Ep. 24 Finances, Wealth Management, and the Current Financial State of Agriculture

00;00;07;23 – 00;00;08;29
Dr. Ryan Loy
Riley you want to kick this off?

00;00;09;00 – 00;00;09;29
Riley Smith
Yeah. You ready to roll?

00;00;10;05 – 00;00;10;21
Dr. Ryan Loy
I think so.

00;00;10;22 – 00;00;27;02
Riley Smith
All right. Good morning. Good morning. Welcome to another episode of Morning Coffee and AG Markets with your host, Riley Smith. And today we have another roundtable discussion, I believe. Week before last, we had one with, Ryan and Hunter and Scott, and me.

00;00;27;04 – 00;00;28;24
Dr. Ryan Loy
I can hear that. Oh, you can’t yet.

00;00;28;27 – 00;00;40;07
Riley Smith
Okay, well, I’m over here fidgeting. I’m too full. So anyway, we’ve got some folks in from Arvest Bank with us. How are y’all doing?

00;00;40;09 – 00;00;40;26
Levi Price
Good. Thank you.

00;00;40;27 – 00;00;41;21
Darin Drennan
Doing Well, thanks.

00;00;41;22 – 00;00;48;18
Riley Smith
Well, we’re going to turn it over. I got Hunter’s sick today, so we got Ryan across the table from us.

00;00;48;22 – 00;01;05;19
Dr. Ryan Loy
Well, even if he was healthy, I was going to take this one, but, yeah, we, we’re down a person. He’s a little under the weather today. And so, again, just as Riley mentioned, we got some folks from Arvest We have, Darin Drennan and Levi Price, and I just want to give them a moment to introduce themselves and, kind of talk about what they do.

00;01;05;19 – 00;01;07;04
Dr. Ryan Loy
A minute. For a minute.

00;01;07;06 – 00;01;26;21
Darin Drennan
Sure thing. My name is Darin Drennan. I am with, Arvest Wealth Management, a division of Arvest Bank. I am a wealth planner with our advanced planning team. Field harvest, about seven years. Been in the industry 20 plus. From little Rock. Originally. I say that I’m born out west, but been here since I was three. Been in the Fort Smith area for 26 years now.

00;01;26;21 – 00;01;30;04
Darin Drennan
And, when I come back to the Little Rock you just always feels like home.

00;01;30;07 – 00;01;33;05
Dr. Ryan Loy
Oh, good. Good. Well, we’re very glad to have you here.

00;01;33;08 – 00;01;52;09
Levi Price
Yeah. My name is Levi Price. I head up our agri finance division for harvest. So that means I work with all of our bankers across the four state footprint. Really? Just trying to help them, do more ag lending and bank more ag customers in addition to that. My wife and I have a cattle farm ourselves, so we run a beef cattle.

00;01;52;11 – 00;02;03;07
Levi Price
Ranching operation in northwest Arkansas in the Gravette area. I’m married into that. She’s a fifth generation, owner operator of the ranch that we’re at. So, we do that in our spare time, too. Oh.

00;02;03;07 – 00;02;08;23
Dr. Ryan Loy
That’s excellent. That’s really cool. And so, there’s a fifth generation, cow calf farms. That what you said?

00;02;08;24 – 00;02;09;07
Levi Price
Yes, sir.

00;02;09;08 – 00;02;34;29
Dr. Ryan Loy
Wow. That’s amazing. And I think that that’s actually a very good, kind of segue into some of the things we’ll be talking about today. So, really appreciate your time and, you know, coming in, and I know that you all listened to or have listened to the podcast before, and you’re familiar with the structure and kind of some of the things that, you know, our goals with this podcast is just kind of to take some of this information that we may, you know, assume in the day to day that everybody knows and just kind of get it out to the masses a little bit more.

00;02;35;02 – 00;02;56;12
Dr. Ryan Loy
And so, you know, y’all are out here, you know, working with farmers, working on the wealth management and estate planning and working on some agri finance stuff and all very important stuff. And, you know, just to kind of kick off this discussion today, I was really curious just, you know, if each of y’all can kind of just give me, you know, your opinion or your thoughts on the, you know, current financial state of agriculture.

00;02;56;12 – 00;03;13;04
Dr. Ryan Loy
We talk a lot about it on this show. And it’s you know, it’s definitely not all, you know, roses and rainbows by any means. And it’s a it’s a tough business right now and even more so, you know, in this day and age. So just kind of want to get your thoughts on the current state of, you know, agricultural finance and some of the things you do or.

00;03;13;07 – 00;03;38;16
Levi Price
You bet. So, you know, we cover a four state area so we get a wide range of different, producers. And so we make grow crop producers, cattle producers, poultry. So from my perspective, it depends which one of those segments that we’re talking about. Poultry has been relatively stable over the last couple of years. Most recently, some avian influenza cases in the area kind of caused some concern.

00;03;38;16 – 00;04;02;01
Levi Price
And that’s really, you know, probably the biggest concern right now, which is biosecurity in that space. The beef cattle and ranching business has been really good. Cattle prices are near record highs, if not record highs. And so, feed prices are low. It’s it’s really kind of a good time to be in the cattle business. But, you know, on the, on the row crop and the grain side of things when commodity prices have not been, where producers would like them.

00;04;02;01 – 00;04;13;08
Levi Price
And so, you either have to make that up with efficiencies or with yield. But even even with those things, sometimes it’s still a struggle. Right now. So we’re seeing that, you know, in our, in our book of business.

00;04;13;08 – 00;04;29;08
Dr. Ryan Loy
That’s, that’s very great insight. And I think that that what you said is exactly right. You know, we talk about agriculture sometimes just in a more general sphere, but it’s even more, you know, granular than that when you say, well, the poultry business is doing well and the cattle business has been doing okay, but then the row crop guys are kind of in a different boat.

00;04;29;08 – 00;04;46;22
Dr. Ryan Loy
And often it seems like those positions flip, you know, often, you know, when one’s doing bad, the other one’s doing great and vice versa. And so it’s very interesting, you know, way to think about it. And, knowing that not all of the issues that agriculture face are the same. And so that’s, it’s very important. How about you Darin?

00;04;46;25 – 00;05;09;10
Darin Drennan
Yeah. So when we look at it from an economical standpoint, obviously, the current economy can affect everyone, including farmers and ranchers. And when the cost of goods goes up for me, it goes up for you and everyone else. Right? So, with that in mind, you know, we look at other factors as well, weather events, that have happened across the southeast.

00;05;09;13 – 00;05;31;13
Darin Drennan
The effect on, agriculture, as well. But, you know, from that standpoint, when we look at the economy in general, there are positives there. Negatives, as always, is what happens. But it’s very cyclical. And so we always believe that when things are down it’s going to be back up. It’s right when things are up. That’s the best time to start preparing for the next downturn.

00;05;31;14 – 00;05;34;18
Darin Drennan
That’s right. And so as we talk about this today we’ll have some ideas there.

