Finding the Niche: Case Studies of Beginning Small … · Finding the Niche: Case Studies of Beginning Small-Scale ... farmers interviewed for this study has convinced us that the

Finding the Niche:Case Studies of

Beginning Small-Scale Farmers

With Recommendations forPrograms for Beginning Farmers

Wisconsin Rural Development Center1406 Business Highway 18-151 East

Mount Horeb, WI 53572

Written and Illustrated by

Katherine Griffith

Copyright 1991Wisconsin Rural Development Center, Inc.

$ 5.00

Support for this study was provided bythe Patrick and Anna M. Cudahy Fund of Milwaukee.

Contents

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Introduction

Ann Topham and Judy BoreeGoats and goat cheese

Dick and Gretchen RegneryCherries, sheep, an art gallery, and a Bed & Breakfast

Kathy and Jim FosterA small fiber farm

Jack and Debi MarkinSheep

Judy Baker and Roy MarsdenTrying to start an organic, subscription farming system

Mary BakerUp-scale specialty vegetables

Jim EllesonTrying to start an organic vegetable operation

Mary JacksonManaging a sheep farm

Stuart Smith and Roger EischensVegetables and small grains

Susan WatermanAngora goats, Shetland and long wool sheep

Conclusions -- Helping Beginning Farmers Get Started

Overview

Finding Land and Facilities

Financing

Production

Business Plamring

Marketing

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Introduction

A typical conversation at the Wisconsin Rural Development Center on the topic of beginning farmers usuallygoes something like this:

“Gee, we ought to do something to help beginning farmers.”

“What? It seems like they all need something different. And how do we find them? Who are they? Whatdo they need? Is it something we could provide?”

The present study started off as a modest attempt to answer those questions for ourselves.

It soon became obvious however, in the course of conducting interviews with beginning farmers, that this wasa study with a broader audience. The stories were too interesting, too inspiring -- and perhaps too sobering-_ to go no further than our next Board meeting. So we decided to share them. And we decided to broadenthe scope of the project a little to serve two different goals.

The first goal is to help organizations like ours -- dedicated to small and medium sized family farms,environmental protection, and rural communities -- get a sense of the realities that beginning, non-traditionalfarmers face. We wanted to focus on non-traditional farmers for several reasons. First, while we won’t claimthat going into farming is easy for anyone, there are substantial resources devoted to the needs of beginningconventional producers. There is a great deal of information available on traditional enterprises, and thereare special credit and assistance programs that target this group. Farmers producing non-traditional itemsor conventional products in unconventional ways, on the other hand, face a dearth of helpful information andinstitutional support. We wanted to provide some analysis and suggestions on the most promising forms ofassistance, and help groups think through an appropriate helping strategy.

The second goal of the study is to help aspiring farmers learn about some of the right questions to ask, andthe experiences of others in a similar boat. For individuals just starting to think about going into farming,the present study may serve as set of cautionary tales, creative ideas, and some good, down-home advice.These are stories born of inspiration and nourished by perspiration. Lots of it.

* * *

Our contact with the group of farmers interviewed for this study has convinced us that the new generationof small farm entrepreneurs is a critical resource for rural communities, urban consumers, and the farmcommunity. We believe in their dynamism and creativity, and the value of the alternative vision of agriculturethat they are pioneering. This study shows them to be often poorly understood, under-served by existingfarm programs, and frequently written off as too small, too “exotic” and too far outside the mainstream tobe worthy of attention. But as we see it, it’s not always possible to tell the difference between “marginal” and“cutting edge.” The success of some of these farmers suggests that they are indeed “cutting edge” -- and thusmore, not less relevant to agriculture as a whole.

It has been said that good ideas are often born as heresies and die as platitudes. The farmers in this studyhave dared to try heretical ideas. They are inventing and keeping alive possibilities -- in production, inmarketing, in lifestyles, and in values -- which may some day be the basis for far-reaching positive changesin agriculture. We hope so.

These farmers possess some rare talents, an amazing level of energy, and a lot of guts. There is much to belearned from their stories. It is our hope that the present study can convey some of the richness of theirexperience to readers, and lay a foundation for better-focused assistance programs.

Ann Topham and Judy BorreeFantome FarmRt. 1 Box 194Ridgeway WI 53582(608) 924-1266

The Dream

“Our first dream was to have a place in the countrythat people could come to -- a kind of retreat fromhigh stress jobs and lifestyles. Wherever we were,they seemed to come anyway. But neither of usreally felt comfortable making a living off of otherpeople that way -- we wanted to produce somethingand be independent.”

“As we were thinking about it, I went to visit myfather, who had moved onto a farm when he retired,and was raising purebred Angus cattle. I wanted tofind out what he was doing -- he wasn’t realarticulate about it, and I was curious. After sixweeks of planting, calving, and learning aboutfarming, I realized I could never go back to myoffice. Eventually, Judy took a sabbatical fromwork, and we went and worked for my Dad for ayear and a half.”

“We loved working with the cows, but then heencouraged us to get a goat, and we & likedworking with the goat. It was smaller and more funto deal with. So our dream kept on evolving --eventually towards a small farm producing goat’scheese.”

The Operation

Ann and Judy have a SO acre farm in Ridgeway,about 45 minutes west of Madison. The farm is onethird pasture, one third alfalfa, and one thirdwooded. This year they are milking 21 goats. “It’sbeen a struggle to stay small. We didn’t want tospend our time just trimming hooves and cleaningthe barn and milking -- we wanted to have the timeto put into breeding and managing, making cheese,etc. But goats are prolific!”

and stores in Madison, Milwaukee, and Chicago.

They make a variety of soft cheeses, which they sellat the Madison Farmers’ Market, and to restaurants

~ - .

The hardest part about buying the land and gettingstarted was money. They wanted to avoid debt, butthe landowner demanded a high down payment($30,000). They ended up forming; a partnership

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The farm is currently their only source of income,and they are in the black for the second year.

Constraints and Opportunities

Land and Facilities: “We felt pressed to find aplace soon -- we wanted to get started. But webought land at the end of the period of high pricesand interest rates, back in 1982, so it wasn’t cheap.”Because farms were so expensive, Judy and Anndecided to buy non-farm land. They found a small,hilly tract of land with a house but no barn -- theyhad to build one.

‘After six weeks of planting,calving and learning aboutfarming, I realized I couldnever go back to my ~JjZce.”

They wanted to have a wooden barn, because theyhad learned that goats don’t stay healthy inconditions of excessive moisture or condensation.However, building a new wooden barn would havebeen very expensive. So they went back to Iowaand disassembled the 40 X 40 foot barn belongingto Ann’s father; the roof had blown off in atornado, and he was no longer using it. Theytrucked the 5000 pounds of siding lumber back toWisconsin themselves, and hired a local company toput up new poles and a roof. The barn has workedwell for them.

“One problem with our land is that there isn’t a flatplace on it. We have to fight with water all thetime, and bulldoze every place we put buildings.We didn’t know about that when we bought it -- welearned the hard way.” They also had to learnabout building their own facilities the hard way --there was no one to learn from. “Judy does most ofthe building, and she does it book in hand, frompictures.”

with friends and family to purchase the land (seebelow, under “financing”).

Technical Expertise: Ann and Judy both hadadvanced degrees -- but not in anything related toraising goats. Ann had a PhD in the history ofeducation, and Judy had one in social work. Themain benefit of their formal training was that theyweren’t afraid to do library research.

“We read every book we could get -- even ones inFrench, since those were the only ones that talkedabout how to make cheese. When we started therewere only two people in the U.S. making goatcheese, so it was hard to get information. We alsofound a lot of resources on goats at the Vet School.They’ve been fantastic for us -- we have a goodworking relationship with a woman there who reallyknows goats and likes them.” Judy and Ann alsotook the Short Course at the UW-Madison Collegeof Agriculture, after which they went to work onAnn’s father’s farm. This experience was crucial.“We learned everything except how to plow and putup hay. We learned how to build fences and drivea tractor and work with animals. And being withmy Dad, we were part of a community, and we hada kind of credibility. People would talk to usbecause of my family, and we weren’t afraid to askquestions. We learned a lot by asking questions.”

