On our way to TEPAP: learn more about the program

Narrator: Thanks for tuning in today, podcast. We know some of you have heard this podcast, but we wanted to repost information on TPAP as Chris and Alyssa head to Texas for the event this week. This is a premier program with only a select number of attendees. We want to ensure that if there's anyone out there listening to this podcast who wants to attend next year, just to be looking for the registration and to reach out to us if you have any more information. Also, be on the lookout for tomorrow's podcast on transition and collaboration. Where Chris and I will discuss some of the common questions and phone calls that we receive and maybe give you some insight into how Ag View Solutions can help. Enjoy.

Chris: Welcome everybody to another episode of the Ag View Pitch, and today we're going to have a little conversation about a topic near and dear to our heart at Ag View Solutions, which is spending some time working on our business instead of in our business. We're really good at production. We do a great job producing. But a lot of times, sometimes we miss out on the opportunities that are there if we think about, you know, how would it look if we spent just a little bit more time working on the business. And so today we have a really special guest with us. We have Mark Welch, and he's the Grain Marketing Economist at Texas A&M. And more importantly for today's topic, he is the director of TPAP. And so Welcome, Mark, and introduce yourself and tell us what is TPAP.

Mark

Welch: You bet, Chris. Great to be with you and glad to spend a few minutes talking about the educational opportunity that, that we provide that I think is so critical in the ag environment today. The TPAP program— TPAP stands for the Executive Program for Agricultural Producers. And it's interesting, as you talked about some of the challenges we face with farming, that, you know, many of the things we do on the production side, and we spend so much time and attention and focus and have gotten so good at, but yet there might be some other aspects of our business operations that need that same kind of focus and attention. And that's exactly where the TPAP program came from.

This program was founded back in the early 1990s a faculty member here at Texas A&M, Danny Kleinfelter, who had worked in the banking industry and had seen the struggles that agriculture went through, particularly in the 1980s. And he saw so many people that he knew personally, and then agriculture generally going through such a stressful economic environment in, in that period of time in which what you just said, we're so good on the production side, but are there some tools tools or skills or some, some professional development that we could bring to agriculture that could address some of the problems and issues we faced in the 1980s, seeing good friends and families struggle financially when what they were doing productively was so positive.

So out of that came the TPAP program, and it's designed to educate producers, farmers and ranchers primarily, with skills related to business management, professional development, and managing our farms and ranches today in that business environment.

Chris: That's awesome. And that's the thing, you know, I know a lot of people have probably heard about TPAP, but, you know, there's a lot of people that haven't been through the program yet. And one thing we've noticed, and the reason I wanted to have a conversation with you today, Mark, is because The clients that we work with that have been through your program, it sets them at a different level, a different mindset about the importance of their business and how they make decisions as opposed to just going out and sort of winging it. Or, you know, like you said, like I said at the very beginning, you know, we, we've figured out how to tackle a lot of agronomy issues.

We've, you know, we're interested in the machinery and You know, a lot of times, you know, we're looking at these trades we need to do, and, you know, a lot of times we have to spend, you know, several hundred thousand dollars to upgrade some machinery and equipment. And a lot of times growers don't even think twice about that, but, you know, to spend some money on personal development and on, you know, learning how to make better decisions and how to network and how to surround yourself with people who maybe think differently In this environment, you know, you can attest to this too, I think, Mark, you know, we're on about year 6 or 7, and farmers know it full well, of just extremely tight margins. And so those who are making the best decisions are really the ones that are still maybe growing or at least surviving for the next opportunity in ag.

Mark

Welch: And that's exactly what our focus is about, is Is there tools and skills that can help us, you know, survive perhaps in much more of a challenging economic environment and then being positioned and then being aware and ready then to take advantage of opportunities, you know, that will come as we then proceed, you know, for whatever the future and whatever's around the corner for us. And, you know, as you see every day, that our farming operations, in order to survive and to be sustainable, have become so much more complex, uh, if not just by size alone, but many times we are doing and taking on other enterprises and other investments to increase the profitability of operations, whether it's, you know, from a farming operation. Now we've added maybe a trucking company and a spraying company, and maybe we've got a seed dealership and maybe a livestock operation of some sort.

