January 17, 2011:
Beginning Farmers Learn the Business Side of Producing and Selling
A true comprehension and appreciation of farming life—understanding where food comes from, what it takes to get it to the grocery store and how much of a bargain it is—are missing today. Small farmers are disappearing almost as fast as their land.” —Boulder County Parks & Open Space
The search is on for what’s fresher and locally-grown—people want to know the source of their food. This desire for fresh, healthful vegetables, fruit, meat, milk, eggs and cheese—along with a connection to the grower, community and local economy—is the fuel behind the local food movement sweeping the nation.
There is something special about the smaller-scale farm and its ties to the local community through farmers’ markets, produce stands, community supported agriculture, restaurants, food co-ops, and natural food stores. At the end of the day, however, “growing for market” is a business like any other that requires planning, setting long and short term goals, managing risks, and understanding the financial aspects of the business. These are a large part of a successful farming operation.
As I began exploring an educational program geared specifically to beginning farmers with my advisory committee (composed of local farmers and ag professionals) we quickly determined that the basics aspiring farmers need to know include recordkeeping, budgeting, land use, water, labor and equipment costs, financing, etc.
Up-and-coming farmers range from the “pastoral idealist” who dreams of working the land and contributing to social change, to the large-scale gardener who wants to grow more and sell his harvest rather than leaving it on the doorstep of unsuspecting neighbors in the dark of night, to the farm intern or appreciate who is ready to explore their own farm business, to the experienced farmer who sees market opportunity in direct sales and needs a few pointers on how to retool her enterprise.
Without knowledge of the fundamentals of business planning and management, or an understanding that hard work without profit for a few years may be the norm, the love for sweaty, dusty days in the field could quickly turn sour.
Farmers developing market farms based on a realistic vision and solid business plan built on long hours of hands-on (experiential) and indoor learning through books, classes and conferences are the ones best equipped to be solid suppliers to the local food system.
Expanding into a world of locally based, consumer-oriented sales can be a challenge for those with “soil in their blood.” For the past four years, I have collaborated with a dynamic advisory committee of local successful market farmers and agricultural professionals, such as growers Anne Cure, David Asbury, Ewell Culbertson, Amy Tisdale, Rose Harmos-Holder, Mark Guttridge, Jason Condon, George Borchers, Boyd Byelich of the Natural Resources Conservation Service (NRCS-USDA), Mark Menagh and Bob D’Alessandro of Boulder County Farmers’ Markets, and Dawn Thilmany and Martha Sullins from the Department Agriculture and Resource Economics at Colorado State University to develop the Boulder County Building Farmers Program.
After years of answering questions at local markets or at their farm, growers on the advisory committee said that although those interested in learning to farm were gung-ho about growing produce or raising livestock, they seemed to lack a clear understanding of how to make the venture pay for itself, that it is in fact a small business.
Growers on the advisory committee were adamant that knowledge of production practices such as soil fertility and pest management were not as important to learn first as a sound understanding of the business side of a market farm. Production techniques are generally well covered at local and regional agricultural conferences, such at the Colorado Agriculture Big and Small Conference, or acquired through experiential learning and are often better understood by beginning farmers than are the fundamentals of business planning and management.
Challenges aside, there is help. As we looked at other beginning farmer programs throughout the U.S., the idea emerged to design educational tracks appropriate to various beginning farmer audiences. The first program, the “Market Farm Track” was launched in fall 2007.
Sponsored by the Boulder County Farmers’ Markets, it featured six class sessions devoted to understanding the components of a business plan and hearing from experienced farmers what particular items and expenses should be considered in a business plan. These help to clarify many of the assumptions or outright voids in a beginning farmer’s conceptualization of their enterprise. One entire session featured other local resources for market farmers such as financing options, farmers’ markets, water and county agricultural land. The final session included presentation of the ongoing homework for the class: a business plan for their farm to the peers in the class for critique and input. After presentation, graduates get a certification of completion.
The 2007 program mixed new, intermediate and experienced farmers; 32 in all from a competitive application process eager to learn how to make a living from their small farm. The learning environment was charged with mottos such as, “If you’re green you grow and if you’re ripe you rot,” and “Profits preserve passion,” to ensure that everyone kept a beginners mind, learned something new and focused on business planning. Mixing and networking over dinner prior to presentations provided a great opportunity for community building.
On the heels of the successful Market Farm track the advisory committee helped me refine and launch the Market Farm Mentorship Program. With sustainable business plan in hand, beginning farmers often benefit from having a mentor to help smooth out the learning curve for production and marketing. Reinventing the wheel is common with beginning farmers and a 15-minute phone call can save a full season of headaches as well as backaches. Seven mentors were matched to seven mentees from a competitive application process. Mentors were paid from Colorado State University Extension and Boulder County Parks and Open Space funds.
One mentor wrote, “It is nice to be able to help someone with some of the difficulties in starting a farm. We answer fairly simple questions many on sourcing equipment but make a big difference to the mentees needs.”
The 2008 Market Farm track saw 29 participants and three were accepted into the 2009 mentorship program. In 2009 we were awarded a grant through the Western Center for Risk Management Education to expand the program as “Colorado Building Farmers” into Yuma, Pueblo, La Plata and Delta Counties. That year 28 participated in the Boulder County program and three were accepted into the 2010 mentorship program.
The successes of this first of its kind program in Colorado were used as a model to transfer the program into five western states. “Building Farmers in the West” was awarded a Beginning Farmer and Rancher Development Program grant from the USDA in 2010 to enhance the curriculum and launch the program into Washington, Oregon, Idaho, Nevada and New Mexico. It retains much of the Boulder County design and adds an internship opportunity for experiential learning.
Participants in the Boulder County program are mainly from Boulder County, but some do come from neighboring counties. Some intermediate and experienced farmers will take the course simply to refine their business plan and to get new ideas. It’s clear that when asked what other things they would consider implementing based on the classes, that learning the business side of market farming is a valuable undertaking. Survey responses from the Boulder County program have consistently indicated that 100% of the respondents would implement more detailed recordkeeping, create and/or edit a business plan, and recommend the program to others. An informal survey shows that to date 75% of participants continue with their farming pursuits either as sole proprietors or as workers on farms. A formal longitudinal survey is in the works.
As one 2009 class participant wrote, “I really appreciated many aspects of this course and found it very helpful in organizing some of my thoughts and ideas for our farm enterprise. It was great for networking with other growers and to learn from/about other operations. Thanks for all the time and hard work that went into offering this class!”
Applications for the fall 2010 Boulder County Building Farmers program are due August 30.
For more information, applications, and registration visit: http://www.extension.colostate.edu/boulder/ag/smallfarms.shtml. Get small farm news and updates on related programs by subscribing to listservs on that website.
[Adrian Card is the agriculture and natural resources extension agent for Colorado State University Extension in Boulder County. The COLORADO AGRICULTURE“BIG & SMALL”CONFERENCE & TRADE SHOW takes place February 15 – 17, 2011, Adams County Fairgrounds, Brighton CO. More information is online at www.ColoradoAgricultureBigandSmall.com]