The experience in Iowa made it easier to rely onfriends and other farmers for hands-on informationand advice, although when they started there werevery few people with specialized experience theycould tap.

Financing: This was a real obstacle for Amt andJudy. They ultimately solved the land purchaseproblem by forming a partnership with friends andfamily who put up capital for land purchase. “Itwasn’t exactly a business proposition for them --they weren’t really getting anything out of it, but inthose days interest and depreciation were taxdeductible, so they weren’t losing either.” Thisarrangement has worked well. Mortgage paymentsare lower than they would have been if the downpayment had been smaller, and their friends aren’tin a big hurry to be paid back. “A bank wouldnever have given us a loan. There was no precedentfor what we were trying to do, and it was certainly

a risky proposition. But we were willing to take therisk.“’ For the first couple of years, Judy keptteaching at the University to keep some incomecoming in; she also worked for Lutheran SocialServices for a time. They have also received some -- though not a great deal -- of help from Ann’sparents.

They have avoided taking on debt to purchasemachinery -- they buy what they need used, andavoid large investments in items they use onlyrarely. They are looking for ways to rent certainpieces of machinery, or share them with otherproducers. A major goal is not expanding theirherd beyond its present size, which is a pleasure tomanage. They point to the example of otherproducers who have made big investments and thenhad to increase the size of their operation to paythe loans back.

Marketing: “We figured with the Farmers’ Marketin Madison, and a lot of people who had traveledand eaten goat cheese in other countries, we wouldhave a market for our cheese. But as it turned out,for the first couple of years we had to bludgeonpeople into trying it.” They built their markets upfrom scratch, educating themselves and consumersas they went along. They were certified to sell in1984, and now sell in Madison, Milwaukee andChicago. For a time they were selling to a customerin New York, but they found maintaining theconnection over that distance too difficult.

“We thought...we would havea market for our cheese. Butas it turned out, for the first

couple of years we had tobludgeon people into trying

it.”

They have displayed at the annual food fair on NavyPier in Chicago, and found this to be a valuablesource of contacts. “This year our cheese was takenall the way to Hong Kong!” They have also beenwritten up in several major publications, such as theNew Yorker. Currently, they get about one third of

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their income from the Madison Farmers’ Market, a lives, and tap into the most elemental things in thefluctuating lo-20% from Chicago, and the rest from world -- life and death. What other way is there tostores and restaurants in Madison and Milwaukee. clear your horizon and remember what’s reallyThey are getting ready to expand their sales, which important? It’s a real nurturing that goes on, andthey plan to do through a mail order system. I don’t know how other people get by without it.”

Ann says the biggest marketing constraint is time.They’ve had many excellent marketing opportunitiesthey simply haven’t had time to respond to. “Mostdays, we’re going from S:OO am. to 8:30 or 9:00 pm.-- there just isn’t enough time to pursue everything.”It is noteworthy that the market they havedeveloped is promising enough that there is now alarger goat cheese operation getting underway inWisconsin, started by a French investor.

How It All Looks From Here

“When I look back on it, I’m amazed that we did it.There were so many obstacles, and so many thingswe didn’t know how to do. But we make goodcheese! It’s amazing!”

“One of the best things iswhat the animals give back.

. . . they let us be in their lives,and tap into the most

Lessons

Most of what Ann and Judy would have foundhelpful (or still would) falls under the “networking”heading. They would like to have a way to findother farmers working at the cutting edge,experimenting with new techniques, etc. Tl=Ywould like to find other people with farmexperience willing to trade labor and join work days,as they currently do with some neighbors. They findthe group effort educational, fun, and labor-saving.They would also like to find people in their areawilling to do relief milking; it is difficult to findpeople with experience with goats.

They feel, like many other small and beginningfarmers, that the input distribution infrastructureserves them poorly. They need relatively smallquantities of somewhat unusual items, andpurchasing them individually implies higher costsand a greater effort in searching out sources. Theywould like to find a way to purchase inputs withothers to get better deals, and save on researchtime.

elemental things in the world-- life and death. What other

way is there to clear yourhorizon and remember what’s

really important?

“We know it’ll work now -- we can make a living atthis. We haven’t really known that for long, and it’svery satisfying. For a while we were afraid we’dhave to get big to make it, but our cheese is goodenough that we can charge enough and stay small.The cost of this is the energy deficit. We can’t keepup this pace forever. We need to find ways to savelabor.”

Finally, they would like to find a way of renting orborrowing equipment for short periods of time. Forexample, they cannot afford to purchase a fenceauger, but would greatly benefit by occasional accessto one. This is an item which can be used for muchof the year (not just for a few peak days or weeks);it should thus be possible to develop some sucharrangement with other farmers who are also not ina position to purchase their own.

One of the lessons from Ann and Judy’s experienceis the importance of support from family andfriends. A network of people willing to commitmoney to the effort allowed them to get started, anda family contact in farming allowed them access tothe expertise of an established farm community -- aswell as experience with the mechanics of farming.For many beginning farmers, building orstrengthening such ties may be a good first steptoward getting started.

“One of the best things is what the animals giveback. It’s hard to convey... they let us be in their

Dick and Gretchen Regnery3831 Clark Lake Rd.Sturgeon Bay, WI 54235(414) 743-1560

The Dream

Dick and Gretchen wanted to live in a rural area --as they both had as children -- and they wanted adiversified operation that would provide anadequate income year round without off-farmemployment. They wanted to work with smalllivestock, and also felt that the lifestyle of runninga Bed & Breakfast would suit them. Finally, theyhad family in Door County, and hoped to locate inthat area.

The Operation

Dick and Gretchen have an 80 acre farm adjacentto a state park in Door County. They have anorchard of 3.50 cherry trees which started majorproduction this year, and a flock of 30 Corriedalesheep. They plan to increase their flock to SObreeding ewes. In addition, they have an art galleryin the farm’s old granary, and a Bed and Breakfastwhich opened for the first time this year. This isthe first year they are relying on no outside income,either to live on or to capitalize the farm.


Land and Facilities: The couple looked for afarm for five years before finding a suitableproperty. Important criteria were: ease of access fortourists; proximity to other tourist attractions; scenicbeauty: a house large enough tobe converted into a B&B;adequate land for a livestockoperation.

They finally found an 80 acrefarm that met these criteria, aswell as offering opportunitiesthey had not considered. Thecherry trees had been newlyplanted by the previous owners,and the granary already housedan antique shop and art gallery.

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The farm is adjacent to a state park, which assuresa steady flow of visitors.

The granary had no heating. Rather than installingan expensive heating system, they decided to run thegallery seasonally.

The house was not in a condition to be used as aB&B -- Gretchen and Dick spent eight yearsremodeling and fixing it up. An unexpected “setback” occurred when the couple went to the zoningboard for permission to convert the house, and weretold that it was 10 feet too near the road and wouldhave to be moved back to be legal. This was a largeand unanticipated additional expense which delayedthe opening of the B&B.

Financing: They did not want to take on debt,although they would have had no difficulty inobtaining a loan. They both continued to work inMilwaukee during the week, and spent weekends onthe farm getting it into shape for the variousenterprises they planaed. They capitalized the farmwith earnings from their other jobs. Gretchenworked as a nursing and home care administrator,Dick for the Social Service Administration.

Technical Expertise: They had little knowledge oftheir enterprises when they started. The cherrytrees had been planted just before they bought thefarm -- this was an opportunity they had notoriginally considered, but decided to exploit. Theydecided to do a combination Pick-Your-Own andready picked operation in order to exploit twodifferent markets. They found ready sources ofinformation on growing cherries locally. TheCounty Extension agent, a plant pathologist,specialized in fruit crops, and sent out a newsletter

with spraying dates and otherinformation about cherries.Extension also held an annual“cherry school” which theyattended, and the University ofWisconsin also operates anexperimental station in thecounty, with emphasis on cherryand apple production. Theysubscribe to the Great LakesFruit Growers Newsletter, and aswith all their enterprises, theyhave done other research and

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reading in preparation.

