Farming with Andrew Lauver

This exclusive episode is a double feature for National Farmer's Day! We had the chance to connect with fifth-generation farmer Andrew Lauver at Honor the Harvest this year and get his story on taking over the family farm. 

Then join us as we catch up with first-generation rancher Angela Scott as she talks about her lessons learned as a newer rancher and that it's ok to ask questions!

Transcript

Joanna (00:00):
Today we are taking you to Rockwell City, Iowa, where we talk with fifth generation farmer, Andrew Lauver, he and his family own Lauver family farms where they farm corn and soybeans. In this episode we're gonna talk a little bit about succession planning and how their farm follows the rule of 62. You don't wanna miss what he has to say about that. And we also talk about some of the conservation items they're working on challenges within the agriculture industry and also goals that they have for their family farm. Well Andrew, we are excited to have you on Farm Food Facts. Can you first start off by just sharing a little bit about Lauver Family Farms?

Andrew (00:34):
Absolutely. I'm from a fifth generation family farm. We now have two daughters, a nine month old and three year old. So a six generation coming on up. We grow corn and soybeans and then also are adding some beef cattle to the operation.

Joanna (00:46):
And what's the size of your operation?

Andrew (00:48):
Yeah, so the size of our operation is about 500 acres of corn and soybeans. And with that my brother's also involved in my dad and my wife. So it's a family affair.

Joanna (00:58):
What is something that's unique about your farm?

Andrew (01:00):
Something that is unique about our farm all describe it as the rule of 62. So with that, my great-grandfather retired at 62, my grandpa retired at 62 and then my dad retired at 62. Now that being said, each family has their own succession plan, but for us, what that meant was that my wife, my brother and I really took over the decision making in terms of what inputs are used and what timing, you know, as far as crop protection, et cetera. But my dad is still there in terms of institutional knowledge and support on the operations side.

Joanna (01:31):
Well it sounds like you guys have an awesome framework of succession planning. Have you brought in some outside expertise to kind of make sure that you guys are successful in that succession planning process?

Andrew (01:42):
It's very interesting when your business is your family and your family is your business because it really never departs whether you're at a holiday or something, you know, on the weekend together at an event. The farm is still there in the background, you know, as a part of who you are and what you're focused on. I think for us, we spend a lot of time reading, whether it's online or uh, different areas, networking as well, talking to other families. And I don't think there's a one size all fits approach, but communication is critical. If you're not communicating, it's really tough to have those clear plans. And then for the next generation to make a decision on where to move, you know, how to kind of diversify and segment time, et cetera.

Joanna (02:20):
What has been some of the challenges? 'cause you're making succession planning sound really easy, right? <laugh> now. Yeah. But we know that there are a lot of challenges. Can you speak to maybe one of the challenges you've had with succession planning with the farm?

Andrew (02:32):
Yeah. I think one of the challenges is that farming is extremely capital intensive. And as any economic scenario, the more time you have built up, the more wealth hopefully you've gained. And so for a retiring farmer, that balance sheet looks a lot differently than for a new and beginning farmer. And one thing we can't control is timing. So really making a lot of decisions right now at a time where operating interest is higher is certainly different. And so the relationship with the bank is incredibly important, I think in any succession planning situation as well to involve that local lender and have a relationship there for us. It's not to say it's necessarily a challenge, but more of an opportunity in an area that I think I've realized now further into it how important that is. And so I would say include your, your lender or whoever you're going to really depend on for some working capital at an early stage.

Joanna (03:27):
Very wise words from a really young man. So thank you for sharing that insight. What is your farm doing to be better? And let's talk on the area of environmental sustainability.

Andrew (03:37):
Absolutely. So we have on our farm enrolled about 50 acres into the conservation reserve program. And we've seen several benefits from that. One has been immediately, uh, wildlife, so there's more wildlife that's present. Deer also quail and and pheasants. And then in addition to that too, we've seen the way the, we're in the prairie pothole region, really kind of the Des Moines lobe area of Iowa, which is can be swampy. There's a lot of drainage, but areas that were perennially drowning out and having a lot of water running off into them is now filtered through that conservation reserve program and has really allowed for a healthier ecosystem and environmental system. Uh, we've also worked very closely with the Iowa Soybean Association on plans to understand where erosion is happening on the farm and how we could curb that and just make decisions on where terraces would go or water waste for example too.