00;05;34;19 – 00;05;49;20
Dr. Ryan Loy
No that’s perfect. And I really appreciate that perspective too because you know when when things are going good it’s not it’s not a signal for to go buy that new truck or go buy that brand new combine. Right. It’s to prepare for the next time that it downturns. And that way you can kind of weather the storm. Right.

00;05;49;22 – 00;06;04;29
Dr. Ryan Loy
And you know a lot of that these issues we’re talking about in today’s day and age is you know having that asset base, you know, do you have the asset base of real estate of land, you know, to kind of help have that, you know, your little reserves that you can kind of keep around that working capital and everything in between.

00;06;04;29 – 00;06;24;05
Dr. Ryan Loy
And so, you know, this is this is a, you know, a big deal. And I know that y’all are kind of on the forefront of this. And, you know, I guess one of the things was, that I talk about a lot on this show was, you know, monetary policy and how that impacts, how that impacts, farms on a per acre basis or even on an enterprise basis.

00;06;24;07 – 00;06;42;04
Dr. Ryan Loy
What are kind of some of your takeaways from, you know, interest rate increases over this time? And, you know, how maybe, producers can, you know, leverage, you know, some of these declining interest rates, you know, the fed funds is declining and it seems to be that they’re going to meet again, very soon. And also, cut it again.

00;06;42;07 – 00;06;47;27
Dr. Ryan Loy
What what kind of stuff from the service perspective would that benefit? Producer how can that benefit a producer?

00;06;47;29 – 00;07;13;02
Levi Price
Yeah, I think you’re right. I think we’ve seen the high. And so folks that have borrowed money in recent years, I think we’re past that, sticker shock piece of the interest rate. And so. And so, you know, today when you look at interest rates and they are trending down, we are seeing a lot of, customers that are wanting to get on floating rate options versus fixed rate options because they think that the market’s going to continue to go down.

00;07;13;02 – 00;07;18;02
Levi Price
They can ride that rate down. So

00;07;18;05 – 00;07;24;07
Dr. Ryan Loy
Does the floating rate option have any downside potential as in is it like variable where it will go up with the market.

00;07;24;09 – 00;07;30;14
Levi Price
It can okay. Yeah. Customers that choose the variable rate option, they are taking it in as it goes down.

00;07;30;19 – 00;07;47;03
Dr. Ryan Loy
And it can also goes up as well. Yeah. So that, you know, that that and therein lies some another inherent risk, right. Just in case you know, you never know where the economy’s heading. And that’s a that’s a tough thing that comes back down to their, their own level of risk aversion. Right. Whatever they they deem is risky or not.

00;07;47;05 – 00;08;11;20
Dr. Ryan Loy
That’s that’s great. And, you know, what are some tips? You know, we’re talking about estate planning, you know, wealth management and, you know, banking. What are some tips that you can give to maybe, you know, a producer who’s, you know, if you could give somebody one thing to think about when they’re talking about being banking and acquiring loans or in wealth management, what would you what would you kind of say?

00;08;11;23 – 00;08;31;17
Levi Price
Having a plan is the biggest thing. So we meet with a lot of producers that, you know, they might have their plan in their head. Yeah. But to articulate that can even, and it doesn’t even have to be in writing, but just to be able to understand what is my business plan, am I if I’m in the cattle business, am I buying yearlings, am I where do I run a cow calf operation?

00;08;31;20 – 00;08;49;14
Levi Price
Real crop. You know. What kind of crops am I going to produce? What’s my planting season? What’s my harvest. How am I going to market the commodities once? So just really having that plan is the biggest piece, for us as banks to really understand your business and for us to be able to cater, loan products that fit your needs.

00;08;49;16 – 00;08;49;29
Dr. Ryan Loy
Perfect.

00;08;49;29 – 00;08;51;06
Dr. Ryan Loy
Absolutely. Wondering what do you think?

00;08;51;07 – 00;09;10;00
Darin Drennan
Yeah, it’s also important when we think about everything Levi just mentioned, to think about the what ifs. You know what? If something happens to me, what happens to my farm when I was to my family, you know, have I done what I need to do to prepare and protect, those most important assets, like my assets or import my land?

00;09;10;03 – 00;09;27;28
Darin Drennan
My equipment, my livestock, my crops, all that’s important. But what have I done to protect my family? If something happens to me, And with that in mind, the plan is Levi’s referring to. Yes. Absolutely. Doesn’t have to be in writing. Right. But what you need to get in writing is something that protects you beyond your life.

00;09;27;29 – 00;09;51;14
Darin Drennan
That’s right. And that’s something that we love helping farmers and ranchers with is sitting down and really finding out what’s important to them. Not only has they age potentially, they’ve been in the business long time, been harvesting a long time. But at some point, do they want to transition that business to a family member, to a son or daughter?

00;09;51;16 – 00;10;09;04
Darin Drennan
Are all the kids involved or some not? Have some moved off and done other things? You know, there’s so many, variables where this is a concern, but I think having that plan is the most important thing. And that’s definitely something you want to have in writing, because if you don’t, the state gets to decide, yeah, what’s your plan is and we know we don’t want that.

00;10;09;04 – 00;10;30;20
Dr. Ryan Loy
No, no no I don’t think anybody would want that. That’s that’s right. That’s that’s a great piece of advice. And I think both of you are too, what you were saying, you know, having that plan articulated is the important part, right? And, you know, if you have a written down, even better. If we’re talking about that business plan, that’s one of the things I always say when I’m giving business plan talks and talking about how you develop a business plan and I always say, you know, it’s a living document.

00;10;30;23 – 00;10;47;21
Dr. Ryan Loy
And, you know, the important part that comes from it is not necessarily what plan you’re building, but it’s the fact that you’re in that you’re in that mentality and you’re building that and you’re thinking that through. And that’s honestly half the battle. If you understand how to articulate it, deal with those what if scenarios. That’s the important part.

00;10;47;24 – 00;11;05;17
Dr. Ryan Loy
So one of the things I also want to talk about, you know, having y’all on. And again, thank you so much for your time today. As I recently wrote, a very brief article for Southern and today that just talked about what debt, consolidation and debt refinancing looks like. You know what? What does that mean, for short term liquidity?

00;11;05;20 – 00;11;30;11
Dr. Ryan Loy
And what does that mean in terms of what you can do, for your interest rate expenses, in, in this calendar year. And so one of the things I just kind of wanted to ask you is, you know, if you can kind of walk, you know, our listeners through how that works in person. You know, one of the things that I had talked about in the article was, you know, there might be some fees and, you know, interest expense may accrue over time, so you may pay more.

00;11;30;13 – 00;11;41;28
Dr. Ryan Loy
But some of those things that it’s a, you know, a producer that’s listening to this is sitting there trying to debate is refinancing or consolidation the proper thing for me to do in this scenario? One of those kind of questions they should be asking.

00;11;41;28 – 00;11;43;19
Dr. Ryan Loy
Themselves,

00;11;43;22 – 00;12;03;22
Levi Price
yeah, I think you need to assess how you got to the point that you’re at. Yes, you need to do to need to refinance. In the good times, a lot of people would buy fixed assets on their operating lines, so they might buy a piece of real estate or a piece of equipment, produce a major capital improvement on their property, and they really just absorb that within their working capital.

