Volume 2 Issue 4 Winter 2012 Producer’s Digital Toolbox Coming Your Way The Producer’s Digital Toolbox is a series of seminars that will be offered at several venues starting in March 2012. These seminars will assist you in capitalizing on the hardware and digital tools now available through the internet. The seminars will cover topics on GPS and Mapping, as well as Marketing and Management. A description of each seminar is listed below. Look for announcements via e-mail, your local newspaper, and University of Maryland Extension (UME) newsletters for dates and locations. This series is made possible by funding from a UME Impact Team Grant. Please contact Jonathan Kays (jkays@umd.edu), Ginger Myers (gsmyers@umd.edu), or Shannon Dill (sdill@umd.edu) if you have any questions regarding the content of the seminars. GPS and Mapping ► GPS Training for Beginners - Handheld GPS units are very useful for agriculture and natural resource professionals, as Continued on page 2 … Food For Profit — A Statewide Entrepreneurship Program Customized to Meet the Needs of Local Food Entrepreneurs Have you ever been told that your favorite homemade bread or salsa is “good enough to sell?” Do you have additional fruit or vegetables from your farm or home garden that you would like to make into a commercial product? Food for Profit is a one-day workshop designed to help you work through the maze of local and state regulations, food safety issues, and business management concepts that all must be considered in setting up a commercial food service. This workshop is in collaboration with Penn State Cooperative Extension, University of Maryland Extension, and the Maryland Rural Enterprise Development Center and will be held at the Washington County Agricultural Education Center, 7303 Sharpsburg Pike (building door #4), Boonsboro, MD on Tuesday, February 28, 2012 from 9:00 AM to 4:00 PM. The tuition cost is $40.00 per person which includes all materials and lunch. Pre-payment and registration are required. Registration go to: http://extension.psu.edu/events (scroll down to February 28, 2012 listings) or call 877-489-1398. Continued on page 3 … Page 2 Volume 2 Issue 4 Producer’s Digital Toolbox Coming Your Way … continued from page 1 well as farmers, woodland owners, and others. They are accurate and the cost is reasonable. This hands-on course will teach you how use handheld GPS receivers to collect waypoints, tracks, and routes during field sessions. You will download your data to a computer and learn about the freeware to help you manage your GPS information. A GPS handheld unit and computer are provided for use at the training. Cost: $50 ► Integrating Digital Topographic Maps with GPS - Terrain Navigator software provides USGS topographic maps in a digital format that allows the user to create waypoints, routes and tracks, and transfer the data to a GPS unit or download GPS field data. The software allows the user to provide custom, high quality maps for your purposes or for your clients. The software allows you to map fields, forests, roads, and other areas of interest for a number of applications. The workshop combines classroom instruction on how to use the software with field GPS exercises. A GPS handheld unit, software, and computer are provided for use at the training. Cost: $50 ► Productivity - As technology has advanced over the past decade, many people are turning to digital solutions for enhancing productivity. Modern smart phones offer a variety of productivity software, with an emphasis on cloudbased storage. With the release of Android 4.0, many smartphones are as powerful as a personal assistant. Learn more about apps that will assist in record-keeping, email, market reports, spreadsheets, financials, and much more. Cost $25 Marketing and Management ► Digital Databases – Getting Your Business Listed - The increase in use of smartphones and GPS means that rural enterprises can now market their products and services on digital databases that supply the content for consumer applications. This levels the playing field for enterprises that want to be known and found. This 2-3 hour workshop provides the small business owner instruction on how to enter their business information in the 8-9 digital databases, such as Google Maps and others. Cost $25 ► Fingertip Marketing for Portable Devices and Apps - This workshop discusses the following topics: Evaluating devices, web services, and web sites, understanding Cloud computing, marketing using the new technologies and applications, and incorporating digital service and application into your marketing plan. Cost $25 ► Social & Professional Applications - An introduction to the basics of Facebook, Twitter, and LinkedIn for businesses. Explore ways your business can use social media and online networking tools to effectively reach your current customers and new ones. While the traditional websites are still useful for advertising your business or community information, many business owners or community leaders are beginning to interact with their customers through web sites such as Facebook, Twitter, and LinkedIn. This seminar will explore basic fundamentals of popular social networking sites, examples of use, and the potential benefits social media could bring to your business and community. Cost $25 Maryland Resource Enterprise Development Center (mredc.umd.edu) The Maryland Rural Enterprise Development Center provides an innovative, 24-7 launch pad providing producers with a wide variety of web-based University, community, and professional resources for developing