96. Focus on the scale that your customers can’t see, w/Land O'Lakes CEO Beth Ford

The Titanic's collision with an iceberg was due to the clear conditions of visibility that created a slight haze on the horizon. It delayed their detection of the iceberg, proving fatal. Despite being the largest moving object made by man, the Titanic was no match against the immense power of nature that the iceberg possessed. The iceberg was several times larger beneath the water's surface than what met the eye above the water. Similarly, businesses should not only focus on visible growth but also scale beneath the surface to develop structural integrity that helps them stay afloat. Horizontal or vertical scaling is not a hard rule, and businesses should think broadly to beat the competition.

Strategic growth is key for businesses to achieve stability and beat the competition. Just like the ice below the surface of an iceberg provides ballast and stability, a company's ballast can also give it stability and opportunities for growth. The CEO of Land O'Lakes, Beth Ford, has strategically grown the company through both B2B and B2C components, often far beneath the surface of what the average customer knows. Beth's talent for thinking broadly and noticing more than meets the eye was shaped by her upbringing and taught her the importance of utilizing the resources she has been given. She discovered her passion for businesses that touch people and make things, leading her to manage supply chains for various scale businesses.

Land O'Lakes is a cooperative that was originally formed by Midwest dairy farmers in the 1920s to market their butter to eastern states. Now, the company has expanded into a supply cooperative that supports farmers and their animal feed and crop supply businesses. The cooperative model allows for collective effort towards a common goal, which in Land O'Lakes' case is feeding a growing world population. The expansion into a supply cooperative has provided opportunity and protection for the farmers involved, and has helped Land O'Lakes become a massive force in the supply chain.

Land O’Lakes' cooperative model helps small and large producers benefit from scaled purchasing power, advertising, and supply chain investment. Unlike networks like Airbnb or Etsy, cooperative members own part of the company, giving them leverage and access to scale. Scaling strategically, like Land O’Lakes, is more effective than just acquiring companies to get bigger. The company owns businesses that span dairy products, feed for cows, vitamins, seed data, crop-growing, and animal nutrition. Thanks to their tech and data-driven approach, Beth states that they have a technology-enabled business coupled with expertise.

Land O’Lakes prioritizes the entire farm-to-fork continuum by working with farmers to optimize production through agronomic advice and technology, leveraging data and analytics to improve profitability and sustainability. Their Truterra program offers data-driven insights to help farmers improve their practices and contribute to carbon capture. By investing back into the land, farmers can ensure the quality of what they put into the ground, which determines the quality of what grows out of it. Land O’Lakes’ business model has expanded and diversified over the past 100 years, and their use of data analytics continues to help them create stability and opportunity for their cooperative members.

Land O'Lakes' TruTerra Insights Engine is helping farmers like Lukas Fricke improve their farming practices by providing insights into productivity, CO2 absorption, erosion impact, and ways to reduce tillage. By implementing the insights, Fricke was able to sequester more carbon and improve productivity simultaneously. Microsoft was the first buyer of Land O'Lakes' TruCarbon offer, which generates carbon credits by capturing carbon in soil and improved practices. This program incentivizes farmers to improve their landmass's carbon sink abilities, improving soil health, water quality, and pushing back against climate change. Furthermore, through TruCarbon, farmers can make money off the crop and participate in a new carbon market.

Land O'Lakes is not only working to reduce carbon emissions from their operations and those of their member farmers, but they are also investing in capturing methane emissions from dairy farms and partnering with government entities to bring clean energy into urban areas. However, none of this will be possible without access to broadband in rural communities. Land O'Lakes CEO, Beth Ford, has been championing this cause as it is vital for data-intensive models, technology, and efficiency in agriculture. One in four farmers lacks access to broadband and investment in rural America is necessary for community stability and access to healthcare and educational opportunities. Broadband access is a critical strategic ballast for every plan Land O'Lakes has in the works.

The American Connection Project is working to bring long-term digital inclusion to rural communities by providing solutions such as free Wi-Fi locations in parking lots. This project is improving connectivity for people like Lukas Fricke, a farmer who needs better internet access for things like remote irrigation control to save water, reduce erosion, and save costs. It's important to remember that we have a shared destiny, whether in rural or urban areas, and that scaling strategically is key to surviving competition and protecting our ecosystem. Building reliable broadband infrastructure is crucial to sustainable entrepreneurship and growth.