Transcript Can You Make It Work? Developed by: Melody Hefner Susan Donaldson University of Nevada Cooperative Extension.

Can You Make It Work?
Developed by:
Melody Hefner
Susan Donaldson
University of Nevada Cooperative Extension
What we’ll be doing
Living n
Comparing and contrasting some
success stories with your current
experiences
Exploring at least three factors that made
a sustainable enterprise successful, using
an in-depth case study
Comparing and contrasting your
proposed enterprises with the case
studies
Finding ways to make your enterprises
work!
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The “What if?” game
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How have others made their
enterprises successful?
USDA NRCS
Case Study One:
Story Hill Farm, Montana
Story Hill Farm
20 acres
Enterprise is a
supplemental source of
income
Sell organically grown
bedding plants, garden
produce and eggs
Not actually certified
organic
Sell plants and produce to
local food cooperative and
restaurants
Minimal sales at farmers’
market, U-pick and
custom livestock
How did they get started?
Noted rapidly growing market for
organically grown, locally produced food
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Researched products that would grow in
their area, would produce enough to be
profitable, and would be marketable in
their area
Talked with other growers, the local food
coop, local chefs and consumers
Received advice from NRCS and
Cooperative Extension Service
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Mission statement
“Growing Together”
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This is more of a tag line
than a mission statement,
but it reflects the values that
would go into a more
formalized mission statement.
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Story Hill Farm
No formal business plan
Marketing plan consists of personal
contact with customers, including e-mail
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Production costs are recorded, but labor is
all done by family, and it is difficult to
quantify costs for individual products
Selling price determined by looking at the
competition’s prices and talking with
potential customers
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Story Hill Farm
Capital investment financed by owner
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No employees – “As a recovering
businessman, I want to avoid having
employees, with all the attendant costs
and frustrations.”
Accept cash, check and invoice,
occasionally run a tab or barter
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Short-term
goals
Healthy food for the
family
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Modest commercial
production
Soil building and
enhancement
Learning
Weed control
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Long-term goals
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Increase knowledge and efficiency
Match products to market
Maximize profit while minimizing the labor
cost for every dollar gained in sales
Increase diversity of family food production
Use farm for education of children and
others
Continue experimentation to keep it
interesting
Use permaculture philosophy in
management
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Educational
outreach
Any change in original goals?
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“Labor costs
and availability
have forced us
to scale back…
some of our
goals and to
search for more
labor-efficient
products and
growing
techniques.”
Contingency plans?
“Risks come in lots of flavors. Anyone in
business must be comfortable with
living with risks.”
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Story Hill Farm says:
“Small size enables nimble behavior!”
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Story Hill Farm
What are some of the positive and
negative aspects of running your
own business?
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Positives: making your own decisions,
controlling your own risks, satisfaction of
seeing results, family closeness (watching
kids and grandkids grow), producing
much of your own food
Negatives: amount of time that must be
spent to turn a relatively small profit
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Case Study Two
Lauren and Ewell Culbertson
Longmont, Colorado
Pachamama Organic Farm
Grow and sell certified organic produce and
plants
40-acre farm, two ponds and wetlands
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12 of 40 acres are used to grow certified
organic produce
Sell at farmers’ markets and have a CSA
Allow farm visits during the CSA season on
pick-up days and for a few “festivals”
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Pachamama Farm Web site
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“Consider making a commitment to treating
yourself and your family to an 18-week diet
centered around fresh, organically grown
produce that nourishes the body and spirit. By
shifting $25 of your current food purchases per
week from the corporate food system to our
local, family-operated, organic farm you will be
creating powerful change in our community and
our world. CSA is about more than just
vegetables."
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www.pachamamafarm.com
Pachamama Farm
Name means “Earth Mother”
in Quechua
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Certified organic
Manage soil by:
– Performing annual soil test
– Adding compost and compost
tea
– Growing cover crops
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Goals for their enterprise
Original goals:
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– Earn a decent living
– “Get the farming monkey off my back”
Goals modified recently:
– “Want to farm successfully by working
less strenuously – more delegation”
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How did you get started?