profitable, sustainable businesses. The BARN Winter 2012 Volume 2 Issue 4 Maximize Your Virtual Marketing Presence Today it seems you are what the Internet searches say you are. When someone searches for your business, they need to be able to find accurate and useful information about you and/or your business. There is a lot of erroneous information about businesses on the Internet, such as annual sales statistics, contact numbers, product listings etc. And, changes in social media formats may have deleted information in your personal or business profile. Here is a short list of things you can do right now to bolster your on-line reputation, increase your search rankings, and improve your customer service. Some are more time consuming than others, and probably no one needs to do them at all, so select the ones that best fit your operation. ► Get Social - Besides being a great way to keep in touch with customers, social profiles rank well on Google. Pick and choose, or use them all, you need to not only register for these accounts, but fill them out so they rank higher in searches. These types of accounts include Facebook, Twitter, LinkedIn, and other professional directories that carry your business’ profile information. If you already have these accounts, check them regularly for changes in accessibility and content. ► Check on What’s Being Said Out There - Use tools like Google Alerts, Twitter Search, Hootsuite, and Trakur, to help monitor what’s being said about you and your business. ► Be Proactive - Follow-up with customers after sales to collect valuable feedback on your product and service. Add a customer comment section to your website to help give customers a way to contact you and offer both feedback and suggestions. ► Join the Discussion - Engage in on-line discussions that relate to Ag and Natural Resource types business such as #agchat and #foodchat on Twitter. ► Make Your Own Media - Writing news articles, making videos, and post images of your business and your products wherever appropriate give your customers more material to find on-line than your competition by having it posted. Obviously, Flickr, YouTube, and Vimeo work well for these purposes. ► Blog - Blogging is a great way to grab more search ranking. Blog on your own site and be a guest blogger on other sites. Blogging, like writing informative articles, can position you as an authority in your area. ► Speaking at an Event - Whether at a civic club event or to a group of students, speaking to local groups that are interested in your type of business or products is good for business. These types of events are often advertised and posted on the web, providing another listing where potential customers can find you or your business. Page 3 Food For Profit Continued from page 1 … Agenda (February 28, 2012) 9:00 — Welcome & Introductions LESLIE HART, Agricultural Marketing Specialist Hagerstown-Washington County Economic Development Commission GINGER S. MYERS, Director, Maryland Rural Enterprise Development Center, University of Maryland Extension Marketing Specialist 9:10 — Rewards and Challenges of Food Business JEANNE DIETZ-BAND, Owner, Many Rocks Farm 9:30 — Legally Speaking ROBIN HENDERSON, Chief, Center for Food Processing Maryland DHMH 10:15 — Break 10:25 — Safe Food Handling LYNN LITTLE, FCS Educator, University of Maryland Extension – Washington County 11:15 — Developing a Game Plan WINIFRED MCGEE, Senior Extension Educator, Entrepreneurship, Penn State Extension 11:45 — Opportunities for Washington County Farmers LESLIE HART 11:55 — Lunch Break 12:30 — Start-Up Support GINGER S. MYERS 12:50 — Finding a Niche WINIFRED MCGEE 1:40 — Packaging Your Product WINIFRED MCGEE 2:20 — Break 2:30 — Pricing Your Product WINIFRED MCGEE 3:30 — Share Your Next Steps! & General Questions (a short participant survey) WINIFRED MCGEE & GINGER S. MYERS If you have any questions concerning this program, please contact: Ginger S. Myers, University of Maryland Extension Specialist at gsmyers@umd.edu or (301) 432-2767 x 338 Winter 2012 The BARN Volume 2 Issue 4 Page 4 Direct and Intermediated Marketing of Local Foods in the United States Sarah A. Low and Stephen Vogel ERS Report Summary, Economic Research Service, U.S. Department of Agriculture, November 2011 termediated marketing channels. What Is the Issue? Despite increased production and consumer interest, locally grown food accounts for a small segment of U.S. agriculture. For local foods production to continue to grow, marketing channels and supply chain infrastructure must deepen. Information on U.S. local food producers and their marketing channels, however, is incomplete. New information on farmers that market foods locally and the marketing channels they use presented in this report could aid private and public-sector efforts to support this sector of the agricultural economy. This report uses the 2008 Agricultural Resource Management Survey (ARMS) to explore farmers’ use of both direct-to-consumer and intermediated marketing channels in selling locally produced foods to consumers. What Did the Study Find? Marketing of local foods, via both direct-to-consumer and intermediated channels, grossed $4.8 billion in 2008—about four times higher than estimates based solely on direct-to-consumer sales. Large farms (those with gross annual sales of $250,000 or more) accounted for 5 percent of all farms reporting local food sales in 2008. They averaged $770,000 in local food sales per farm and were equally likely to use direct-to-consumer channels exclusively, intermediated channels exclusively, or a mixture