Regarding the B&B, althoughthey had no experience running such an enterprise,they had enjoyed s taying a t o ther B&Bestablishments and felt they understood the market.They felt that with their good location, scenicattractions and functioning farm, they could providethe kind of experience tourists wanted.

“We learned to set a realisticbudget, and then increase itby about 50%. Things arealways more expensive than

you think, and they takelonger, too. You have to

count on unforeseenproblems.”

Finally, regarding livestock, Gretchen had an unclewith a dairy farm where she spent much time as achild. In preparation for the move into a livestockoperation, Dick spent a year working as a farmhandon a local dairy farm. This experience was aninvaluable source of information on animalhusbandry, forage management, and farmmanagement. In addition, it was an entrance intothe local farming community.

They had some but not enough knowledge of sheep;Dick had raised them for a 4-H project as a boy.His experience gave them a degree of confidencethat aided their decision to go into this activity.They did extensive research to determine the properbreed for their purposes. Given the very poormarket for ordinary wool, they looked into specialtywools. It turned out that Corriedale wool washighly prized by hand spinners, of which there wereseveral locally. This looked like a marketopportunity. In order to produce the highestpossible quality wool, they decided to put “jackets”on the sheep between shearings to protect the woolfrom dirt, seeds, and burrs. An additionalconsideration in breed selection was thatCorriedales have a body type which is attractive formeat purposes, so that there would be a fairly ready

market for slaughtered male lambs.

Their research on sheep took them to many tradeshows, the annual Wisconsin Sheep BreedersConference, the library, trade journals, and otherfarmers, whom they found to be generally helpfuland willing to share advice. They emphasize theimportance of extensive background research inselecting the proper breed and understanding boththe production and marketing ends of the business.

They plan in the future on milking their sheep.Their intention is to sell milk to specialty cheeseproducers. Brie, for example, is traditionallyproduced with sheep’s milk (though in the States itis often made with cow’s milk). One importantadvantage of sheep’s milk is that it may be frozenfor up to six months without suffering harm forcheese making. This means that they can save ontransportation costs by shipping it less frequently.This flexibility is especially important for a smallproducer. Another advantage of sheep is that theyneed to be milked 130 days of the year, and thenthey all dry off at the same time. There will beseveral months before lambing during whichGretchen and Dick can take a break from milking.

“The situation has met ourexpectations. We did a lot ofresearch so our expectations

were realistic... and we”reused to lots of hard work,which this has been. We

didn’t expect to be wealthy,and we’re not.”

Marketing: All of the Regnetys’ operations weredeveloped with markets in mind. Market researchwas an integral part of the decision-making process.In addition, Gretchen and Dick had life experiencesthat gave them a good understanding of the marketsthey were trying to reach. They had grown up inrural areas but had also lived as adults in urbanareas. They knew what was attractive to citydwellers, and had a good feel for the aesthetic and

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other preferences of B&B clientele, hand spinnersand gallery-goers. This is their first year of runninga Pick-Your-Own operation, and they are pleasedwith their clientele so far. They feel that the natureof their operation has attracted pickers who aregenerally careful not to damage the trees. Theawareness and understanding of their markets hasbeen critical to the success of their enterprises.


“The situation has met our expectations,” saysGretchen. “We did a lot of research, so ourexpectations were realistic... and we’re used to lotsof hard work, which this has been. We didn’texpect to be wealthy, and we’re not.”

They enjoy the considerable amount of time theyspend dealing with people in the course of runningthe Bed & Breakfast, the gallery, and the Pick-Your-Own cherry operation. Their gallery is one ofthe largest in Door County, and they areparticularly pleased at the early success of the B&B.They feel that it will be a major, year-round sourceof income.

Lessons

A major lesson from Dick and Gretchen is that aslong as a beginning farmers are aware of what they

don’t know, and are accustomed to doing researchto find out, the technical obstacles are notinsurmountable. The Regnerys selected enterprisesin which they possessed some advantages, they didtheir homework, and they allowed themselves agenerous time frame for learning. Their selection ofenterprises was based on a careful assessment oftheir resources and strengths, as well as a realisticevaluation of the market opportunities. They werealso careful to take only limited financial risks,preferring to go slowly, avoid debt, and do the workof building up the farm and B&B themselves. AsGretchen put it, “We learned to set a realisticbudget, and then increase it by about 50%. Thingsare always more expensive than you think, and theytake longer, too. You have to count on unforseenproblems.”

The main thing that Dick and Gretchen would haveliked along the way was a clearinghouse of peoplethey could go to for advice and technical assistance.This would certainly not have made the differencebetween success and failure, but would have madetheir research easier.

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Kathy and Jim FosterFiberbits FarmS104 W38751 Hwy. NNEagle, WI 53119(414) 594-2980

offices the first twenty or so banks I went to,” shesays. Since then, she hasn’t pushed hard for alivestock loan, preferring instead to maintain acordial relationship with the bankers so that she caneventually apply for a real estate loan. In themeantime, she has purchased a few animals on acredit card or with cash.

The Dream

Kathy always dreamed of having a small farm andliving in the country. She was also a spinner andweaver, and wanted to raise animals that producedexotic fibers. “I thought having a small fiber farmwould be fresh air and fun,” she says. “It is, but it’sbeen a real learning experience, too.”

As she puts it, she’s had to “beg, borrow, steal, andwork part time” to get started. Her part time job,as an interpreter at Old World Wisconsin, does notpay enough to generate substantial savings, but doespay vet and feed bills and permits the slowacquisition of animals.

The Operation“when I started, I didn’t evenknow what hay was! I needed

Kathy and Jim are renting a five-acre farm (threeacres are in pasture) with a small barn southwest ofMilwaukee, near Whitewater. They have a fewangora rabbits and llamas, are getting into sheep,and are considering angora goats. The enterprise isprimarily Kathy’s: “Jim lifts anything heavy -- I dothe rest.”


Lund and Facilities: The Fosters have a smallfarm in Eau Claire, but for various reasons decidednot to develop their operation there. Currently,they are trying to sell that property, and are rentingthe current small farm on a yearly lease. It tookthem a year to find a property appropriate andaffordable as a small livestock operation. They arestarting small both because they don’t have themoney to make a major investment, and becausethey are learning as they go along and need time togain experience before plunging in with a full-scaleoperation.

City People.”

One problem is that wool prices are currently

a course in Farming 101 For

extremely low, so investing in ordinary sheep isdifficult to justify economically. Some specialtyfibers are still attractive, but the animals a&expensive. Female llamas currently sell for $8-10thousand dollars apiece. Angora goats would be agood compromise in some respects, but they requireelaborate fencing, which also implies a largeinvestment. The only solution for the Fosters at thispoint is to start small and grow slowly, gettingcapital from outside income.

Financing: This has been a major constraint forKathy. When she started, she was unaware thatcommercial banks typically did not makeagricultural loans, or that there were specializedfarm credit services. With her lack of experience,and the fact that she wanted to go into an activity(raising llamas) of which bankers had littleknowledge, the reception she received ranged fromcool to derisive. “They laughed me out of their

Technical Expertise: As Kathy puts it, “When Istarted, I didn’t even know what hay was! I neededa course in Farming 101 For City People.” PerhapsKathy’s worst problem was not knowing what shedidn’t know. She looks back on several costlymistakes they made. One was building permanentfencing in rocky ground without knowing the fencingrequirements of different animals. Movable electricfencing would have been much easier and cheaper,and would have worked for the animals they nowhave. Another was in not knowing enough at thebeginning how to select the appropriate animals forher needs and finances. She feels that despite lowwool prices, she should have started with sheep,since they are cheaper, and better known to

bankers, vets, and others who could have helped herget started and learn about raising livestock.Finally, she knew, she admits, almost nothing aboutbloodlines, animal husbandry, culling, pastures,feeding, housing requirements, livestock handling,selecting a vet, and normal animal behavior. Shealso didn’t know how the banking system worked,what services were available for farmers, what therequirements were, or how to present her plans toa loan officer.

