The Tomorrow’s Top Agricultural Producers Program: An Illustration of a Mentor Program for Participatory Assistance

1. The Tomorrow’s Top Agricultural Producers Program: An Illustration of a Mentor Program for Participatory Assistance Jason Johnson, Stan Bevers, Blake Bennett Bill Thompson, Wade Polk, Brenda Duckworth

2. Presentation Outline • TTAP Mission Statement • Objectives / Description of Participants • Review of the Course Curriculum / Logistics • Evaluation of Knowledge Gained • Design of the Mentor Program • Recruitment of Mentors • Training Program for Mentors • Tracking the Interaction / Contact • Lessons Learned • Measuring the Impact

3. TTAP Mission Statement TTAP is a management development program to train targeted agricultural producers with the skills necessary to develop successful businesses that will survive and prosper in current and future economic environments. Targeted agricultural producers include those that plan to take over existing operations, those that are developing new operations and those seeking funding for existing or start-up operations.

4. TTAP Objectives • During the course of the program, each participant will develop a comprehensive written business plan for their individual operation. • Participants will be taught the skills necessary to implement and adjust their business plan over time. • Following completion of the curriculum, follow-up assistance will be provided by a mentor committee.

5. The Participants • 24 Operations: Texas and Oklahoma. • Mostly commercial operations, a few small operations; 300 - 5,000 acres. • Diverse production, cow-calf, crops, rice and timber. • $1,000 registration fee; $5-6,000 total expenses. • Ages ranged from 23 to 69 years old. • Typically less than 10 years of operational experience.

6. TTAP Programming Logistics • Four Sessions around Texas over 15 months. • Session I: Amarillo, November 2002; “Developing the Basics” • Session II: College Station, January 2003; “Financial Planning & Analysis” • Session III: Dallas, November 2003; “Agricultural Marketing” • Session IV: Kerrville, January 2004; “Tying It All Together” • Mentor Program – January 2004 – January 2005

7. Session I:Developing the Basics • Sources of Risk • Business Plans and Planning • Mission Statement • Business Structure • Resource Inventories • SWOT • Financial Statements and Analysis • Producer Panel Perspective

8. Session II:Financial Planning & Analysis • Personality Test and Interpretation • Defining Your Objectives and Goals • Role of Enterprise Budgets • Farm Assistance Overview • Cash Flow Development • How to be a Good Analyst • Producer Panel Prospective • Implementation into the Business Plan

9. Between Session II and III: • Producers completed their accounting for 2002 • Financial Analysis was reviewed by TCE Economists. • Farm Assistance was completed by Risk Management Specialists. • Futures and Options Leveling Workshop

10. Session III:Agricultural Marketing • Futures and Options Review • Advanced Futures and Options • Technical Analysis • Commodity Insurance • Simulations • Commodity-specific Sessions • Contracting • Producer Panel Perspective

11. Session IV:Tying It All Together • Legal & Liability Issues • Personnel Management • Intergenerational Transfer • Developing the Executive Summary • Introduction to Mentor Committee • Presentation of Business Plans • Characteristics of a Good Manager • Graduation

12. Evaluation Results of Pre- and Post-Session Knowledge Average Score (% of 100)

13. TTAP Mentor Committee Composition TTAP Graduate Primary Mentor TTAP Mentor Committee Secondary Mentor Lender Mentor TCE Lead Economist

14. Recruiting Mentors • Two producers and one lender per participant. • Each participant was assigned a Lead Economist from TCE. • Targeted mentors at least 60 miles away from participant. • Searched for Mentors possessing complementary production, geographical, or family dynamic interests and other common motivations.

15. Recruiting Mentors • Once participants were known, solicited nominations from County Extension Agents for mentors “fitting the profile” for a specific participant. • Also identified mentors from 600+ Master Marketer program and 50+ MM for Lender program graduates. • Individuals were targeted and solicited for participation via invitation and phone call. • Success rate for recruiting 1st choice of mentor was roughly 60%.

16. TTAP Mentor Training Agenda DAY ONE – (3rd Day, Session IV) • Background info and address sheet • Why you were chosen to be a TTAP Mentor • TTAP program description of curriculum/participants • Introduction of fellow TTAP Mentors • Mentor Training • Role of Mentors and Participants • Schedule of business plan presentations • Presentation of business plans to Mentor Committees • TTAP social DAY TWO • Family issues / Characteristics of good managers • Graduation of TTAP Participants

17. TTAP Mentor Training • Recognizing the impact that others have had on your own success. Event #1 Opportunity/Obstacle Event #2 Opportunity/Obstacle Today Individual who assisted in your development Individual who assisted in your development

18. TTAP Mentor TrainingKey Issues • Mentor as Ally, Catalyst, and/or Strategist • Listening with Empathy • Asking “High Gain” Questions • Communication Tips • Listening Habits • Mentoring a Problem Situation • Giving Feedback • Keys to the Mentoring Dialogue

19. TTAP Mentor TrainingRoles and Responsibilities TTAP Participants to TTAP Mentors • Contact Mentors on a regular basis to inform them of their progress on the business plan. • Contact should be made on a quarterly basis. • Seek advice from Mentors on issues as they arise. • Host their Primary Mentor at their operation for a follow-up visit and discussion of progress. • Report contact with Mentors and material changes to their business plan to TCE Lead Economist.

20. TTAP Mentor TrainingRoles and Responsibilities TTAP Mentors to TTAP Participants • Primary Mentors contact participants at least quarterly to monitor progress. • All members of the mentor committee provide advice to the graduate when solicited. • Conduct follow-up visit at the participant’s operation within one year of completion of classroom activities. • Report contact and material changes to the business plans of participants to TCE Lead Economist.

21. TTAP Mentor and Participant Contact – 1 yr post introduction • 3/21 (14% of participants) had no further contact. • Of the 18 participants who did maintain contact: • Approximately 90 hours of on-site visit contact; • Over 111 hours of other contact was cited (by phone, e-mail, face-to-face conversations); • Avg. of 11+ hours of follow-up contact with mentor committee members per participant; • 6/18 (33% of participants) utilized their lender mentor for information and guidance; and • Figures do not include contact with TCE Lead Economists.

22. Agricultural Producer Mentor Program - Lessons Learned • Mentor training must emphasize that mentors were not recruited to solve someone else’s problems. • Mentors must be given flexibility in their approach, but a clear explanation of their task. • Mentor committee composition must be pragmatic. • Mentees should help define the desired outcomes from the mentor process. • Introductions and initial contact are critical. • The process needs a chaperone.

23. Measuring the Impact (in progress) • Measuring Improvements in Knowledge - complete • Sample Testimonials from Graduates • Financial Performance (pre- vs. post- program) • Non-financial Measures • Continued benefits • Influence on Mentor’s operations • The dilemma of defining “success”

24. Questions or Comments….