of the two. Large farms accounted for 92 percent of the value of local food sales marketed exclusively through intermediated channels. For small and medium-sized farms with local food sales, more operators identified their primary occupation as farming and devoted more time to their farm operation than operators of similarly sized farms without local sales. Vegetable, fruit, and nut farms dominated local food sales. Direct-to-consumer sales of food commodities were affected by climate and topography that favor fruit and vegetable production, proximity to farmers’ markets and neighboring local food farms, and access to transportation and information networks. The value of locally sold food is highest in metropolitan areas and is geographically concentrated in the Northeast and on the West Coast. How Was the Study Conducted? We used the 2008 ARMS data to analyze farmers’ use of specific direct-to-consumer marketing channels (i.e., use of roadside stands, farmers’ markets, on-farm stores, and community-supported agriculture arrangements) and intermediated marketing channels (i.e., farmers’ sales to local retail, restaurant, and regional distribution outlets), but also farm characteristics and the value of sales for farmers engaged in local food sales. Data from the 2007 Census of Agriculture supported the spatial econometric model used to identify determinants of direct-to-consumer sales. Farms marketing food commodities exclusively through intermediated channels reported $2.7 billion in local food sales in 2008—over three times higher than the value of local foods marketed exclusively through direct-to-consumer channels, and two times higher than the value of local foods marketed by farms using a combination of direct-to-consumer and intermediated channels. Small farms (those with less than $50,000 in gross annual sales) accounted for 81 percent of all farms reporting local food sales in 2008. They averaged $7,800 Find the full report at: in local food sales per farm and were more likely to rely www.ers.usda.gov/publications/err128 exclusively on direct-to-consumer marketing channels, such as famers’ markets and roadside stands. Medium-sized farms (those with gross annual sales between $50,000 and $250,000) accounted for 17 percent of all farms reporting local food sales in 2008. They averaged $70,000 in local food sales per farm and were likely to use direct-to-consumer marketing channels alone or a mix of direct-to-consumer and in- Winter 2012 The Inside Quote “Only two activities produce results. One is innovation. The other is marketing. Everything else just produces costs.” - Peter Drucker. The BARN Volume 2 Issue 4 Page 5 Upcoming Dates! February 4, 2012: Mid-Atlantic Small Flock Poultry Expo February 23, 2012: Western Maryland Regional Fruit Meeting 8:30 AM to 3:30 PM 8:30 AM to 4:00 PM University of Maryland Extension-Carroll County Office & Carroll County Agriculture Center, 700 Agriculture Center Drive, Westminster, Maryland 21157. (410) 386-2760 University of Maryland Western Maryland Research and Education Center, 18330 Keedysville Road, Keedysville, MD 21756 The morning Session featured speaker is Dr. Dave Biddinger from Penn State, who will be speaking on Beneficials and Pollinators as well as Spotted Wing Drosophila. The afternoon session will start with a Fungicide and Disease Management Update by Dr. Henry Ngugi of Penn State. The rest of the afternoon will be dedicated to Brown Marmorated Stink Bug (BMSB) Management. Dr. Tracy Leskey (and her team from USDA), Dr. Greg Krawczyk (Penn State), and Bryan Butler will present. There will be plenty of opportunity for input and questions from the industry. Registration and information go to: http:// www.grapesandfruit.umd.edu/Pages/2012BrochureRFM.pdf The expo will feature educational seminars on poultry nutrition, disease prevention and control, chicken breeds, egg and meat production basics, housing, pasturing, feeding and watering systems, regulations and ordinances, organic production, litter and mortality composting, breeding and egg incubation, turkey production, brooding chicks, poultry in diversified livestock operations, exotics, egg grading and handling, marketing and economics, urban poultry, and protecting your flock. Vendors will be available with live poultry and poultry related items. A poultry processing demonstration will be conducted. Producers and Extension specialists will be available for technical questions about production practices. 4-H will conduct activities and competitions. Door prizes will be awarded. Lunch and snacks will be available for purchase. Registration: Adults: $10 pre -registration fee, $20 at the door, Youth 10-18: $5 preregistration, $10 at the door, Children under 10: Free, 4-H Members or Volunteers admitted free (must pre-register and show 4-H membership card at the door). Registration and information go to: http://carroll.umd.edu/ag/poultry.cfm February 24, 2012: New Grape Grower Workshop Clarion Hotel, Oxon Hill, MD For more information or to register for this program, please contact Susan Barnes at sbarnes6@umd.edu or call 301-432-2767 x 301 February 28, 2012: Food For Profit Washington County Agricultural Education Center (for more details see pages 1 and 2) On The Web The Ag Risk Education Library http://www.agrisk.umn.edu/Library/Curriculum.aspx?LIB=AR This site contains links to several training, education curriculum, and information courses and materials for agricultural risk management, and is a major component of USDA's Risk Management Education (RME) program. The Library organizes thousands