00;12;03;24 – 00;12;25;03
Levi Price
And that was good. That was okay during good times right now that, times are not as good, especially in the real crop business, their lines are kind of maxed out. They’re more leveraged from the liquidity position. So that is the time to look at repositioning your balance sheet. And so, you know, oftentimes there’s a negative connotation with refinances or consolidations.

00;12;25;05 – 00;12;44;20
Levi Price
You know another way to say that is just repositioning your balance sheet. That’s that’s right. And so, you know, whenever you’ve got those long term fixed assets kind of tied up in, you need to carve those out and put those on a more acceptable term. That’s where you can see some, benefits to your liquidity position and even perhaps, you know, better interest rates.

00;12;44;20 – 00;13;03;23
Levi Price
Oftentimes you can get a better interest rate on your real estate. There. And so if you’re able to carve out a certain percentage of that, put it on some sort of long term payback where the cash flow was, more manageable, versus having that money tied up in that operating and working capital line of credit. That would be my advice for most people.

00;13;03;27 – 00;13;21;28
Dr. Ryan Loy
Now that’s great. And I wanted to highlight one of the things you said, there’s a good times folks will use that were the operating lines to purchase those long term assets. And I think it’s important to kind of highlight why that’s an issue in the bad times. Because when you do that, you’re basically taking away a current asset and you’re replacing it to a longer term asset that you can’t.

00;13;22;00 – 00;13;26;13
Dr. Ryan Loy
And when I mean that current asset is that you can’t turn it to cash as quickly as you can cash, right?

00;13;26;20 – 00;13;47;28
Levi Price
So that that’s the problem. Yeah. You become mis financed, to a certain degree. And so, but, you know, for those operators that are just struggling to make a profit, right. You know, that is a little bit different. They really need to look at what are the things in my operations that I need to improve to, improve my cash flow, to make my operation more profitable.

00;13;48;00 – 00;14;05;25
Levi Price
Refinancing and consolidating does not help that. Yes. That’s wrong. The issue, which, you know, banks are accustomed to, wanting to do real estate loans and carving that out and putting it on a longer term payback. But, you know, if you have those consistent operating losses, then that needs to be addressed. Consolidation does not help that.

00;14;05;25 – 00;14;25;04
Dr. Ryan Loy
No. That’s a very good point. I really appreciate you bringing that up because that that is kind of that whole the linchpin of this issue is saying, you know, you can refinance, rates are coming down. That’s great. But let’s, you know, maybe refinancing is for you, but let’s actually take a look at have you cash flow. And if you have an over the last couple of years, what has been going on and what is happening.

00;14;25;04 – 00;14;40;03
Dr. Ryan Loy
Because that’s the deeper root issue of why you have to be in this scenario in the first place. And I think that’s very important in Italian, something we talked about earlier. I think if you have that plan articulated, you can you’re you’re kind of better suited to handle situations like that. I guess I would.

00;14;40;05 – 00;14;53;13
Darin Drennan
I would say, Ryan, that debt management also includes debt reduction. So yes, during the times when things are going really well and you buy those long term assets or you go buy a new truck or whatever the case is, you want to enjoy life. We’re not saying don’t do a lot.

00;14;53;13 – 00;14;53;29
Dr. Ryan Loy
Absolutely.

00;14;53;29 – 00;15;15;25
Darin Drennan
But take a portion when things are going well and set it aside. Try right debt reduction, because at some point I realize we represent a bank, Arvest Bank, and we are all about loans and all about wealth management. But at the end of the day, if we can help farmers and ranchers not only with the loan, but reducing that over a period of time that benefits the bank and want to get paid back.

00;15;15;25 – 00;15;15;29
Darin Drennan
Right?

00;15;15;29 – 00;15;16;14
Dr. Ryan Loy
Oh, absolutely.

00;15;16;14 – 00;15;31;16
Darin Drennan
So the bottom line is when we look at debt management, also think of other income streams. That’s right. Or what am I doing now that is working. What’s not working. What could work. And again diversify. That’s right folio so to speak. And I want wealth management. So we think of portfolio.

00;15;31;16 – 00;15;31;18
Dr. Ryan Loy
No.

00;15;31;19 – 00;15;38;20
Darin Drennan
But but again in agriculture diversify the portfolio and look for multiple income streams to help reduce debt.

00;15;38;21 – 00;15;56;20
Dr. Ryan Loy
That’s right. And you know don’t put all your eggs in one basket. Right. It’s always been told right. And I think that is very important. You know again to your point like you know, when we say in good times, don’t spend x, Y and Z not go have fun and enjoy it, but also prepare, mentally prepare and physically prepare for those times when there isn’t and it won’t be as well.

00;15;56;20 – 00;16;01;17
Dr. Ryan Loy
And but hey, at least you’ve got a rainy day fund now to put towards debt or you’re paying off debt and it’s a lot less.

00;16;01;17 – 00;16;05;15
Riley Smith
It’s like a good example. That would be the drought in 1980.

00;16;05;16 – 00;16;11;07
Dr. Ryan Loy
I, like what the financial crisis. Yeah, the financial where they just didn’t have an asset base back then.

00;16;11;07 – 00;16;16;18
Riley Smith
Right. Well, they but 1979 was the first year that my granddad ever seen $10 a bushel beans.

00;16;16;20 – 00;16;17;01
Dr. Ryan Loy
Yeah.

00;16;17;03 – 00;16;34;14
Riley Smith
And everybody had a bumper crop year. What they do that was also when I believe I believe it’s Carter. I can’t remember who it was. Carter, the secretary of AG at the time, they did the ditch the Ditch act and everybody tore out their fence rows and you see, said, we’re going to have another good year.

00;16;34;14 – 00;16;52;04
Riley Smith
Everybody start planting your ditches. Start start planting more and more and more will happen the next year. We had a drought. Everybody lost everything because they started buying more ground. They started buying new equipment and they started. Nobody ever put back. That’s right in our area and I just speak from our area. My granddad was one of the few that did put back.

00;16;52;04 – 00;16;58;18
Riley Smith
He paid off all his loans, all those notes. The only thing he bought was brand new pickup because he had never done that before.

00;16;58;20 – 00;16;59;19
Darin Drennan
I mentioned pickup.

00;16;59;22 – 00;17;00;08
Dr. Ryan Loy
Yeah.

00;17;00;11 – 00;17;10;11
Riley Smith
That’s right. I bought a brand new pickup in 1979 and that was all he did. And then he put the rest of it back. And that’s the only reason that he made it on a 2000 acre farm by himself. Yeah.

00;17;10;13 – 00;17;18;01
Dr. Ryan Loy
And things like the 1980s or even the 2008 financial crisis craziness, things like that. Exactly what you’re alluding to, Darin would, would help away those storms.

00;17;18;01 – 00;17;19;08
Riley Smith
Yeah, I’m just trying to push up

00;17;19;08 – 00;17;19;24
Riley Smith
what he was saying.

