Scythe & Spade Blog

Shortage of Phosphorus

by Jeri Engstrom

After years of worrying about running out of oil, water, and arable land, it has come to our attention that that there is a new shortage on the horizon, that of Phosphorus. The mineral phosphate comes from phosphate rock which is consumed at the rate of 17 million tons annually on a global basis. To make matters worse, phosphate is located in only five countries on the planet and only 12 mines in the U.S. Below is a link to a very interesting article to read and get the full story. Arizona State University is doing a great job in researching this story, please check it out at:

Sustainable P Initiative

Blog #27 - 8/20/10

by Chas Bonner

SPECIFIC vs. GENERAL

At times, we become concerned that there are too many blogs that do not pertain specifically to farming or ranching. Rather, they are very general in nature, and don’t apply to a cotton, wheat, or corn farm, or any ranch property. But when thinking further about that, perhaps we are not the ones to tell you how to operate your farm, but can only make suggestions after review.

Therefore, our blogs are and will continue to be more general in nature, and hopefully of interest as they carry many different messages, and different authors. Most important, we believe they are applicable to any and all farm/ranch operators.

Today we will focus on teams and teamwork. Even if just a husband and wife team operating the farm, it is still a team. Furthermore, every farmer has teammates when considering bankers, attorneys or accountants, whether or not he likes those teammates.

Almost by definition, teamwork entails collaboration. If the team leader continually voices his opinion rather than asking for other ideas first, soon most expressions will mimic the team leader. That is human nature. Instead, the leader might first engage others to learn their assessment, and not voice his own until all team members have been heard. Rather than expounding on his ideas, the leader can learn much more by asking questions, seeking clarification, “active listening,” and looking for quantity of ideas instead of quality. Critiquing the ideas will come later. When asking insightful questions, it might be surprising how many fine ideas arise.

We are reminded of that adage: “God gave us two eyes, two ears and one mouth, and hopefully the wisdom to use them in that proportion.”

Blog #26 - 8/13/10

by Chas Bonner

TRENDS & CYCLES

Last March we attended a Northwest Agribusiness Seminar in Washington State. One of the presenters at that seminar was Ejnar Knudsen of Passport Capital. One might ask why a financial analyst from an investment company would be invited to present at an agricultural seminar, but his presentation resonated with the audience. It was about food trends and cycles, and how they would affect financial investments. It made total sense.

This is having a REAL impact upon us----and upon all of you in agriculture.

In any business, cycles are continuous and unavoidable. Most people know about cycles in their own industry, both good and bad. What should be just as obvious are trends, although they are normally less discussed and less understood. What is exciting for all of us in agriculture is that our trend lines look good far into the future, although every agricultural product will have good and bad cycles within that longer-term trend.

Some reasons for the positive trend lines:

• World’s population should increase 50% in the 50 years from 2000 to 2050
• Arable land is decreasing over 20 million acres per year world-wide.
• In 1960 there were 2.8 acres of farmland per person in the U.S.; today it is 1.0 acres.
• The rate of increase of productivity has been slowing.
• Environmental laws/fears will add to the rate of decrease.
• More land around the world is being used for bio-fuel production.
• As populations attain middle class status, caloric intake (food) increases.
• Food is absolutely the last thing man can do without.

Assuming these positive trend lines will hold, our job is to determine the cycles and either capitalize on them, or more important, avoid or ameliorate the bad cycles. At times it is difficult to mitigate bad trends because we are part of an industry and have little market power. However, often we simply refuse to see, refuse to address and therefore fail to minimize damage from bad cycles.

The pendulum always swings too far both ways, and if we anticipate the swings and make the right pre-emptive moves, we can avoid being knocked out. This is why planning is such an important part of the business of Scythe & Spade.

Blog #25 - 8/6/10

by Chas Bonner

CONFLICT

While driving to work, there was about the 5th discussion on the radio about how to fight fair and resolve conflict in a marriage. It was very interesting and even enlightening, but we will not attempt to discuss marriage resolution, knowing what a tough task that is. Instead, we will focus on conflict in one’s business or farm.

Too often conflict is viewed as a negative, but it can be very productive if done well. It forces all of us to re-think a position, to listen to novel ideas, to work through disagreeable issues, and to end in solution.

First, there needs to be a definition of the problem in order to find a solution. Perhaps the “combatants” should first find areas of common agreement, where there is no argument. Then clearly understand both sides of the disagreement through “active” listening to the other, where questions are asked, perhaps notes taken, and a clear demonstration of listening, with ears, eyes, heart and gut. Do NOT pretend to be listening when merely forming counter-arguments. Remain open to persuasion and demonstrate an ability to change your mind.

Finally, we have all been in countless meetings where 99% of the time is spent on problems. Eventually, we must arrive at possible solutions. If parties to the disagreement are truly listening and looking for resolution, the remedies will come. If resolution does not arrive, perhaps agree to put off until another time, talk it over during an informal lunch or dinner, and dig deeply for a conclusion. If still at an impasse, perhaps it is time to bring in a “mediator” who might be in the same organization.

Conflict is never easy, but if all parties have an open mind, it generally adds to better understanding, a better business environment, and a new and better way of doing things.