Publications
Publications
- December 2019 (Revised March 2021)
- HBS Case Collection
Carroll Family Farms
By: Forest Reinhardt, Christian Godwin and James Weber
Abstract
The Carroll Family, U.S. pig and grain farmers, needed to decide what to plant, whether to purchase land, emphasize pigs or grain, or other investments.
Seven family members across three generations owned and operated Carroll Family Farms (CFF). In Illinois, CFF raised pigs as part of a commodity pork business, grew corn and soybeans to feed the pigs, and used the pig manure to fertilize its crops. CFF also owned a significant farming operation in Brazil that grew soybeans, cotton, and corn, and it provided farm services for other farmers in Brazil. They had low debt, and significant cash flow.
CFF faced significant market uncertainties. The U.S. and China were in the midst of a trade war that was impacting the supply, demand, prices, and trade patterns of agricultural products. There was a growing African swine fever outbreak that could kill off a large portion of the world’s pig population. The U.S. government paid large, but uncertain agricultural subsidies, and farmland was expensive and rarely available for purchase.
How should the Carroll family farmers address these challenges?
Seven family members across three generations owned and operated Carroll Family Farms (CFF). In Illinois, CFF raised pigs as part of a commodity pork business, grew corn and soybeans to feed the pigs, and used the pig manure to fertilize its crops. CFF also owned a significant farming operation in Brazil that grew soybeans, cotton, and corn, and it provided farm services for other farmers in Brazil. They had low debt, and significant cash flow.
CFF faced significant market uncertainties. The U.S. and China were in the midst of a trade war that was impacting the supply, demand, prices, and trade patterns of agricultural products. There was a growing African swine fever outbreak that could kill off a large portion of the world’s pig population. The U.S. government paid large, but uncertain agricultural subsidies, and farmland was expensive and rarely available for purchase.
How should the Carroll family farmers address these challenges?
Keywords
Agribusiness; Animal-Based Agribusiness; Plant-Based Agribusiness; Operations; Strategy; Family Business; Asset Management; Globalization; Agriculture and Agribusiness Industry; United States; Brazil; China
Citation
Reinhardt, Forest, Christian Godwin, and James Weber. "Carroll Family Farms." Harvard Business School Case 720-005, December 2019. (Revised March 2021.)
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