View all past Braintrust Ag newsletters here.

Edition #31

March 9, 2024

Good morning and welcome to the Braintrust Ag newsletter. It’s okay to dance a jig when you see this email hit your inbox…

A couple notes to begin:

• A couple people recently asked for an invitation link to the Braintrust Ag community. So, I put together a quick form so I can get those invitation links sent out ⤵

  • Click here to enter your email and receive an invitation link.

• 📢 If you’re a farmer looking for a new bookkeeping solution, we’re looking for 2 or 3 willing volunteers to do a trial run of a promising new tool. Just email [email protected] if you’d like to learn more.

Alright, let’s get to the topics that will help you build a strong, sustainable ag operation.

-Clint

Here’s what we have this week:

• 😡 Family Farm Disputes

• 💡 Feb Update

• 📅 Happenings

• ⚖ BOIR Developments

• 💸 Total Compensation

• and more…

THE BIG IDEA

Family Farm Disputes

Ahh, the disagreements that can happen within a family farm. Often stemming from family dynamics, but including all types of working relationships. Sometimes between generations, sometimes between partners, sometimes between heirs… these conflicts are a tale as old as time.

This past week we had a SOIL Gathering and an interesting dispute resolution approach was brought up. A member from Ireland (that’s right, there’s ag people from all over the globe who we get to meet & learn from in our virtual member meet-ups) mentioned an approach to conflict/dispute resolution that I hadn’t heard of before.

He said in the Irish Labour Court they have an approach that goes something like this:

• In a disagreement, one side states their argument.

• Then, the opposing side MUST repeat that argument to the satisfaction of the other side, before they make their argument.

Seems like this would accomplish a couple of things:

Ensure that each side is actually listening to the opposing side’s argument, instead of the common approach of merely not paying attention and formulating your argument in your head while the other side is talking. (I’m guilty of that)

Gives an opportunity for one side to clarify the other’s understanding of their argument before they proceed.

Side note: I’ve been known to misinterpret what someone says from time to time. Someone says X, but I heard Y. Then we’re not on the same page and things generally spiral downhill from there. An approach I’ve been trying to adopt in the past is to say, “This is what I just heard, [insert my interpretation], is that what you said?” Often, I find myself mistaken.

Anyway, I did some brief research into this approach, and it seems to align somewhat with the Rogerian Argument method.

The Rogerian argument emphasizes understanding and finding a middle ground between opposing viewpoints. Its essence lies in creating a discourse that fosters compromise and mutual benefit, diverging from the traditional win-lose paradigms of argumentation which focus more on empirical or theoretical victories rather than practical resolutions.

This argumentative style is particularly effective in personal and professional settings for resolving conflicts by acknowledging the positive aspects of each party's stance to reach a solution that incorporates elements of both.

Key components of the Rogerian argument include:

1. Introduction: Establishes the issue or topic under discussion.

2. State The Opposing Position: Demonstrates a comprehensive understanding of the opponent's viewpoints or goals, emphasizing empathy and acknowledgment.

3. Re-State The Context for Opposing Position: Illustrates the circumstances under which the opposing viewpoint is considered valid, showcasing an appreciation for its merits.

4. Your Position: Introduces your own perspective, highlighting how it diverges from the opposition's without dismissing it outright.

5. Context for Your Position: Provides an objective explanation of the situations in which your viewpoint holds validity, aiming for clarity and fairness.

6. Benefits: Suggests a compromise that includes benefits for the opposition, appealing to mutual gains and shared goals rather than purely individual victories.

The primary objective is to convey understanding of your opponent’s position before making your own argument. This may, allow for needed clarification from each side and provide an opportunity to weigh the merits of each argument. With the ultimate goal of achieving cooperation and a mutually satisfactory solution.

Now, I can see how this method has its limitations, particularly when facing opponents who are unwilling to compromise or who argue in bad faith. But, those limitations would exist for many dispute resolution methods.

It might be a tool you could try and use when navigating future disagreements on your operation.

STATE OF THE [braintrust ag] ADDRESS

You may or may not have spent Thursday evening watching the State of The Union Address. I will keep partisan comments out of this newsletter. It dawned on me that I have been putting out monthly updates on social media, but haven’t included them in the newsletters.

So, here is the most recent Braintrust Ag update from February:

What is BA? 

Online peer group of farmers, ranchers, and ag business folks sharing ideas & tools.

Who’s it for? 

Anyone intent on starting, growing, or transitioning an ag operation & business.

The Numbers: 

• Members: 209 (prev - 177) 

• Newsletter (free) subscribers: 2,318 (prev - 2,182) 

• Endorsed Service Providers (ESP): 10 (prev - 10) 

Some Great Things: 

→ Record participation in recent SOIL Gatherings (Zoom member meet-ups)

→ Learned that Delaware has a robust farm sector (who knew?) from a member who is buying into a 5,000 acre operation

→ Outstanding Expert Q&A’s recordings are quite popular

• Succession Planning

• Accessing Farmland Equity

• Grain Merchandising 101

• Ag Lending

→ A member found his first quarter to rent, built a budget, secured financing, and will farm his acres in 2024

→ A seasoned FSA loan officer will be giving us a full run down on FSA farm loan programs & answering questions at March’s upcoming Expert Q&A

Needs Improvement: 

→ Video tutorial on how to get the most from this community

→ Reminders to download & use the mobile app (it’s quite user friendly)

→ Build out, raise awareness, and promote Endorsed Service Providers page

*Thankfully, I found a member savvy in web development to help!

