Dr. David Kohl again joins host John Haskell to discuss the importance of a management mindset in farming and ranching operations. They discuss why, as a non-financial factor, having a strong management mindset matters and some tools you can apply to improve the various aspects of your business. Dr. Kohl highlights the significance of having a written business plan, setting specific, measurable, attainable, reasonable, and timely (SMART) goals, and regularly monitoring and adjusting plans based on changing conditions.

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In this episode, we cover:

• Why the cranium is the "sixth C" in addition to the traditional five (cash flow, character, collateral, conditions, and capacity)
• Effectiveness over efficiency and the concept of being a "five percenter"
• Practical steps to start creating a business plan
• The importance of transition planning and giving up control
• Monitoring business plans and adjusting them based on changing conditions
• Sensitivity analysis and risk management

Connect with Dr. David Kohl:

• Follow on LinkedIn

Connect with Ranch Right:

• Subscribe on YouTube
• Follow on Instagram @ranchrightllc
• Follow on Facebook
• Check out the website

Resources & Links:

• Episode 57. Financial Metrics To Focus On with Dr. David Kohl
• Episode 56. Commonalities of Successful Farmers & Ranchers with Dr. David Kohl
• Book a Free Discovery Call to Learn More
• Ranching for Profit
• Ranching.FYI
• Wally Olson, Olson Ranch LLC

Mentioned in this episode:

Meet Right is here to help take your ranch meetings to the next level. From husband and wife teams to full time employees, everyone can benefit from getting your meetings right. Click below to buy the course now.

Meet Right

Dr. David Kohl is back on the podcast today to discuss key financial metrics for ranch operations. With his background in agriculture, finance, and entrepreneurship, Dr. Kohl shares why you should be paying attention to your net profit margin, debt coverage ratio, net operating income, working capital, operating expense revenue, and debt-to-asset ratio. Dr. Kohl and host John Haskell break down what these KPIs mean and what ratios and percentages to aim for. Dr. Kohl also emphasizes how, especially in agriculture, there is no one-size-fits-all approach when it comes to these financial factors and the importance of understanding how they all work together to create balance.

Make sure to hit subscribe/follow so you never miss an episode!

In this episode, we cover:

• Examples of non-financial factors that can impact credit
• What net profit margin is and what percentage to aspire to
• Breaking down debt coverage ratio, risk management, and net operating income
• The importance of knowing your working capital and aiming for at least 25%
• Operating expense revenue and debt-to-asset ratios
• Understanding how all of these KPIs work together to create balance and ensure overall financial health

Connect with Dr. David Kohl:

• Follow on LinkedIn

Connect with Ranch Right:

• Subscribe on YouTube
• Follow on Instagram @ranchrightllc
• Follow on Facebook
• Check out the website

Resources & Links:

• Episode 56. Commonalities of Successful Farmers & Ranchers with Dr. David Kohl
• Book a Free Discovery Call to Learn More
• Ranching for Profit
• Ranching.FYI
• Wally Olson, Olson Ranch LLC

Mentioned in this episode:

His Cavvy Foundation was established as a way to help families and individuals in the ranching community with serious medical issues. Click below to learn more, apply for assistance, or nominate a family in need.

His Cavvy Foundation

Virginia Tech academic Dr. David Kohl joins host John Haskell on the podcast today to discuss key factors and commonalities for successful farmers and ranchers. He emphasizes the importance of developing a monthly or quarterly cash flow plan, which he refers to as the REM factor (respond, execute, monitor), as well as regenerative practices for both resources and personal well-being. He highlights the significance of setting goals, introduces the 60-30-10 principle in finance, and the necessity of a risk management plan and community investment.

Make sure to hit subscribe/follow so you never miss an episode!

In this episode, we cover:

• Dr. Kohl's extensive experience both in academia and running a 25-year-old cow-calf hay operation and dairy creamery
• Taking ownership of numbers, developing a cash flow plan, and understanding the operational plan
• The dangers of lifestyle creep and the importance of allocating time and resources effectively
• The need for age-friendly livestock systems and prioritizing mental, physical, and spiritual health
• The importance of having a risk management plan, including crop and livestock insurance, and investing back into the community

Connect with Dr. David Kohl:

• Follow on LinkedIn

Connect with Ranch Right:

• Subscribe on YouTube
• Follow on Instagram @ranchrightllc
• Follow on Facebook
• Check out the website

Resources & Links:

• Book a Free Discovery Call to Learn More
• Ranching for Profit
• Ranching.FYI
• Wally Olson, Olson Ranch LLC

Mentioned in this episode:

Knowledge shared is knowledge gained. Join our friends at Ranching.FYI on their new ranching forums. Click below.

RFYI Forums