“Read everything I could find
Visited every farm I could find
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Went to many conferences
Gardened for five years
Consulted NRCS and other
farmers for advice”
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What came next?
Had/have a written plan
Personally funded
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Year-round plan was refined as time
went on
Trial-and-error on marketing
Selling price? “Charge as much as
the market will bear.”
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Workforce
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Three full-time
12 part-time (seasonal)
Wages determined by local
market: “Ask around and pay a
little bit more than I think others
pay.”
Employees receive a quarter-acre
garden space for their own use
Employer pays for gas for cars,
rain gear and rubber boots
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Risk management
Grow many different crops
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CSA memberships pay up front, no
refunds
Also sell at farmers’ markets,
restaurants and grocery stores
Accept payment in the form of cash,
check, invoice and barter
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Pachamama Farm
What are some of the positive and negative
aspects of running your own business?
Positives:
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Allows more creativity and freedom, and a
chance for increased income. No boss, no
petty office politics.
Negatives:
Higher risk, no employer-paid benefits, such
as FICA, health insurance and retirement.
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Cooperative efforts with
“the competition”
Pachamama Farms:
New for 2008, Partnership
with Full Circle Farm!
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“Full Circle Farm in Longmont will supply
our members with warm-season organic
produce items that do not grow well in our
cooler microclimate. Members will enjoy a
longer CSA season and an expanded
produce selection in 2008 at no additional
cost!”
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www.pachamamafarm.com
Bear River Valley Beef,
California
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“When you purchase our pasture-raised
beef, you help support our Family Farm and
preserve rural agriculture land with
sustainable agriculture practices. This is
land we deeply care about, where we live and
raise our children. The Grass Fed Beef we
market is the same beef we serve our family
and you can rest assured that our beef is
safe to eat every day.”
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http://bestgrassfedbeef.com/index.htm
Bear River Valley Beef
Grass-fed beef, finished
on organic grass
pastures
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Cattle are guaranteed to
be free of hormones
and antibiotics, and
minimally processed
with no artificial
ingredients
Beef is USDA inspected
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Marketing
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Marketed via Web site and wordof-mouth
Product shipped via UPS or
delivered by truck in local area
Seasonal sales, from spring to
fall
Tout the health benefits of
consuming grass-fed versus
grain-fed beef
Offer recipes and cooking
instructions on Web site
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How did they get started?
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After running a traditional
cow/calf operation for many years
and establishing a superior cow
herd whose calves were sold into
the commodity market, Hugo
realized that he could provide a
much better product and service
by retaining ownership of the
cattle and finishing them on
grass.
Pitfalls, positives and
negatives of their business?
Obviously, these factors are not
mentioned on their Web site!
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Neither is the bottom line mentioned
on their Web site, so we don’t know if
they make a profit.
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Now it’s your turn to look at
some case studies!
NRCS
Food Alliance
St. Paul Farmer’s Market
NRCS
NRCS
WSU
What to include in your
presentation:
Step 1: Chose a case study from those
provided.
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Step 2: Read individually or in a small
group.
Step 3: What were the:
• Products?
• Production systems?
• Marketing strategies?
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What to include in your
presentation:
Step 4: What was unique? What was the
“aha!”? (Find three interesting points.)
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Step 5: What didn’t work well? What were
the pitfalls?
Step 6: What would you do differently?
Step 7: Share your findings with fellow
participants.
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What have you learned?
You learn from your mistakes
(They’re not all bad!)
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Be prepared to be flexible
Networking is essential
Successful people share what they
learn
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What have you learned?
In-depth analysis will help improve
your plan
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Set short- and long-term goals
Remember that maximizing profits
may not be your most important
goal
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Homework
Now it’s time to analyze your own
property and/or enterprise:
What were your original goals?
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How has your map changed?
How have your goals changed?
How has your property management
changed?
What does your to-do list look like?
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