What Kathy knows now she has learned fromexperience, from Susie Waterman’s (see pflge 29)seminar on Angora goats, from attending countyand state fairs, and from talking to others andreading.

Marketing: Kathy has a rudimentary knowledge ofthe markets for different kinds of animal fibers.Most of her energy, however, has gone into learningthe agronomic and husbandry aspects of producinganimal fiber. She has experience as a desktoppublisher, and is confident that this will help her inrunning effective advertisements in magazines. Shemade her first sale this year through a word-of-mouth contact, and is helping to organize a fibershow next September. She is, she admits, justgetting started in marketing -- this is the first yearshe has had anything to sell.


“I’ll give it about five years,” she says. “My husbandstill laughs when I say that someday I’ll supporthim. And the banks still laugh, and none of myneighbors take me seriously -- they’re all establisheddairy farmers. But I think I can make this work.It’s harder than I thought -- there’s so much I don’tknow. But I want to keep trying.”

Lessons

What Kathy wishes she had was more on-farmexperience, but this was difficult to obtain. “I knewI’d be a real liability at the beginning,” she admits.

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“I’d have to be taught everything.” (She looked inthe farm want ads periodically, but always felt theywere looking for someone with experience. She wasnot aware of any internship opportunities.) She alsowishes there were a way to meet other beginningfarmers in the same boat, and experienced farmersshe could talk to and learn from. Finally, she thinksthat a course like “Farming 101 for City People”could be helpful.

“Lots of people want to befarmers. It would be nice ifsomeone would just take us

little people seriously.”

One of the lessons from Kathy’s experience is thatfor complete beginners with no farm experience,getting an initial toehold is very difficult. She ‘saysthat few people have taken her seriously, and thisoften gets in the way of obtaining information.Susie Waterman’s Angora goat seminar stands outas the single most helpful source of criticalinformation -- and one of the only times Kathy wasnot dismissed as hopelessly unrealistic. Susie, as arelative newcomer to farming, is probably unusuallywell-positioned to offer advice to beginning farmerswho lack prior experience, knowing what kinds ofinformation they are likely to ne,ed, and taking littlefor granted. Such seminars on other topics, gearedfor people who are just starting out, might beuseful.

For people like Kathy, it seems that one of thesingle most useful things would be a directory ofother successful beginning farmers who couldprovide nuts and bolts advice and expertise -- aswell as moral support. As Kathy says, one of thethings she has most needed sometimes is simply tobe taken seriously. “Lots of people want to befarmers. It would be nice if someone would justtake us little people seriously.”

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Jack and Debi Markin1380 Highway 78 SouthMount Horeb, WI 53572(608) 437-3289

The Dream

“I wanted to be a farmer ever since I was in collegein the ‘~OS,” says Jack. “I dreamed of having myown place and making it work. I love making thingsgrow, I love working outdoors, I love working withanimals. I didn’t know exactly what I wanted togrow, but I wanted to farm.”

The Operation

Jack and Debi have a 265 acre farm in MountHoreb, on which they have a herd of sheep(currently about 300), and about 20 acres each ofcorn, oats and wheat. They sell the wheat, and feedthe corn and oats to the sheep. They briefly trieda market garden this year, but found that it wasn’tattractive economically. They sell wool, though thisaccounts for relatively little of their income even ina good year for wool. Their primary product islamb, for which they are working to developalternative marketing channels. This is their fourthsummer on the farm.


Lund and Facilities: Primarily for lifestylereasons, the Markins wanted to be within thirtymiles of a university town. They wanted to haveeasy access to a city with its cultural attractions, andthey wanted to raise their three children on a farm.They looked into a number of areas in Michigan,Wisconsin and Minnesota, and finally found thesetting they were looking for in Mount Horeb, asmall town about 20 miles from Madison. Tl=Ywere relatively flexible regarding the kind of farmthey purchased, since they had not decidedbeforehand exactly what they wanted to do on it.

Financing: “Money is the big obstacle,” says Jack.“I just don’t know how most people get started. Wewere lucky -- we both had high paying jobs inChicago that we worked at for five years with thisgoal in mind.” Jack was a real estate developer, and

Debi was a systems analyst.

They did buy the farm from Farm Credit Services,but were uncomfortable both with debt in generaland with ag lenders in particular. “I understandtheir position. Of course we’d like cheap moneyand we’d like to think that they’re looking out forthe interests of farmers. But they’re also supposedto look out for the money; they have conflictinggoals. Are they going to loan to farmers like us, orUncle Sam’? Uncle Sam has a printing press, wedon’t.”

The Markins have concluded that in general a heavydebt load is unwise. With low profit margins, debtwould be unsustainable. As a rule of thumb, Jacksuggests that the maximum debt should be about20% of equity, and that obtaining a fixed interestrate is critical. Although the current interest rate(7-8%) is sustainable, the 6% increase allowableover the life of a variable rate loan could sink afarmer.

. . . We’d like to think that [aglenders] are looking out forthe interests of farmers. Butthey’re also supposed to lookout for the money... Are theygoing to loan to farmers like

us, or Uncle Sam? UncleSam has a printing press, we

don’t.”

While Jack and Debi have avoided debt, they arecontemplating taking out a $10,000 loan for fencingfor their rotational grazing system. A permanentfencing system will allow them to expand their herdto the point where they can begin to achieve theireconomic goals: supporting their family and saving$5,000 a year.

Thus, while money was and is the primary obstacle,they don’t regard credit as necessarily the solution.Jack and Debi have decided to work on the profitmargin end of the problem rather than the creditend. They are working to reduce production costs,

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add value, and sell directly to customers as much aspossible. They have also contented themselves withstarting small, and building their herd up each year.They started with only 80 ewes, the second year theyhad 180, this year they have 300, and next year theyexpect to have about 350.

“The market’s not working.The farmer’s getting less andthe packer3 getting more.”

Technical Expertise: The Markins did not startout by doing a lot of research, and they admit thatthey made some mistakes as a result. However,they found that between the books they read andthe farmers they bought sheep from, they were ableto learn enough to master the technical aspects ofraising sheep. Jack also had an M.S. in aquaculture,and had worked on a fish farm in Alabama forthree years. Though in most respects fish farmingbears little resemblance to sheep farming, it taughthim about many of the important questions to ask,and gave him a degree of confidence about workingon a farm.

One thorny production issue has been organiccertification. The Markins will be certified asorganic next year, but have found that although theycan grow crops organically and do not use anyantibiotics or hormones, the organic wormingmedicine (diatomaceous earth) does not work.They anticipate having a conflict with the certifiersover this, and having to work out a pasture rotationsystem that reduces the problem of worms. Theyalso note that there do not really exist any state orfederal regulations for organic meats, or well-developed markets for them.

Another difficult issue has been fencing. “Wethought we could do permanent fencing on theperimeter of the pasture and use movable fencingfor the enclosures, but it’s too difficult to managewith the size flock we need to have to make money.We’ve had four years to figure out our systemthough, and we’re pretty confident about putting uppermanent fencing now.”

Marketing: This has been an obstacle for Jack andDebi. About 80% of the market in lamb iscontrolled by three packers, and they have littleinterest in doing slaughtering and packing for small,independent farmers. Although retail prices forlamb are very high compared to other meats, on-the-hoof prices to producers were at a forty yearlow last year. Jack claims that 6-8 years ago,farmers were getting $.9Oflb. on the hoof, and todaythey are getting $SO-.60/lb. At the same time, retailprices are 15% higher today than they were whenproducers were getting paid a lot more. “Themarket’s not working,” he says. “The farmer’sgetting less and the packer’s getting more.”