And we're trying to manage all of these enterprises. And many times, you know, we've had training again on the production side, but have we given attention to the training and the resources available on the business management side? And just some of the basic things we cover at TPAP that I think that people find the most— I want to say the most immediate return on investment This is not a cheap program to attend either in, in time or money to come spend a week with us at the TPAP program. But in terms of something that, that has almost consistently the more impact in your operation right away is the attention to detail around financial management and the degree that we focus on that and understanding the importance of knowing where is your business financially and where are you headed financially. Do you know?

Do you— are you tracking those, those real trends and resources that you're committing to your operation? And do you know the financial situation that you're in? We have a session on negotiation strategies, and that's such a key part of what we do as farmers and ranchers virtually every day. And I dare say that most of the people that you deal with in the business community They've had training on how to negotiate deals and, and around business arrangements. And have we as farmers had that formal professional development around negotiation skills and tools? We deal with human resources and human relations and development of how do we recruit the folks that we need to work on our farms and ranches today? How do we train them? How do we retain them?

How do you set a compensation package and an incentive package that retains those key employees and rewards them appropriately to stay with our operations? And the other side of that is, do we have the metrics and the systems in place? You know, there are sometimes we've got to let somebody go. And do we recognize that we have some ways to evaluate those employees and treat them fairly, but recognize that there are some challenges around doing that? Most of our operations are family businesses, and, and, and those two words, family and business, come with— I think they're such key descriptors of who is in our audience. Yes, running a family business has great advantages and strengths when you think of the, of the commitment and the dedication that we bring to our operations as we operating those from from the legacy and the core of our family, keeping that business going.

But if we can incorporate some business principles and practices as well, does that then help us be then more successful in the how we shape and form and operate our businesses in ways that will facilitate growth and then also perhaps position us better to take advantage of of opportunities as well as meet the current challenges that agriculture faces today. So it's, you know, all of that blends and comes together to make the TPAP program what it is.

Chris: Right. And, and that last topic you talked about, when you blend family and business, it not only creates opportunities, but firsthand in our own family operation and all the clients we work with, creates some pretty interesting challenges along the way too. And so if you can separate the, you know, the business governance from the family governance, and, and that's one of the things that having been there for a couple of years and getting to sit in on a lot of the, the topics and the discussions and stuff in the classrooms, it's been interesting. There's a lot of ways to navigate those challenges and a lot of learning opportunities with the program.

Mark

Welch: Yeah, and just to kind of follow up on that just a little bit, uh, you know, from, from day one when, when you come to the TPAP program, we talk about developing an environment within our businesses of encouraging communication and to build strengthening those relationships that again, that can enhance that family business environment. But if we, if we don't take care of those details, those are the very same things that can undermine the success of our businesses moving forward, whether it be in daily operations or succession planning, you know, passing the farm and the sustainability of that operation to the next generation. You know, if we do it right, you know, what, what great strengths that can bring. If we don't do it right or don't pay attention to those details, you know, we undermine what we're trying to build and pass on and grow. So again, all of that is so important.

And we pay so much attention to that at TPAP.

Chris: Right. And, and so again, that's, that's some of the topics. And we can get back to, you know, if there's a couple of ones we want to talk about in a minute. But one of the things I want to make sure the listeners are aware of is the professionalism of this program. It is, it is intense. Like I said, I've been there firsthand. We've had a lot of clients there with phenomenal experiences and education out of that opportunity. But it's intense. Explain a day of TPAP and when it starts, what the days are like, and they're long, they're intense. You talked about the investment being, you know, a large investment relative to other educational opportunities, but the value is extremely high. So talk a little bit about that.

Mark

Welch: Yeah, it's a little bit different than I dare say most conferences or meetings that most folks go to. First of all, as we assemble the faculty for the TPAP program, it is sponsored by Texas A&M University. And I'm trying to think off the top of my head, I don't think we have a single faculty member other than involvement that I have that is a primary speaker at TPAP. We search for the best speakers around the topics that we cover from all over the country. And so we, we have a national and international audience of participants that are in the room. And we have that same national and international resources for the, for the presenters that come to the program. So we kick off the morning about 7:45 in the morning. Sessions run until about 5:00, 5:30 in the evening. So, so it's all day long.