00;17;19;24 – 00;17;27;28
Dr. Ryan Loy
No. It’s perfect. That’s perfect. It’s exactly right. And so, you know, I think that those those viewpoints are amazing. You know.

00;17;28;01 – 00;17;28;23
Riley Smith
Yeah.

00;17;28;26 – 00;17;48;20
Dr. Ryan Loy
You know, we kind of talked about those factors that, that producers should weigh when they’re thinking about, you know, debt refinancing, you know, is this a long run issue that they’ve had on the farm that’s now, you know, causing this issue? Or is it something like low commodity prices this year? We’re just not going to make a return with these high, high input costs.

00;17;48;22 – 00;18;11;14
Dr. Ryan Loy
And so one of the other things that I, you know, wanted to talk about, why I had you guys here was just this idea. We’ve alluded to it before and how important it is with this estate planning and wealth management. Now, you know, I know we talked about debt financing consolidation and that is its own issue. And it it is related to, you know, estate planning because you want to make sure you have something there to, to pass on to the next generation.

00;18;11;14 – 00;18;26;23
Dr. Ryan Loy
So for you, Darin, I just kind of wanted to give you a time to just talk about because I think that this is an issue. It’s kind of like, you know, somebody’s house is on fire, you know, and they’re trying to put out that fire, but you’re like, hey, also just by the way, another fire’s coming down the road.

00;18;26;23 – 00;18;43;05
Dr. Ryan Loy
I just kind of wanted to let you know that. And everybody’s like, well, I want to worry about right now. Right now. But you’re saying, hey, plan for this one that’s coming down, and maybe that was a bad, example, but basically mean emergency, right? Right. Some urgency, but I just kind of want to give you a moment to talk about the importance of estate planning, because I just don’t think sometimes as economists, we do.

00;18;43;05 – 00;18;44;15
Dr. Ryan Loy
Enough talking about that.

00;18;44;17 – 00;19;01;29
Darin Drennan
Yeah, absolutely. Thank you. Ryan, the the idea here is, is that farmers and ranchers are already busy, right? They’re having to deal with not only the daily grind. That’s right. And it’s not a five day a week job. Right. It’s a seven day a week job. Right. They only have to work half days. Let’s figure out which 12 hours a day they’re going to work.

00;19;02;00 – 00;19;22;11
Darin Drennan
That’s right. So how is that that said. So most people in general and I would just be exclusive to what we’re talking about today. But most people in general don’t feel like they understand this enough to even get to it. Right? So why should I bother? I’ll be going anyway, right? Right. And the other part of that is maybe it’s it’s too complex.

00;19;22;11 – 00;19;41;04
Darin Drennan
I don’t understand it. And the other part is it’s way down the line, so I’m not gonna worry about that today. What’s on fire today? I got to put out. Right? That’s right. So. But we can prevent fires in the future by taking, taking the steps today to create a plan. And that said, there are some components to that that people need to consider.

00;19;41;07 – 00;20;04;14
Darin Drennan
Don’t even, like, talk about this because I’m going to use a bad word. Okay. Oh, yeah. Sorry. Here we are. Have you ever thought about what it spells when you put those two words together via the IRS? No. IRS spells theirs. Oh, we are going to get theirs. Okay, with that said, depending on the size of the ranch or the farm, there could be potential estate tax in the future, right?

00;20;04;14 – 00;20;24;28
Darin Drennan
Okay. Right now it’s a pretty large number and most people are under that number. But there are some that have farms and ranches that are well above that number and could see a significant impact, on their death when things transition to the state, or the government could get a portion of those assets. Gotcha. And that’s something to prepare and plan for.

00;20;25;00 – 00;20;27;21
Riley Smith
Y’all need a drink or anything I’ll go get one.

00;20;27;21 – 00;20;45;24
Dr. Ryan Loy
So as we, as we talked about when you were talking about the importance of the estate planning, talked about the IRS and some of those issues and please correct me if I’m wrong, but, the Tax Cuts and Jobs Act is a is a reason why that’s, kind of a higher, that’s our ceiling right now for that, that tax.

00;20;45;24 – 00;20;47;14
Dr. Ryan Loy
So if you is a 5 million right now it’s.

00;20;47;14 – 00;21;09;17
Darin Drennan
Actually up to 13.13 million, okay, 2024 okay. And it goes up a little bit more for 2025 potentially now because a new administration is coming in on those that believe it may get extended okay or become permanent. Now, as we know in government there’s nothing that’s right. The next administration can change everything. So with that said, there are some high numbers and that’s per person okay, okay.

00;21;09;18 – 00;21;30;05
Darin Drennan
We’re talking about 27 million roughly of an estate that is excluded from that estate tax. Wow. So it has to be a pretty large operation, to be above that, but it does apply to certain groups. Absolutely. With that said, it’s close to sunset, January 1st of 2026 or the end of 2025. Right? Okay. Back down to about 7 million okay okay, okay.

00;21;30;05 – 00;21;55;18
Darin Drennan
Per person. However, we do think that there could be some, reason for it to be extended based on the new administration looking at Congress and what happened, the elections that we will see that will be determined at some point. The other part of that, though, is not only the IRS, though, it’s back to the family dynamics, the importance of having the document in place, because I don’t know if you have siblings or not, Ryan.

00;21;55;18 – 00;21;55;29
Dr. Ryan Loy
I do.

00;21;55;29 – 00;22;04;05
Darin Drennan
I do as well. We don’t always see eye to eye on everything. No. Right. And especially when it comes to what we get from our parent. That’s right. Right.

00;22;04;05 – 00;22;05;09
Levi Price
Well.

00;22;05;12 – 00;22;37;19
Darin Drennan
I wanted that. I know I wanted that, right, right. There’s a struggle and nothing separates families like money, right? That’s right. We’re assets in this case. So when you look at the the estate plan itself, the family dynamic can have such a huge impact on how you set it up and how you transition it, that it comes to the point at some time, once you set things up, there needs to be a conversation with your family, whether it’s your kids or another family member that’s going to be in line for the business, to inherit it or to run it.

00;22;37;19 – 00;22;55;01
Darin Drennan
And by the way, we talked about this earlier at lunch. You know what’s amazing to me is only 30% of businesses in general, and that includes farmers ranches. Those businesses transition to the next generation, only 13% transition to the third generation.

00;22;55;04 – 00;23;09;21
Dr. Ryan Loy
I mean, that’s just astounding. That’s that’s crazy to hear that. You know, I just if you were to randomly ask me that question on the side of the road, I would have guessed much, much higher, you know. But I think that that speaks to exactly your point. People push it off and push it off and push it off because it’s it’s a little daunting.

00;23;09;21 – 00;23;20;07
Dr. Ryan Loy
They don’t want to deal with it, but you see how important it is just to keep that longevity. If you just take the time now or take the time, you know, during your life while you’re here to, to take care of those things, right?

00;23;20;10 – 00;23;35;08
Darin Drennan
Riley. So we look at, generationally speaking, it’s important to train the next generation as well to be able to operate not only the farm, right, but the books of the farm. So wonder what your experience is with that?