The Markins conclude that adding value on thefarm is critical. They are working on developingnew distribution networks and finding a smallerindependent packer. In particular, they favor sellingdirectly to customers, though they produce far morelambs than they can currently sell this way. Even ifthey sells a lamb for less then $2/Ib to consumers,they still get about $25 more a head than theywould if they sold it through a normal packerchannel.

“I love what I’m doing --being outdoors, working withthe animals... ItP 80 hours aweek on a farm and you don’tget rich at it, but I expected

that.”

Currently, they sell most of their lambs to theEquity Livestock Cooperative. In the near term,they hope to find a nearby federally inspected plant(there are currently only two in Wisconsin); thiswould allow them to sell their meat in other states.They may also try selling to a plant in Chicago,though they note that it is more difficult to developa good working relationship over such a distance.


“I love what I’m doing -- being outdoors, workingwith the animals, living in Mount Horeb. It’s a

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good place to raise a family. It’s 80 hours a weekon a farm, and you don’t get rich at it, but Iexpected that. Still, you have to be able to supportyour family and save some, and we’re not quitethere yet.”

Lessons

They regard their off-farm earning potential as theonly thing that allowed them to get started. As Jackpoints out, “By the time the banks regard you ascredit worthy, you don’t really need credit anymore.” Although Jack agrees that many loanofficers are ignorant of sustainable agriculture, non-traditional enterprises, and the needs and potentials

“‘By the time the banks regardyou as credit-worthy, you

don’t really need credit anymore.”

of beginning farmers, he doesn’t think thateducating them will be a large part of the solution.

He doubts the wisdom of taking on debt in the firstplace, and thinks it would have strangled hisenterprise.

Regarding technical expertise, he doubts that there’sa great deal any single organization could do to helpmost beginning farmers. His most usefulinformation came from other sheep farmers. Mostlikely, easier access to such farmers would havebeen helpful. A clearinghouse of information onestablished farmers in different enterprises couldwell be useful.

The marketing help that Debi and Jack need is bothspecialized and daunting. Finding a way to bypassthe highly unfavorable relations with the large,established packers and developing the lamb marketwould both be appropriate responses. (Jack pointsout that Americans eat an average of 200 pounds ofmeat per year, and only about one pound of that islamb.) Both responses would also require a majororganizational commitment, and the participation ofa number of smaller sheep producers. Developingcreative marketing ideas (such as selling not justlambs, but “lamb roasts” for parties) could be anadditional approach.

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Judy Baker and Roy Marsden1109 Vernon St.Stoughton WI 53589(608) 873-443 1

The Dream

“I want to farm in a way that our lives and work areintegrated as a whole and centered on the land. Idon’t want to have such a large operation that Iwind up just managing people or machines. I wantto be in touch with what is happening with theplants and soil in order to create a dynamic balancein the farm system. I also want to provide a decentmiddle income lifestyle from the farm and feel thatfarm work in general and sustainable farming inparticular is undervalued in our society.”

Judy and Roy’s goal is to run a small subscriptionfarm, close to Madison and a pool of potentialcustomers to facilitate contact with urbanconsumers. In addition to providing wholesomefood produced in an environmentally sound manner,an important part of their vision is helping urbanresidents gain a better understanding of the foodsystem and strengthen their ties with the land andthe farming community.

Trying to Get Started -- Constraints andOpportunities

Judith and Roy are still looking for land, savingmoney, and learning all they can about communitysupported agriculture and organic production. Theyhave been actively looking for a farm for two and ahalf years.

Land and Facilities: A small farm close toMadison is hard to come by, particularly at a pricethey can afford. They want to beclose enough to the urbanconsumers that their customerswill truly feel a link to the farm.Staying within 15 miles ofMadison means that they mustcontend with high land priceswhich are based on thedevelopment, not agricultural,potential of the land. “We canafford a $110,000 to $120,000

property based on my present income. A 20-40 acrefarm near Madison is generally priced at $140,000and up (way up). Housing quality is a major factorin the pricing since these are generally consideredhobby farms and are sold to commuters with jobs inMadison.”

Technical Expertise: Roy has a degree inagriculture and experience in small grain and cattleproduction, but has never produced vegetablescommercially. Judy has a strong interest in herbsand flowers, and both Judy and Roy are experiencedgardeners. They are interested in researching bettervarieties and growing systems.

They find that there is a lot of information onbiodynamic and organic agriculture -- there aremany good sources of help on the technical aspectsof production. Their main difficulty has been infinding help with the intricacies of financial andbusiness planning, dealing with lending agencies,and setting up a subscription farming system (inwhich customers pay in advance for a weekly“basket” of produce).

They find that the University personnel haveexpertise mainly in conventional practices and crops,and that bankers have little or no knowledge ofdirect marketing techniques or communitysupported agriculture (CSA). They have also foundthat while there are many sources of information onSSA, the uniqueness of every farm makes it difficultto apply the numbers and data of one operation toanother. Finally, there are few people in the areawho they can “bounce ideas off of’ -- few individualshave sufficient experience to help them evaluatetheir plans and assess the viability of what they wantto do.

Financing: Roy is currently a professional potter.He has found that banks arewilling to give him a real estateloan based on his income frompottery, but not on incomeprojections from farming. Heviews bankers as both ignorant ofthe type of enterprise he wouldlike to have, and justifiablycautious about an inherently riskyproposition.

They will probably take out a loan based on Roy’sincome as a potter, and will continue to rely onoutside income for a time. “Since we feel that theorganic production system as well as the marketingwill need to evolve over time to their maximumpotential, I plan to keep my job for 3-S years andcut back gradually as the farm operations expand.”

Marketing: Roy and Judy feel strongly that CSA isboth appropriate and feasible. However, they havefound no local experts that can help them work outthe details for what they would like to do.

“We want to provide the socialfabric to link urban and rural

communities. City peopleneed for a farm to become

part of their lives.”

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They have recently been working with the AmericanFarmland Trust to find an avenue for selling landdevelopment rights to an agricultural trust, orobtaining a conservation easement in order to lowerthe cost of land to its agricultural value. They arealso hopeful that the evolving Dane CountyGreenspace Plan may ultimately help them acquireaffordable farmland.

Roy and Judy see several gaps in the servicesavailable to beginning farmers. While there isconsiderable technical information available, theyneed help in translating the experiences of otheroperations to their own situation, and producing abusiness plan acceptable to a banker.

Lessons

They feel the single most useful thing for people intheir position would be a directory of interestedagricultural economists, financial consultants andbusiness planners who could help them put togethera sound plan, analyze cash flow and production, andprepare them to deal with bankers. They see theneed for greater diversity of experience among the“experts”, too few of whom can offer sound adviceabout non-traditional crops, direct marketing, oralternative agriculture in its various forms.

The feel that it is a mistake to deny the importanceof a variety of small operations in rural communitiesand in the farming sector. They are convinced thatoperations such as the one they would like to havecan be a valuable asset to the rural economy, asource of new ideas and dynamism, and a neededlink with the urban population.


It’s hard to get started. Land within 1.S miles ofMadison may simply be unattainable at a price theycan afford. Land further away from Madison wouldprevent them, as they see it, from developing theties with urban consumers that they would like tofoster. As Roy puts it, “We want to provide thesocial fabric to link urban and rural communities.City people need for a farm to become part of theirlives. If we’re too far away, we’ll lose the intimacy.”

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Mary BakerTapawingo FarmN2698 Ullom Rd.Monroe WI 53566(608) 325-9174

The Dream

“I wanted to have a small, manageable, sustainablefarm. And I wanted to provide for as many of myneeds as possible, and reduce my cash expenses andrely on the outside as little as I could. After fouryears, I’m not sure how practical it is, but it’s stillmy dream.”

The Operation

Mary has a 7S-acre farm in Monroe. She currentlycultivates about three acres -- the only tillable landon the property. Specialty lettuces, edible flowers,and a few other vegetables and some herbs are hermain items. Her biggest seller this year has beenbagged salad -- a prepared mix of lettuces andgreens that she sells for $13/lb. to restaurants inChicago. This year she hired three employees forthe growing season. This is her third year of seriouscommercial production, and her fourth year with thefarm.