And then one of the unique aspects of TPAP is then after supper, we have the opportunity for you to come back and the speakers from that day's presentations will gather in the meeting room and have a roundtable discussion, or what we call a bear pit affectionately, where they can either share maybe information that they didn't get to cover during the day, but primarily it's for now the audience to come back after stepping away for a few hours What questions do you have? Was there something perhaps that's not completely clear that you want to hear about more about? Or is there an adjacent or an additional topic that maybe you got thinking about because of what was discussed during the day? But it's a real time of discussion of a couple of hours in the evening with the presenters that you had for the day. So we're talking at, you know, 7:45 in the morning.

By the time most folks leave that bear pit session at night, it's 8:30 or 9 o'clock. So, so we do fill the days, and it's every single day is like that. We start on Sunday and we end on Saturday. We stay at a really nice place in Austin. It's a really nice hotel. It's the Barton Creek Resort and Spa. It's a beautiful location, and you don't get to see much of it. Got a really nice room, and we feed you really well, but the other amenities of being in Central Texas in January, which is a great place to get together and to meet, you know, you're not there to see the scenery. We recognize the commitment that you've made of time and of an investment in dollars to be at our program, and so we are going to do everything we can to make that as impactful with every minute that you spend in this program.

And so if there are people that want to, you know, maybe take a break or do something else, you know, during that week, and that's fine, you know, person can do what they want to do. But if you happen to step out or miss something, I want you to be worrying about what you missed that everybody else got, because we're going to fill every minute that we can with meaningful information and program topics that will impact, impact the success of your farm or ranch. And so that's what we try to do during the week, and it's a tough week. It's a long week, but it is one that can make such a significant impact on the way that you respond to the challenges that are in agriculture today.

And what we're going to do is after you're with the program, about 2 years later, we're going to send you a survey and we're going to ask you if you can estimate the financial impact that the TPAP program had on your operation. And to get those surveys back,. And for the vast majority of those to talk about increases in net returns or net farm income increases of 5, 10, 15, 20%. You know what a difference addressing some of these key business components of your family operation, what that can have on your operation. That, that's what keeps us going. That's what motivates us to provide this opportunity. And we sure hope that, that folks that can join us will again find that same impact that it'll have on their operations as well.

Chris: Right. And that— and the key part of that is an additional 5% a lot of times is the difference between profit and no profit in these tight margins.

Mark

Welch: So it's a huge deal. Absolutely. Absolutely. And those— those doing those small things consistently over time.

Chris: Yeah.

Mark

Welch: What an impact that can have. Exactly right.

Chris: Right, and so, you know, you talked about, you know, the financial management discussions, both, you know, and in my experience, I, you know, I really enjoyed both sides of the financial management discussions. You had speakers on the micro portion of the financials, and in other words, your own business, but then also some conversations around the macro part of what's going on in the ag industry and all that and education there. Like you said, you know, negotiation, human resource management, family business relationships, and the plug for the topic I get to talk about and the privilege that I have getting to work with you guys and talk about collaboration, you know, in farming.

And that leads me to the next topic, which is, you know, we talked about, you know, kind of what it is and the topics and all that, but Talk a little bit about the caliber of the operations that come to the event and the networking opportunities that are there.

Mark

Welch: You know, I think one of the things that is interesting for me to see that many people come to our program with this maybe way of seeing the world. But, but I think it's a— it's something that you also see develop as we're sharing that week together. And it does change how I think we view the context and concepts of our operations in that, you know, agriculture, we're kind of an independent, self-sufficient lot. You know, we're willing to do it ourselves. You know, I'm willing to take on that responsibility and bear that responsibility. I'll be the decision maker. I'll be the go-to person.

And recognizing the strengths and the, again, the opportunities Perhaps when we, when we widen that lens just a little bit and maybe see the world less as, you know, me in competition against fill in the blank, and develop, as you do in your session, Chris, that adds so much to our group, more of a cooperative or collaborative mindset around farming. And that's kind of a unique perspective that you just don't get everywhere that you go. And, and when you think about all the persons that have a financial stake that are really a business partner in your operation. Even if you're a sole proprietor of a farm or ranch, who is involved in your business? You think about your, your input suppliers, your banker, your, your grain elevator manager, your landlords. These are partners in our businesses.

