Minding Ag's Business

OMAHA (DTN) -- Farmers spend their careers learning how to grow better crops, improve livestock performance and make the most of new technology. But how much time do they spend learning how to become better business managers?

For more than three decades, The Executive Program for Agricultural Producers (TEPAP) has helped farmers and ranchers take a more professional approach to managing their operations.

The next TEPAP session is scheduled for Jan. 4-8, 2027, in San Antonio, Texas. The registration deadline is Oct. 31, 2026.

TEPAP emerged from the farm financial crisis of the 1980s, when Texas A&M agricultural economist Danny Klinefelter recognized that even highly skilled farmers could struggle with financial management and long-term business decisions.

Mark Welch, the current TEPAP program director and a Texas A&M agricultural economist, said the education remains relevant as farms grow larger, operating costs increase and younger generations take on more responsibility.

"We know that for many of us, we grew up on a farm or ranch, and maybe our management skills and operational practices came from watching the way our granddad did it, or maybe the way my dad ran the operation," Welch said.

But as operations become larger and more complex, the risks also increase.

TEPAP brings together producers from across the United States and Canada for an intensive educational experience focused on the business side of agriculture.

Welch recently discussed five ways the program can benefit farmers and ranchers considering whether to invest in their management skills.

1 -- UNDERSTAND YOUR FARM'S FINANCIAL HEALTH

Knowing how much money a farm makes isn't necessarily the same as understanding its financial condition.

Welch said financial management is one of the foundational components of TEPAP, particularly for producers who rely heavily on tax records to evaluate business performance.

"Do we really understand where we are financially?" Welch asked. "If your basic financial measures are what's on your tax return each year, that's probably not telling the whole story of where this operation has been, where we are and perhaps where we're headed."

TEPAP challenges producers to examine their financial position more thoroughly and use that information to make better management decisions.

Those skills become particularly important during periods of tighter margins, when producers must evaluate investments, control expenses and consider how their operations can remain financially sustainable.

2 -- RUN THE FAMILY FARM MORE LIKE A BUSINESS

Family ownership remains one of agriculture's greatest strengths, but family relationships can also complicate management decisions.

Welch said TEPAP helps producers distinguish between operating as a family and managing a family-owned business.

The program examines how professional business practices can strengthen an operation without sacrificing the family relationships that make it successful.

That can mean establishing clearer job descriptions, defining management responsibilities, improving communication and developing more formal business procedures.

Succession planning is another important component.

Welch said younger farmers increasingly recognize the importance of having conversations about their future roles and responsibilities long before the older generation is ready to retire.

Producers in their 20s and 30s are asking how they can develop their management skills and prepare for leadership roles within the family operation.

Those conversations can be difficult, but addressing them early can help families prepare for ownership and management transitions.

3 -- BECOME A BETTER NEGOTIATOR

Farmers negotiate regularly, whether they're purchasing machinery, marketing grain, renting land or making other major business decisions.

Yet many have never received formal training in negotiation.

Welch said that puts producers at a potential disadvantage when dealing with equipment dealers, buyers and others who may have extensive experience negotiating business transactions.

"Most of us have never had any formal training in how to be a negotiator," Welch said.

TEPAP's second-year curriculum includes a negotiations session designed to give producers practical skills they can apply immediately.

Welch recalled one participant who left the session and began putting those lessons to work.

"I've already paid for my entire week here at TEPAP from what I just learned in that class," Welch said, recounting the participant's reaction.

The experience illustrates how even small improvements in business decisions can potentially offset the cost of management education.

4 -- BUILD A NETWORK OF PRODUCERS YOU CAN TRUST

One of TEPAP's most valuable benefits may occur outside the classroom.

The program typically brings together about 100 producers from different agricultural sectors and geographic regions.

Welch said participants often discover that farmers operating entirely different types of businesses face remarkably similar challenges.

They also find an environment where they can discuss sensitive financial and family management issues that might be difficult to raise with neighbors or competitors back home.

"They're sharing things and having a conversation around key parts of their business and their family operation that they've never had before," Welch said.

Those relationships often continue long after the sessions end.

Welch said graduates regularly exchange information, visit one another's farms and maintain friendships that can become valuable professional resources.

The program draws heavily from the Midwest, the Great Plains and the Canadian Prairie provinces, along with the Pacific Northwest. Welch said much of its growth has come from graduates encouraging other farmers to attend.

5 -- PREPARE YOURSELF FOR THE NEXT GENERATION OF FARMING

The farmers attending TEPAP are getting younger, Welch said, and more women are participating than in previous decades.

Those changes are influencing the program's curriculum and teaching approach.

Younger participants increasingly want practical tools they can take home and immediately apply to their operations.

"I want to see this. I want to put it to work. I want to see an example of how I can go home and do something with this," Welch said, describing the expectations of participants.

Beyond financial management and family business issues, TEPAP includes instruction in strategic planning, leadership, sales and negotiations.

Welch said the objective is to help producers think more strategically about their operations, identify strengths and weaknesses, and evaluate what changes might be needed to remain successful.

That can mean expanding certain parts of the business, changing management practices or deciding to stop doing things that no longer make financial sense.

IS TEPAP WORTH THE INVESTMENT?

TEPAP isn't a traditional farm conference.

The program consists of two separate one-week sessions completed over two years, with intensive classroom instruction beginning early in the morning and continuing into the evening.

"It's intense. It's like signing up for a micro-MBA program," Welch said. "You're not going to a trade show. You're coming to school."

The investment is substantial. Welch said producers should expect to spend more than $7,000 for a week at TEPAP, along with taking time away from their operations.

"TEPAP's not for everybody," he acknowledged.

For producers uncertain about whether the program is a good fit, Welch offered a suggestion: Talk with someone who has already attended.

"I would rather have you talk to someone who's been in the program than talk to me," Welch said.

TEPAP administrators can connect interested producers with graduates from their area who can explain what they learned and how they applied those lessons to their operations.

More information about the program and registration is available through Texas A&M University's TEPAP program here: https://tepap.tamu.edu/….

Listen to Episode 316 of the DTN/Progressive Farmer Field Posts podcast, "Inside TEPAP: The Executive Program for Ag Producers," for a conversation with TEPAP Director Mark Welch about the program, its history and why producers are investing in their management education: https://www.dtnpf.com/….

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on social platform X @ChrisClaytonDTN

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