Exploring the Small Farm Dream: Is Starting an Agricultural Business Right for You?

Exploring the Small Farm Dream: Is Starting an Agricultural Business Right for You?

John Berry, Ag Marketing EducatorPenn State Cooperative Extension

Penn State is committed to affirmative action, equal opportunityand 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

County 1997 Farms1997

2002 Farms2002

2007 Farms2007

Lehigh $594,000 76 $1,424,000 63 $1,709,000 77

Northampton $982,000 90 $987,000 88 $1,349,000 70

Totals $1,577,997 166

$2,413,002 151 $3,058,000 147

Market Value of Direct Food Sales and Number of Farms Selling Food Directly ** 1997, 2002 , 2007 U.S.D.A. - Census of Agriculture

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 small-scale 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 Satisfactory Excellent 1 2 3 4 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 EducatorPenn State Cooperative Extension

Penn State is committed to affirmative action, equal opportunityand the diversity of its work force.