Can Can YouYou Make It Work? Make It Work?

Developed by:Developed by:Melody HefnerMelody Hefner

Susan DonaldsonSusan DonaldsonUniversity of Nevada Cooperative ExtensionUniversity of Nevada Cooperative Extension

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What we’ll be doingWhat we’ll be doingComparing 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?” gameThe “What if?” game

How have others made their How have others made their enterprises successful?enterprises successful?

USDA NRCS

Case Study One: Case Study One: Story Hill Farm, MontanaStory Hill Farm, Montana

Story Hill FarmStory Hill Farm

20 acres20 acres

Enterprise is a Enterprise is a supplemental source of supplemental source of incomeincome

Sell organically grown Sell organically grown bedding plants, garden bedding plants, garden produce and eggsproduce and eggs

Not actually certified Not actually certified organicorganic

Sell plants and produce to Sell plants and produce to local food cooperative and local food cooperative and restaurantsrestaurants

Minimal sales at farmers’ Minimal sales at farmers’ market, U-pick and market, U-pick and custom livestockcustom livestock

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How did they get started?How did they get started?Noted rapidly growing market for organically grown, locally produced food

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 statementMission statement

“Growing TogetherGrowing Together”

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 FarmStory Hill FarmNo formal business plan

Marketing plan consists of personal contact with customers, including e-mail

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 FarmStory Hill Farm

Capital investment financed by owner

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 Short-term goalsgoals

Healthy food for the family

Modest commercial production

Soil building and enhancement

Learning

Weed control

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Long-term goalsLong-term goalsIncrease knowledge and efficiencyMatch products to marketMaximize profit while minimizing the labor cost for every dollar gained in salesIncrease diversity of family food productionUse farm for education of children and othersContinue experimentation to keep it interestingUse permaculture philosophy in management

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Educational Educational outreachoutreach

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Any change in original goals?Any change in original goals?

“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.”

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Contingency plans?Contingency plans?

“Risks come in lots of flavors. Anyone in business must be comfortable with

living with risks.”

Story Hill Farm says:

“Small size enables nimble behavior!”

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Story Hill FarmStory Hill Farm

What are some of the positive and negative aspects of running your

own business?

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

Lauren and Ewell Culbertson Lauren and Ewell Culbertson

Longmont, ColoradoLongmont, Colorado

Case Study TwoCase Study Two

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Pachamama Organic FarmPachamama Organic Farm

Grow and sell certified organic produce and plants

40-acre farm, two ponds and wetlands

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 sitePachamama Farm Web site “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."

www.pachamamafarm.com

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Pachamama FarmPachamama FarmName means “Earth Mother” in Quechua

Certified organic

Manage soil by:

– Performing annual soil test– Adding compost and compost

tea– Growing cover crops

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Goals for their enterpriseGoals for their enterprise

Original goals:

– 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?How did you get started?

“Read everything I could find

Visited every farm I could find

Went to many conferences

Gardened for five years

Consulted NRCS and other farmers for advice”

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What came next?What came next?

Had/have a written plan

Personally funded

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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WorkforceWorkforce

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 managementRisk management

Grow many different crops

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 Pachamama Farm What are some of the positive and negative

aspects of running your own business?

Positives:

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 Cooperative efforts with “the competition”“the competition”

Pachamama Farms: New for 2008, Partnership

with Full Circle Farm!

“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!”

www.pachamamafarm.com

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Bear River Valley Beef, Bear River Valley Beef, CaliforniaCalifornia

“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.”

http://bestgrassfedbeef.com/index.htm

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Bear River Valley BeefBear River Valley Beef

Grass-fed beef, finished on organic grass pastures

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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MarketingMarketingMarketed via Web site and word-of-mouthProduct shipped via UPS or delivered by truck in local areaSeasonal sales, from spring to fallTout the health benefits of consuming grass-fed versus grain-fed beefOffer recipes and cooking instructions on Web site

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How did they get started?How did they get started?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.

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Pitfalls, positives and Pitfalls, positives and negatives of their business? negatives of their business?

Obviously, these factors are not mentioned on their Web site!

Neither is the bottom line mentioned on their Web site, so we don’t know if they make a profit.

Now it’s your turn to look at Now it’s your turn to look at some case studies!some case studies!

NRCS

NRCS

NRCS

WSUFood Alliance

St. Paul Farmer’s Market

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What to include in your What to include in your presentation:presentation:

Step 1: Chose a case study from those provided.

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 What to include in your presentation:presentation:

Step 4: What was unique? What was the “aha!”? (Find three interesting points.)

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 What have youyou learned? learned?

You learn from your mistakes (They’re not all bad!)

Be prepared to be flexible

Networking is essential

Successful people share what they learn

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What have What have youyou learned? learned?

In-depth analysis will help improve your plan

Set short- and long-term goals

Remember that maximizing profits may not be your most important goal

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HomeworkHomework Now it’s time to analyze your own

property and/or enterprise:

What were your original goals?

How has your map changed?

How have your goals changed?

How has your property management changed?

What does your to-do list look like?