Latest / CattleUSA Daily / 243: Why I Don’t Believe in “Just Hanging On Until the Kids Take Over”

Transcript

243: Why I Don’t Believe in “Just Hanging On Until the Kids Take Over” · CattleUSA Daily

• 0:03
  Welcome to the Cattle USA daily podcast Your.
• 0:06
  Go to source for. The latest livestock markets,
• 0:08
  industry insights and the update shaping agriculture today.
• 0:12
  I'm your host Lauren Moylan, a passionate advocate for
• 0:15
  agriculture, here to keep you informed and connected.
• 0:18
  Now let's dive into today's episode.
• 0:27
  There is a phrase I hear all the time in agriculture, especially
• 0:31
  from older producers. We're just hanging on until the
• 0:36
  kids take over, and I understand where that comes from.
• 0:40
  It usually means sacrifice, loyalty, grit, and a massive
• 0:47
  amount of love for your operation in the land that you
• 0:50
  are on. But I'm going to say something
• 0:53
  that might ruffle some feathers. I do not believe in building a
• 0:58
  legacy by barely surviving because legacy isn't endurance
• 1:05
  at all costs. Legacy is sustainability with
• 1:09
  intention. This mindset didn't come out of
• 1:14
  nowhere. A lot of today's ranchers lived
• 1:17
  through volatile markets, drought cycles, land
• 1:21
  appreciation without cash flow, rising input costs and low
• 1:25
  margins for decades. So hanging on became a badge of
• 1:31
  honor. It meant you didn't quit, you
• 1:34
  didn't sell, and you didn't lose the place.
• 1:37
  And that matters. But there is a difference
• 1:40
  between perseverance and preservation at the expense of
• 1:46
  the future. Here's the hard truth.
• 1:50
  If an operation only works because someone is underpaid,
• 1:55
  overworked and absorbing stress year after year, that is not
• 1:59
  legacy. That is deferred collapse.
• 2:04
  When parents say we'll just hold on until the kids come back,
• 2:09
  what they're often handing off is outdated systems, thin
• 2:14
  margins, generational debt, worn down infrastructure, and a
• 2:19
  business that can barely support that family, let alone another.
• 2:26
  That's not a gift. That is a burden wrapped in good
• 2:30
  intentions. The next generation isn't just
• 2:34
  inheriting land and cattle. They are inheriting a business
• 2:39
  model. They're inheriting cost
• 2:41
  structures, labor expectations, debt levels, decision making
• 2:46
  habits, risk tolerance, and whether or not the ranch will
• 2:50
  run proactively or reactively. And here's the reality.
• 2:56
  Young producers today are stepping into an industry with
• 3:00
  higher land values, higher interest rates, more regulation
• 3:04
  than we have ever seen, more volatility, and less margin for
• 3:08
  error. Asking them to just make it work
• 3:12
  without intentional preparation is not fair and it is not
• 3:16
  realistic. Real legacy requires
• 3:21
  uncomfortable decisions before the handoff happens, and that
• 3:27
  means asking really uncomfortable questions like can
• 3:31
  this ranch support 2 generations financially?
• 3:34
  If not, what needs to change? Are we avoiding calling,
• 3:39
  resizing, or restructuring because it's hard?
• 3:44
  Are we investing in systems or just maintaining habits?
• 3:49
  And what a young family. Actually be honest.
• 3:53
  Be really freaking honest. Actually want to step into this
• 3:56
  operation as exists as it exists today.
• 4:00
  Legacy isn't waiting. Legacy is building something
• 4:06
  worth stepping into. Sustainability doesn't mean the
• 4:11
  ranch has to be massive or flashy.
• 4:14
  It means that it is honest. Sustainability with intention.
• 4:18
  Looks like knowing your real cost per cow, Running cows that
• 4:22
  actually pay their way, Designing labor systems that
• 4:25
  don't burn people out. Being realistic about your herd
• 4:29
  size and your capabilities, planning transitions early, not
• 4:33
  at crisis points or not when it's too late, and being willing
• 4:37
  to change the model, not just the manager.
• 4:41
  Sometimes the most legacy driven move is actually downsizing, or
• 4:47
  diversifying your income, or selling non core assets, or
• 4:53
  frankly just admitting that the ranch can't support everyone
• 4:55
  without change. That is not failure, that is
• 5:00
  leadership. We need to normalize having a
• 5:05
  different conversation and AG not can we hang on long enough.
• 5:12
  But is what we're building sustainable for the people we
• 5:17
  say that we are building it for? Because a legacy that cost
• 5:21
  someone their health, marriage, financial stability, or joy is
• 5:27
  not a legacy worth protecting. Here's what I believe.
• 5:33
  Legacy isn't survival mode. Legacy is intentional
• 5:39
  sustainability. It's doing the hard work now,
• 5:44
  financially, operationally, emotionally, so that that next
• 5:49
  generation isn't starting behind.
• 5:53
  Hanging on might feel really noble, but building something
• 5:58
  that actually works that that is a real inheritance.
• 6:07
  My name is Lauren Moylan and this is the Cattle USA Daily
• 6:09
  podcast. Thank you so much for listening.
• 6:13
  I appreciate all of you being here and I hope that today's
• 6:17
  conversation sparked some action in your life, whether it be
• 6:22
  having a hard conversation or walking that next step forward
• 6:27
  and what you need to do for your operation to make it a real
• 6:32
  inheritance. Thanks for listening to another
• 6:34
  episode and we will see you all next time.