Some farm families with multiple generations gather around the dining room table to make a major decision. Others have a farm office outside of anyone’s home, and they gather there to discuss big decisions. Some meet on a regular basis to talk business, everywhere from daily to monthly.

The Koester family, Poseyville, Ind., does things more informally. They don’t schedule regular meetings where everyone in the diversified operation gets involved. They raise crops and operate a 220-cow dairy with robotic milkers. Typically, they don’t even call a meeting if it’s time to make a major decision, such as purchasing a piece of equipment. They have their own way of arriving at what seems to be the right decision for the farm.

Recently, when the Purdue Farm Management Tour visited the Koester farm, Michael Langemeier asked how they make decisions. Langemeier is a Purdue University ag economist and associate director of the Purdue Center for Commercial Agriculture. Family members involved in the discussion included brothers Dale, Jim, Ray and Duane, and Ray’s two sons, Lucas and Sam. Other family members are also involved in the farm business.

Making decisions on the go

“Say you guys were considering buying a new tractor. How would that decision be made?” Langemeier asked.

“We’ve kept our machinery fleet up and attempted to trade as often as it made sense,” Jim said. “We’ve adjusted what we do as economics and times change. In the end, it comes down to if you need it, you buy it! If you don’t really need it, you go with what you have.”

“But who gets that decision-making process going?” Langememier probed further.

“We kind of have a rolling team meeting,” said Sam, representing the next generation. “One person will talk to another and say what they think, and the conversation moves on from there.”

The family uses group texts when necessary, Sam added. Everybody has a say, and they communicate with each other, he said. Sooner or later, they reach a decision.

Big challenge

One major decision that will require input from everybody in the farm is looming. Dale explained that when they moved the dairy to its current location, they made a big jump in cow numbers. Today, they milk about 220 head, which is not large by modern standards. They were one of the early adopters in the area for installing robotic milkers. They installed robots in 2012.

“We’re kind of maxed out on space and at the point where we need to add cows and get bigger, or perhaps do away with the dairy,” Sam said. He noted that even with the robotic milkers cutting down on labor needs and increasing efficiency, the dairy requires a lot of capital and time. Some years it is stronger than crops in payback and an excellent source of diversification. Other years it isn’t as strong. Plus, expanding would likely mean bringing in outside help, something they haven’t done often in the past.

Each member of the team may be getting a feel for which way he wants to go — expand and add cows or switch enterprises — but it’s still a backburner discussion at this point. Expect the younger generation to have a big say in which way this one goes, since expanding would be an investment in the future. Stay tuned!