of risk management materials which help producers and agricultural professionals quickly locate information, tools, and assistance on specific risk management topics. The Library includes several major components including: ► Ag Risk Library (Main Library), containing over 2,000 documents organized by production, marketing, financial, legal, and human risk topics. ► Budget Library - Offering more than 2,750 crop budgets representing over 280 crops and more than 425 livestock budgets. ► FINBIN Financial Database - Containing actual cost of production data from 3,500 farms representing more than 3.2 million acres of cropland, over 65,000 dairy cows, and more than 900,000 pigs. Topics specifically available in the library also include Agricultural Management, Bankruptcy, Building a Sustainable Business, Direct Farm Marketing and Tourism, Livestock Risk Protection Insurance, Managing Risks and Profits, Managing the Modern Farm Business, Strategic Business Planning for Commercial Producers, and Risk Management Training Programs. Winter 2012 The BARN Page 6 Volume 2 Issue 4 Social Media Platform Connects Farmers with Local Buyers Reprinted from Food & Beverage, December 13, 2011. Sustaination aims to connect food producers with local buyers via a dedicated social network. minimal carbon footprint, while farmers within a seven mile radius. Outside of can reduce packaging, fuel, and trans- that, pricing plans will be put in place for trading within 15 mile, 50 mile, and portation costs. 50+ mile areas. One for farmers, food producers, retailers, and restaurateurs Sustaination will also help split local to get involved with early. delivery costs with other local businesses, and there are plans to introduce a review and recommendation What Works 2011! system for users to rate one another. The Future of Rural Regular emails will be sent to members Entrepreneurship and to keep them abreast of all the activity According to Sustaination, because Community Development in their local area, and users will be consumers want to see the area they Conference live in thrive, they are willing to pay up able to easily update their profile with to 20 percent more for locally produced food offers or needs — just as one PRESENTATIONS food. Dubbed “the dating site for local would enter a status update on a tradiare now posted on the tional social network. Users will also be food businesses,” Sustaination — Northeast Regional Center for able to upload photos and videos of which is currently still in beta — will Rural Development web site their produce or business, and will be facilitate the creation of local and regional food supply networks. Both buy- able to share, learn, and compare with ers and farmers will be able to create a other companies to check and improve http://nercrd.psu.edu/ profile on the site and list the produce their performance. The video below Entrepreneurship/ they are looking to buy or sell, as well explains Sustaination in more detail: WhatWorksIIPresentations.html as viewing other parties willing to do business in their local area. The result- Sustaination hopes to be out of beta by Additional presentations will be early 2012. It’s currently free to create ing supply chains that are set up will added as they receive them. mean buyers can offer their customers a profile on the site, and it is free for fresher food from local farmers, with a both businesses and farmers to trade Earlier this year we featured Farmbook, an international agricultural marketplace based in Russia designed to help both individuals and companies around the world market their agricultural goods. Now in the UK, Sustaination aims to connect food producers with local buyers via a dedicated social network. The BARN University of Maryland Extension - Western Maryland Research & Education Center 18330 Keedysville Road, Keedysville, MD 21756 301-432-2767 x338 or x301, E-mail: gsmyers@umd.edu or sbarnes6@umd.edu Editor: Ginger S. Myers Regional Marketing Specialist, University of Maryland Extension Director, Maryland Rural Enterprise Development Center The BARN is published quarterly featuring the programs and resources of the University of Maryland Extension’s (B)usiness Development, (A)g Marketing, and (R)ural and Community Economic Development (N)etwork. For more information visit: Maryland Rural Enterprise Development Center http://www.mredc.umd.edu/ To Subscribe: Ag Marketing Program http://AgMarketing.umd.edu ► Western Maryland Research & Education Center http://wmrec.umd.edu ► University of Maryland Extension http://www.extension.umd.edu/ University of Maryland Extension programs are open to all citizens without regard to race, color, gender, disability, religion, age, sexual orientation, marital or parental status, or national origin. The BARN ► Email Notification: contact us (above address) to be added to our email list and you will receive notification when a new issue of The BARN has been posted on the web or other important events we would like to share with you. Hardcopy subscription: mail check or money order for $10 per year, payable to University of Maryland to the address above. Online: Issues are posted online and can be downloaded for free: http://www.agmarketing.umd.edu/Pages/Newsletters/Newsletters.html Comments and suggestions regarding The Barn are always welcome. References to commercial products or trade names are made with the understanding that no discrimination is intended and no endorsement by the University of Maryland Extension is implied. Articles and photographs can be reprinted with permission. Winter 2012