Red Truck Farm Business Plan
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Transcript Red Truck Farm Business Plan
Amber Baker & Jason Karnezis
[email protected]
redtruckfarm.wordpress.com
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Vision: Create a profitable organic produce farm which
contributes to a thriving local economy and
community.
Mission: Red Truck Farm’s mission is to provide local
restaurants, grocery stores, and institutions specialty
and heirloom produce from our small scale, certified
organic, family-run farm in Ridgefield, Washington.
We see our customers as our strongest partners and
pride ourselves on the relationships that we build, and
the quality, consistency, and freshness of the produce
we provide.
2 season CSA Farm Apprenticship (SIO)
Systems, Selling, and Sustaining
1. Systems – irrigation, cultivation, greenhouse, packout, etc.
2. Selling – the right fit for the farm
3. Sustaining – Daily, Monthy, Seasonal tasks for efficiency
Began our own “farm” - 2007
¼ acre: grew dry beans and a few “safe” crops
What’s safe around here?
2008-2010 seasons: ½ acre lease on Sauvie Island
-2009 farmer’s market experiment
2011 – present: purchased own land in Ridgefield
- 7 acres, half in forest, tiny orchard, house on site
1 queen size box spring + Craigslist = buyer, who also
owns land on Sauvie = annual lease. Stir often, add
water in summer + double commute + work weekends
+ sell to whomever you can + forget something at the
farm once in a while = triple commute. Add seed
catalogs in winter + deceive yourself that last season
wasn’t so hard = Repeat in ‘09 but add a Farmer’s
market “trial” = Repeat in ‘10, drop the farmer’s market
+ open another full acre on top of your ½ acre + farm
tours + beg friends for help (farms are cool, right
guys?) = moment of clarity in Winter ‘10 that this is no
longer, nor ever was sustainable = find a Realtor.
1. There is no Secret
Figure out what part of farming appeals to you and
that will largely determine how you structure your
farm
Only Vegetables?
Only Meat?
Only Fruit?
Only Value added?
Some combination of the above?
Be honest with yourself and listen to what you are
passionate about.
WE HAVE BEEN, AND CONTINUE TO BE A PART-TIME FARM
Off-farm income was and is our primary source for
paying our living expenses.
Our pace of growth is steady.
Amount of land we cultivate
Amount and types of accounts
Comfort dealing with “farming” (things break, always)
Type of produce we choose to focus on
Amount of time we spend on the farm business
What we grow is reflective of our part-time model
Benefits of working off-farm, beyond income
Marketing opportunities and perspective
Primary soilworking – Kubota Tractor, BCS
Secondary soilworking – Farmall Cub, BCS, Hand tools
Irrigation – existing plumbing (needs upgrade)
Crop Protection – Deer fencing (needs upgrade)
Greenhouse, Low tunnels, High Tunnel, Mid-tunnels
Packout Barn (needs upgrade)
Cooler (building now)
Delivery vehicle (red truck)
Record-keeping (field books, computer, accounting)
Marketing tools (cards, social media, showing up)
Commercial Business Liability
Selling to grocers and insitutions
Farm and Ranch Policy
Covers visitors, farm tours, dinners
Covers equipment and infrastructure
Crop/Commodity insurance
Not currently enrolled but could apply, especially if
you’re growing only one or two items or have livestock
High value crops per bed foot (ex. basil)
High demand crops to keep our list competitive (ex. Alliums,
potatoes)
Hardy crops either in the field or post-harvest (squash)
Heirloom Bean Seed packets (winter income)
High value crops per bed foot - tomatoes, pepper, eggplant
High demand crops to keep our list competitive (ex. Alliums,
potatoes, shell beans, beets, basil)
Hardy crops either in the field or post-harvest (squash)
Greens, bunched and in bulk (Arugula)
Market Segment
Pros
Cons
Restaurants
Price point
Willing to try new products
Other small businesses
Variable ordering
Smaller orders
Turnover
Local Grocers
High volume orders
Dedicated staff
Pre-season agreements
OGC distribution
Farm name exposure
Lower price point
Institutions
High volume
Standing orders
Chefs control ordering
Product absorption
Occasionally lower price
point
Credit Card payment
Our Market
Over 100 restaurants in the Portland/Vancouver metro
area who are sourcing products locally
New Seasons Market opening new stores each year scheduled to open a 13th in fall 2012
Bon Appetit –min 20% of products from local sources,
serve a number of educational and private institutions
Amber’s off-farm job was the initial foot in the door
‘07 = a few cases of kale, hot peppers and basil
Feedback was very positive (QQC)
‘08-’12 = Market Day program highlights local grocers
Market day manager annual planning: 2008 – present
Feedback loop and the “no contract” advantage
‘09 – Present = Company wide distribution of products
Work with both Market day and Produce managers
Direct drop and bulk drop to OGC
2013: Move into one or two stores as featured grower
Work with store specific produce managers
The customers face of the company continues to evolve
• Originally delivered for CSA farm
• Cont’d exposure with wine delivery
• Fit with our part-time farming model
Must have’s for Restaurant Accounts
• Elevator speech abbreviated:
• Who are you?