And the more that we can communicate and facilitate the business relationship with all of those persons, you know, when they do better, I do better.. And when I do better, they all do better. And so are there ways that we can enhance those relationships to create not only a more profitable operation today, but then be aware of opportunities down the road? And one of the, I think, examples of a conversation from TPAP around that very topic was one of our farmers that said they, after being at TPAP, they got to asking themselves a question about them and their co-op. Where they, where they sell their grain. And they just got to thinking about, you know, in that relationship with my co-op manager and myself and my farming operation, who is whose customer? Who's, who's selling what to who here?

You know, many times we think that, well, I'm the customer of the co-op and, and they need to be taking care of me. Well, wait a minute. Who's writing who a check? Who's, who's selling something here and who, who's really buying something? The co-op is my customer. Or the feedlot or the ethanol plant or whatever it might be. Those are my customers as a farmer, and I need to, to do what I can to enhance that relationship. And so out of that, just awareness, this person was determined that every month they would take their co-op manager, their grain buyer, to lunch. I want to understand that person's world. I want to know their challenges and opportunities. And it gets back to our previous conversation is out of that, out of understanding their needs and my capabilities. Is there a way to squeeze out another nickel on the basis?

Is there a way that I might get a contracting opportunity if I'm willing to commit so many bushels by a certain period of time, just by understanding your challenges and your needs that can start to add up a little over time? And that's exactly what that person was looking for. So again, I think just that the way that we view the world and approach many of the challenges can open our eyes to opportunities that may have been right there in front of us the whole time, but we've never been able to stop and step back maybe a little bit and reassess maybe the landscape that we get caught up in every day. But it's nice to step back from time to time and maybe get a new perspective on the world instead of just seeing it the way we always do.

Chris: Yeah, and that's an outstanding example because, you know, in business it's really truly all about relationships. And like you said, you know, with the negotiation and with the human resource management and just kind of understanding the importance of these relationships and how to develop them and how to cultivate them so that as time goes on, you know, it has a direct impact on the bottom line, you know, synergistically for both parties. You know, it's really about, you know, doing business in a more effective and efficient way. Great, great comments. Another area I want to have you just kind of touch on a little bit too is feedback from the participants of you know, what elements do, you know, they like the most, or what have you heard as, as some of the best feedback about the program?

Mark

Welch: You know, one thing that we started doing here the last few years, and when you fill out your application to come to TPAP, and I hope some of our listeners will take advantage of this opportunity as they become aware of what we're doing down here. We ask you to identify 5 of the top challenges that you face for the next farming year. So, so for 2020, or, you know, the next few years, in that, as you view your operation, what do you see as the most significant challenges that you will face? And out of the, you know, all the applicants that we receive, and we do cap the registration at 90 persons, we keep the class kind of small to create that networking and communication and relationships building that we've talked about. But out of all those applicants, you know, most of the time it does gather around 3 or 4 key topics.

And one of those deals around how do I— with, with managing or finding reliable employees for our farm. The labor issue is, is really key. And we find from small to large businesses, That's a real issue. Succession planning is another one, is again organizing our resources and our assets and our ways that everyone kind of understands our business. And then the way that we're going to move forward of passing on either management and even ownership, you know, responsibilities to that next generation. So, you know, bringing in new people to the farm basically with employment and then passing on that operation. You know, markets and marketing are always a big challenge. And then we get a lot of questions around How do I create an organization or a business mindset where I can be open to opportunities?

I don't want to get so busy putting out fires every single day that I'm missing significant opportunities that might be a new direction for our business because I've got my head down working so hard that, that I miss perhaps something that might be on the horizon or a new development. That I need to be aware of. Maybe it's a threat as well as an opportunity. And then to get feedback around— we then left your program with some specific management plans or skills related to the things that I identified. And so to see people come away with, I can't do everything we talked about in that week. You know, there are so many speakers and so many good ideas. No. I'm not going to go home and do it all. But what are you going to go home and do? Can you identify one or two things that you will do?

