page 1 of 2
United Department Agriculture
Agricultural Marketing Service 86

Calculating Class IV Price: Details

Monthly

Formula Details

$0.1715

$0.1678

the following

excluding cost of raw milk ($/lb).

pound of butterfat (lb butter/lb butterfat).

excluding cost of raw milk ($/lb).

0.965

Factor representing

of NFDM

can be made from 1 pound of nonfat solids (lb NFDM/lb nonfat solids).

Factor representing pounds of nonfat solids found in a standard 100 pounds of skim milk (lb nonfat solids/cwt skim).

96.5 pounds of skim

3.5 pounds of butterfat

pounds of milk

pounds

skim/cwt milk).

Marketing Service,

milk

butterfat/cwt milk).

& Component Prices,

Page 2 of 2
= Manufacturing cost to produce 1 pound of butter,
1.211 = Factor representing pounds of butter that can be made from 1
commodity prices are announced on or before the 5th day of
month. Class prices are announced as dollars per hundredweight. CWT= hundredweight, 100 pounds.
= Manufacturing cost to produce 1 pound of NFDM,
0.99 =
pounds
that
9.0 =
=
in 100
(cwt
3.5 =
in 100
of
(lb
For more information on the Price Formulas, visit www.ams.usda.gov/resources/price-formulas For more information on Advanced Prices & Pricing Factors and Class
visit www.ams.usda.gov/rules-regulations/mmr/dmr Agricultural
October 2019. USDA is an equal opportunity employer, provider and lender. 87
NOTES 88
NOTES 89
NOTES 90
NOTES 91
NOTES 92
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