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Brad Heffington - Texas Tech University

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Issue XXVIII : June 2011<br />

<strong>Brad</strong> <strong>Heffington</strong> - Littlefield, TX<br />

<strong>Texas</strong> <strong>Tech</strong> <strong>University</strong><br />

Story, Photos & Design By: Sa m antha Yates Borgstedt<br />

It’s that time of year again. Cotton planters have been rolling through fields across the High Plains,<br />

and for the most part, they are putting seed in dry ground. As every farmer knows, sometimes Mother Nature<br />

smiles down and grants rain when you need it, sometimes it comes mixed with a little (or a lot) of hail,<br />

and sometimes it just doesn’t seem to come at all.<br />

<strong>Brad</strong> <strong>Heffington</strong>, who farms 6,000 acres in Littlefield, <strong>Texas</strong>, and current president of Plains Cotton<br />

Growers, knows years like this come and go. He has planted his seed, started his pivots, and is now hoping<br />

for the best.<br />

“When you watch dirt fly up behind the planters like it is doing now,” <strong>Heffington</strong> said, “it doesn’t get<br />

you too fired up about planting.”<br />

Nonetheless, <strong>Heffington</strong> said all he can do is plant his seed and be patient. He said he really needs a<br />

rain by at least June 5, but he is fearful that a good rain may be accompanied by some bad hail. However, he<br />

Larry Combest Endowed Chair in Agricultur al Competitiveness<br />

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Larry Combest Endowed Chair in Agricultur al Competitiveness<br />

acknowledges that dealing with the weather is<br />

a major part of a farmer’s business, and so he<br />

will take it as it comes.<br />

<strong>Heffington</strong> said although bad years<br />

come along with the good, he remains thankful<br />

that in 1989 a small town banker took a chance<br />

on him, which allowed him to do what he continues<br />

to love today, farm.<br />

“I was a junior at <strong>Texas</strong> <strong>Tech</strong> when some<br />

land became available for me to farm,” <strong>Heffington</strong><br />

said. “I tried to get a loan from several<br />

places with no luck. Mr. Lee decided to take a<br />

shot on me, and I am sure glad he did.”<br />

James Lee, of the First National Bank of<br />

Littlefield, must have seen a drive in <strong>Heffington</strong><br />

that has continued to grow and prosper to this<br />

very day. Besides striving to learn and remain<br />

educated on seed, fertilizer, and equipment,<br />

<strong>Heffington</strong> has worked hard to gain knowledge<br />

about the marketing side of his operation.<br />

<strong>Heffington</strong>, who graduated from <strong>Texas</strong><br />

<strong>Tech</strong> <strong>University</strong> with a Bachelor’s of Business<br />

Administration and from the <strong>Texas</strong> A&M<br />

Master Marketer program, uses technical and<br />

fundamental analysis, and stays in tune with<br />

local and world markets. He said being able to<br />

market his cotton has earned him income and<br />

success. He went on to say marketing is a very<br />

important aspect of his business, and he tries to<br />

take advantage of every opportunity he can to<br />

capture the best prices for his cotton.<br />

<strong>Heffington</strong> earned an average selling<br />

price of $1.08 on his cotton last year, selling<br />

some towards the end for $1.50. He said everything<br />

kept falling in place for him as he grew<br />

and sold his cotton. Rain came pretty steadily,<br />

and prices rose. And although the growing<br />

season may not be as favorable this year as last,<br />

<strong>Heffington</strong> said he continues to see prices staying<br />

strong.<br />

“If crops remain as dry as they are now,<br />

dryland acres may not be there and our irrigated<br />

production is liable to decrease, which<br />

means prices this fall could stay up,” <strong>Heffington</strong><br />

said. “However, those high prices won’t do<br />

much good if we don’t have cotton to sell.”<br />

<strong>Heffington</strong> said with the rising input<br />

costs farmers have to deal with, they cannot<br />

stand to sell cotton for 60 to 70 cents anymore.<br />

Seed, fuel, labor, fertilizer, equipment, technology,<br />

they have all gotten significantly more<br />

expensive in a short amount of time, making<br />

every cent count to the farmer.<br />

“In order to be successful in farming you<br />

must figure out what pays and what doesn’t,”<br />

<strong>Heffington</strong> said. “Some technology may cost<br />

Andy Timmons planting grapes.


