“I love farming and I love the challenges, but I have no romantic notions about it. It is a business — a big business.” — Steve Vandervalk
Like any farmer his age, Steve Vandervalk already knows a thing or two about steep learning curves. When we meet in mid-fall, he is renovating an older farmhouse that’s perched above Willow Creek where it spills out of the Alberta foothills.
After meandering past his building project at Claresholm, about an hour and a half due south of Calgary, Willow Creek threads its way across open prairie farmland until it joins up with the Oldman River not far from the town of Fort Macleod, near where Steve farms with his brother Brian.
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This project was initially supposed to cost $10,000. Now, the bill is more like $80,000. Even then, Steve will end up with a nice, smaller split-level house, which will be fine for him and his fiancée after they’re married in 2010, but it may not be big enough for a family down the road.
In hindsight, it might have been wiser to build a new home from scratch.
But Steve isn’t beating himself up about it, because he still believes that he got the main idea right. From a business standpoint, he wanted his home on land separate from the main farm.
“I could have built a $300,000 or $400,000 house on the farm where my dad lives, but it wouldn’t have had the same value as this,” says Steve, 32. “You don’t need a farmstead with two houses — you’re not going to get your money back. This way I have a comfortable home on this land next to the creek. And my brother has also done the same, by building his house away from the farm.”
The renovation project, he tells me, isn’t about lifestyle. It’s about business. Value, in Steve’s lexicon, comes with a number that has a dollar sign in front of it.
That doesn’t mean he’s cold. It’s obvious from the quality of the work on the farmhouse that he wants this to be a real home. But it does mean that, again like most of his generation, Steve is very clear-sighted.
Older generations of farmers have recognized that clear-sightedness and it’s one of the reasons they’ve been encouraging younger farmers to run for office on farm boards and associations.
Unlike many of his peers, Steve thinks there’s a good business reason for taking their advice.
“I love farming and I love the challenges, but I have no romantic notions about it,” says Steve. “It is a business — a big business. If you are looking at replacing machinery, a million dollars doesn’t go very far. So you have to be looking at a lot of details — a lot of little things — to see where you can be efficient and get the most value.”
That’s the type of thinking he applies in the operation of their mid-size Vandervalk Farms Ltd., where in 2009 they grew spring wheat, durum, canola, malt barley, yellow mustard and export timothy hay. Depending on the year they also grow certified canola seed.
When he left university in 1999 to return to agriculture, Steve was thrust into the daily management of the family farm. His father, James, had already launched what has become a successful custom trailer and truck deck manufacturing business in Fort Macleod — Fal-Can Industries Ltd.
So when Steve came home, he was basically told, “Here, you run it.” And that’s what he and his brother Brian have done. James still has a one-third interest in the farm, but his two sons handle the management and the day-to-day operations.
“I Always Have To Be Looking And Asking What Are They Doing That’s Different Than I Am, And Are They Doing Something I Should Try?”
At first, Steve and Brian couldn’t see any way to expand the 3,500-acre land base to support three households, so they considered diversifying into fruit production. It started with two acres of irrigated saskatoons, and Steve well remembers the labour needed as they expanded and planted 200,000 blackcurrant bushes on 80 acres.
He also remembers that the fruit venture was short-lived. Although it seemed like a good idea at the time, it ended as a valuable life lesson that helped them make smart decisions later when they came across an opportunity to expand grain production on deeded and rented land near Claresholm, about 10 miles north of the home farm.
Today, they operate about 1,200 acres of irrigated cropland, along with an extensive dryland farming operation. Steve and Brian split the main responsibilities. Brian looks after the machinery and much of the day-to-day field operations, while Steve concentrates on the business side, which includes marketing, purchasing inputs, and working with landlords. They have three full-time employees.
Along with the farm business, Steve is also actively involved in farm organizations. He started out as a director of the Alberta Winter Wheat Producers Commission, and today he is the Alberta vice-president of the Western Canadian Wheat Growers and vice-president of the Grain Growers of Canada. He’s also on the executive of the federal Macleod Riding of the Conservative Party of Canada.
Steve says listening to his peers, many of whom are young, progressive farmers, probably contributes the most to building and developing his own farm leadership abilities.
Listening to new ideas, and sensing the enthusiasm of others for the industry, helps influence how he approaches farm management.
“I definitely have some weaknesses and areas I could improve on, especially when it comes to our own farm,” says Vandervalk. “But in listening to and talking with other farmers from across the country, you learn what is working for them and I bring some of those ideas back to our own farm. Sometimes I might lose a bit of drive, but you spend time talking to these guys, see the things they are trying, and you say wow, that’s something I should be trying.
“One of the most important aspects of leadership to me, is the openness and willingness to listen to new ideas and then be prepared to act on those ideas. You look at someone who is successful and see what they’re doing, and you have to be willing to see if that might work for your own farm.”
Size of farming operation isn’t the issue, Steve says. He sees what other farmers with larger 20,000-, 30,000-and 50,000-acre farms are doing,
“You give your time to these organizations — so you have to get something back.”
and that’s important, “but I also know producers in this area who farm fewer acres than we do, but sometimes their crops are better than mine,” he says. “So I always have to be looking and asking what are they doing that’s different than I am, and are they doing something I should try at home?”