Joanna (04:33):
So did your farm specifically have to plant anything or did you kind of just designate that area and then let it do what it's supposed to do?

Andrew (04:40):
We have had to plant grasses, you know, in that conservation reserve program acreage, we have three different parcels. One thing NRCS has been really excited about is there's some wild rye out there that's actually native to Iowa that was not in the plant mix, but it ended up coming anyway. So it's interesting to see some of those native species come through. And then we just put in an additional acre, actually three acres, but two different parcels where we've planted cedar trees, so we're planting some trees out there as well. And then, uh, some cottonwoods, uh, in addition to that too, that'll be adjacent to some of the livestock to provide shade, but also have kind of a buffer between crop acreage, livestock, and then a strip for some wildlife as well.

Joanna (05:26):
Has this benefited the crops around the prairie area?

Andrew (05:30):
I think that it has. I think in terms of the way the water moves, I definitely think there's been some elements to curb erosion and retain soil as far as that goes. It acts also kind of as a filtration area and so I definitely think there's been some, some perhaps direct or indirect benefits through that too.

Joanna (05:48):
So being the fifth generation farmer, there's a lot of challenges that come with farming. What are some challenges that might keep you up at night as you think about being the next generation on the farm?

Andrew (05:58):
That's a great question. I think back to these past couple years, and we are the fifth generation to farm the farm, but we're the f the first generation to have that most expensive crop. So the fifth generation, but this past year was the most expensive crop ever, you know, that we've put in. Now we have seen support, you know, from a commodity price perspective, but now as we're looking into next year and running cash flow numbers and projections, et cetera, we are seeing a, a decrease, you know, in that commodity price level. And just as we run our cash flow, you know, $1 up versus down on the corn market really makes a huge difference as you're just applying, you know, your projections and where you're spending your money, et cetera. I think some of the challenges have been fertilizer price, but we have seen a reduction in fertilizer prices going into next year. So that's been encouraging. And then I think interest rates as well, uh, the more that we could have favorable interest rates, especially on operating notes would be helpful.

Joanna (06:57):
Well, Andrew, it would be depressing if we just ended on the challenges. So let's talk about some of the goals that you have for your farm.

Andrew (07:03):
Yeah, I think some of the goals that we have, you know, one that's overarching for me, I think about what's it gonna be like when I'm 62 years old, what's that farm look like? And so I think ensuring that it's in a place that can be farmed by, uh, our family. If there's someone who so chooses to do that, or an adjacent family or someone in the area, you know, that when they would take that farm over, it's really providing, you know, for them or for our family, whatever that might look like. And so to me that's critical. I think incorporating more technology too. We have precision technology on the farm and auto steer, et cetera, but we can always do more with that. And having so many different points of collection and information, you know, really balancing all that and tying it together to make informed decisions is really, uh, something that I'd like to continue to do a better job of and, uh, include some of those stakeholders and some of those outcomes. So like our lender, those that we buy inputs from, and then the family and those that we crop share with to have each of them aware of those outcomes, you know, that may be positive that we're, uh, capitalizing on.

Joanna (08:10):
Right. You're farming, but it sounds like those relationships around you are key in what to make your farm successful. Yeah,

Andrew (08:16):
Absolutely. Those relationships are critical. Communication is critical and, uh, yeah, even though a a farmer can be very independent and kind of a a c e o of sorts, you have to have a lot of people around you to make you successful. And so that's critically important.

Joanna (08:32):
And how old are you now?

Andrew (08:33):
So I'm 32.

Joanna (08:37):
Well, we're gonna, we're gonna call you in 30 years at 62 and wonder what's going on with Andrew. Is that all right?

Andrew (08:44):
That's exactly right. Hopefully at that point then you could have a conversation with Doris, our, our three-year-old, uh, who would then be 33. So hopefully that's the case at that point.

Joanna (08:54):
Well Andrew, congratulations on all your farm success and best of luck in the future.

Andrew (08:58):
Thank you so much. We sure appreciate it.

Joanna (09:01):
Now that was a fun conversation with Andrew Lauver. He's one of the owners of Laver Family Farms, located in Rockwell City, Iowa. If there's a topic you'd like heard on Farm Food Facts, just send me an email at podcast@usfraonline.org. Until next time, I'm Joanna Guza for Farm Food Facts.