Zig Ziglar once said, “Success occurs when opportunity meets preparation.” Some of the best preparation often happens during tough times, something the U.S. swine industry has faced plenty of in the past two years. Adversity, like the heat applied to steel during tempering, makes us stronger as we prepare for the future.
Learning opportunities stem from economic challenges, herd health issues, losing a family member, pandemics, market volatility and unpredictable black swan events. In my 18 years working with farm families, I’ve seen the next generation of farm leaders evolve from observers to hands-on managers. Senior leaders have gained confidence working alongside their successors, facing today’s market challenges together. This shared experience prepares them for future cycles. While it may not feel positive, adversity builds leadership and character in the next group of key leaders.
Profits for pig farmers this summer have eased some financial stress. The market rally earlier this spring suggested a larger recovery than we’ve seen. Some producers extended coverage, while others waited for a seasonal timeline to lock in winter market pigs when summer cash markets typically support strong futures through the fall and winter.
Bankers often stress the importance of hedging. While important, I understand how difficult it is to make real-time decisions. It’s not fair or healthy to look back and say what should have been done. These experiences provide context for future hedging decisions as producers continuously prepare for the future.