Being involved in farm organizations for the past 10 years has been an important part of developing his business, management and leadership skills.
There has also been a fundamental objective at work. Like his father and grandfather, Steve has always been a proponent for an open marketing system for western Canadian wheat. He doesn’t agree with the Canadian Wheat Board (CWB) monopoly on wheat marketing. He believes farmers should have the choice of marketing grains either on their own or through the CWB, and he ran unsuccessfully to become a CWB director for the southern Alberta and southern Saskatchewan region.
That commitment has led to his efforts through the Western Canadian Wheat Growers and now with the umbrella organization, the Grain Growers of Canada, which represents 13 grain, oil-seed and pulse commodity organizations across the country.
Steve says the ongoing challenge for farm organizations such as Grain Growers of Canada is to represent the interests of individual producers and to ensure domestic policies are in the best interests of those individual producers, as well as to make sure Canadian agriculture is properly protected internationally before the World Trade Organization. That’s the big picture he keeps in front of him, and he believes it will benefit Canadian agriculture.
But there is a payback, as well. “You give your time to these organizations, and it does take quite a bit of time, so you have to get something back,” Steve says. “For me what I get back is the opportunity to meet, work with, and observe some of the best minds in the industry.
“With the Wheat Growers and Grain Growers you have very bright and progressive-thinking farmers. And in the process you get to meet with researchers and scientists, and the presidents of large companies. You are exposed to how they do things, their views on the industry and their enthusiasm.
“When you are around all that, some of it has to rub off.”
Steve returned to Fort Macleod in mid-November from the 4th International Conference on Coexistence between genetically modified (GM) and non-GMbased Agricultural Supply Chains, in Melbourne, Australia, where he represented the Western Canadian Wheat Growers in support of using biotechnology to enhance the production and quality of wheat.
“Without being involved with the organization I wouldn’t have had the opportunity to attend this conference,” Steve says. “There I got to meet representatives from 32 countries — researchers, scientists and marketers — and meeting and listening to them all adds to my perspective of the industry.”
So it is in absorbing these views and perspectives and strategies from a diverse lineup of industry leaders — at home and abroad — that Steve looks at the management of their own farm near Fort Macleod. His dad has also been an inspiring leader, launching a new business venture 20 years ago, and now running a company with 20 employees.
“I think one of the biggest challenges for farmers today is risk management,” Steve says. “We have come through the past five years with exceptional margins in agriculture,” he says. “But, are they sustainable? I don’t think so. Machinery prices are high, input prices are high, land prices are high, interest rates will likely increase, but commodity prices are volatile. I think it all means that margins will be tighter.
“It costs $200 to $250 per acre to put a crop in the ground today, so you are starting out with a big risk. The first risk is that you have to get some kind of crop off and then you have to be able to market it.
“So I feel the emphasis has to be on risk management — keeping a firm grip on costs and doing the best job of marketing that you can.”
The focus for Steve and Brian will be efficiency, he says. But efficiency, he adds, means a lot more than it used to mean.
“You can put an awful lot of effort into trying to increase production and maybe gain an extra 10 per cent in yield, but if you miss an opportunity and lose 30 to 40 per cent on price, that is huge,” Steve says. “You look at some of the long-term charts and there were five-year stretches where the price of wheat didn’t change 30 cents, but now if it doesn’t change 15 cents per bushel per day, you wonder what is going on. The volatility is amazing.”
Efficiency also means getting the small decisions right. As an example, Steve points to a decision last year about whether to take out the spring price endorsement on crop insurance for durum wheat. If producers checked the box for 30-to 35-bushel coverage, it meant a $3-per-bushel payout on durum, which would have meant an extra $100 per acre. That $100 per acre depended on a check mark.
“And there are a lot of little decisions in agriculture that can have a huge impact,” Steve says. “You can’t overthink this stuff, because it will drive you crazy, but at the same time you have to use your best judgment to take as much risk out of farming as possible.”
As a farm business leader he finds it important to have a good knowledge not only of what is happening locally and nationally, but also globally. More of China’s population is moving up into the middle class, Saudi Arabia has decided to no longer produce wheat, world agriculture has experienced two of the largest crops on record and yet commodity prices didn’t tank — all signs that bode well for the future of agriculture.
Vandervalk says the experience he has gained in working with other farm industry leaders gives him the confidence and enthusiasm to better manage his own farm business. He points out he is fortunate to have the support of his brother and good employees looking after much of the day-to-day farm operation, so he can focus on management issues.
He sometimes looks at a bin of grain and questions what he did to fill it, since he wasn’t in the field day to day. But, says Steve, “the reality is that someone had to buy the seed, pre-buy the fertilizer, line up the chemicals and other crop inputs, replace machinery as needed, work with landlords and look after the marketing, which are all necessary parts, too, for the efficient production of crops and hopefully getting the best value for it.” CG
“You give your time to these organizations — so you have to get something back.”
and that’s important, “but I also know producers in this area who farm fewer acres than we do, but sometimes their crops are better than mine,” he says. “So I always have to be looking and asking what are they doing that’s different than I am, and are they doing something I should try at home?”
