Exploring the Small Farm Dream: Is Starting an Agricultural Business

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Exploring the Small Farm Dream: Is
Starting an Agricultural Business
Right for You?
John Berry, Ag Marketing Educator
Penn State Cooperative Extension
Penn State is committed to affirmative action, equal opportunity
and the diversity of its work force.
Now – Lehigh Valley
• Total crops value = $74,869,000
• Total livestock value = $28,990,000
Of “crops”
Nursery, greenhouse, floriculture = $27,406,000
Market Value of Direct Food Sales and Number of Farms Selling Food Directly *
* 1997, 2002 , 2007 U.S.D.A. - Census of Agriculture
County
1997
Farms
1997
2002
Farms
2002
2007
Farms
2007
Lehigh
$594,000
76
$1,424,000
63
$1,709,000
77
Northampton
$982,000
90
$987,000
88
$1,349,000
70
$1,577,997
166
$2,413,002
151
$3,058,000
147
Totals
Now – Lehigh Valley
• Total farm production expenses ($1,000)
– 70,023
• Average expenses per farm ($)
– 135,704
• Total net cash farm income of operation ($1,000)
– 7,534
• Average net per farm ($)
– 14,601
Now – Lehigh Valley
• 66% make less than $20,000 in gross sales per
year.
• 9% make more than $250,000 in gross sales per
year.
• 1,000≈ farms report an average annual net
income of $15,000
• During the last decade, new farmers found it
increasingly challenging to start and succeed
in farming careers.
• At the same time, traditional support and
services for new farmers seriously eroded.
• Agricultural service providers, strained by
dwindling resources and competing demands,
for the most part neglected the new farmer
customer.
• In the early 1990's, several organizations
across the country established "farm linking"
programs to assist new farmers in locating and
acquiring farms.
Perceiving a broader need, many of these linking
programs expanded to other services for new
farmers such as:
– start-up business planning
– skill-based curriculum development
– technical assistance
– referral
Northeast New Farmer Network (NENFN) was
funded, and launched in 1999. NENFN was a
two-year project designed to improve
resources, programs and referrals for new and
prospective Northeast farmers and to create a
network of service providers.
• NENFN developed a conceptual framework for
understanding who new farmers are and what
they need to succeed.
• An inventory of programs and services for new
farmers in 12 Northeast states pointed out
gaps in the existing service landscape.
• In 2000, the New England Small Farm Institute
(NESFI) collaborated with key partners on a
proposal to the Initiative for Future
Agriculture and Food Systems, a USDA/CSREES
competitive grant program
• A four-year grant for $1.7m was awarded to
NESFI
Out of all this . . .
• One of the products is Exploring the small
farm dream
• Quite simply, the purpose of Exploring the
Small Farm Dream: Is Starting and
Agricultural Business Right for You? is to help
aspiring farmers answer that question.
The aim is to help those thinking about smallscale commercial farming (farming as a
business with intent to make a profit, rather
than as a hobby or pastime), learn what it will
take to start and manage a farm business, and
decide whether that is something they really
want to pursue.
Recognizing that many "Explorers" will choose
not to farm commercially, Exploring the Small
Farm Dream also looks at other possibilities
that can satisfy their interest in agriculture.
Course facilitators and participants have found
that the course provides an excellent
framework to help new farmers assess their
skills and interests, learn the realities of farm
business ownership, and become connected
to local resources
The decision-making workbook was originally
created to support the classes. To meet the
needs of "Explorers" who could not attend
classes, the workbook was later re-designed to
stand on its own.
Service providers have successfully used the
workbook in a variety of ways in their work with
new farmers:
• screen applicants to farm incubator or other
programs that will require a large investment of
resources in the farmer
• one-on-one coaching
• small peer groups
• required reading or a recommended resource in
other ag business courses
• 17 member Exploring the Small Farm
Dream team (1/4 are active)
• This programming group has reached
over 297 learners at 16 locations
state-wide over three seasons
Reported impacts
Poor
1
Satisfactory
2
3
4
Excellent
5
Usefulness of Course
0
0
2%
34%
63%
Overall Quality of Course
0
0
0
44%
54%
Information Gained
0
0
0
18%
90%
Quality/
Relevance of Workbook
0
0
15%
15%
60%
Reported impacts
Do you feel better able now (than at the start of
the course) to answer the question "Am I
ready to start an agricultural business?"
Yes - 237
No - 42
What was the single most important thing that you gained from the course?
• “Answers to and re-enforcement of the Small
Farm Dream and how to prepare to succeed.
Also, how to be realistic in setting goals.”
• “I realized I am better equipped than I thought
I was. We need to do more as a team to make
this work.”
• “Network of ideas, marketing, personal
inventory as part of decision process.”
What was the single most important thing that you gained from the course?
(continued)
• “It made me take a hard look at what I am
trying to accomplish by starting into farming.”
• “Determining our plan and networking.”
• “Networking -- knowing where to go for more
information.”
• “I can see that my dream is possible.”
• “The opportunity to hear testimonials and the
recommended readings.”
What was the single most important thing that you gained from the course?
(continued)
• “Resources!”
• “Clarity of where I'm at, where I need to
focus.”
• “Information about the variety of ways to get
involved in ag and the importance of each.”
• “Learning about different agencies where you
can gain information from.”
• “A realistic view of what is involved with
planning for an agricultural business.”
Comments?
• The book will continue to be helpful. The
instructors were great! Very supportive -- gave
great information, asked thoughtful questions.
• Course was outstanding! Instructors brought
real-life experiences and insights. They kept the
course on track while also allowing the
discussions to go where they did. The resources
they introduced (various Web sites and videos)
were of great value.
Comments?
• This course was useful for me…would have
been more useful a few years ago, but still
worthwhile. Thank you!
• This course was good and really made me do
my research in terms of exploring my small
farm dream so now I can take the next step
and develop it further.
Comments?
• Also very useful was the discussion aspect -hearing other people's thoughts and internal
debate about farming.
• I enjoyed the course – there is a sense of
confidence from the resources gained. It is
diverse enough when thinking about all areas
needed to be discussed for a small farm.
• Thank you very much. Time and $$ worth
spent.
Comments?
• This is to let you know that my husband and I
learned a lot from your class. Unfortunately,
what we learned is that, at this stage in our
lives, farming is not for us. We only wish we
had done it when our family was younger.
• We both thank you very much, and are
appreciative that our investment was so small,
compared to finding this out after we bought
a farm.
At present organizations in
eight states and three
Canadian provinces offer
Exploring the Small Farm
Dream courses.
Facilitator focus group
•
•
•
•
Screening applicants
Optimum number of learners per class
On-line option
Length of class/ momentum/ assignments/
final presentations
Facilitator focus group
• Setting Course Fees
• Improving Teaching Skills
• Follow up with Course Participants and
Connections with Other Services
Exploring the Small Farm Dream: Is
Starting an Agricultural Business
Right for You?
John Berry, Ag Marketing Educator
Penn State Cooperative Extension
Penn State is committed to affirmative action, equal opportunity
and the diversity of its work force.
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