Skin in the game. In the financial realm, they need to have their own dollars in the game as soon as possible, maybe while still in college, as this will exponentially increase their interest, learning curve and attentiveness. Coming back to a farm business as a part owner versus a hired hand is your insurance that they will have a vested interest in the success of the business, versus a 40-hour-per-week commitment.

Get in the habit of being frugal. For most of us, there is no room today for fancy vacation homes, expensive toys and new paint. The next generation needs to accept the bottom-line reality of low farm prices or go elsewhere. Exorbitant cost-of-living took out the first round of farm bankruptcies, and we are not out of these lean times yet.

Least cost wins. In the generic commodity business, the least-cost producer per unit of output wins the game. That is paramount to your future success. This is not some economist’s opinion, but rather a basic mathematical fact.

Early wealth accumulation is more tied to spending than income. That’s tough to accept for our new generation. Right now we all need a Walmart survival mentality. Long-term wealth is often farmland acquisition, which requires a superior focus on net income versus operating twice the acres and having half the bottom line. Growth is often inversely correlated to profitability in times of depressed commodity markets.

What can you afford to lose? Consider more of what you can afford to lose versus what you stand to gain. This axiom will definitely help keep new capital and tech in check. Most importantly, use this discipline as a lead parameter in your written marketing plan.

The benefits of off-farm income. An off-farm job not only nets a paycheck, but also gives you some business savvy and education you might not have gotten had you relied only on the farm for your income. Bringing business experience back to the farm is enormous.

Learn … everything. Learning all aspects of the production process via hands-on experience is necessary to fully appreciate the complexities of your business. This does not mean you need to know how to pull an engine or be an electrician, but some comprehensive insight will allow you to identify strengths and weaknesses in the business.

You won’t always win. Prepare for disappointment; sometimes hard work does not always translate into reward. Starting every day at 4 a.m. or working 110 hours per week does not ensure success. Don’t become a pessimist; just mentally prepare for the occasional train wreck.

There’s no “I” in team. The team concept usually yields a superior result. In fact, team achievements will be much more rewarding than singular accomplishments. Sharing success is extremely gratifying.

Learn from your mistakes. A mistake is an opportunity to improve your business skills. Smile, learn and get over it, as there can be a lot of spilled milk in this business.

Keep family and crew up to speed. Allocating margin in your operation and life for downtime and family time is a necessity. The in-season super push is relatively short, but the potentially outrageous hours need to be communicated in advance to the family and crew.

Be open with business partners. Keeping an open-door policy with bankers, landlords and other business partners will help you address issues before questions arise. Relationships rule in the countryside.

Respect is a beautiful thing. Practice self-control and respect in your community and on the farm. Experience, education, IQ and success all deserve recognition in the workplace. Blaming others solves nothing. Openly acknowledging your own mistakes will allow you to use screw-ups as a learning opportunity and build loyalty with your team.

Learn what needs to be outsourced. What do you love to do? What do you hate? Consider consultant assistance to improve the working family chemistry. Also, evaluate having hired guns in the critical areas of agronomy, accounting and taxes, tech, and marketing.

What is the farm’s weakest link? This can be a moving target. Consider each of these: agronomic inputs, labor, management, operations timeliness, repairs, insurance, the equipment fleet, financing, overhead, conservation, consultants, continued education, marketing, scouting, accounting, tax management and off-farm income. The key to financial success is keeping the income-inhibiting risk balanced among these inputs.

Do the right thing. Consumers want to know how their food is produced. Your business practices should never be questioned. Do the right thing when it comes to people, livestock, the soil and the environment. Don’t be that bad apple.

Get a mentor outside the family. Young people should network and build relationships. An experienced mentor outside of the family is a must. Our push here is to instill the humility and drive to readily ask questions of parents, fellow farmers and advisers, because the result can be very rewarding and motivating. A real-world education is about exposure to new topics and ideas, and realizing that there are experts and experience in each of these disciplines.

There are no dumb questions. The next generation will need to have enough personal confidence that they are never too prideful to ask for help or a critique. Ask for feedback: “If you have a better way, let’s hear about it, please.”

Stay nimble. The ability to shift gears and change priorities or the game plan is paramount for success in farming. We are not an assembly line of widgets. Emphasizing what pays the bills will keep the family more aware of the overall economics of your business plan, as well as making it easier to understand and comprehend why priorities are changing.