The family eliminated dairy a few years later. While attending nearby Waldorf College, Dave found himself in need of cash. “If you want to make some extra money, you could milk a few of my beef cows,” his father suggested.

For the next few years, Dave milked a dozen cows in stanchions using a surge milker. He hauled milk cans to a cooling tank in the pump house and sold it to the local creamery as his father had done years before.

 

In 1981 Dave’s father had a debilitating stroke. His parents moved to town soon afterwards. Since his brother had no interest in farming, Dave and his wife Alberta (Bertie) purchased the acreage. They eventually sold most of his father’s livestock, choosing to concentrate on the dairy herd.  Dave expanded the facilities several times. Tie-stalls were eventually replaced with a milking parlor. Equipment and methods were modernized. The college student who once milked a dozen cows today milks over 130, raises his own replacement heifers and grows most of his own feed.

 

In 2001 Dave began experimenting with organic production methods. By 2005 his operation was certified organic. The move has proven beneficial, especially during the recent period of poor milk prices. “We don’t see the market fluctuations as with the conventional side.”  Dave takes pride in being personally responsible for each aspect of his operation. “Everything comes off the farm and goes in a circle… back out in the field. Overall I feel comfortable we have a healthier product out there.”

 

The stroke Dave’s father suffered eliminated the uncertainty often associated with the transfer of a farming operation. If anything about such a tragedy can be thought of as good, it was fortunate for the Nedved’s that Dave was in a position to take over when his father’s health failed.  Had the elder Nedved remained well, there would have been many issues to consider. Would he have approved of selling the other livestock and expanding the dairy operation? Would he have embraced organic? Would he have felt comfortable allowing his son to take charge of such decisions? Would Dave have been able to live on-site? “It made (the transition) more simple because of what happened,” Dave said. “I don’t know if my father would have ever moved.”

 

While Dave escaped those difficult discussions with his father, he may soon have them with his three sons. Nathan is an Iowa State University graduate currently working as a machinery salesman in Nebraska. He is uncertain whether he’ll return to the family farm, but hasn’t ruled it out.  Aaron, who currently attends community college, also plans to graduate from ISU. Morning classes allow him to work on the farm 2-3 afternoons most weeks as well as during weekends and school breaks.

 

Despite having other employees Dave is grateful for Aaron’s help. “If it wasn’t for my boy being on break, I’m not sure I’d have made it through this (January) cold snap.”

Aaron is fairly certain he’d like to join his father’s business. “I’m pretty confident. It’s what I’ve always planned on doing. Throughout high school I always thought about what jobs I’d like, but I always came back to (thinking) there’s nothing I’d rather be doing than

farming.”  Youngest son Brad is a freshman in high school. He participates in cross-country, basketball, track, baseball and soccer. Also active in Future Farmers of America, he helps on weekends, breaks and over the summer. “He was the first that said he wants to come back to the farm,” Dave noted.

 

Farms are passed from one generation to the next, often multiple times, more often than most businesses, said ISU Extension Dairy Field Specialist Dale Thoreson.   “You don’t find many businesses up and down Main Street that are on their 5th and 6th generations."  Successful transitions seldom happen by accident, Thoreson notes. “There needs to be some really good discussions ahead of time.” Operations vary in terms of size, debt load, diversity, and the personalities of those involved, among other factors, Thoreson said. “It may work for one and it may not for the neighbor down the road.”

 

Bringing in new partners can present challenges in terms of day-to-day operations. “Who makes the decisions?” Thoreson asked. “Sometimes younger people have new ideas. That can be uncomfortable for the older generation. Often we find the straw that breaks the camel’s back is not a big issue.” Thoreson encourages family members to clearly define roles going into a partnership and then assess those roles regularly. He suggests holding regular business meetings involving only those with a stake in the operation. “Sometimes around the breakfast or supper table isn’t the best place to do it. There (may be) family members there who don’t

want to be involved.”

 

It can be difficult for a producer who has managed an operation for decades to share decision-making duties. Thoreson encourages aging dairymen to be flexible. “Older people who want to slow down also need to be willing to give up some control. Why not do that when you’re still around to be an advisor and mentor?”  Families must also consider when and how to transfer assets. “I’ve seen situations where the ‘children’ are in their 50’s and the parents still own the cows and give them part of the milk check,” Thoreson said. When I ask, they say ‘my son is going to take over someday.’”