00;23;35;08 – 00;23;56;05
Riley Smith
Well, the first thing I had on my mind was, is, like you said, my curiosity got the best of me. I wonder of that 20 or 30% that only goes to the next generation. Are you saying look like as of blood, next generation as or as the next generation?

00;23;56;05 – 00;23;58;12
Darin Drennan
Age class actually talking about blood. Okay.

00;23;58;12 – 00;24;10;05
Riley Smith
So sort of kinfolk kin. So of that I wonder like I wonder what is the percentage that want to go into that business.

00;24;10;08 – 00;24;13;22
Dr. Ryan Loy
Like you saying that it doesn’t get passed down because people don’t want to be involved.

00;24;13;28 – 00;24;44;13
Riley Smith
Like if I’m a cattle producer, I have a first generation cow calf operation. We’ll just use that. For example, I have a son. I want to pass it down to him, but he wants to not be a cow calf operator yeah, he wants to be something else and it kills off. I wonder what the percentage of my son wants to be a cow calf operator, but financially, in the way that operations built, that he’s not able to take it over and therefore it just basically collapsed.

00;24;44;16 – 00;24;49;17
Dr. Ryan Loy
I think that’s a good question. Darin. Do you have like, does that happen a lot when you’re coming to do these estate plans?

00;24;49;17 – 00;25;09;01
Darin Drennan
Yeah, absolutely. So there is there’s definitely some credence to what you’re saying there. Riley the the idea is there are those who are not going to want to be in farming, right. They decide, I don’t want to do this. We’re going to go and do something else. With that said, though, a lot of the issue becomes what Levi has been referring to with the debt.

00;25;09;03 – 00;25;19;21
Darin Drennan
You know, a lot of these, businesses don’t succeed because they got to I’m going to use a, a term they got to out front of their skis. Yes. The saying.

00;25;19;21 – 00;25;20;20
Dr. Ryan Loy
There. I know what you mean. Ahead of.

00;25;20;20 – 00;25;40;09
Darin Drennan
Their skis. But that said, you know, them now, rallies. Look at that. I mean, like a counter new gauge, right? So, anyway, the, the funny thing is, when you look at these numbers and statistics, I don’t have the exact numbers of what that is, but you actually do have a lot of credence on what you said.

00;25;40;09 – 00;25;46;28
Darin Drennan
Some are just not going to want to, but some fail. Right? Because they didn’t plan on. That’s right where they should have.

00;25;46;28 – 00;25;59;03
Riley Smith
And then I wonder on the flip side of that, how many of them sold out to another operation. Therefore, it picked up and got more profitable. And you know, you know, does that make sense?

00;25;59;03 – 00;25;59;13
Darin Drennan
Yes.

00;25;59;13 – 00;26;03;19
Riley Smith
More profit, more profitable outside of the next generation gene pool.

00;26;03;19 – 00;26;29;18
Darin Drennan
Athlete education has a lot to do with that Riley When you look at, generational farming, many times, you know, say, a grandfather didn’t go get an education. He did farm raised a son or daughter that went got an education, came back, still wanted to be involved, but had a lot more data. A lot more information, a lot more information, a lot more education on how to run the operation.

00;26;29;21 – 00;26;56;28
Darin Drennan
And maybe then, because they were able to increase it, were able to hire better ranch hands or whatever the case, that maybe they weren’t very good at it. Right. And they ended up hiring someone. But, that said, you have I think, an opportunity, at least today to make sure that you cover everything involved. Yeah, the estate plan, the debt, all of those things, and make sure that the plan is written down.

00;26;57;00 – 00;26;57;22
Darin Drennan
Perfect.

00;26;57;24 – 00;26;59;18
Dr. Ryan Loy
But, at least articulated.

00;26;59;18 – 00;27;07;12
Darin Drennan
Articulate. Exactly. And then the next generation knows what the plan is. What’s the place to transition to the next generation? You’re going to have to inform them.

00;27;07;15 – 00;27;10;23
Dr. Ryan Loy
Oh, absolutely. Right. Can’t just be like, all right, here you go. Have a good day. So we’ll.

00;27;10;23 – 00;27;18;05
Riley Smith
Come back. I just want to mention real quick plot twist. We just basically described Yellowstone.

00;27;18;08 – 00;27;20;22
Dr. Ryan Loy
As pretty funny. I have never actually watched the show.

00;27;20;24 – 00;27;28;14
Riley Smith
Oh, was like 5 or 6 generation ranch the same thing. And they gave it to the reservation. For at the end of the final season.

00;27;28;16 – 00;27;28;29
Darin Drennan
You just

00;27;28;29 – 00;27;29;12
Darin Drennan
spoiled it for everyone else.

00;27;29;12 – 00;27;30;11
Dr. Ryan Loy
Everybody that they.

00;27;30;11 – 00;27;31;24
Riley Smith
Had to watch it to get to that point.

00;27;31;24 – 00;27;32;12
Dr. Ryan Loy
Yeah, we can.

00;27;32;12 – 00;27;35;11
Dr. Ryan Loy
Do like a what is a director’s commentary on.

00;27;35;11 – 00;27;40;20
Riley Smith
It. Yeah. something like that. But back to what you were asking me. What were you with? You were asking about

00;27;40;21 – 00;27;44;03
Darin Drennan
I was asking, you know, you mentioned grandfather.

00;27;44;05 – 00;27;53;29
Darin Drennan
You know, you were involved growing up, you and all that. You’re doing something different now when you grew up. With that in mind, did you ever foresee yourself?

00;27;54;01 – 00;28;05;19
Riley Smith
Absolutely. So far. So, you know, unfortunately, my granddad retired farm in 06. We put our ground in the CRP program. That being said, we have amazing hunting grounds now.

00;28;05;21 – 00;28;06;02
Dr. Ryan Loy
Yeah, they’ve.

00;28;06;02 – 00;28;07;04
Dr. Ryan Loy
Got their own hunting club out.

00;28;07;04 – 00;28;40;05
Riley Smith
The long term asset. But grounds paid off for and yes, I did. I think the biggest thing is, is like, first generation college student out of my family and the idea that I had when I was, I mean, at 16, 17 years old, you got life by the hair and, you know. all and nobody else can tell you any different when going through college and knew that I needed to get an degree that was going to help, but, what paid that degree.

00;28;40;05 – 00;28;49;28
Riley Smith
Is all that what you just talked about building barbed wire fence, doctoring calves, digging ditches. That’s what paid my college off.

00;28;50;00 – 00;28;53;00
Dr. Ryan Loy
So, so proper wealth management on your family’s part.

00;28;53;07 – 00;28;54;00
Dr. Ryan Loy
Helped with that?

00;28;54;00 – 00;29;13;24
Riley Smith
Right. That knowledge is what helped get me to this point right now. With that being said, the degree is to help me understand the economics and the financial dollar and less why I’m sitting here right now. So that way, if I do decide, hey, I want an operation, I don’t just step out there and lose my feet.