And then something else that we do with our program is, is after you've been gone about 6 months, we have someone from our program that you were in your class, we were by sharing information. We have them contact you in about 6 months and say, this is the things you said you were going to do. How's that going for you? Were there some challenges? Maybe you got that done. You're ready to do something else or no, I'm still struggling with that and I need, I need some additional resources or direction on that.

Chris: So it's—

Mark

Welch: you're not done when you leave that TPAP program after a week. We hope that we've developed a network of resources educationally and resources professionally of persons that you've identified in your class that, that you can share with around these challenges. Maybe these are conversations you can't have with your neighbors in your hometown or your home community, but by gathering people from all over the country and really around the world Maybe we can be more free in talking about some of the challenges and ideas that we have to begin to progress our, our, our operations. So again, what a unique environment, and to see that, that have an impact is, is I think one of the most rewarding aspects of the TPAP program.

Chris: Right. And I think to tag on to that too, as you put really eloquently about the idea of just, you know, a peer within that group contacting you and holding you accountable. And so one of the key things out of that is accountability. Like you said, you're not done, you're just getting started. And so that's, that's great, that's awesome. And then I guess another, another thing too is just to have you tell a little bit about, you know, there's two units. So there's Unit 1, there's Unit 2. You know, what's the, what's the sign-up process and deadline, and are you full already for this year? Do you have some openings yet, and how's that stand?

Mark

Welch: Right, and yeah, a little bit more of how this program is structured. Yes, there are 2 units of instruction, so once you complete Unit 1, and that's that week-long program, then that qualifies you to come back the next year for Unit 2's instruction. And, you know, Unit 1, we cover things like family business management, financial management. We have a session on strategic management, decision-making, macroeconomics. And when you come back the next year, we build on some of those, those same topics and then add new ones. So there's a new level of instruction. So it is a 2-year program to complete the entire program. The units run concurrently. Unit 1 is meeting in one meeting room and Unit 2 in the other, so there's a lot of intermingling and interaction between the two groups, of course. But you'll start with your class, which we do limit, as I said, to 90 per class.

We still have some room for Unit 1 right now for the 2020 program. We're standing— registrations are at about 75, so we're starting to fill up. And so if a person is interested, you can go online, you can just search TPAP and again, that acronym, T-E-P-A-P, tepap.tamu. And that'll take you right to our website and you'll see more information of the things we've talked about. The itinerary is listed there, the speakers that we have on track, and then the application process is all available right there. Again, it's not cheap, time or money, for you to take a week away from your operation. I know it is a significant sacrifice. And significant investment, but then the cost to attend the program is right about $5,000 for that week of instruction. Now that covers all your registration, your hotel accommodations, all of your meals.

So once you get to the hotel, you know, everything is paid for in terms of participation with the meeting. And so it's about right, about $5,000 per person. Now, if you're coming with another person from your operation and you're, you know, say a husband and wife are coming and sharing accommodations, you know, that can lower the cost a little bit, of course, with the hotel component of that. But all that information is there on the website and certainly encourage folks to go on there, you know, browse the information that's available there and you'll get a lot more information about the program.

Chris: So from a fee perspective, it's kind of like an all-inclusive arrangement, except for you're there to work and learn instead of play.

Mark

Welch: That's exactly right. And if it's important to you to, you know, you want to see Central Texas or get out and see Austin, you know, that is great. You know, come in a little early, you know, spend the day or so, or stay a day or two after. You know, the hotel has, again, some beautiful amenities that they would love to have you participate in. You know, there are pools and spas and golf courses and tennis courts. It's a great, great place to be in January, but that's kind of on the bookends because you won't have time during the week. Again, we're gonna— you'll be busy doing other things. And again, that's so encouraging and exciting to see persons that are immersed, you know, a week full of meetings, really, all day long for 6 days. You know, how do you possibly stand and then stay in the evenings and come back for more?

And then to have people exactly coming back for more, still hungry because the information that they're finding— this is stuff that you don't hear anywhere else. This— there's not a program like this in the world.