Final Thoughts: 

I was recently asked how many close friends I have and where/how do I meet them.

Frankly, that question gave me pause.

Our family & life have seen many changes these past few years, and friendships are among that.

Truly, I thought of people within the Braintrust Ag community I’ve been getting to know on a monthly, weekly, and even daily basis when that question was asked.

I honestly answered a few of what I consider to be close friendships have been forged through & thanks to this group.

I’m so thankful for the opportunity to not only meet members, but consider them friends as well.

-Clint

P.S. The four cornerstones of BA:

• Business Minded

• Fostering Connections

• Givers Not Takers

• Legacy Builders

If you’d be willing to take a minute, click here to leave your testimonial.

Become a member today for lifetime access to everything. It’s a small one-time cost with NO recurring subscription.

PEER GROUP HAPPENINGS

A couple mentions on what Braintrust Ag members are up to:

1. 📅 EVENT!

   Have you ever wanted to ask a Farm Service Agency loan officer about the various programs, if they apply to you, and other questions?

   Well, you’re in luck.

   Our upcoming Expert Q&A guest is a seasoned vet when it comes to FSA loans and is genuinely a great person as well!

   Hope you’ll join us on Zoom, bring a slough of questions for Lacy Roberts, and come prepared to learn.

2. Going to try something a bit different at our next SOIL Gathering. I have a couple multi-faceted scenarios I will present to the group, and want to get your take on what you would do in that situation. I think it will be fun, informative, and engaging.

3. A few new resources have been uploaded to the resources page: both by me and from a couple members sharing their spreadsheets!

4. Please don’t forget to download the app (Android or iOS) for the community platform.

FinCEN BOIR

There’s been some recent developments in the Corporate Transparency Act and FinCEN’s Beneficial Ownership Information Report (BOIR) requirements.

We discussed what this is in a previous edition.

The quick summary is if you own or control an entity (LLC, Corp, Partnership, some trusts) that has state filing requirements, the federal government is mandating you disclose who the beneficial owners are through a filing with FinCEN.

Now, the report is pretty easy to file, but concerns of broadening reach and intrusion into various private businesses is seemingly becoming validated.

Two things, one that may be owner-friendly and one that may have broad implications have happened recently:

1/ Corporate Transparency Act ruled unconstitutional

A federal district court held that the Corporate Transparency Act is unconstitutional because it exceeds the Constitution’s limits on Congress’ powers. The National Small Business Association (NSBA) brought the suit and prevailed in stopping the CTA from applying to its members.

BUT, the ruling only applies to NSBA members. Which is only about 0.1% - 0.2% of all the entities required to file the BOIR. So, most likely your farm LLC or trucking corporation is not affected by this ruling and you should still plan on filing a BOIR before the end of the year.

Click here to read more about the recent ruling.

2/ BOIR to be required for transfers of residential real estate

It didn’t take long for some people’s fears of the CTA broadening its scope to become real. FinCEN recently announced a new proposed rule to increase transparency in the real estate market. The rule’s purported purpose is to crack down on money laundering through private real estate deals.

If the rule is adopted, at residential real estate closings, a new report called “The Real Estate Report” would need to be filed with the federal government. The rule won’t take effect until after the comments period, revisions, and finalization of the rule, which may happen later this year.

As of now, this is limited to residential real estate, but it’s not crazy to see how this could easily be adopted for farmland transfers as well.

Click here to read more about this proposed rule.

So what do these developments mean for you?

As of now, probably nothing. Most likely if you have an entity that qualifies for BOIR, you are not a member of the NSBA, and will still need to file your BOIR before the end of the year (or within 90 days for new entities).

And, the proposed real estate rule is for residential real estate only at this time, so farmland transfers are not the target…yet.

As we’ve recently discussed risk management in the last couple SOIL Gatherings, topics like this are keys to mitigating risk and ensuring compliance. That’s why I bring these topics up.

EMPLOYER TOOL

I've been guilty of looking at my paycheck many times in the past and thought, "huh, that's not big enough."

Even if someone said, "you get this benefit or that benefit..." I would conveniently ignore those perks.

A Total Compensation Statement would have gently reminded me that I was getting more than just a cash wage.

Might be a tool to help keep good employees (family included) or even recruit new ones.

Something about visually seeing the total comp helps folks realize the true value of the job.

This report could be used during an annual review, when an employee asks for a raise, or any time throughout the year when you meet.

MEME OF THE WEEK

That’s a wrap, folks.

Until next week, thank you to everyone involved in ag. Come engage on the community platform & let’s grow profitable ag businesses together.

And, share this email with 5 of your friends.

Was this shared with you? Click 'Subscribe' to get next week’s delivered straight to your inbox. Free.

DISCLAIMER: All content, communications, and resources provided by Braintrust Ag, its principals, operators, or members is intended to merely be educational and entertaining. Nothing published by Braintrust Ag should be relied on as legal, financial, investment, or other professional advice. Investments and legal matters involve substantial risk and are not suitable for all individuals. It is recommended to enter into a client relationship with an ESP for obtaining professional advice.