Land and Facilities: Mary purchased a hilly,rundown farm that was unpromising for mosttraditional enterprises, but which had adequatespace for her market garden. The barn and housewere in poor condition when she bought it -- andstill are. This has been a financial drain. However,given the size of the operation, equipment needs areminimal. A 1940’s vintage tractor and a rototillerare the main pieces of equipment. The irrigationsystem and cold frames for extending the seasonare, she says, “primitive.” On the whole, findingadequate land and facilities has not been a problemfor Mary, partly because she expects to “make do”and improvise.

Technical Expertise: Mary had considerableexperience as a home gardener, which she loved anddid with unusual success. “And I’m a magazinejunkie,” she says. “I’ll read anything I can send away

for -- I’m swamped with trade magazines.” She hasfound traditional sources of agricultural informationto be generally useless. Most of them have told herthat she can’t do what she wants to do (organicproduction of specialty items for a niche market),and are unable to offer useful advice, contacts orinformation. Only recently has Mary discoveredalternative sources ofinformation other thanmagazines, and thee x i s t e n c e o f o t h e rproducers with similargoals. “There was nobodyto talk to when I started --no source of advice orencouragement.” Recentlyshe attended her firstsustainable agricultureevent, a conference organized by CROPP (theCoulee Region Organic Produce Pool). She foundit very helpful and interesting, partly for the hands-on information on crop production, and partly forthe opportunity to meet like-minded people.

Mary says that one of her biggest technicaldifficulties has been organizing a managementsystem. Her previous business experience didn’tprovide much of a guide for an agriculturalenterprise. “I need organization, computer records,a billing system. No more of these little slips ofpaper everywhere!”

Another challenge has beenlearning the ropes on inputsuppliers and who’s who andwho does what in agriculture.“As a city person, my mainsource of information aboutgardening supplies was the

Smith & Hawkin catalogue. That’s actually whereI got my first tools -- I didn’t know any better. SoI had very cute watering cans!”

Financing: Prior to farming, Mary was a realestate developer in Chicago, earning $70-90thousand a year. With savings from this job, shepurchased the farm and made basic improvements.This is the first year she applied for a loan -- sheneeded it to meet payroll obligations, which beganbefore any crops were harvested. With herbackground and her husband’s steady income, she

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had no difficulty obtaining the loan, and doesn’texpect to have difficulties in repaying it. However,she is wary of taking on much debt. “I see a lot ofpeople who jump in too fast and spend too much,before they’ve really figured out their system orknow what they’re doing. I’ve seen several go outof business fast, or be unable to pay back loans. Myhay-bale-and-storm-window cold frames may beprimitive, but they work and they didn’t cost meanything. We’re not equipment-crazed here.”

“I see a lot of people whojump in too fast and spend

too much, before they’ve reallyfigured out their system orknow what they’re doing.”

She feels that capitalizing a new farm with outsideincome is the best way to go. “If I could do itagain, maybe I would have stayed at my job acouple more years -- then there’d be no financialpressure on me now, and we would have gotten thephysical plant in better shape. I also wouldn’t berelying on my husband for some living expenses, andhe would have more freedom to make the changesin his life that he wants to make.”

Regarding income from the farm, Mary is pleasedabout the progress she has made, but is not satisfiedyet. “If I can’t be in the black by next year I can’tjustify this.” She is also disappointed that foreconomic reasons she has had to reduce the numberof different crops she grows. She has cut hernumber of crops by about one third in the last year,though she still raises dozens of different lettuces,herbs, flowers and vegetables.

Marketing: Marketing was probably Mary’sstrongest point. When she started the farm, shealready had a number of contacts with chefs atupscale Chicago restaurants, and the confidence toapproach them. She is able to supply them with awide variety of greens, vegetables and herbs thatthey would ordinarily have difficulty obtaining --with the added attraction that hers are organic andvery fresh.

An important source of contacts, in addition topersonal acquaintance, has been the AmericanInstitute for Food and Wine. Once a year they hosta show at Navy Pier in Chicago, attended by about10,000 people. Mary’s displays there have led toother shows and a number of customers -- includingthe Four Seasons Restaurant in New York, which isinterested in buying from her. She also reads trademagazines, and has a good understanding of themarket she is producing for.

She faces several marketing difficulties, however.One is that the current recession has had aconsiderable impact on expensive restaurants. Sheis selling smaller quantities to more establishmentsthis year to keep earnings up. She feels the need toget into a more recession-proof market, and isconsidering shipping lettuce to New York during thewinter. She can compete favorably with Californiagrowers in the specialty market, and already hasinterested buyers, such as the Four SeasonsRestaurant.

Another difficulty is that while she is a creative andsuccessful marketer, she dislikes doing it. “That’swhy I left my other job. I was burned out oncontact with the outside world, with selling. I domarketing only when I’m backed into a corner --you have to beat me to get me to do it, and thenI’m relieved when people don’t answer the phone.Marketing is like performing, and I’m always soexhausted afterwards.”

“Sometimes I feel like I’mworking so hard to maintainmy so-called idyllic lifestylethat I have no time to enjoy

it.”

As she sees it now, she’ll probably have to capitalizeon her strength in marketing to make a go of thefarm, and discipline herself to maintain a balancebetween the production and marketing aspects ofher work. She is considering doing marketing forother producers as well, both to boost her income,and to provide a service to growers who are lessadept at selling what they produce. She thinks shecould spend just a few hours a week marketing (not

counting delivery), and then be free to do the workshe likes better.


“Sometimes I feel like I’m working so hard tomaintain my so-called idyllic lifestyle that I have notime to enjoy it. When I realize I haven’t ridden myhorses in two weeks, I think to myself, ‘But that’swhat I came here for!’ I wanted to get out of thecash economy as much as possible, but the fact is,cash is still the issue. This business has got to atleast break even, and I’m not quite there yet.”

“My advice to other people like me is: act out yourdream as much as you can with a weekend farm,and save as much money as you possibly can fromanother job. You’ll need it to get started. I wishI’d been able to hang on a little longer in my otherjob.”

“This is more labor intensive than I realized, and Idon’t have the stamina to do everything I’d like todo. Still, it’s exciting, and we’ve come a long, longway.”

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Lessons

The single most useful thing for Mary when she wasgetting started would have been a ready source ofalternative farmer contacts, hands-on advice, andbasic information about the mechanics of scaling upto a commercial operation. Her neighbors havebeen wonderful, she says, but for a long time shewas unaware of other farmers producing organically,and she had to learn a lot by trial and error. Shewould also have liked the support and camaraderiethat would have come from closer contact withother farmers.

She also sees potential in some sort of internshipprogram. She had an excellent experience with herthree employees this year; she and they learned agreat deal from each other. “I’d be happy to hireinterns. They have a great attitude, they work hard,and they’re fun to work with. And it’s a good wayfor them to get started. The couple that worked forme this year is getting started on a vegetableoperation at Kamm’s bakery now. They found outabout the Kamms from the Wisconsin RuralDevelopment Center newsletter. We need sourcesof information like that, and ways to hook up witheach other.”

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Jim Elleson4671 Highway JJBlack Earth, WI 53515(608) 767-2466

The Dream

“I grew up in the city -- in Milwaukee. I had someuncles and cousins who farmed though, and I spenttime with them as a kid and really liked it. Iwanted to follow up on that experience, and decidedafter engineering school I’d try farming. My ideawas to grow organic vegetables.”

The Operation

Jim owns a 110 acre farm in Black Earth. About 24acres are in the Conservation Reserve Program,about 20 acres are tillable, 40 acres woodland, andthe rest is pasture and wetland. Jim works full timeas an engineer and is unable to devote much time tothe farm. It is currently largely unused, except forthe 10 acres he rents out. He grew potatoes lastyear; however, he anticipates spending another yearor two in his present job before getting into farmingseriously. The operation is largely his. “My wifehas different ambitions. She may help outsomewhat, but it’s really a one-person deal.”


