Scythe & Spade Blog

Blog #20 - 5/28/10

by Chas Bonner

MULTI-TASKING DILEMMA

Are you one of those normal human beings that tries to get 10 things done at once, hearing constant complaints from your spouse, i.e. normal? Or are you one of those rarities that does one thing at a time? If the latter, you are more efficient and happier!!!

There was a very interesting article in the Harvard Business Review by Peter Bregman outlining why we should stop multi-tasking.

First, a study showed that people distracted from their focus had the equivalent of a 10 point IQ decrease, the equivalent of losing a night of sleep.

Second, Bregman calculated about a 40% decrease in productivity when trying to do many things at once. Since virtually no one can do many tasks at the same time, rather than multi-tasking, we are really task-switching. Trying to do many things at one time causes us to do many things partially, and re-do others.

Bregman experimented for a week doing only one thing at a time. He loved the results, reporting a sense of relaxation, getting more things done completely and satisfactorily, reduced stress levels, eliminated activities that were a waste of time, and discovered more patience doing things that were useful. Most importantly, he saw no downside, and nothing was forgotten or unfinished.

What great advice, if only we can listen.

FarmBase in a Nutshell

by David Dodds

What is GIS?

GIS stands for Geographic Information System. According to ESRI, the largest developer of GIS software, a GIS integrates hardware, software, and data for capturing, managing, analyzing, and displaying all forms of geographically referenced information.

Here at Scythe & Spade, GIS has become our own system, called FarmBase™. So what is FarmBase™? It’s a website, it’s mapping software, it’s a spatial analysis tool, it’s an online collaboration platform, it’s a multi-user relational database, it’s a property management system, it’s a regulatory compliance facilitator, and above all, it’s a “what-if?” machine.

We can combine crop histories, soil types, well depths, water rights, and taxes with distances to markets, city centers, developments, rail roads and interstates; then cross-reference with sun, wind and rain data, and finally compare it to multi-spectrum remote sensing. And then we ask, “What if?”

What if we plant this crop? What if we buy this land? What if we sell? What if I change this or that? What if we go here or move there? Where are the markets? Where is the best land for this crop? How close is this? How far is that? The best land? Path of progress? Rental rates? Trends and patterns, or inconsistencies and anomalies?

FarmBase, in a nutshell, is the tool Scythe & Spade will use to answer these questions for our clients; these questions and more. Give us a call, “what if” is our specialty!

Enterprise Unit Structure

by Patina Thompson

The month of May is a busy and dusty time across the Arizona countryside with farmers planting and irrigating cotton rows and corn fields. For those of you who elected the Enterprise Unit (EU) Structure available on cotton crops under the CRC Plan of insurance for the 2010 crop year, this is a reminder of the rules and fine print to ensure compliance.

As it pertains to crop insurance, a “unit” is the insured acreage of the crop in the county. Each crop policy guideline will define if a particular unit structuring is available for a crop plan. All unit structure types must be elected by the Sales Closing Date (SCD) for each crop, Arizona cotton’s SCD was 2/28/2010. There are four types of units: basic, optional, enterprise and whole-farm.

Basic units are determined first by crop, then by the insured’s share in the crop – taking into account any crop-share agreements present.

Optional units are a further division of basic units and separates the acreage of the insured crop that is located in separate, legally identifiable sections or separated by practice – irrigated, non-irrigated or organic.

Whole-farm units are only available for the RA plan of insurance and can apply to two or more insured crops planted in a county.

Enterprise units are in the spotlight for this discussion. Essentially, an EU is a single unit consisting of all the insured’s insurable crop acreage in the county – regardless of share, location, Farm Service Agency number or practice.

Most importantly, the EU must contain 50 or more acres and have two or more sections. At least two of the planted sections must each have planted acreage that constitutes the lesser of 20 acres or 20 percent of the total insured crop acreage.

The acreage that comprises the enterprise unit must also qualify for: 1) two or more basic units of the same insured crop in two or more separate sections OR 2) two or more optional units of the same insured crop established by separate sections.

So what are the benefits of the EU structuring you might ask? A reduced premium of up to 50%! A premium discount is offered because combining all the acreage of the crop into a single unit reduces the probability of a loss.

However, there is a hitch. If, at acreage reporting time, it’s determined your planting did not comply with the 50 acre minimum and two or more sections with lesser of 20 acres or 20 percent of total acre requirements, your structuring will revert to the Basic unit and your premium will change as well.

So be sure to read through the fine print of your crop policies during your afternoon “downtime” and follow the rules to reap the benefits of a profitable crop and a substantially lowered premium.

Blog #19 - 5/7/10

by Chas Bonner

“IDEAS ARE A DIME A DOZEN; EXECUTION IS WHAT MATTERS”

We would love to ascribe that quote to some famous philosopher to provide added credibility. Normally, I say “The famous English philosopher John Locke said:………”, but in all honesty, it was said in a fit of anger at a former business partner.

Nonetheless, too many people think that a good idea or plan is the conclusion. It is just the start. And what idea is truly new? As a wise professor told us once, R&D simply means “Rip off and duplicate.” Few ideas are truly new, but the execution might be new.

In developing a plan, we must always remember that it is a living, breathing plan, and it will change as conditions change. It should be measureable and time-bound to force action and make it truly effective.

Second, we should address the impediments to execution of the plan. What stands in our way, and how can we avoid detours?

Third, we should identify, mitigate or eliminate such impediments.

And finally, pull the trigger.

“Execution is what matters.”