00;29;13;27 – 00;29;25;05
Riley Smith
I actually have a strategic plan. I can make it live a long time and set it aside in the short run and in the long run. And how to financially do that

00;29;25;07 – 00;29;25;22
Dr. Ryan Loy
Perfect

00;29;25;22 – 00;29;33;22
Darin Drennan
You look back at the blood, sweat and tears that your grandfather right, and family had you have. You’re going to have blood, sweat and tears and a diploma or degree.

00;29;33;25 – 00;29;34;02
Dr. Ryan Loy
right?

00;29;34;02 – 00;29;35;00
Riley Smith
Right.

00;29;35;02 – 00;29;43;03
Darin Drennan
And that’s something that I think in today’s day and age, especially with technology, like it’s the technology, I can’t even begin to talk about is above my.

00;29;43;03 – 00;29;44;02
Dr. Ryan Loy
Oh, absolutely.

00;29;44;03 – 00;29;55;24
Darin Drennan
Okay. But I when drive through Arkansas anywhere in Arkansas, I go through Oklahoma wherever we’re headed. And I see all that equipment out there. Oh yeah. Like that’s that six figure equipment that’s.

00;29;55;25 – 00;29;59;05
Dr. Ryan Loy
Worth more than my life. Exactly. Yeah. in my driveway.

00;29;59;07 – 00;30;19;14
Darin Drennan
And it does things that I don’t understand. Oh yeah. But that said, the education behind that, the knowledge on how to operate not only the every day to do list, but the books. Yes. And the having that plan and setting a plan in place will benefit not only you for the rest of your life, but generations to come.

00;30;19;14 – 00;30;19;27
Dr. Ryan Loy
That’s right.

00;30;19;27 – 00;30;41;14
Riley Smith
You know, it’s funny you talk about that. Me, my dad had this same conversation this morning about degrees and we talking about the difference because my dad graduated in the late 80s. You look at the time difference between then and now and back then, you know, not a whole lot of people went to college. You went out, you got a job, you went to work.

00;30;41;17 – 00;30;50;07
Riley Smith
So the value of the degree of a bachelor’s degree was extremely high. If you had a master’s, it was even higher. Doctor,

00;30;50;07 – 00;30;50;16
Dr. Ryan Loy
Of course,

00;30;50;16 – 00;30;57;04
Riley Smith
You were a genius. Not not disguarding that that you are a genius because you have a PhD.

00;30;57;07 – 00;31;00;18
Dr. Ryan Loy
Oh, I was going to say no nowadays. Pass it out to anybody.

00;31;00;19 – 00;31;26;22
Riley Smith
More now. Now the way that technology is, you know, AI, everything. Now you’re able to go every, every feels like almost every kid goes to college and gets a degree. So therefore the value that now you’re starting to lose people with that work knowledge, with that knowledge of how to run the D-9 dozer and those are out there, how to run the, you know, the PC 310 three PC 320 komastu trackhoe.

00;31;26;22 – 00;31;30;16
Riley Smith
Sitting on the side of the road. You know you’re starting to lose more and more of that.

00;31;30;17 – 00;31;31;07
Dr. Ryan Loy
That’s right.

00;31;31;09 – 00;31;39;09
Riley Smith
And so now they’re begging. They’re asking. They’re trying to get more, more money into trade schools, become a plumber, become electrician.

00;31;39;11 – 00;31;40;09
Dr. Ryan Loy
That way at least you have.

00;31;40;09 – 00;31;47;11
Riley Smith
Not getting on a soapbox here. No, but I what I’m getting at is. Is that that knowledge how the cycle it has changed that.

00;31;47;11 – 00;32;00;04
Dr. Ryan Loy
Has it has changed. And I think again, it goes back to Darin’s point about the education too. You can’t just be like, all right, the state is planned. All right. I’m going to put a little bow on that. And I’m just going to kind of live out the life, right? It’s all part of it. It’s transitional. Right? It’s not just I.

00;32;00;04 – 00;32;08;00
Riley Smith
Have the I have the financial education how to do it, but I don’t have the physical application of how to do it. That’s right.

00;32;08;03 – 00;32;25;22
Dr. Ryan Loy
Well, just kind of, you know, continuing on to this topic, and I want to kind of tie in both of y’all’s expertise under this question. And I think we’ve alluded to this several times, and this is kind of two questions. You know, so how does, you know, debt, proper debt management, you know, tie into the broader wealth, planning strategies.

00;32;25;24 – 00;32;34;17
Dr. Ryan Loy
And, you know, what financial strategies should farmers really have in place to navigate these tough years, like we’re dealing with now with real crop?

00;32;34;19 – 00;33;03;23
Levi Price
Let me talk about a plan. I think, you know, a risk management plan is a is a big part of that. And so in my mind, risk management can be commodity, price protection through hedges or, but the livestock risk protection on the cattle side of things. And so you know, that that comprehensive risk management plan that then, fits your operation fits the type of, production, operation that you have.

00;33;03;23 – 00;33;27;01
Levi Price
But then as you transition to the time that you’re going to retire, I think that’s where Darin and his team comes in and can really help our customers transition to that next phase alive, because it may not be passing it to the next generation. It might be a long term lease to the neighbor. Next to you. It could be that you do want to do a third party sale, but what are the most, tax advantageous ways to do that?

00;33;27;04 – 00;33;32;29
Levi Price
And so, you know, we’ve said it several times now, but it’s it’s really just having a plan for all of that.

00;33;33;04 – 00;33;51;00
Dr. Ryan Loy
And making sure by the time you want to transition it off that, you know, perhaps to some degree. And, Darin, you can correct me if I’m wrong, that the outstanding debt you have, you know, that it’s paid off, or at least planning to be paid off by the time that you’re going to transition this over. And so you’re not just giving, you know, long term notes to the next generation or things along those lines.

00;33;51;00 – 00;33;58;04
Dr. Ryan Loy
And making sure that you’ve managed your money up to this point where they have a reserve if they need it to kind of back out and be curious on your thoughts on this there, you.

00;33;58;04 – 00;34;07;20
Darin Drennan
Know, the best time to be prepared to sell your business is today, whether you plan on selling it today or not, if it’s the plan is 20 years from now, it needs to be ready to sell today.

00;34;07;25 – 00;34;08;09
Dr. Ryan Loy
That’s great.

00;34;08;09 – 00;34;09;05
Dr. Ryan Loy
Advice.

00;34;09;07 – 00;34;31;23
Darin Drennan
What if there’s a third party that comes in and says, hey, we want to buy this. Do you have any idea what your operation’s worth? That’s right. Do you know what the value of your assets, your livestock, your crops? And again, there’s some intrinsic value there as well. What the revenue is all those things. So when we look at business succession planning, it’s from the standpoint of be ready today to transition out of this business not only for the what if.

00;34;31;25 – 00;34;47;10
Darin Drennan
Yeah, God forbid, something happened and you’re no longer here, but for the what if I’m here the next 30 years, but somebody walks in ten years from now and says, hey, we want to buy this from you. Yeah, we’re going to offer you $5 million. That’s right. Is it worth 5 million? Is worth ten. Do you even know?