Land and Facilities: Jim had no difficulty infinding or buying land. He was living in BlackEarth, and the farm across the highway went up forsale. He and a friend decided to purchase ittogether, dividing it so that each of them wouldhave one of the two houses on the property. Jim’shalf ended up without any buildings other than thehouse, so he is building a workshop, and anticipatesbuilding a machine shed.

Technical Expertise: “My biggest problem is whatI didn’t learn growing up on a farm, sitting on myDad’s lap on the tractor. There’s a lot of basic stuffI don’t know. I read a lot to make up for my lackof experience -- New Farm magazine, Agriview, acouple of newsletters... I also talk to my neighbors.I guess information-wise, I kvow more at this pointabout alternative agriculture than conventional. ButI’m still short on practical experience. So far, it

seems that there’s a lot of information out there,but if I have a really specific question it’s often hardto find the answer.”

Jim finds that his formal engineering training wasn’t“practical” in the sense that it gave him hands-onexperience with equipment or farming operations.However, he has a good understanding of “howthings work” generally, and is certainly notintimidated by the prospect of fixing up oldmachinery. This has been a help.

“My biggest problem is what Ididn’t learn growing up on a

farm, sitting on my Dad’s lapon the tractor. There’s a lotof basic stuff I don’t know. Iread a lot to make up for my

lack of experience... I alsotalk to my neighbors.”

Talking to other farmers would be a big help, butit’s hard to initiate contact and ask for advice as arank beginner. “Though I’ve lived here for six yearsand had the farm for three, I’m still an outsider inthe community. I’m really not comfortable going tothe coop and asking for advice. Sometimes I wishthere was someone to hold my hand and introduceme.” One of Jim’s goals is to spend more time inthe community, getting to know people.

Financing: Jim works as an mechanical engineer --a heating and air conditioning specialist. He reliedon the income from this work to obtain a loan topurchase the farm. He plans to continue workingas an engineer in some capacity, to diversify hisearnings and reduce the pressure to make a lot ofmoney farming. “The financial thing isn’t a problemfor me; I’m well enough paid. I don’t know howother people manage though. I knew I couldn’t payoff loans with the income from a farm, so I figuredI’d have to pay for it and develop it with outsideincome. I’ll be paying off the farm for another fiveor ten years. I won’t wait that long to start farmingthough. My goal is to start farming in the next

21

couple of years, and continue doing engineering 011 to Stuart Smith and Roger Eischens about theirthe side, independently. It’ll allow me to earn less marketing system (see case study), and feels it mayfrom the farm.” well work for him.

Jim has made a point of purchasing usedequipment, some of it quite old. While this hassaved a lot of money, he has found that he spends


“Sometimes I have thoughts about whether I’d beas much time repairing equipment as hedoes using it. This has been a source ofsome frustration.

Jim’s biggest problem has been themoney/time trade-off he faces. If heworks full time, he has money to putinto the farm but no time. If he cutsback on his hours, he has time but notenough money to pay the mortgage offin a reasonable amount of time andmake needed investments. Furthermore,he has found it difficult to work parttime. “It isn’t that kind of job.”

ibfarketing: Jim has not yet invested agreat deal in this issue. He feels that he is not yetready to embark on formal marketing arrangements,as he can’t guarantee delivery of food -- hisproduction is not up to that point yet. He isinterested in the approach taken by CROPP (theCoulee Region Organic Produce Pool), and thinksit is a particularly good model for small andbeginning farmers. He is optimistic about ultimatelysetting up his own subscription farming system.Last year he bartered potatoes, and this yearreceived a number of requests to do it again(though he did not grow any). He has also talked

farmers.

bet ter off making my money atsomething else and growing vegetables asa hobby. Still, there are a lot of things Iwant to do that I haven’t tried yet. I’mworking to build up the farm and thecapital base, and I want to give this atry.”

Lessons

Jim, like other interviewees, feels that aclearinghouse of information on otherfarmers would be very helpful. It isimportant, however, that the contactpeople listed in the database bespecifically willing to talk with beginning“I got a couple of names from the

Wisconsin Rural Development Center when I wasjust starting out, and I called one or two of them.But I just didn’t feel comfortable contacting peoplethat I wasn’t sure would be willing to talk to me. Ididn’t want to waste their time.”

He also thinks that financing would be a bigproblem for people who don’t have the option ofhighly paid off-farm employment. His feeling is thatfor most people, farm income would be insufficientto pay off a mortgage, and other arrangementswould have to be made.

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Mary JacksonPO Box 405New Glarus, WI 53574(608) 527-5659

The Dream

“I’ve always wanted to farm. It suits mycombination of interests and talents, and I like tobe challenged with something new every day. I alsolike the rural setting, and I’ve always wanted toraise my kids on a farm. My goal is to be a sheepfarmer and have that as my sole source of income.Now I’m not so sure that’s realistic -- getting startedon my own will be really hard.” ”

“I decided on sheep because livestock are essentialto a low-chemical style of farming, and sheep aresome of the most manageable animals. I like thembetter than goats. Also, I believe in pasture-basedsystems both practically and philosophically.

“I didn’t want to do exotics -- I wanted to producesomething that ordinary people used every day,something basic. I didn’t want to cater to some

“I decided on sheep becauselivestock are essential to a

low-chemical styl& of farming,and sheep are some of the

most manageable animals...Also, I believe in pasture-

based systems both practicallyand philosophically.”

picky specialty group; I figured I could effect morechange in agriculture if I did something the averagefarmer could relate to.”

“And I guess I just love to work long hours for nomoney.”

The Operation

Mary manages a 280 acre farm, of which 160 aremore or less tillable. Most of the land in use is inpasture or is being renovated or developed aspasture. In addition, there is some land in smallgrains and hay. The flock of sheep currentlyconsists of 235 ewes (about half are very young) and

“I didn’t want to do exotics --I wanted to produce

something that ordinarypeople used every day... I

didn’t want to cater to somepicky specials group.”

130 market lambs. The goal is a flock of 400breeding ewes, lambing at 250% (in other words,producing on average 2.5 lambs each), to allowmarketing of 1000 lambs per year. “We use no agchemicals on the land, and we are working onorganic certification and marketing of a naturallyraised product.”

The operation belongs to a Chicago area couplethat comes up on weekends. Their goal is todevelop a sustainable, working sheep farm that theycan enjoy spending time on and eventually get someearnings from, though they don’t expect to get richoff it. They hope that the farm can become atraining ground for beginning farmers, and a modelfor other absentee landowners who want to supportsustainable agriculture.

Mary is paid a salary of $18,000, including benefits,to manage all aspects of budgeting, accounting, fieldand sheep work, and developing long range plans.


Land and Facilities: The farm used to be a dairyoperation. The cement and iron barn was relativelyeasy to convert for sheep. Wood for remodelinghas come off the farm; a neighbor milled it for$.30/hoard foot. The wood has been used primarilyto build feeders and panels that are used for gates

23

and pens, held in place with bailing twine. The keyto early remodelling has been flexibility. Moststructures are temporary and portable.

The fencing investment, on the other hand, hasbeen large, both in terms of labor and cash outlays.The perimeter fence was originally designed with

Technical Expertise: Mary grew up on a farmwith fruit trees and vineyards. Although raisingsheep is quite different, previous farm experiencegave her a measure of confidence, and realisticexpectations about the hard work and low incomegenerally associated with farming.

Mary says that she got connected toother farmers through the WisconsinRural Development Center. Shelearned about sheep and goats fromnearby farmers Peter and HilaryWood and Susie Waterman (see page29), for whom she “farm-sat” for aperiod of time. Before that, sheworked on an Amish farm, andreceived an M.S. in environmentalstudies, with an emphasis onsustainable agriculture. All of these

wooden posts -- aesthetically preferredby the owners, but considerably morework to erect. After Mary was seriouslyinjured on the tractor-driven post-driver,they have altered the plan to use fewerwood posts and more steel. Themovable fences are mostly high tensileelectric or polywire on movable reels.

