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  • Developing a Small Farm

    Your plan for success

    Dr. Gordon Johnson, Extension Fruit and Vegetable Specialist

    University of Delaware

    gcjohn@udel.edu

    Laurie Wolinski, Extension Educator, Risk Management

    University of Delaware

    lgw@udel.edu

    mailto:gcjohn@udel.edumailto:lgw@udel.edu

  • Introductions

    Introduce yourself

    What do you want to get

    out of the beginning

    farmer sessions?

  • Components of a Beginning Farm

    Plan

    Mission - Vision

    Goals

    Resources

    Enterprises, Production

    Markets, Marketing

    Management

    Costs/Returns

    FinancialsLAURIE WILL GIVE MORE DETAIL

  • Mission - Values

    What do you value?

    How do you

    incorporate your

    values into your plan?

    LAURIE WILL DETAIL HOW TO

    DEVELOP YOUR MISSION

  • Vision Statement

    What do you want to

    be

    How do you

    communicate that to

    others

    LAURIE WILL DETAIL HOW

    TO CRAFT A VISION

  • Current Situation and Taking Stock

    of Your Resources

    Assets

    Liabilities

    Financial resources

    Human resources

    Physical resources

    Natural resources

  • Family and personal needs and

    concerns

    Current satisfaction

    Risk taking

    Hopes and concerns

    Income goals

    Preferences

    Future

  • List what qualities you and others

    (family, partners) will bring to your

    business

  • Goals

    What do you want to

    achieve?

    How are you going to

    reach your goals?

    Short term

    Intermediate term

    Long term

  • Income Goals

    Childrens Project College Fund

    Hobby Business Extra Cash

    Partial Income Supplement

    Half (second income)

    Retirement income

    Full Income Primary family income

    Sole family income

  • Deciding on Small Farm Enterprises

    Choices

    Secure market

    Market volume

    Price, price guarantees

    Production practices How to produce

    Special production needs

    Adaptation to your area

    Cost of production

    Net Returns

  • List Products That You Want to Grow

    and Market Enterprise Selection

    EXAMPLES

    Vegetables

    Herbs, Medicinals

    Cut flowers

    Small fruits

    Tree Fruits and Nuts

    Greenhouse crops

    Nursery crops

    Craft crops

    Other specialty crops

  • Enterprise Budgets

  • Pole Lima Bean Budget 100 feet Variable Costs

    Variable Costs Unit $/Unit Unit/100 ft TotalFertilizer - KCl lb $0.24 4 $0.96Fertilizer - Urea lb $0.40 0.6 $0.24Fungicide - Agri Fos pt $15.49 0.1 $1.55Gas for Tiller gallon $2.70 0.1 $0.27Herbicide - Glyphosate quart $14.78 0.033 $0.49Insecticide - Bifenthrin 32 oz $10.00 0.2 $2.00Electric for Irrigation Pump kwh $0.11 2.8 $0.31Labor - Clean-up Trellis Maintenance hour $10.00 0.5 $5.00Labor - Cultivation hour $10.00 0.7 $7.00Labor - Pesticide Application hour $10.00 0.6 $6.00Labor - Picking hour $10.00 5.6 $56.00Labor - Transplant Production and Planting hour $10.00 1 $10.00Labor - Twining and Training hour $10.00 0.6 $6.00Media bag $30.00 0.03 $0.90Pots (styrofoam cups) 25 ct $1.02 1 $1.02Seed seed $0.25 25 $6.25Twine tube $15.99 0.1 $1.60

    Total Variable $105.58

  • Pole Lima Bean 100 ft. Budget, Yield

    Dependent and Fixed Costs

    Yield Dependent Unit Cost

    Bags for sale basket $0.09

    Labor - Marketing basket $2.50

    Total Yield Dependent $2.59

    Fixed Costs Unit $/Unit Unit/100 ft TotalProrate Useful

    Life (years)

    5/8 Bu Basket basket $6.99 7 $9.79 5 10

    Irrigation - Drippers each $0.33 20 $1.32 5 10

    Irrigation - Tubing 100 ft $18.95 1 $3.79 5 10

    Trellis - Landscape timbers post $3.99 2 $1.60 5 10

    Trellis - Posts (4x4x10) post $12.47 6 $14.96 5 10

    Trellis - Wire (9 ga.) 171 ft $15.99 1.75 $5.60 5 10

    Total Fixed $37.05

  • Pole Lima Bean 100 ft. Budget, Returns

    Price

    High Average LowLabor Costs

    YieldBaskets/100 ft $28 $24 $20

    High 9 $86.08 $50.08 $14.08 $112.50

    Average 6 $9.84 -$14.16 -$38.16 $85.90

    Low 3 -$66.40 -$78.40 -$90.40 $79.92

  • Make a plan of how you will

    produce those crops (or animals)

  • Marketing

    Who will be your

    customers?

