Davids<strong>on</strong> GrainCrest<strong>on</strong>,How do you create something from nothing? How do you start a business from <strong>the</strong> ground up? How do you growyour business by leaps and bounds, with <strong>on</strong>ly your customers to do your selling for you? <str<strong>on</strong>g>The</str<strong>on</strong>g> answer, according toCarol and R<strong>on</strong>ald Davids<strong>on</strong>, <strong>the</strong> owners <strong>of</strong> Davids<strong>on</strong> Grain Incorporated, is simple; service. "We're all so busy," saidCarol, "<strong>the</strong> whole world is after good service."BeginningsR<strong>on</strong>ald's grandfa<strong>the</strong>r, William, came to DeKalb Countyfrom Canada in 1905 when he was 16 years old. He started hisfarm with livestock and grain. Over <strong>the</strong> years, <strong>the</strong> farm has beenpassed down to R<strong>on</strong> and his s<strong>on</strong> John, who spends most <strong>of</strong> his"free time," when he is not at <strong>the</strong> Grain Business, working <strong>the</strong>4,200 acres throughout Asht<strong>on</strong>, Kirkland, Crest<strong>on</strong>, and Rochelle.Carol Davids<strong>on</strong> wasn't raised with a farming background.From Sou<strong>the</strong>rn Illinois, she is a nurse (n<strong>on</strong>-practicing). WhenCarol and R<strong>on</strong> met through a mutual friend, she was <strong>the</strong> administratorat Rochelle Nursing Home. <str<strong>on</strong>g>The</str<strong>on</strong>g> skills she utilized as administratorat <strong>the</strong> nursing home would so<strong>on</strong> be put to good use in <strong>the</strong>irnew business.In 1992, R<strong>on</strong>ald and Carol began using <strong>the</strong> elevator that, intwo years, would provide <strong>the</strong> basis for <strong>the</strong>ir new business. R<strong>on</strong> and Carol worked in a little building behind <strong>the</strong> elevator.With little more than a frying pan, <strong>the</strong>y put in many seventeen-hour days using just <strong>the</strong> bare essentials. <str<strong>on</strong>g>The</str<strong>on</strong>g>y slept<strong>on</strong> a couch that pulled out into a bed, all <strong>the</strong> while trying to ignore <strong>the</strong> sounds <strong>of</strong> <strong>the</strong> rats.Since she didn't have much experience in farming, <strong>the</strong> startup <strong>of</strong> <strong>the</strong> business in 1994 was a challenge forCarol. Sometimes R<strong>on</strong> would throw out unfamiliar terms, and she felt like she might be making a big mistake. Goingback to nursing was becoming more and more attractive, especially since she and R<strong>on</strong> worked such l<strong>on</strong>g hours. ButCarol kept at it, and so<strong>on</strong> she was up to speed with R<strong>on</strong>. Today, a computer program handles all <strong>of</strong> <strong>the</strong>ir bookkeeping,but in those days Carol would keep track <strong>of</strong> everything manually. While R<strong>on</strong> was up all night drying <strong>the</strong> corn, and<strong>the</strong>n handling <strong>the</strong> customers in <strong>the</strong> morning, Carol was keeping track <strong>of</strong> everything <strong>on</strong> a spreadsheet by hand.R<strong>on</strong> manages <strong>the</strong> strategic job <strong>of</strong> purchasing and selling <strong>the</strong> grain. Keeping <strong>on</strong>e eye <strong>on</strong> <strong>the</strong> market and <strong>on</strong>e eye<strong>on</strong> his storage capacity, R<strong>on</strong> decides how much to buy, how much to ship out, and how much to keep open for storage.Up to 200,000 bushels <strong>of</strong> grain a day are bought and sold at Davids<strong>on</strong> Grain in <strong>the</strong> fall. R<strong>on</strong> says it is all a matter <strong>of</strong>timing, as <strong>the</strong> price changes <strong>of</strong>ten. Having learned how to work <strong>the</strong> market with his own farm, he expanded when<strong>the</strong>y started <strong>the</strong> business. "I had quite a few good teachers,"R<strong>on</strong> said.Growing<str<strong>on</strong>g>The</str<strong>on</strong>g> business started with R<strong>on</strong>, Carol, R<strong>on</strong>'s s<strong>on</strong> John, anda hired man. In 1996, <strong>the</strong>y expanded with <strong>the</strong> purchase <strong>of</strong> severaltrucks. <str<strong>on</strong>g>The</str<strong>on</strong>g>y <strong>cover</strong> <strong>the</strong> entire Midwest with pickups inIowa, Wisc<strong>on</strong>sin, Indiana, Michigan, Minnesota, and <strong>of</strong> course,Illinois. When a company needs a load delivered "just in time,"R<strong>on</strong> and Carol will get <strong>the</strong> call because <strong>the</strong>ir drivers haven'tmissed a load yet. "<str<strong>on</strong>g>The</str<strong>on</strong>g> truckers are our salesmen out <strong>the</strong>re,"said R<strong>on</strong>, "so we have meetings with <strong>the</strong>m to make sure <strong>the</strong>yrealize that." <str<strong>on</strong>g>The</str<strong>on</strong>g>y make sure that all <strong>of</strong> <strong>the</strong>ir drivers are trained
