•  Welcome to tonight's webinar on Adobe Connect

•  Sponsored by the University of Maine Cooperative Extension –  Piscataquis –  Penobscot –  Kennebec –  Waldo –  Aroostook –  Somerset

So You Want to Farm in Maine

Contacts: Donna Coffin donna.coffin@maine.edu Rick Kersbergen richard.kersbergen@maine.edu Kathy Hopkins khopkins@maine.edu Caragh Fitzgerald cfitzgerald@maine.edu Andrew Plant aplant@maine.edu

University of Maine Cooperative Extension Waldo County

992 Waterville Rd Waldo, ME 04915 1-800-287-1426

http://umaine.edu/waldo/ The University of Maine is an equal opportunity/affirmative action institution.

Who is here?

What are Your Interests and Aspirations? Pre class survey found that …

What are Your Interests and Aspirations? Pre class survey found that …

Business Skills

Date   Topic   Speaker/Manager  

3/7/13   Assessing  your  resources   Rick  Kersbergen  /  Donna  Coffin  

3/14/13   Financial  Enterprise  Budgets   Caragh  Fitzgerald/  Andrew  Plant  

3/21/13   Financial:  Business  Plans  &Taxes   Donna  Coffin  /  Caragh  Fitzgerald  

3/28/13   Researching  Your  Markets   Dr.  Jim  McConnon  /  Caragh  Fitzgerald  

4/4/13   ProducPon  informaPon,  resources,  agencies,  regulaPons  

Donna  Coffin  /  Rick  Kersbergen  

4/11/13   Equipment  –  used,  match  to  implements,  specialty  equipment,  safety  

Rick  Kersbergen  /  Andrew  Plant  or  Caragh    

4/18/13   Financial  Planning   Paul  Dillon  /  Donna  Coffin  

4/25/13   Financing  &  Insurance   Kathy  Hopkins  /  Donna  Coffin  

5/2/13   Hold    

Next 8 weeks..

Starting and Running Your Own Small Farm Business By Sarah Beth Aubrey. •  The demand for fresh, local,

sustainably produced small-farm products is growing. Aubrey, a seasoned farmer, covers business plans, market research, financing, regulations, asset protection, pricing, selling venues, and growing your business. Includes profiles of successful small farm businesses, as well as checklists and sample contracts and forms. 175 pages, 2007. Item #1035 Publisher: Storey Publishing $19.95 +SH

Farming Alternatives Workbook This 88-page classic helps rural and farm residents evaluate the feasibility of alternative enterprises. The case study and workbook format helps in evaluating personal and family considerations, resources, market potential, production feasibility, profitability, cash flow, and all factors combined. Also offers research sources for enterprise ideas. 1988. Item #1036 Publisher: NRAES $12.00

Available  from:  www.sare.org  

•  The information contained in this case study can help guide growers as they set financial and quality of life goals for their farms and structure their operations to realize those goals. There is no ideal size for a fresh market vegetable farm

•  Growers need to use their management skills and economic analysis tools to figure out the scale and level of mechanization that makes the most sense for them

hYp://www.cias.wisc.edu/wp-­‐content/uploads/2008/07/grwr2grwr.pdf  

UMaine Extension New Farmer website http://extension.umaine.edu/new-farmers/

Beginning Farmer Resource Network of Maine http://umaine.edu/beginning-farmer-resource-network/

Wordpress website (note this is a free web hosting site)

http://farminmaine.wordpress.com/

Resources for publications and research into sustainable farming techniques and practices

www.Sare.org http://www.nesare.org/

Some digital resources specific to Maine

Why Farm in Maine..or what is our competitive advantage? ü Close to metropolitan

markets? ü Markets in Maine

correlate with tourism peaks and growing season (discretionary income $)

ü  A burgeoning “locavore” culture

ü  usually a good supply of natural precipitation

Why Farm in Maine?

ü Less pest pressures than in Southern states

ü Relatively low land costs

ü  A farm-based infrastructure still exists

ü Support for small scale farmers, local and organic production

Things to always remember

1.  Small Farms are family businesses

2.  Small farms can’t compete in the commodity market

3.  Farmers are often self-reliant

4.  In farming, timing is everything

Assessing your resources.. •  Easy ones…Physical resources --land, buildings, equipment (farm infrastructure) Then….personal resources •  Experience…. •  Financial…. •  Marketing…. •  Business plan development •  Family….

Understanding your goals.. •  What are your values and principles associated

with developing a farm venture? •  Have you set whole farm goals? •  Holistic management

Identify Values What’s Important to You & Your Family? •  Personal values

–  Health –  Honesty –  Learn new things –  Make a difference

•  Economic values –  Living modestly –  Pay off my debts –  Produce & market a quality

product

Identify Values con’t. What’s Important to You & Your Family?

•  Environmental values –  Good land steward –  Farm sustainably –  Long term view of

business decisions on environment impact

•  Community values –  Make a positive

difference in community –  Good role model for

others –  Support local economy

Mission statements… A mission statement is a short statement describing the fundamental

underlying reason for the business to exist — its critical purpose. a mission statement expresses a long-term vision of the results we

are working to achieve.

•  Our mission is to produce a healthy and safe food product, maximize profitability, and maintain our rural heritage. It is important for us to provide a quality product and agricultural education for the tri-state farm market consumer. Building on our strong reputation, we will continue to grow our business and our people to ensure long-term success.