    How will you connect

    or reach those

    customers?

    What will those

    customers want?

    What can you

    provide? (Grow)

    How big is the market

    (can you reach your

    income goals)?

  • Markets

    Wholesale with middleman

    Grower/shipper channels

    Local wholesale

    Auctions

    Wholesale direct (B to B,

    backdoor)

    Restaurants

    Institutional

    Direct On-farm

    Farm stand/farm store

    U-pick

    CSA/Subscription pickup

    Direct Off-farm

    Farmers markets

    Direct delivery

    Off farm store

    CSA/Subscription drop

    Internet/Mail order

  • Selling to Restaurants, Chefs

  • Selling at Auctions

  • Selling to Institutions School, college

    Farm to school

    Hospital

    Corporate campus

    Government entities

  • Selling to Local Retailers Local Markets

    Farm Markets

    Country Stores

    Produce Vendors

    Small Chain

    Supermarkets

  • Selling to local wholesale buyers

    Limited operation area

    Pick up at your farm

    Deal directly with buyer

  • Selling to Brokers, Packers, Repackers

    Local, regional, national

    May contract for your

    crop

    They pack

    May provide harvest

    services

    No farm identity normally

    if they pack

  • Selling to Terminal Market Buyers and

    Distribution Companies

    Deliver to their

    warehouse

    Specific standards,

    strict standards

    Competing against

    large producers

    Maintain your brand

  • Selling to Regional Supermarket Chains

    or Food Service Providers

    May deal with produce

    buyer for the chain

    May deal direct with

    produce manager in

    each store

    Delivery

    direct to store

    distribution centers

    Farm pick up programs

    Specialty product

    companies

  • Selling to Large Chain Supermarkets

    Warehouse

    All produce must be received at this warehouse facility for distribution to Safeway stores No direct

    farm to store sales.

    A grower must enter a Vender agreement with Safeway, and a vendor number and account must be

    established. A cooperative may act as a vender for several farmers.

    A Safeway produce Vendor must have the following:

    1. A Continuing Commodity Agreement with Safeway, which is a responsibility and liability waiver

    2. $2,000,000 product liability insurance

    3. A PACA license for in state and out of a state produce sales, or a business license for in state sales only

    4. Federal I.D. number

    All produce must meet US Grade 1 standards or higher as defined by the Safeway Acceptable Minimum

    Quality Standards, provided to vendor/farmer.

    Specific varieties may be required as well as grading and packaging standards defined by Safeway.

    LIL, Less than a Truckload Volume will be accepted at the warehouse, as well as mixed produce loads.

  • Direct Markeing

    Is direct marketing for

    you?

    Opportunities

    Resources

    Personalities - People

    Management

  • U-pick

  • Farmers Markets

  • Farm Stands, Farm Markets

  • Grow and Sell Greenhouse

    or Nursery

  • Community Supported

    Agriculture - CSA

    What is it and how does it work?

  • Background and Philosophy

    A community of

    individuals or families

    pledges to support a

    farm (or group of

    farms).

    Idea thought to

    originate in Japan in

    the 1960s

  • Organization of CSAs

    Who runs the CSA?

    Individual farm owner, for

    profit

    Cooperative of several

    farmers, for profit

    Community owned farm

    employing a grower, produces

    only for the members

    Non-profit owned farm (such

    as a foundation), usually

    dependent on volunteers to

    do the work with some paid

    staff

    Communally owned and

    operated farm, the community

    members do the work

  • How is the Farm Supported

    Most commonly pre-paid

    shares

    CSA member agrees to pay

    at the beginning of the

    season

    Farm provides a certain

    amount of what is in season

    or that is available (box or

    basket of produce, one

    dozen eggs, one brick of

    cheese, for example) at

    regular intervals (weekly) to

    each member according to

    their shares.

  • Other Potential Member Support CSA organization

    Specific responsibilities

    Administration

    Assist with production

    labor on farm

    CSA work day

    Specific job assignments

    Assist with packing and

    distribution

    CSA packing day

    CSA distribution day

    Record keeping

    Communications,

    newsletter, promotion,

    recruitment

    Goal setting

    Apprenticeships,

    internships on the farm

    Youth projects, family

    projects

  • Direct marketing small scale

    livestock products

    Eggs

    Holiday Turkeys

    Pa

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