By Jeana Goosmann, Goosmann Law Omaha
Jeana Goosmann, Founder, CEO and Managing Partner of Goosmann Law Firm, sat down with Carl Dickinson, CEO of Central Valley Ag (CVA), to explore the evolving landscape of modern agriculture.
Fall offered a smooth harvest season, with ideal weather conditions and without immediate concerns. As we enter 2025, things aren’t looking quite as sunny. And as new hurdles arise, Carl Dickinson, CEO of Central Valley Ag (CVA), is wrestling with a much larger challenge: how to help farmers adapt to the rapid evolution of the agricultural industry.
To keep up in today’s agricultural market, it’s critical to stay adaptable. Farmers are often uncertain about what to grow, a fear-driven by the unknown. Midwest crop producers have experienced a significant downturn in corn, soybean and wheat prices since the beginning of the year, further underscoring the pressures that farmers face.
Adapting to New Market Realities
One of the most pressing challenges facing farmers today is adapting to new market conditions. For years, many Midwest farmers have been locked into traditional crops like corn and soybeans, following the legacy of their predecessors. However, this reliance on a narrow selection of crops is starting to hinder farmers’ ability to pivot in response to fluctuating prices and changing demand.
Dickinson sees this reluctance to change as a significant barrier, noting that sticking to what’s familiar can leave farmers at a disadvantage. On the flip side, embracing innovative, forward-looking strategies and solutions could be the key to sustainable profit and growth. “You better be able to do it better than — or different than — somebody else, if you want to create real wealth,” he said.
Consumer Demands and Industry Evolution
One of the major themes Dickinson highlights is the growing importance of meeting consumer demands. He referenced a 1995 quote from David Downey, who founded and served as the executive director emeritus of Purdue University’s Center for Food and Agricultural Business, which called on farmers to “grow what the market wants, the way they want it grown and deliver it when they want it.” This sentiment is even more relevant today, as consumers become more discerning about the food they purchase.
Due to longer genetic turnaround times, environmental variables and higher capital costs, row crop farming has been slower to adapt to consumer preferences than the more agile livestock industry. However, the demand for sustainably grown, chemical-free and higher-quality crops continues to rise, making it essential for farmers to keep up with these evolving trends — and a way for them to stand apart from the competition.
Nutritional Value and Market Trends
Dickinson also raises concerns about the potential loss of nutritional value in crops, driven by the pursuit of higher yields. As crop quality diminishes, the need for additives in food production increases, ultimately impacting the end consumer. Dickinson believes there is significant potential in reversing this trend, particularly with crops like wheat, which could regain their nutritional quality and reduce production costs.
In today’s market, consumer preferences are shifting towards healthier, more natural foods, which offers farmers an opportunity to differentiate themselves by growing high-quality, specialty crops.
Role of Co-ops and Contractual Arrangements
Cooperatives like CVA play a vital role in helping farmers navigate these changing dynamics — Dickinson suggests that co-ops should act as intermediaries between farmers and consumer-packaged goods (CPG) companies, aggregating products and ensuring they meet market standards. Co-ops can hold contracts with CPGs, providing farmers with access to value-added programs that can significantly boost their profitability.
Dickinson also stresses the importance of farmers adhering to contract terms, which can be challenging when faced with complicated legal documents. However, failing to meet contractual obligations jeopardizes their livelihoods, as non-compliance may result in losing access to these essential programs. Jeana Goosmann agrees that understanding the legal side of these agreements is crucial for farmers. “Sometimes we get stuck in the weeds,” she said, “but stepping back to think about the larger vision is essential. There’s a deep connection between agriculture, law and our regional economy.”
In some ways, the future of agriculture hinges on how farmers manage these evolving business relationships and comply with contractual obligations while adapting to changing demands. The role and importance of contracts — whether with co-ops or CPGs — cannot be understated, especially as farmers navigate complex market shifts.
“Our job,” Dickinson said, “is to give [farmers] opportunities, and help those who want to take them.”
Traceability and Data Utilization
Traceability and data utilization are essential components of success in the modern agricultural world. With growing consumer demand for transparency in food production, farmers need to understand how to harness the data they collect, whether through yield monitors or blockchain technology. Dickinson acknowledges that the industry is still in the early stages of implementing full-scale traceability, but there is building momentum toward more data-driven decision-making.
With any technological advancement, there is a clear need to demonstrate the tangible benefits of data collection and analysis. By making better use of the data they collect, farmers can improve decision-making and profitability while meeting the growing demand for transparency from consumers who want to know where and how their food is produced.
Consolidation and Market Dynamics
Consolidation within the agricultural industry is inevitable as large-scale farms and cooperatives continue to expand. Dickinson predicts that the future will see a divide between high-output, cost-conscious farmers and those catering to specialized, niche markets. The growing role of co-ops in this shift is clear: by streamlining operations and forming strategic partnerships with CPG companies, co-ops can better serve both large and small farmers.
Value-Added Services: A Strategic Focus
At CVA, value-added services are central to their strategy for driving profitability and helping farmers succeed in a competitive market. Their approach works to build relationships with customers and understand their needs, finding win-win opportunities for farmers to deliver tailored solutions. This customer-centric approach allows CVA to provide farmers with the support they need to thrive in a rapidly changing environment. The goal is to use a value-added services approach to improve efficiency, reduce costs and help farmers not just adapt to, but capitalize on market trends for long-term success.
Impact on Rural Communities
Beyond the direct impact on agriculture, co-ops like CVA also play an important role in sustaining rural economies. Dickinson acknowledges that maintaining profitability in small farming towns is a challenge, but he remains optimistic about the potential for positive change. By supporting local farmers and creating sustainable economic opportunities, co-ops can help breathe new life into rural communities.
Dickinson’s strategic approach to fostering long-term change recognizes the critical importance of success on a smaller scale, which can have far-reaching impacts on both farmers and the communities they serve.
“I always say it’s not altitude, it’s aptitude. We have some small farmers that do really good stuff. It’s more around the aptitude to grow, change, get better and improve, the same four values we operate under. It’s easy to get caught up in the day-to-day but we have to think strategically and focus on the bigger picture.”
Those farmers in smaller communities aren’t just on Dickinson’s radar because they’re strategically minded, though. “I need to be a big enough fish in a small enough pond to be able to affect farmers’ lives,” he said. “I would much rather be in a smaller pond where I can affect positive change on a farm, than at a big corporation where I can’t make as much of an impact.”
As agriculture continues to evolve, it’s clear that farmers, co-ops and industry leaders must embrace innovation, respond to consumer demands and leverage new technologies to remain competitive and profitable. By doing so, they can position themselves for success in a rapidly changing marketplace and sustain continued growth in the agricultural sector. Adaptability, collaboration and a forward-thinking approach are going to be key in shaping the future of agriculture.