A forum at Ag Progress days will provide an overview of issues to be addressed if producers consider exiting the dairy business. Dr. John Becker and Brad Hilty will discuss how to approach the decision with thoughtfulness.
With the current economic environment, the sensitive question of whether a dairy producer should exit the business completely requires careful consideration. To examine some of the key issues, producers and industry leaders are invited to attend a forum on exiting the dairy business on Tuesday, Aug. 18 from noon to 1 p.m. at Ag Progress Days, led by Penn State's Dr. John Becker, Professor of Ag Economics and Law in the Department of Ag Economics and Rural Sociology, and Brad Hilty, Business and Information Management Specialist with the Department of Dairy and Animal Science's Dairy Alliance program. The session will be held in the animal science (greenhouse) facility just below the horse barns on the APD grounds.
With his extensive experience in farm and small business succession planning, Becker will give an overview of what needs to be considered and who can provide support and sound advice. Becker said, "A decision to exit the dairy business involves personal, financial, legal and tax issues which need to be fully addressed to assess the best individual strategy. It is important for dairy producers to honestly assess their financial situation and make sound business decisions based upon what is best for their future."
As difficult as such a decision may be, a carefully crafted plan can help limit or ease the emotional and financial implications of the decision, and an exit plan will show the producer options and allow him to make decisions and not have decisions made for him.
Hilty, whose work as a private consultant included helping a number of producers successfully leave the business, will discuss specific steps producers can take if they find themselves facing the hard decision of exiting.
Hilty urges producers to be realistic and carefully evaluate their true equity position. He said, "Developing an honest, objective assessment of your dairy business is a basic first step. It is also important for producers to seek help in the process, turning to trusted advisers for support and advice."
Hilty said he encourages producers to develop their resumes and take stock of their skills and accomplishments as they look at alternatives to the dairy business. He emphasizes that producers need to explore all the options available with as much information as possible.
Anyone wishing to learn more about the process of exiting the dairy business is invited to participate.
Source: Penn State College Of Agricultural Sciences