Joey Hepler navigated the challenges of being a young, beginning farmer to build a successful operation from the ground up.
Written by Joann Pipkin; Photos by Elise Luebbering
Joey Hepler admits he doesn’t know everything about farming.
It’s his naïve attitude that, in fact, is helping him navigate the challenges many young, beginning farmers like him face.
The 30-year-old Winigan, Missouri, diversified livestock and crop producer found out the hard way that having a lender who says “no” can be beneficial for operational growth and success.
Alongside wife, Morgan, and young son, Bennett, Hepler operates a commercial cow/calf herd, manages a contract swine operation and grows corn and soybeans in the rolling hills of Sullivan County.
Hidden Blessings
After growing up on the family farm, Hepler studied agriculture at the University of Missouri in Columbia. After changing his focus a couple of times, Hepler found his passion in animal science during his junior year of college.
“I really wanted to be a beef nutritionist after graduation,” Hepler says.
With his sights set on landing one specific job, Hepler was left in limbo after not getting an offer from the company he interviewed with. At his dad’s insistence, Hepler headed back home to the family farm in the summer of 2017 after college graduation.
When summer turned to fall, Hepler needed to decide on a more permanent position. As part of his pay, Hepler could run some cows on his dad’s land.
“I got a loan for 60 head of heifers,” Hepler explains. “Not a week after I bought them, the place I had interviewed with six months before called and offered me a job.”
Sleepless nights plagued the young farmer the following two weeks. Torn by what he thought might be the best decision for him, Hepler finally awoke one morning to tell his dad he’d be staying on the farm.
His decision would be a blessing in disguise. Unbeknownst to him, Hepler’s mom had received a cancer diagnosis that would require his dad to be away with her for doctor appointments in the months to come.
“It was a great learning experience for me on making sure everything gets done whenever dad is gone,” Hepler says. “It all worked out really well, and that’s how I really got my foot in the door.”
Embracing Challenges
In 2018, after Hepler and his dad set up their initial partnership, the duo purchased a set of cows from South Dakota together. Hepler admits the decision turned out to be a mistake.
“It was me being young, not willing to spend money, not willing to pay for my part, not willing to put in enough time,” he says. “Our relationship was not very great for a while, and probably most of it was my fault. We get along great now. I just wasn’t living up to the expectations that were set forth for me.”
When some of the cows the Heplers bought didn’t transition well to their new Missouri environment, tensions ran high. Cash was short. Even though Hepler had a line of credit, he quickly learned, it wasn’t money to play with.
“(Lenders) expect you to pay that back,” Hepler says.
About that same time, many area landowners opted to turn cattle pasture into crop ground, making it difficult for the Heplers to find affordable land for their cattle operation.
“That actually led me to rent about 600 acres, east of Lucerne near my grandpa,” Hepler says.
Hepler’s grandfather had rented the parcel before him, and the landowners were willing to work with the young farmer on fixing and installing new fence.
“They want to know what’s going on, and they want to know my plans for the ground, when I’m going to turn cows in,” Hepler says. “They’ve been a blessing to work with.”
Acquiring the rental pasture helped Hepler navigate his cattle operation at a critical time. Yet, expanding his herd wasn’t the option he had hoped for.
“I couldn’t get a loan for more cows because I had just put up my hog barn, and my debt-to-income ratio was skewed too far to the wrong side of the scale,” Hepler explains.
Hepler’s hog operation consists of a 9,600 head confinement contract nursery barn.
“I’ve definitely had some challenges along the way,” he says.
Making Connections
Transparency has been key in Hepler’s relationship with FCS Financial. He says the lender’s willingness to be open and honest with him on how he can improve his operation is beneficial for securing financing for his farm business.
“FCS Financial has been very transparent on what I need to improve on or what I need to do in order to better position myself for a loan,” Hepler says. “I would not be doing what I’m doing if I did not have a good working relationship with FCS Financial.”
Through FCS Financial’s Connect Program, Hepler says he was able to network and share experiences with other young, beginning farmers.
Designed specifically for young and beginning farmers, FCS Financial’s Connect Program provides essential tools to help operations thrive. From specialized loans featuring flexible credit to educational opportunities designed to sharpen financial and business skills as well as supportive outreach, Connect can provide direct channels for young farmers to share their voice with the cooperative’s leadership.
According to FCS Financial’s Debbie Ragsdale, “Connect served as a great platform for Hepler to fine tune his skills in presenting his financials to FCS Financial which has helped him to grow his operation. He has become an expert in providing quality financial balance sheets, cash flows and tax management after being a part of the Connect program. Joey has also recently mentioned the great networking opportunities he’s had with the Connect program.”
Ragsdale has worked with Hepler from the start.
“I see what he’s done over time, and it’s awesome to see a young farmer succeed,” Ragsdale adds. “He’s gone through so many different stages. He’s doing the right things.”
Hepler is appreciative of FCS Financial in helping him develop an understanding of what asking for a loan means.
“You are trying to sell yourself as a successful entrepreneur because ultimately, they’re investing their money in you, and they expect you to be able to pay it back,” he says. “You want to sell yourself as a good investment.”
Working with a lender familiar with agriculture has been essential throughout Hepler’s journey.
“They know current events, they know what has happened in the industry because of past events,” he says. “They have a rearview, firsthand experience of where the industry has been. Because they’re connected to agriculture, I think they’re more prepared based on where commodity prices have been.”
Hepler adds that because he’s built a relationship with FCS Financial, it’s a confidence booster for him when the lender okays financing for something he wants to do. And, if they don’t, he’s learned to go back to the drawing board and regroup.
“A big benefit to working with FCS Financial is they’re competitive on interest,” Hepler says. “That dividend check that you get back is nice. I know it’s not guaranteed, but it is a thank you for working with them. It’s also like they are succeeding in those they invest in.”
Experienced Learning
Joey Hepler realizes not all young and beginning farmers are as lucky as he is to have had family members to look up to and learn from on his farming journey.
“It was pretty hard off the start,” Hepler notes. “The biggest challenge in the beginning was adjusting the partnership my dad and I had set up.”
Still, Hepler is grateful his dad and grandfather are rooted in the industry. He’s come to rely on their knowledge and experience.
“I’ve got a lot to learn from my grandfather that I haven’t yet,” Hepler says. “One of my biggest regrets is that maybe I didn’t ask enough questions or haven’t taken the time to go up and spend the day working (alongside him). A lot of times I wish I would have spent more time paying attention and having a willingness to learn.”
Hepler knows, too, for every good day he has on the farm, a challenging one is right around the corner. It’s when the challenging ones stack up that he reminds himself failure is not the end of the world.
“Don’t get down on yourself,” Hepler advises his peers. “Faith is important. If you need help, ask for it. If that’s physically or mentally, you don’t have to go through it alone.”
At the end of the day, Hepler is reminded why the long, challenging days are worth every struggle. “I want to be in the position to provide for (Bennett) and give my kids an opportunity to come back (to the farm),” Hepler says.
