RANCHING Business
Canales points out growth in the diversity of those
in agriculture today. “There are opportunities offered for veterans, women,
young people and communities to become involved in agriculture,” she says. “We see many people in all stages of life who may be evolving in their career or working another full-time job, but who have a passion for agriculture and want to transition into an agricul- tural operation.” The FSA offers different options and Canales encour-
ages those who are interested in agriculture to contact their local USDA FSA Service Center. Halfmann agrees that establishing a relationship with the local FSA of- fi ce as soon as possible is best. “You might hear that they don’t know when the
funds will be available and be put on a waiting list,” he says. “But be patient. With depressed commod- ity prices, more people are turning to government loans, so the processing time is longer. They have to fi nance more and there is more pressure on the U.S. loan programs.” To put this in perspective, Canales shared that FSA
made more than 1,100 loans and guarantees to begin- ning producers in Texas during fi scal year 2015. In addition, Texas FSA delivered nearly $2.2 billion in pro- gram payments and loans, which includes agriculture credit totaling $313 million in loans and guarantees to Texas farmers and ranchers who manage family- sized operations. “My local offi ce was very helpful in going through
the paperwork and helping me through the application process,” Halfmann says.
We had to expand to support all 3 families, which meant
increasing the ranch size and cow numbers. We needed to increase our cash fl ow.
“It was a humbling experience,” he adds. “I feel
fortunate that the government is keeping an interest in U.S. agriculture through the beginning farmers and ranchers program. They are focusing resources into us, which are more within reach for our demographic than third party lenders.” Halfmann says he learned a lot through the process
of working with FSA. “You need a business plan on paper,” he says. “I had to wear one more hat — that of fi nancial responsibility.
72 The Cattleman November 2016
This process required due diligence in knowing how I would cash fl ow the operation, pay back the loan, and make some profi t.”
We’re seeing a greater emphasis and attention on
helping individuals who want to start farming or ranching.
The fi nancial statements Halfmann included showed
his short term assets, liabilities, whether they were mid- term and long-term, and how each would cash fl ow. “You need to know how many cows you own, will
sell each year, how you market them, whether it be through a registered cattle sale or an auction barn, on a grid, or if you’re retaining ownership through the feedlot,” he says. “These are all factors to think about and include in the application.” Even if a new producer does not need ownership-
or operating-fi nancing, FSA has many other programs that may be benefi cial, including disaster assistance, farm storage loans and conservation programs. In ad- dition, the Transition Incentive Program (TIP) helps older ranchers nearing retirement who want to help transition to the next generation. We try to utilize as many programs as we can,”
Halfmann says. “Older ranchers might not want to rely on the government, but the younger rancher is out of options and needs help getting started.” Each generation of the Halfmann family has been
farmers and ranchers, and it’s a legacy they want to see continue. In addition to raising cattle, the Halfmanns have grown cotton, wheat and grain sorghum. Through a strategic plan, the family analyzes their
growth and management each year. In recent years, they discontinued raising cotton and have converted to only raising wheat and cattle. “The winter crop fi ts well with the cattle,” Halfmann
says. “It makes the cattle work easier and benefi ts the cattle. We raise 100 percent Red Angus and wheat, and we take producing both seriously.” Through the years, the family has grown their
name and become a source for seedstock cattle for the commercial industry, selling cattle all across the U.S. and into Mexico. “A lot of new farmers and ranchers have enthusi-
asm and ambition,”Halfmann concludes. “The FSA programs help them take that passion and gives them opportunities to get into the agriculture business.”
thecattlemanmagazine.com
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