Being involved in farm organizations for the past 10 years has been an important part of developing his business, management and leadership skills.
There has also been a fundamental objective at work. Like his father and grandfather, Steve has always been a proponent for an open marketing system for western Canadian wheat. He doesn’t agree with the Canadian Wheat Board (CWB) monopoly on wheat marketing. He believes farmers should have the choice of marketing grains either on their own or through the CWB, and he ran unsuccessfully to become a CWB director for the southern Alberta and southern Saskatchewan region.
That commitment has led to his efforts through the Western Canadian Wheat Growers and now with the umbrella organization, the Grain Growers of Canada, which represents 13 grain, oil-seed and pulse commodity organizations across the country.
Steve says the ongoing challenge for farm organizations such as Grain Growers of Canada is to represent the interests of individual producers and to ensure domestic policies are in the best interests of those individual producers, as well as to make sure Canadian agriculture is properly protected internationally before the World Trade Organization. That’s the big picture he keeps in front of him, and he believes it will benefit Canadian agriculture.
But there is a payback, as well. “You give your time to these organizations, and it does take quite a bit of time, so you have to get something back,” Steve says. “For me what I get back is the opportunity to meet, work with, and observe some of the best minds in the industry.
“With the Wheat Growers and Grain Growers you have very bright and progressive-thinking farmers. And in the process you get to meet with researchers and scientists, and the presidents of large companies. You are exposed to how they do things, their views on the industry and their enthusiasm.
“When you are around all that, some of it has to rub off.”
Steve returned to Fort Macleod in mid-November from the 4th International Conference on Coexistence between genetically modified (GM) and non-GMbased Agricultural Supply Chains, in Melbourne, Australia, where he represented the Western Canadian Wheat Growers in support of using biotechnology to enhance the production and quality of wheat.
“Without being involved with the organization I wouldn’t have had the opportunity to attend this conference,” Steve says. “There I got to meet representatives from 32 countries — researchers, scientists and marketers — and meeting and listening to them all adds to my perspective of the industry.”
So it is in absorbing these views and perspectives and strategies from a diverse lineup of industry leaders — at home and abroad — that Steve looks at the management of their own farm near Fort Macleod. His dad has also been an inspiring leader, launching a new business venture 20 years ago, and now running a company with 20 employees.
“I think one of the biggest challenges for farmers today is risk management,” Steve says. “We have come through the past five years with exceptional margins in agriculture,” he says. “But, are they sustainable? I don’t think so. Machinery prices are high, input prices are high, land prices are high, interest rates will likely increase, but commodity prices are volatile. I think it all means that margins will be tighter.
“It costs $200 to $250 per acre to put a crop in the ground today, so you are starting out with a big risk. The first risk is that you have to get some kind of crop off and then you have to be able to market it.
“So I feel the emphasis has to be on risk management — keeping a firm grip on costs and doing the best job of marketing that you can.”
The focus for Steve and Brian will be efficiency, he says. But efficiency, he adds, means a lot more than it used to mean.
“You can put an awful lot of effort into trying to increase production and maybe gain an extra 10 per cent in yield, but if you miss an opportunity and lose 30 to 40 per cent on price, that is huge,” Steve says. “You look at some of the long-term charts and there were five-year stretches where the price of wheat didn’t change 30 cents, but now if it doesn’t change 15 cents per bushel per day, you wonder what is going on. The volatility is amazing.”
Efficiency also means getting the small decisions right. As an example, Steve points to a decision last year about whether to take out the spring price endorsement on crop insurance for durum wheat. If producers checked the box for 30-to 35-bushel coverage, it meant a $3-per-bushel payout on durum, which would have meant an extra $100 per acre. That $100 per acre depended on a check mark.
“And there are a lot of little decisions in agriculture that can have a huge impact,” Steve says. “You can’t overthink this stuff, because it will drive you crazy, but at the same time you have to use your best judgment to take as much risk out of farming as possible.”
As a farm business leader he finds it important to have a good knowledge not only of what is happening locally and nationally, but also globally. More of China’s population is moving up into the middle class, Saudi Arabia has decided to no longer produce wheat, world agriculture has experienced two of the largest crops on record and yet commodity prices didn’t tank — all signs that bode well for the future of agriculture.
Vandervalk says the experience he has gained in working with other farm industry leaders gives him the confidence and enthusiasm to better manage his own farm business. He points out he is fortunate to have the support of his brother and good employees looking after much of the day-to-day farm operation, so he can focus on management issues.
He sometimes looks at a bin of grain and questions what he did to fill it, since he wasn’t in the field day to day. But, says Steve, “the reality is that someone had to buy the seed, pre-buy the fertilizer, line up the chemicals and other crop inputs, replace machinery as needed, work with landlords and look after the marketing, which are all necessary parts, too, for the efficient production of crops and hopefully getting the best value for it.” CG