n Incorporated, Illinois<strong>on</strong> all <strong>of</strong> <strong>the</strong> equipment <strong>the</strong> grain business uses, and <strong>the</strong>y d<strong>on</strong>'t sendnew drivers out to <strong>the</strong> fields until <strong>the</strong>y work for <strong>the</strong>ir farm to makesure <strong>the</strong>y can do <strong>the</strong> job well. That way, if a farmer needs help when<strong>the</strong> driver is out in <strong>the</strong> field, <strong>the</strong>y can pitch in and help out, instead <strong>of</strong>sitting in <strong>the</strong> truck and waiting. Because most <strong>of</strong> <strong>the</strong>ir drivers havebeen <strong>the</strong>re for a l<strong>on</strong>g time, with <strong>the</strong> excepti<strong>on</strong> <strong>of</strong> a few part-timers that<strong>the</strong>y hire in <strong>the</strong> fall, R<strong>on</strong> and Carol have a str<strong>on</strong>g relati<strong>on</strong>ship with<strong>the</strong>m, and in turn, <strong>the</strong> drivers have good relati<strong>on</strong>s with <strong>the</strong> farmers.At <strong>on</strong>e point R<strong>on</strong> and Carol thought perhaps business wasexpanding almost too quickly. <str<strong>on</strong>g>The</str<strong>on</strong>g>y now have 15 semis running andfour locati<strong>on</strong>s: Holcomb, Shabb<strong>on</strong>a, and two in Crest<strong>on</strong>. <str<strong>on</strong>g>The</str<strong>on</strong>g>y brought<strong>on</strong> Carol's s<strong>on</strong> Hadley in 1997 and <strong>the</strong> four <strong>of</strong> <strong>the</strong>m, John, R<strong>on</strong>, Carol,and Hadley (see picture at left), began to learn each o<strong>the</strong>r's jobs. While R<strong>on</strong> and Carol began <strong>the</strong> business, over <strong>the</strong>years Hadley and John have begun to take over. "We never expected <strong>the</strong> business to grow as much as it did," saidCarol. "We never planned <strong>on</strong> being in <strong>the</strong> grain business." <str<strong>on</strong>g>The</str<strong>on</strong>g> two <strong>of</strong> <strong>the</strong>m c<strong>on</strong>sider <strong>the</strong>ir customers to be <strong>the</strong>ir salesmen.<str<strong>on</strong>g>The</str<strong>on</strong>g>y know that if <strong>the</strong>y do <strong>the</strong>ir best to show <strong>the</strong> customers that <strong>the</strong>y appreciate <strong>the</strong>ir business, Davids<strong>on</strong> Grainwill sell itself.Service"In any industry, service seems to be lacking quite abit," R<strong>on</strong> said. One <strong>of</strong> <strong>the</strong>ir customers <strong>of</strong>ten comments toR<strong>on</strong> and Carol, "You treat me like a big farmer." Hemight <strong>on</strong>ly have three loads, but when he calls for a truck,<strong>the</strong>y send him a truck right away. <str<strong>on</strong>g>The</str<strong>on</strong>g> customer knowsthat he is just as important as <strong>the</strong> large farmers.Sometimes <strong>the</strong> small farmers can be ignored in <strong>the</strong> fallduring <strong>the</strong> busier times. R<strong>on</strong> and Carol know that that ishow <strong>the</strong>y built <strong>the</strong>ir business…with <strong>the</strong> small farmers. Infact, <strong>the</strong>y picked up a lot <strong>of</strong> business from farmers whowould be sitting, waiting for trucks from <strong>the</strong>ir elevatorand right across <strong>the</strong> road <strong>the</strong>y would see Davids<strong>on</strong> Graintrucks <strong>the</strong>re and back as many as four times.<str<strong>on</strong>g>The</str<strong>on</strong>g>ir business has grown because <strong>of</strong> <strong>the</strong> pers<strong>on</strong>alservice that <strong>the</strong>y <strong>of</strong>fer to <strong>the</strong>ir customers. <str<strong>on</strong>g>The</str<strong>on</strong>g>y will help<strong>the</strong>ir clients with LDPs (Loan Deficiency Payments); all <strong>the</strong>y have to do is bring in <strong>the</strong>ir paperwork and Carol orHadley will supply all <strong>of</strong> <strong>the</strong>ir records for <strong>the</strong>m. Carol and Hadley will help <strong>the</strong>ir clients with <strong>the</strong> multitude <strong>of</strong> governmentfarm programs that are available and sometimes overwhelming. <str<strong>on</strong>g>The</str<strong>on</strong>g>y familiarize <strong>the</strong>mselves with <strong>the</strong> governmentprograms and help out or even complete applicati<strong>on</strong>s for <strong>the</strong>ir clients. Sometimes farmers come in and want to knowhow many bushels <strong>the</strong>y've sold for <strong>the</strong>ir taxes and how much income <strong>the</strong>y've had. Davids<strong>on</strong> Grain is happy to print out<strong>the</strong> records for any<strong>on</strong>e who needs <strong>the</strong>m. "Without <strong>the</strong> customers, we d<strong>on</strong>'t have anything," said R<strong>on</strong>.At first, <strong>the</strong>ir clients would be cautious. Since Davids<strong>on</strong> Grain was a fairly new operati<strong>on</strong>, <strong>the</strong>y would <strong>on</strong>lybring a porti<strong>on</strong> <strong>of</strong> <strong>the</strong>ir harvest in order to test <strong>the</strong>m out. But when <strong>the</strong> farmers learned what R<strong>on</strong> and Carol could d<strong>of</strong>or <strong>the</strong>m at <strong>the</strong> end <strong>of</strong> <strong>the</strong> year with all <strong>of</strong> <strong>the</strong>ir records, and that <strong>the</strong>y didn't have to go to two or three elevators, <strong>the</strong>ybegan to bring all <strong>of</strong> <strong>the</strong>ir business to Davids<strong>on</strong>.To show <strong>the</strong>ir appreciati<strong>on</strong> to <strong>the</strong> customers and <strong>the</strong>ir employees, Carol cooks a lunch for some <strong>of</strong> <strong>the</strong>ir clients and <strong>the</strong>