January 31, 2025

Answers are from the Agrivision panel: Tom Kestell, dairy farmer, Sheboygan County, Wis.; Sam Miller, retired managing director, group head of agricultural banking, BMO Harris Bank; and Katie Wantoch, Extension economist, University of Minnesota Center for Farm Financial Management. If you have questions you would like the panel to answer, send them to: Wisconsin Agriculturist, P.O. Box 236, Brandon, WI 53919; or email [email protected].
I have been working on my parents’ dairy farm for wages for the past three years. Before that, I worked for a neighbor for three years. I’m 25 years old, and I would like to start buying into the operation. I’ve saved $30,000 and I own a 2020 Ram pickup truck and a John Deere 4040 tractor. My parents farm 350 acres in western Wisconsin, all owned. We milk 170 Holstein cows, and raise 150 heifers and calves. We sell about 40 beef-on-dairy calves each year when they are a few days old. My parents still have a mortgage of $325,000 on the farm, but the cows and machinery are paid for.
Should I start buying the cows and heifers, or should I buy machinery or find some farmland to purchase? We have no immediate plans to expand the farm. I still live at home, but I’m planning to move out this summer and get married in a couple of years. Please advise.
Kestell: First of all, congratulations on your success so far. I am impressed that you have saved $30,000 and own a 4040 John Deere tractor and a Dodge pickup truck — good job!
I would like to do a little exercise with you. Put on your walking shoes, open your eyes and mind, and take a thoughtful tour of your parents’ farm. Walk out and through the barns, observing the 300-plus head of cattle and the buildings that house them. Then do a thoughtful inspection of the equipment used to run the farm.
Next, walk the land. Observe the good and bad, what needs to improve and what is working well. Imagine how you can be a positive member of the family farm. Set your jaw and steel your mind to the challenges that will face you as you embark on an adventure of a lifetime.
Develop a can-do attitude, because many times, success and failure depend on attitude. Now is the time to set your dreams in motion. First up, talk to your parents about what you’ve seen and thought about, and how you can become part of the future of the farming enterprise. Make sure your parents are open and accepting of your visions. Develop a sincere appreciation for the groundwork your family has done to offer you this opportunity. I think you realize (I hope) that working for wages will never afford you the opportunity to purchase the farm.
Look for areas where you could bring added value to the dairy enterprise. Maybe expanding your role in the dairy and beef enterprise can bring additional revenue to the farm. Perhaps instead of selling these young calves, they could be finished out, and you could maybe even start an on-farm store for beef sales. Invest your hard-earned savings into something with a high rate of return where you can see progress for both the farm and yourself.
Your investment in the farm must be welcomed and appreciated by your parents. Realize that without their help, you will face strong headwinds that you might not be able to overcome. Use your talents and can-do attitude to become an owner-operator. Good luck!
Miller: I understand your interest in buying into the farm operation, but you did not mention what your parents think about this idea. Start by having a conversation with them about both their future plans and your interest in becoming a partner.
If your parents are interested in the idea, engage a dairy business consultant to work with you on a goal-setting exercise for you, your parents and the farm business. Then work on a business plan and determine how best for you to gain ownership in the business.
There are multiple ways for you to invest in and become a partner in the business. Put the work in planning and evaluating these options to optimize the outcome for all parties. Good luck with your plan.
Wantoch: The start of a new year is an excellent time to discuss your plans to buy into the family business. Begin by writing down your goals and how you see yourself fitting into the farm operation. Where do you see yourself in three, five or 10 years? Consider what you hope to achieve during this time and what you envision for the farm’s future. Share these goals with your family to ensure you have shared goals for the business. Working toward these goals each year helps everyone stay focused on what matters most.
Revisiting and updating these goals at the beginning of each year will ensure everyone remains aligned and on the same page moving forward. Read this University of Wisconsin Extension article for help in writing your goals.
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