It has been a difficult and challenging spring and summer for farmers. Weather, flooding, tariffs, commodity prices and planting reports have dominated planning and operational execution for every farm. The focus on the ‘now’ has taken precedent over ‘future’ discussions regarding the direction of the operation. Just remember however, industry and technology aren’t slowing down because of the issues in agriculture.
The farmer that can balance today’s issues and prepare for the future will be the operation that dominates the farming landscape of tomorrow. Because farming is capital intensive it takes ingenuity and creativity to perform the balancing act of planning. It is more than the semi-annual visit with the banker, it is about learning new approaches for the farm using time tested financial and planning techniques. But everything about farming will change rapidly and it is at our doorstep.
Did you know?
· SpaceX is developing a low latency, broadband internet system to meet the needs of consumers across the globe.
· Starlink will provide fast, reliable internet to populations with little or no connectivity, including those in rural communities and places where existing services are too expensive or unreliable.
· SpaceX is targeting two to six Starlink launches by the end of this year.
So What?
As a farmer you could ask…so what? The answer is contained in that fact that farming is not different than other industries affected by technology. The backbone of technology is the exchange/interchange of information and data. To have the exchange/interchange of data there must be communication. Starlink will provide the communication backbone that can reach your farm and every component of machinery, grain handling, crop analysis and animal in your operation.
Internet of Things (IOT) – Are you Financially Ready?
Auto steer, precision planting and crop scouting technologies that are common today are only examples of the beginning of how farming will change with the growth and applications using IOT. New tools that are in production or near production use include driverless tractors, smart irrigation, 3D printing to make your own parts and the inclusion of artificial intelligence (AI) embedded in every aspect of the farming process. These changes will be adapted in those farms that can invest financially in the technology and eventually expand past their neighbors. But where will the money come from?
Think Differently
New technology will demand a new way of financial planning and execution for farmers. One must break out of the decade’s old financial horizon of the next crop year and look longer term:
· Using present value to your benefit, just like the companies on Wall Street.
· Financing the future with your own dollars using MDPT on your farmland and commodity sales.
· Preserve the value of your farm by deferring taxes and investing in your operation.
The future of farming is underway. Farmers have been looking up to the stars for centuries. Now when you look up to the stars you will also know that the satellites orbiting our earth, are carrying the future of your farm. Don’t miss out because you didn’t change the way you saw the future.
To learn more, Farmers First Trust Company DST can be reached on their web site contact us at https://www.farmersfirsttrust.com/.