try. They had been working to improve their loan attractiveness, and Geiszler suggested bringing Beadle on board. That was 2006. According to Anderson, the farm’s net equity has risen threefold since then. The Broad View “Can we talk more about a separate line of credit for hedging?” The Russell Consulting model takes a broad financial view of a producer’s operation. Managing its profit margin into the future is based on the benchmark of knowing gross dollars per acre needed to cover all operating costs, as well as specific financial goals for the farm. That might mean asking Beadle to run a feasibility study on the impact of a major purchase or how an additional line of credit might protect working capital against anticipated margin calls. Analysis could include calculating labor cost per acre or machinery cost per acre for an expansion idea. Anderson admits he doesn’t take Beadle’s advice every time, but always feels like he’s making business decisions based on sound information about his operation. While they have this kind of in-depth, face-to-face meeting only once a year, they talk often to keep abreast of rapid changes in market prices and interest rates. Like other Russell Consulting customers, Anderson also takes advantage of daily text messages on market activity, as well as regular e-news and webinars. “Producers are becoming more sophisticated all the time,” says Beadle. “But like any business owner, they can’t be experts in everything. They shouldn’t be expected to also be CPAs, estate planners and risk managers. We can step in and speak to the financial reasons behind taking an action “I’m keeping score for Keith,” Beadle continues. “I’m evaluated by his numbers. The goal is to grow his operation over time. I don’t step in just for home runs.” Russell Consulting helped Keith, left, and Kyle Anderson change their marketing approach. “We try to bring to the table what any CFO would bring,” explains Beadle. “We’re looking at all the financial ratios and marketing options to create a plan that grows this operation’s equity. It’s not enough to just break even every year.” Seeing the Possibilities “Tell me again how many bins you have and their sizes. And let’s be clear on what’s left to sell of the old crop.” Considering storage capabilities and sales alternatives, Beadle runs a couple of scenarios on the spot. He has no crystal ball, but uses historical trends to lay out numbers in a what-if way that helps Anderson look at how decisions will impact his bottom line. “Working with Kent and Russell Consulting Group helps take off pressure,” Anderson says. “The number-one thing beyond growing the crop is marketing, and today marketing is much more of a numbers game.” Anderson and his brother started farming in 1999, bookending land on either side of their parents’ Stevens County farmstead. He recalls feeling good about their $3-per-bushel corn that first year. His dad’s sage advice: “Son, it’ll turn.” “My brother and I sat down one day and tried to figure out why we continued to struggle financially,” recalls Anderson. “We thought it was just about selling high, but that approach wasn’t working.” While their father and uncle had been Russell Consulting customers, it was their local Cofina Financial lender, Don Geiszler, who convinced the Anderson brothers to give the program a •• FIND MORE •• To view a marketing webinar and to find an associate near you, visit russellconsultinggroup.net. 24 March/April 2011 CHSINC.COM