• What do you have?
• Product list with pricing, availability, delivery days
• Contact information
• Follow up
• Variety is usually a better bet than not
When can that be an exception?
Variety is usually a better bet than not
When can that be an exception?
QQC defined
Quality, Quantity, Consistency: ”...We see our
customers as our strongest partners and pride ourselves
on the relationships that we build, and the quality,
consistency, and freshness of the produce we provide. “
Quality: If you wouldn’t buy it, don’t ship it
Quantity: How much of something do you have?
Consistency: How long will you have it? The Q and Q is
consistent from week to week.
Invite them to your farm to visit and/or host a dinner
Go eat at their restaurant
They’re just as passionate as you about exceptional
product
The farmer’s market saving grace
2009 farm tour by one chef resulted in 1 phone
call in ‘11 that began the relationship
never remove a contact off of your produce list once they’re on unless they
specifically ask
A few initial deliveries at the end of one semester opened
the door for a conversation about their needs for the
following growing season
High Volume underscores the QUANTITY in QQC
Potential for Standing Orders
Common themes for all 3 types of accounts:
QQC – Make sure you’re ready to bring on a new
account
Each are reselling our product in some form
Stop in, eat, chat, go have a drink, talk shop outside
the normal channels
Follow your chefs
They often lead to more chefs if your QQC is strong
As-direct-as-possible sales reinforce our relationship
• Get comfortable with “No”
• Get even more comfortable with your
elevator speech
• Evaluate your audience
• Chef
• Institution
• Grocer
• Sample box tips for chefs
• Keep it simple, don’t primp
• Include product list
• Follow up
• Institutions - Respect proper channels
• Grocers – Produce managers
• Timing
Calculating risk and seizing opportunity
NRCS EQIP grant
High tunnel
Raptor poles
Pollinator Hedge Row
Cover Crop
USDA
The Farm Service Agency (FSA) developed the Microloan (ML) program to
better serve the unique financial operating needs of beginning, niche and
the smallest of family farm operations by modifying its Operating Loan
(OL) application, eligibility and security requirements. $35K Cap.
Revisit your vision/mission statement at least once a yr.
What did I do?
Changes in infrastructure
Changes in what was grown/raised/sold
Changes in off-farm job
Changes in rest of life (you should have one)
What did I make?
Stronger /Weaker accounts
More/Less time off-farm
Increase/Decrease in gross profit
How does it/ did it/ will it feel?
Injury or exhaustion, barely making it, or, that was easy
Do I need to change my vision/mission or what I did?
Vision: Create a profitable organic produce farm which
contributes to a thriving local economy and
community.
Mission: Red Truck Farm’s mission is to provide local
restaurants, grocery stores, and institutions specialty
and heirloom produce from our small scale, certified
organic, family-run farm in Ridgefield, Washington.
We see our customers as our strongest partners and
pride ourselves on the relationships that we build, and
the quality, consistency, and freshness of the produce
we provide.