AGRI ISSUES ETHICS CASE STUDY

On a cold Saturday morning in February, John Konig and his daughter Rachel were working on updating their corn planter in the farm shop in preparation for the upcoming planting season. Rachel had been working on the farm in addition to her work as a credit underwriter for a major bank. As Rachel passed a new seed firmer to her father, he asked, Whats your plan, you know, long term? Do you want to take over the farm? Rachel took a second, she had always wanted to farm but now her mind was racing. She had seen succession planning situations go wrong at the bank and she liked how close she was to her parents and siblings and didnt want the farm to come between them.Yeah, Rachel said, but what will that look like? John and his wife Julie had purchased the farm from Johns parents in the early 1990s, about the time Rachel, her sister Andrea and brother Jack were born. At that time, they paid $300,000 for the 300 acres of farmland, buildings and some modest farm equipment. That was a discount, considering farmland values were about $2000 per acre at the time. Things are better now than when your mom and I bought the farm John said, implying that the 1980s had been a very challenging time for farm families in Ontario. But the prices are much higher. John went on, We want to make it work for you and be fair to your siblings. Rachel replied, I know dad. I want to be fair to them too, but if I am taking over, I want to be able to afford to grow the farm and update equipment and we know not every year will be as good as the last few. Even if we continue to be profitable, I dont know if I can afford $30,000 per acre for land. The farm now consists of 500 acres of owned land and 500 acres of rented land for a total of 1000 acres being farmed in corn, wheat and soybeans. The rented land has earned them a profit of about $200 per acre and the owned land, roughly $600 per acre over the past couple of remarkably good years for a profit of about $400,000 per year. Im earning $80,000 per year at the bank, Rachel said. I dont need that much, but I will need something if I farm full time. We want to see the farm continue, but we have to be fair. Andrea and Jack have helped when weve asked but havent shown an interest in the business John saidas he tightened up the last bolt. He continued, We have to be fair to them and think about our income in retirement too. Why dont you and mom come up with a plan, and I can run it past one of the advisors at the bank Rachel said as they headed in for lunch. John and Julie had some work to do. The future of the business they built, their retirement, and their family relationships could all be affected by their next steps.

5.1 Situation Analysis/ Size-Up/Assumptions _____/ 12points P#1 - Key decision-makers in case, their title, name of firm, etc. P#2 - Summarize the facts of case P#3 Identify symptoms occurring P#4 - Critical inferences based on facts related to symptoms

5.2 The Problem Statement _____/ 14 points Broad statement of the root cause

What can_______________ do in the short-term to______________________________________________ and in the long-term to_____________________________________________________________________?

5.3 Analysis _____/ 14 point Qualitative analysis of the customer, competition, issues related to the Agri- Business

5.4 Alternatives _____/ 20 points At least 2 tactical alternatives offered At least 2 advantages and 2 disadvantages for each alternative Alternative #1: Details: Advantages: - -

Disadvantages: - - Alternative #2: Details: Advantages: - - Disadvantages: - - -

5.5 Recommendation and Plan of Action _____/ 20 points We recommend Alternative #____ Provide criteria reasoning for your selection Explain why other alternatives were not selected Not Alternative #___ because...

Not Alternative #___ because... Preferred Alternative #___ addresses the problem statement by: -Short-term:

5.5 Recommendation and Plan of Action _____/ 20 points We recommend Alternative #____ Provide criteria reasoning for your selection Explain why other alternatives were not selected Not Alternative #___ because...

Not Alternative #___ because... Preferred Alternative #___ addresses the problem statement by: -Short-term:

5.7 Concluding Comments _____/ 20 points Summarizes major issues/problems Summarizes recommendation Reasoning for acting on the action plan Positive Call To Action ending