00;34;47;12 – 00;35;21;26
Darin Drennan
That’s right. So doing what it takes to know the value of your business and the value of the future revenue potential as well, with those potential multiple income streams is so important. And that’s where sitting down with proper advisors to make sure that you’re on the right track, whether that’s an estate planning attorney to make sure you set things up for the what if the transition to the family, your accountant, your CPA, whoever’s doing your taxes to help mitigate or you look charitably minded, why do you want to give to a church or a charity at some point to help the first in taxes or take away from taxation?

00;35;21;29 – 00;35;33;26
Darin Drennan
There are also ways to defer taxes. Have you plan for retirement? Right. You know, that’s another conversation I had with this at this point. Back. What have you done to make sure you don’t have to do this until you’re 80?

00;35;34;00 – 00;35;34;25
Dr. Ryan Loy
Yes, yes.

00;35;35;02 – 00;35;52;28
Darin Drennan
Now, if you want to go for it, stop at Yellowstone. And those 5 or 6 generations of of, ranchers. The bottom line is, you know how long you want to do this, potentially. And at some point you want to transition out of it. So making sure that you have that plan is like key freed up in place.

00;35;52;28 – 00;36;06;18
Darin Drennan
And I keep bringing up as well. The plan is so important. You know, the good book says without a plan, the people perish. Right? So you gotta have a plan to make sure you know what to do in the case of the what ifs.

00;36;06;18 – 00;36;21;29
Dr. Ryan Loy
That’s right. No, I think that’s a great point. We can, you know, we can sit here and just say, have a business plan repeatedly and for 30 minutes on a podcast. And I think that that actually has benefit, really, because it’s just something that, again, you know, folks day to day. And I don’t blame them. They’re dealing with so many fires on the day to day.

00;36;21;29 – 00;36;37;19
Dr. Ryan Loy
They don’t even think about that tomorrow or the next day and don’t think to stop and just say, wait a second. Some of this might have been mitigated if I just sat down, made a plan, worked with some people, manage my debt, and make sure that I don’t have anything to worry about in a what if scenario, right?

00;36;37;19 – 00;36;39;17
Dr. Ryan Loy
And I think that that’s great. Rally. What were you going to say?

00;36;39;18 – 00;36;47;07
Riley Smith
Well, I was going to say that like, I think a lot of people think that they need a plan. I don’t think they think about the stages of the plan. Yeah.

00;36;47;07 – 00;36;48;21
Dr. Ryan Loy
No, that’s that’s a very because.

00;36;48;24 – 00;37;10;16
Riley Smith
Where he’s at and he’s in the plan and where he’s at it in the plan is three steps in between. Sure. So when we talk about short run ag operating loan, we’re talking about this year, next five years retirement, we’re talking about in 30 years. I’m about ahead of time. So at what stages of the plan have you prepared for yourself?

00;37;10;23 – 00;37;27;01
Riley Smith
That’s a good point. And my uncle always told me in this hasn’t had don’t have to do with operating in AG but has to do with life in general, he said. Have you, whats your five month plan? Your six month plan? What’s your year plan? What’s your five year plan? What’s your ten year plan? What do you see yourself in 20 years?

00;37;27;04 – 00;37;28;00
Riley Smith
Well same principle.

00;37;28;00 – 00;37;30;00
Dr. Ryan Loy
No, I think that’s exactly right. That’s a great thing.

00;37;30;00 – 00;37;50;21
Darin Drennan
And it definitely flies. And I get to the really the first step. And again it’s a little different for deck consolidation. But when you look at the first step in estate planning, it’s making sure all your assets are titled properly. That’s right. Okay. If they’re all in your individual name, that’s a problem, right. Because if you don’t have a will, if you don’t trust, that’s a problem.

00;37;50;21 – 00;38;13;01
Darin Drennan
Right? So titling is so important. Having a will is the next step. Making sure that you’ve written down somewhere where you want your ass is going to whom you want them to go to, right? The trust is better because it will go goes to probate and probate court has cost. Okay. So a trust actually bypassed probate and should have a pour over will in it where if you forget to put something in the trust, it pours over into the trust upon your death.

00;38;13;08 – 00;38;17;08
Darin Drennan
So again, talking about those steps. Yeah. Seems like a long way away until it’s not.

00;38;17;08 – 00;38;41;16
Dr. Ryan Loy
Until it’s not. That’s exactly right. Now, I think this is great. And I think we, you know, not to sign y’all up for anything again, but I think that we’ve got so much that we could talk about at any time. And I hope that we continue this relationship and continue to build this out. And I, I invite y’all back anytime, you know, anytime you’d like to just to kind of continue to discuss these issues because especially when we’re talking about debt consolidation, you know, the first thing you said was, well, how did we get to this point?

00;38;41;16 – 00;38;56;17
Dr. Ryan Loy
And I think that that is a much that’s a huge discussion that I think some people don’t have with themselves. Right? They they see that they’re like, oh, I’m in this position now. I don’t have liquidity right now. You know, I’m not going to make as much revenue as I thought. I need to refinance. But the bigger question is, is this a trend or is this, you know, just a one off?

00;38;56;17 – 00;39;13;14
Dr. Ryan Loy
And I think that’s a that’s a whole a couple podcast episodes in and of themselves. And to your point again, you know what what part of the plan are you in? Are we talking about, you know, putting it into a will or trust and talking about the issues with that? But I just want to, you know, in final conclusions, just say thank you all so much for your time.

00;39;13;14 – 00;39;31;00
Dr. Ryan Loy
And I think we’ve covered a lot. And what it sounds like to me is that, you know, debt financing and debt consolidation can really help, but you want to make sure that this is actually what you should be doing, you know, for your business and estate planning and wealth management all ties into this. And saying, hey, how how have you been managing your wealth over the time?

00;39;31;00 – 00;39;39;23
Dr. Ryan Loy
And to ensure that it goes to the next generation? I just really thank you all for your time and if you have anything else to leave us with, I open the floor to you guys.

00;39;39;26 – 00;39;54;11
Riley Smith
Well, I got something real to kind of go off base. Go ahead. Right. Because I asked you earlier on our other course, we recorded two podcast episodes today. What is your New Year’s resolution? I told them I.

00;39;54;11 – 00;39;56;09
Dr. Ryan Loy
Forgot that you’re supposed to even have one.

00;39;56;12 – 00;39;58;06
Darin Drennan
Start with Levi. So I can think of one.

00;39;58;10 – 00;40;00;08
Dr. Ryan Loy
That’s exactly I had to do.

00;40;00;10 – 00;40;08;14
Levi Price
You know, I don’t guess I’ve ever, had a New Year’s resolution before, so, have put a lot of up to it, but I.

00;40;08;14 – 00;40;11;10
Dr. Ryan Loy
Didn’t either. I didn’t have an answer earlier.

00;40;11;12 – 00;40;21;16
Darin Drennan
Well, ask me December 31st, because that’s going to take me a minute. I usually don’t have New Year’s resolutions either. I believe in living every day resolute. Yes, that makes sense.