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you a little more up front, but make you more in<br />

the end. Some may not. You just have to figure<br />

out what will be the most profitable on your farm<br />

and go with that.”<br />

<strong>Heffington</strong> has helped several equipment<br />

and technology dealers test their newest<br />

products on his farm. He has adopted a Case and<br />

John Deere cotton picker with on-board modulebuilding<br />

capabilities. He said that although the<br />

cost of these machines was significant, they have<br />

reduced his need for many other pieces of harvesting<br />

equipment, fuel, and labor.<br />

“I remember having boll-buggies, modulebuilders<br />

and strippers going everywhere,” <strong>Heffington</strong><br />

said. “We would have to hire on several more<br />

people to help run everything, and hope everyday<br />

that everyone showed up. With these pickers it<br />

takes one guy to run them, some fuel, and that is<br />

it.”<br />

<strong>Heffington</strong> also uses Trimble precision agricultural<br />

products that utilize 27 satellites enabling<br />

him to stay within a half-inch variance on all of his<br />

fields. <strong>Heffington</strong> gives credit to his wife Kim, their<br />

three sons, and his three employees, all of which<br />

have worked for him close to 20 years, for being<br />

knowledgeable of the technology and his farm in<br />

general. He said good help is not always easy to<br />

find, and he is lucky to have had such great help


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Larry Combest Endowed Chair in Agricultur al Competitiveness<br />

from his employees and family for many years.<br />

While <strong>Heffington</strong> can rely on good help<br />

through what looks to be a tough year, he is worried<br />

about his limited water and dryland crops. Although<br />

the majority of <strong>Heffington</strong>’s fields are irrigated, he<br />

said the irrigation is set up to supplement rainfall, as<br />

most of the High Plains irrigation is set up to do. His<br />

wells are continuing to pump an adequate supply of<br />

water for now, but he needs to continue to be cautious<br />

with his water output to ensure that enough<br />

water will be available in the future, and to do that<br />

<strong>Heffington</strong> needs timely and adequate rains.<br />

“The weather and policy you cannot control,”<br />

<strong>Heffington</strong> said, “which creates lots of challenges for<br />

farmers. We may have better seed varieties and technologies<br />

for using water, but no matter what, we still<br />

need the rain.”<br />

Along with rain, <strong>Heffington</strong> said farmers also<br />

need good policy.<br />

“Farm policy is geared to small farmers,” <strong>Heffington</strong><br />

said. “We aren’t small farmers anymore. We are<br />

big businesses, real businesses, and we are a very few<br />

feeding and clothing a lot of people.”<br />

<strong>Heffington</strong> said in order to continue supplying<br />

food and fiber for the world, policy must be written<br />

that provides valuable safety nets for farmers and is<br />

focused on keeping U.S. commodities competitive in<br />

the international marketplace.<br />

“We are coming off a good year,” <strong>Heffington</strong><br />

said. “We made a good crop, received some good<br />

prices, and saw our local economies benefit from all<br />

of that. The thing we must remember is that at the<br />

end of the day it all comes down to the number one<br />

economic rule: supply and demand. If textile mills<br />

need the cotton, then we will see a demand and<br />

good prices. I just hope we have the cotton to supply<br />

them with.”


Comments from the Chair<br />

Mr. <strong>Heffington</strong> is the prototype for the next<br />

generation farmer. <strong>Tech</strong> savvy and farming<br />

oriented can be used to describe him. But,<br />

perhaps a better description is a “complete<br />

package.” <strong>Brad</strong> knows how to grow a crop for<br />

sure, but he is also a great marketer and a great<br />

advocate for agriculture. It is his marketing,<br />

though, that should be a good example for<br />

remaining competitive. As everyone knows,<br />

cotton markets have experienced big increases in<br />

market volatility in recent years. To protect<br />

yourself from downturns and take advantage of<br />

good prices takes time, effort, and knowledge.<br />

One certainly does not have to be an ‘expert’ in<br />

cotton prices...I am not sure any of us are<br />

‘experts’...but careful attention to potential<br />

opportunities and seeking out information about<br />

how those options work (or do not work) for your<br />

operation are critical to long-term success.<br />

<strong>Brad</strong> has definitely exemplified the meaning<br />

of “marketing.” His academic training helped, of<br />

course. But it has been his “can do” attitude that<br />

has led him to seek out the additional training<br />

and spend the time learning the markets and risk<br />

management options that are available to him.<br />

Of course, there are varying degrees of<br />

sophistication, and more sophisticated marketing<br />

strategies take<br />

more time to<br />

execute. All<br />

producers are not<br />

suited to these<br />

approaches, which<br />

is certainly fine.<br />

But, with the extra<br />

time and energy<br />

comes extra<br />

earnings. So, the less<br />

Dr. Darren Hudson, Chair<br />

time you spend, the less you will make, generally.<br />

<strong>Brad</strong>, of course, is first concerned about making<br />

a crop. But, his success does not stop with yield.<br />

Marketing is his passion and is also a key factor<br />

in his competitiveness.<br />

Larry Combest Endowed Chair in Agricultur al Competitiveness<br />

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