 

In most cases young family members lack the assets to expand the operation or buy into the business as equal partners. Recent difficulties in the banking and dairy industries have made this especially challenging. “Lenders are really scared about getting back involved,” Thoreson said. “It takes a lot of money to get into dairy anymore.”

 

A gradual ownership transition is often more feasible for the younger partner and more comfortable for the older, according to Thoreson. “Put them on a wage situation for a year or two. By then you’re going to see whether they’re willing to work to make the operation grow. Then you can start to let them buy in.”  Wages can only be paid and assets transferred if the operation is providing adequate income for all involved. Creative ideas are sometimes needed to make sure this is the case, Thoreson said. “It doesn’t always have to be ‘we need another 40 cows for this person.’ Sometimes there are other things that will fit very well.”  Conventional approaches might include taking on more land, marketing replacement heifers or feeding out bull calves. Others include working as a part-time nutrition

consultant or adding a seed dealership.

 

“Finding someone else with another opinion is helpful,” Thoreson advises. He notes there are professional facilitators available to assist families with transition issues. ISU offers a four-day Ag Link program for those who will be entering a multiple-generation farm business, as well as a one-day Beginning Farmers Conference. Most agricultural colleges can direct interested producers to similar programs.  Regardless of their approach, Thoreson encourages both younger and older producers to keep open lines of communication. “There will always be some differences. If (families) are not willing to bring them up, you’ve either got a short-term situation or some very unhappy people.”

 

Dave Nedved is still years away from slowing down, and his younger two sons have several years of education to complete.  As yet they’ve only begun to consider how their inter-generational partnership will unfold. Some divisions of labor, however, are already starting to emerge.  Brad spends much of his working time doing calf chores. “I’m usually busy with sports, so I get the easiest chore,” he said. Aaron prefers doing outside chores and field work, Brad notes, and he suspects his older brother would eventually like to see him take primary responsibility for the milking. Brad is willing to consider that option.

 “I’d be OK with Brad doing all the milking,” Aaron said. “Hopefully he keeps that same mindset.”

 

Dave would like to see his middle boy assume more herd-management duties, particularly artificial insemination. “At the size of the herd and at my age I sometimes feel I’m not watching the cows as well as I should.”  Aaron remains a bit squeamish about the AI process, but he’s keeping an open mind. “I’ve thought about it. It’s something I might look into at Iowa State. Someday I suppose I’ll be doing it.”

 

Limited demand for organic milk has forced the Nedveds’ co-op to place a quota on production. Although this could eventually change, Dave is not taking for granted he’ll be able to expand his dairy herd when his sons are ready to join the business.  He’s already considered alternatives such as producing organic feed, finishing bull calves, or even marketing his own organic meat and dairy products. Aaron is particularly enthusiastic about the later prospect. “I’d love to be making ice cream, because me and my dad love eating ice cream.”  Whether or not those plans work out, the Nedved sons are confident they’ll be able to negotiate the issues related to forging a partnership. The two brothers and their father get along “most of the time,” Brad said.

 

“We seem to figure things out, just work together and get it done,” Aaron added.

Dave knows the transition will have its bumps. The dairy business is in his blood, and he doesn’t see himself completely leaving the operation. “I know I couldn’t just go somewhere and sit uptown and drink coffee.  “As a father you always think you have to have things done the way you want it done. Sometimes there are things you have to accept and change. I’m sure Bertie will have to step in and say ‘we’re gonna talk about it.’ I can get mad about it. That’s OK for a day, then we have to get on with life.”

 

Dave recalls how his father gave him a start with those few beef cows and a surge milker, and he’s happy he’ll be able to provide much greater opportunities for his own sons. “If that hadn’t happened I wouldn’t be where I’m at either. Hopefully the transition will be smooth. Hopefully I can handle it and think what’s best for them.”  For more information regarding programs for young farmers available through Iowa State University, consult the Beginning Farmer Center available at www.extension.iastate.edu. The site includes links to similar programs in other states.
 

On January 31, Dale Thoreson retired after serving with ISU Extension since 1972. He began as the Butler County Extension director, becoming the dairy, beef and forage specialist for a 12-county area in 1992. He is highly regarded for his contributions to dairy research as well as for his efforts on behalf of producers.  Retirement will not mark the end of Thoreson’s involvement with agriculture. He intends to continue working as a private crop consultant, and his retirement gift to himself is a trip to Australia-where he will attend a dairy conference. Congratulations Dale!