Chris: Exactly.

Mark

Welch: That again is focused around the needs and the challenges of agriculture today. And that's what keeps people coming back.

Chris: That's right, and I can speak firsthand. You know, I really haven't been there for a couple of years and having the privilege to work with you folks down there, it's a phenomenal program and an extremely great opportunity for ag business as we try to grow our farm operations and try to become more professional and just make better business decisions. Any last final thoughts or anything I didn't bring up or questions I didn't ask?

Mark

Welch: Well, I think I know that we've talked about previously, Chris, and we talk about the cost of this program. And again, it's not cheap. You know, if you're going to spend $5,000, come spend a week with us and be involved in this, this opportunity. But do we all— do we always consider what is the cost of not doing something, or what is the cost of not structuring that succession plan in place that really takes into account the perspectives and the other persons that are involved in that decision, and whether it's people treating fairly or hurt feelings or that deal that you're negotiating, that because you didn't come in perhaps with the training and the skills that maybe someone else did, do we find some deficiencies there in our abilities to take advantage of those opportunities and what the cost of not participating in a program like this can be significant as well.

And so I think certainly it's, it's one that year after year, the results indicate that this program has that positive economic impact, but also just developing the, the, and enhancing those relationships and the value of the strength of that family operation that goes far beyond something you can put a dollar value on. That we're structuring our operations for success, for sustainability, and many times to meet the goals that our families— what they started this farm to be and to do and what it was for from the beginning. And we're trying to enhance that with a program like TPAP.

Chris: Great, great. Well, I think we covered a lot. If somebody needs to get a hold of you though, if there's something— they have an additional question, something that that we didn't touch on, something they don't see online, if they would like to reach out to you, how would they get a hold of you or how would they ask a question if they have a specific question?

Mark

Welch: You bet. And of course, all of our contact information is on that website. Again, tepap.tamu, T-E-P-A-P dot T-A-M-U. My personal contact information is there, an email, but I'll go and give you my phone number as well. Again, love to talk to you about any questions or concerns that you might have about the program or explore other aspects that we didn't cover here. And you can reach me at the area code is 979-845-8011. That's 979-845-8011. And we'd love to have that conversation.

Chris: Great. Well, this has been an awesome conversation, Mark, and I'm looking forward to being down there again this year. I can't wait for it. What are the, the dates again too?

Mark

Welch: Yes, I appreciate you mentioned that. I don't think we talked about— we mentioned January, but it's the first full week of January. We'll be meeting from January 5th through the 11th. We actually start on Sunday, January the 5th, and we'll be wrapping up then about noon, 1 o'clock on Saturday, January 11th. That's in Austin, Texas. We meet at the Barton Creek Resort and Spa there on the northwest side of town. So you'll be flying in and out of Austin, Texas to come to that program in early January.

Chris: Great. Thank you so much, Mark. Really appreciate your time.

Mark

Welch: Chris, thank you for the opportunity to visit here today and, and for the tremendous contribution that, that you bring to the TPAP faculty. And always a joy to visit with you and look forward to having you back down here again.

Chris: I can't wait. It'll be, it'll be fun. It's always, always great to work with such top-notch producers that enroll in the program and to see all of the presenters and yourself. So thanks a lot again for today. And we've been talking with Mark Welch, the grain marketing economics at Texas A&M and the director of the TPAP program. And again, We will be back next time on the Ag View Pitch, and we'll see you again.

Mark

Welch: Thanks.

Narrator: Podcast, thank you so much for taking the time out of your day to listen. We know there's 100 different things that you could be doing, but hopefully we continue to provide value to you. With that being said, please reach out to us if there's any topics that you want us to cover. We have a lot of great ideas moving forward. We're going to continue with the Dad's Wisdom. We have a lot of important things on transition, collaboration, profit management that we're going to hit on more in depth moving forward. But really, if there's anything on your mind, please reach out to us. I know we had some listeners look at, you know, how we can specifically improve profitability moving into 2020. We have some great strategic planning tools for that. Reach out to us if you have questions or want access to these tools. We really look forward to hearing you. Thank you so much, everyone.

Have a great day.