What is your “centerpiece” •  An enterprise that will be the base of your

business plan •  Other enterprises or sideline ventures will be off

shoots •  Your “centerpiece” may change!

Business Savvy •  Imagination

–  Innovative ways to solve problems

– Enjoy doing things differently

– Creative ideas relating to business & farming

Questions to ask… •  What are my personal values? • What are my business values? • Why do we farm? • What do we really want to do? • What are the strengths of our business? • What role does each family member and/or employee fulfill? • What standard of living does the family want? • How much family time do I want? • Are nonfarm and/or community activities an important part of my life? • When do I want to retire? • Do we want to transfer the family business to the next generation? •  Does this business need to provide all the income and benefits

(Insurance, retirement etc.) for the whole family?

Physical Resources Inventory •  Land

–  Tillable land –  Pasture –  Woodlot

•  Water •  Buildings •  Machinery /

Equipment

Land •  Options

–  Own –  Operate –  Rent

•  Finding Land –  Realtors

•  Multiple Listing Service •  Independents

–  Farm Link/Maine Farmland Trust

–  Farm Service Agency –  Finance Authority of Maine –  Maine Organic Farmers and

Gardeners Association

Site and Soil Resources

ü Buy  the  soil,  not  the  farm  

ü Site  condi<ons   average  frost  days   exposure   microclimates   hardiness  zones   valleys,  hills,  wind  direcPon  

Site and Soil Resources.. http://websoilsurvey.nrcs.usda.gov/app/

and county NRCS office

NRCS programs… Through  the  Seasonal  High  Tunnel  IniPaPve,  NRCS  helps  producers  plan  and  implement  high  tunnels  –  steel-­‐framed,  polyethylene-­‐covered  structures  that  extend  growing  seasons  in  an  environmentally  safe  manner.    High  tunnel  benefits  include  beYer  plant  and  soil  quality,  fewer  nutrients  and  pesPcides  in  the  environment,  and  beYer  air  quality  due  to  fewer  vehicles  being  needed  to  transport  crops.  ApplicaPons  for  the  second  ranking  period  of  2013  are  due  at  the  NRCS  offices  by  close  of  business  on  April  19,  2013.          For  more  informaPon  go  to  www.me.nrcs.usda.gov  or  contact  your  nearest  USDA  Service  Center,  listed  online  at  hYp://offices.usda.gov  or  in  the  telephone  book  under  United  States  Government,  Agriculture  Department.    Through  the  Organic  IniPaPve  NRCS  helps  cerPfied  organic  growers  and  producers  working  to  achieve  organic  cerPficaPon  install  conservaPon  pracPces  for  organic  producPon.    Funding  is  available  to  help  producers  plan  and  implement  conservaPon  pracPces  that  address  natural  resource  concerns  in  ways  that  are  consistent  with  organic  producPon.      

ü Site conditions ü Depth to bedrock  How deep will root systems penetrate?

ü Soil type--sand, silt, clay  Soil texture will influence productivity, water holding,

spring warm up, tillage potential

ü Drainage ü Current field/farm uses of land

Improving Soil/Site Conditions

What will it take to make the site productive??  --Weed control (this is important)  --Soil pH

 (How much lime and how long will it take?)

 --Organic fertility vs commercial fertlizer

 --Soil organic matter  Is there a source of organic matter

available?  Can you grow it?

Buildings and Facilities

•  Type & size –  Livestock –  Storage –  Fruit & vegetable washing,

grading & packing –  Greenhouse –  Fencing

•  Livestock •  Deer

•  Current condition •  Renovation / retrofit •  Build new •  Rent options

Building & Equipment •  Condition •  Size •  Suitability •  Efficiency •  Age

Assessing Equipment Purchases

•  Can I afford to own?

•  Will it pay for itself? •  How will it pay for

itself?

•  Added expenses? •  Labor or cash

savings? •  Frequency of use?

More  about  equipment  in  a  later  session…  

Resources Inventory •  Management & Labor

–  Management Experience

–  On-farm labor

–  Potential labor pool –  Benefits you can offer

employees

Resources Inventory

•  By-Products –  Animal –  Crop –  Woodlot –  Wastes

“I  love  farming  next  to  a  dairy  farm…”  

Resources Inventory – On-farm •  Road frontage •  Existing stand •  Storage

– Nearest town – Nearest city – Population in 10 to

20 mile radius

•  Market resources – Slaughterhouse – Processing – Wholesalers – Direct Markets

Resource Inventory •  Financial

– Cash – Savings – Family credit – Commercial credit

Grant Sources* *Rarely available for start-ups, highly competitive for established farms •  Natural Resource

Conservation Service (NRCS)

--Cost share for conservation practices •  Maine Dept. of Ag

–  New technology –  Water storage –  Marketing

•  Sustainable Agriculture Research and Education (SARE) –  Alternative production –  New market ideas

•  Maine Technology Institute –  Innovative technologies –  New products

•  USDA Rural Development –  Value added processing –  Energy efficiency

•  Private philanthropies –  Maine Community Foundation –  Maine Initiatives

•  USDA http://www.grants.gov/

Finding funding

hYp://www.getrealmaine.com/_ccLib/aYachments/pages/Loans_and_grants_booklet.pdf  

hYp://umaine.edu/beginning-­‐farmer-­‐resource-­‐network/sample-­‐page/funding-­‐your-­‐farm-­‐business/  

Questions