MT. HOPE, Ohio – Their operations are as different as the farmers involved, but the one common denominator is that they are all part of a profit circle. Steven Beachy, Jacob Beachy and Nelson Troyer shared their thoughts on how their involvement in profit circles benefits their farming operations during a panel discussion titled “Spending our first Million with Counsel from Others” during the 2023 North Central Ohio Grazing Conference in Mt Hope. The panel was moderated by Harvey Bowman.

Profit circles are common in the Plain communities of Holmes and Wayne Counties. They are comprised of four or five farmers with similar types of operations who meet periodically to review each other’s farm financial records and serve as a sounding board for ideas and questions their fellow producers may have about making a change to their operation. Most groups are made up of farmers in the same church district. They are similar to farm business analysis programs offered by extension and universities for English farmers. 

“Farming offers great opportunities to raise a family,” Bowman said. “Raising a family on a farm teaches children great values.”

Bowman and his wife, Ruth have a 73-acre farm near Berlin, Ohio, which is currently rented to their daughter Martha Hershberger and her husband, Levi. The Hershbergers have a 45-head Jersey herd. They transitioned their farm to organic in 2008. Harvey works at Bowman Belts, the family business located on the farm.

Panel member Steven Beachy, his wife, Marlene, and their five children farm 204 acres on the eastern edge of Holmes County. They have 84 acres of pasture, 55 acres of hay and 65 acres of corn. They have a herd of 60 Holsteins, a few with Pro Cross genetics, and 45 replacements. The herd is housed in a free-stall barn with a milking parlor. The Beachys also have 15 to 20 horses and ponies around the farm. They ship their milk to Smith Foods in their grass-based program.

“It is not hard to spend a million dollars on the farm,” Steven Beachy said. “But you have to know where you spent it. A financial group can help you see where and how you spent the money.”

Nelson Troyer, his wife, Miriam, and six children, farm a 103-acre farm near Holmesville and rent an additional 40 acres. They milk 45-50 Jerseys.

“You can sure spend a million dollars,” Troyer said. “Money doesn’t buy happiness, you have to use it wisely. At first, I wasn’t sure that I wanted people to see my numbers, but it is worth it. Being involved in a profit circle benefits each other.”

Rounding out the panel was Jacob Beachy. Jacob, his wife, Niva, and seven children farm near Clark, Ohio. They farm 115 acres. They milk about 60 cows during the grazing season and drop to 45 cows during the winter. During the grazing season, the herd has a grass-based ration with the balance harvested for baleage for winter feed. The balance of the feed is purchased. Beachy has his heifers custom raised off the farm. They began shipping organic milk in 2017. Jacob Beachy said he likes calm cows, but he pays more attention to what goes in the milk tank.

“I think the bottom line is that I want milk that is rich and creamy in color, I don’t want to be able to see through the milk to the bottom of the tank,” he said. “I want high components, long-lasting cows, and cows that breed back. I try to breed my best cows to sexed semen and I have been using beef semen on low-end cows.”

Jacob Beachy said the success of the farm comes down to four inches; the top four inches of soil for the crops and the top four inches of the farmer for the success of the farm.

The trio said there are benefits to being part of a profit circle.

“One of the benefits of being part of a profit circle is it lifts your spirits to join with fellow farmers,” Jacob Beachy said. “The profit circle helps farmers be accountable and aware of where their money goes. Financial groups show you your strengths and can recharge your batteries. We are sharing real life experiences.”

Troyer said the profit circle can help keep financial records in order on the farm and help farmers keep a positive attitude.

Steven Beachy said the profit circles provide a farm model, but all farms are different. “The profit circles can help farmers see what can and can’t be done on the farm,” he said. “They help you find the sweet spot. And when you are ready to transfer to the next generation, numbers can give them an idea of what to expect.”

He added that attitude is everything when it comes to farm management.

“A negative attitude can drain you, but a positive attitude can energize you,” he said. “A change in attitude can impact the success of your farm. Attitude can impact everyone around you. It is sometimes hard to see what you should cut but when you see what can be done, it motivates you to look at all areas.”

Record keeping is important, according to Troyer and Jacob Beachy. Troyer said good records are like a road map.

“Record keeping helps you see if you are making progress,” he said. “You try harder to get where you want to be and you are excited when you get there. But what works for one, may not work for farms. I tend to look at my numbers more than those for other farmers.”

Looking at the income side, milk prices aren’t as important as producers think, according to Steven Beachy. Instead, it comes down to managing what producers get for their milk.

For Jacob Beachy, family involvement is key.

Troyer said that both conventional and organic farms need to work together and encourage each other. Being part of a profit circle is a good way to do that.