00;40;21;21 – 00;40;27;08
Riley Smith
Yeah. I’m gonna I’m I’m kind of that way to make it into Monday or Tuesday. It’s just another day.

00;40;27;13 – 00;40;27;27
Dr. Ryan Loy
That’s right.

00;40;27;28 – 00;40;28;08
Levi Price
Yes, sir.

00;40;28;12 – 00;40;29;22
Darin Drennan
Did you have one, though?

00;40;29;24 – 00;40;32;00
Riley Smith
I actually did, I think.

00;40;32;00 – 00;40;32;21
Dr. Ryan Loy
You told me earlier.

00;40;32;21 – 00;40;34;00
Dr. Ryan Loy
What was your idea? What did you say?

00;40;34;00 – 00;40;34;21
Riley Smith
Realtors License

00;40;34;22 – 00;40;37;13
Dr. Ryan Loy
Oh, that’s right, we talked about it. We had like an hour long conversation.

00;40;37;13 – 00;40;37;22
Dr. Ryan Loy
About

00;40;37;23 – 00;40;39;24
Riley Smith
I told you Realtors license and a new pickup.

00;40;39;27 – 00;40;40;08
Dr. Ryan Loy
That’s right.

00;40;40;09 – 00;40;43;19
Riley Smith
I’ve been driving the same pickup for seven years.

00;40;43;21 – 00;40;44;14
Dr. Ryan Loy
Well.

00;40;44;17 – 00;40;46;07
Dr. Ryan Loy
That thing’s a little old and seven years.

00;40;46;09 – 00;40;58;09
Riley Smith
I know but its an 02 model, But I mean, I bought it at 2500. Okay, I bought it in a bunch load of equipment. Had 86,000 miles on it. She’s got 192.

00;40;58;11 – 00;41;02;09
Dr. Ryan Loy
And I don’t I don’t know I’m pretty sure it’s premium. So I’m like I don’t think you even have seatbelts.

00;41;02;09 – 00;41;10;26
Riley Smith
No. I don’t have a premium on it. It’s just liability. I mean, listen to cases of eggs at the store is more of that truck’s insurance.

00;41;10;26 – 00;41;12;20
Darin Drennan
That’s why I have six chicken home

00;41;12;20 – 00;41;12;25
Darin Drennan
you know.

00;41;12;25 – 00;41;14;06
Dr. Ryan Loy
That’s right.

00;41;14;09 – 00;41;15;15
Darin Drennan
Though. So yeah.

00;41;15;17 – 00;41;16;25
Darin Drennan
I got a feed on.

00;41;16;28 – 00;41;19;09
Dr. Ryan Loy
In your history, guys. So you understand.

00;41;19;11 – 00;41;24;13
Riley Smith
So I work out, six chickens. Wouldn’t hold it. I eat about 12 eggs every morning every day.

00;41;24;15 – 00;41;35;02
Darin Drennan
Oh. Yeah. Well, you know, no judgement I have a 2003 in the driveway and a 2005 in the driveway. They’re my kids. But anyway, and my truck’s a 2014, so it’s ten years old.

00;41;35;04 – 00;41;47;17
Riley Smith
Yeah. This is 02 three quarter ton long wheelbase single cab with the old six old V8 in it. It’s a nice big gas engine, but it’s, been all over the world. Yeah.

00;41;47;19 – 00;41;51;13
Dr. Ryan Loy
Can’t miss it going down the road. It doesn’t have a door. It’s got like four different paints on it.

00;41;51;15 – 00;41;52;24
Riley Smith
That is not true.

00;41;53;00 – 00;41;53;28
Dr. Ryan Loy
But,

00;41;54;00 – 00;41;56;20
Dr. Ryan Loy
Anyway, guys, thank you so much for your time.

00;41;56;23 – 00;42;02;16
Riley Smith
We have had set off eventually. I’m just going to jerk the bed off of it, put a flat bed on it so.

00;42;02;18 – 00;42;11;02
Dr. Ryan Loy
Well, thank you all so much for your time again and I hope you all have safe travels back. And, you know, please reach out any time you know, if we can, you know, help out or just kind of discuss.

00;42;11;02 – 00;42;12;03
Darin Drennan
Anyway, thank you Ryan

00;42;12;09 – 00;42;12;24
Dr. Ryan Loy
I appreciate it,

00;42;12;27 – 00;42;14;01
Darin Drennan
Riley appreciate it.

00;42;14;04 – 00;42;19;17
Riley Smith
Yeah absolutely glad y’all came. Well, you all stay tuned for my market report. Thanks.

00;42;19;20 – 00;42;48;04
Riley Smith
All right, guys. Back with you. Market report March 25 Corn current price is at $4.37 per bushel, month agos price is at $4.40 per bushel. That’s down $0.03, a year agos price is at $4.73 per bushel. That’s down $0.36. January, January 25 Rice current price is at $14.82 per cwt, month agos price is at $15.17 per cwt. That’s down $0.35, a year agos

00;42;48;11 – 00;43;17;22
Riley Smith
price is at $17.24 per cwt. That’s down $2.42. January 25 Soybeans current price is at $9.52 per bushel. A month agos price is at $10.10 per bushel. That’s down $0.58, a year agos price is at $13.13 per bushel. That’s down $3.61. July 25 Wheat current price is at $5.59 per bushel. A month agos price is at $5.92 per bushel. That’s down $0.23 a year agos

00;43;18;00 – 00;43;43;25
Riley Smith
price was at $6.39 per bushel. That’s down $0.80. March 25 Cotton current prices at $0.68 per pound, a month agos price was at $0.69 per pound. That’s down $0.01, a year agos price is at $0.79 per pound. That’s down $0.11. And your weekly US average for peanuts at current price is at $480 per ton, month agos price is at $488 per ton.

00;43;43;25 – 00;44;07;24
Riley Smith
That’s down $8 and a year agos price is at $500 per ton. That’s down $20. And that’s your commodity futures this week. Your fertilizer price this week, urea per current prices are still at the same, as last week and the week before. So Urea is at $480 per ton. Ammonium nitrate set at $465 per ton, ammonium sulfates at $520 per ton.

00;44;07;24 – 00;44;38;14
Riley Smith
DAP’s at $740 per ton. Triple Super Phosphates at $687 per ton, potash is at $412 per ton, and pellet lime is at $225 per ton, this week. Your diesel prices this week off road diesel is at $2.55 per gallon. Highway diesel’s at $3.17 per gallon, and your Mississippi River level at Memphis, Tennessee this week. Current level is at 4.31ft, and a year ago was at -5.53ft.

00;44;38;20 – 00;44;49;19
Riley Smith
I want to thank you all again for joining in on another episode of Morning Coffee and AG Markets. We hope you enjoyed it. We hope you enjoyed your morning coffee as you tuned into another episode. So until next week we’ll catch you on Flip Flop.

00;44;49;25 – 00;44;50;14
Riley Smith
Bye bye now.