Fencing has been one of the mostcomplicated and costly aspects of startingup the sheep operation. “When you’rethinking about fencing, you don’t think about whatit’s like to put posts in the ground and put the wireup. And you don’t think about carrying the wirearound to move the fence, either. It’s hard to knowahead of time all the implications of the system youchoose.”

“We’ve had to compromise on the original designand will have to rely on an all-electrified fence.This makes our livestock guard dogs even moreessential.” Two Great Pyrenees run with the sheepto protect them from predators.

“... neighbors are essential.I’d go out of my mind without

my neighbors.”

Finding appropriate land for sheep is notparticularly difficult, and except for the fencing,facilities are not complicated. “You just have to becreative in how you use the facilities that are there.”However, cost is a problem. Mary would ultimatelylike to have her own farm, preferably in California,where she grew up and her family still lives. Sheadmits that finding affordable, good land willprobably be her biggest obstacle.

experiences taught her how to talk to farmers, andkept her in touch with the realities of farming.

“My best sources of information have been oihersheep producers, the local vet, and trial and error.Extension is sometimes helpful -- RandyGottfredson, the sheep specialist, is pretty good.”

Mary reads a lot, and is no stranger to academicresearch. However, she says “Better vet bookswould help a lot. The books there are veryexpensive, and either too general or so detailed Ican’t find what I need. And no treatment is eversuggested -- nothing about doses or anything. Andin all the books I’ve read, I have never found onethat even said what was a normal temperature for asheep and what was a fever!”

“So much of what I’ve learned is from stories fromother producers. We’re on the phone a lot to eachother -- we always share what we’ve learned andwhat works. And neighbors are essential. I’d goout of my mind without my neighbors. They’vesaved the farm a lot of money, too, through advice,help buying used equipment, and lending a handwith projects.”

Financing: The operation Mary manages has beenbankrolled by a couple with other sources ofincome. Their investment has been substantial,partly because they hire all the labor. Mary feelsthat purchasing and capitalizing a farm for her will

24

be very difficult -- she’s not sure it’s possible. If sheis unable to acquire her own farm, she may returnto school for veterinary training, since much of whatshe loves about farming is working with farmanimals.

“I haven’t dealt with FmHA. It’s a big, scary thingfor me. I have no idea what it’ll be like to go intoan office and ask for money. I know it’ll help thatI have this experience managing a farm, and that Iknow what I’m doing. This job has been veryimportant that way.”

‘l’m really not into being asalesperson,.. I’m into raising

sheep, and I’d rather notthink about what happens

next...”

The arrangement Mary would like is to work forsomeone and build up equity in a farm, eventuallybecoming a partner or owner. Her presentarrangement has some advantages, but will notaccomplish this goal. “The situation I have now is,I work for urban absentee landlords who are excitedabout sustainable agriculture and are willing toinvest a lot in the place, but they don’t know muchabout farming, or why things happen the way theydo, or what I’m doing most of the time.Communication can be difficult. One of the hardestthings is that everything takes so much longer thanany of us expect.”

“I was excited about this kind of arrangementbefore, but now I’d kind of hesitate to recommendit. I’ve benefitted from them footing the bill for meto gain experience, but it can be a hassle in otherways. It would help if they had experience inagriculture, or if they could take over running theplace for a week or a month so I could get awayand have a break now and then. But I’m not surehow much longer this arrangement will work for anyof us.”

“As an aspiring farmer, I need to know that myefforts now will result in something more tangible --some equipment and/or a starter flock of sheep, for

instance.”

Marketing: Mary anticipates this will besomething of a problem. “I don’t know what thehell I’ll do about it,” she says. “I’m really not intobeing a salesperson or doing direct marketing -- Ihave no interest or expertise in it. I’m into raisingsheep, and I’d rather not think about what happensnext. It’s also hard to find the time to set up amore advanced marketing system.”

The market for lamb is highly concentrated. Thereis currently a congressional investigation intopossible violations of anti-trust laws; one firm(Conagra) reputedly controls 40% of the market.Furthermore, the system is structured so that lambsfrom Wisconsin go to Colorado, then to New York,and then back to Chicago before being marketed atthe wholesale level. This adds greatly to the finalcost to consumers, and helps to make lamb one ofthe most expensive and least-consumed meats in thecountry.

Circumventing this processing and marketing systemis a major goal of many small lamb producers.Mary has had some success with limited directmarketing -- this year she expects to sell about 20lambs this way. The model she looks to, however,is the Yankee Shepherd Cooperative in New

‘I.. .farming has definitely metmy expectations. It’s exciting,interesting, challenging, and

I’m learning new skills all thetime. I love it?

England, which has its own processing plant,trucking system, and retail distribution network.The cooperative has successfully bypassed the bigprocessors. One of the bases of their success is thefreshness of their product, which they guarantee tobe no more than a week old. There are someefforts afoot to develop such an alternative structurein Wisconsin; Randy Gottfredson of CooperativeExtension recently received a grant to look intoindependent marketing options.

2s

Until such a system exists, producers will probablycontinue to receive extremely low prices for lamb.

Mary has also been working on selling some woollocally. A local wool processor, Ann Bosch (MountHoreb), buys small quantities from local producersat $0.65- l.OO/pound, well over the market price of$0.10 - O.lS/pound. She is committed to workingwith local farmers, paying them what their wool isworth, and advising them on how to improve theirquality.


“Sheep farming has definitely met my expectations.It’s exciting, interesting, challenging, and I’mlearning new skills all the time. I love it. It’s reallyrewarding to look out and see a flock of healthysheep, a barn full of hay, and the birdsfoot trefoilgrowing in the fields.”

It... farming alone is hard. Ibelieve farms are meant to be

worked by families...forreasons that are practical,

financial, emotionullspirituul.. ..a second human being isinvaluable when it comes tohanging on to the patience

and positive attitude soessential to farming.”

“Everything has taken about five times as long as Iexpected though -- and I expected things would takea long time. It’s also way more dangerous thananyone thinks. People don’t talk about that, butthey should. Practicing farm safety isn’t enough --I’ve had two bad accidents, both of them just fromslipping in the mud when I was working withequipment. And the whole insurance issue is soimportant -- having disability coverage as well ashealth care -- but it’s very expensive.”

“It’s encouraging to see that after about six years,this place will be economically viable. The good

news is that a family could make about $36,000from 400 ewes after land payments and taxes. Ifyou can find a way to get started, you can make aliving from it.”

Lessons

“The major lesson I’ve learned from this experienceis that it is extremely difficult to set up and run afarm as an individual. Even with the outsidefinancing, farming alone is hard. I believe thatfarms are meant to be worked by families orpartners, for reasons that are practical, financial,and emotional/spiritual. Many jobs take one-fourthas much time with two people as with one, and asecond human being is invaluable when it comes tohanging on to the patience and positive attitude soessential to farming.”

Probably Mary’s biggest obstacle is/will be gettingoff the ground financially. Ideas for innovative landtransfer, land purchase or sweat equi tyarrangements would be very helpful. Mary feelsthat another useful project would be to organize“work parties” to bring together beginning farmersand others to work on particularly labor-intensiveprojects. This would help. ease labor bottlenecksand provide a valuable learning and socialexperience. Mary had a positive experience withone such work party that she organized.

She feels that adequate health and disabilitycoverage is an issue that requires political advocacyas well as education of beginning farmers. She alsoemphasizes that beginning farmers need to beeducated about the physical risks of farming, andthe necessity and value of getting to know neighbors“even if at first it’s weird or intimidating or scary.”

She also suggests that a mentoring program wouldbe helpful. A list of people willing to hire someonewith no experience would be good -- although shenotes that in many areas, farm help is scarce enoughthat farm owners have no choice but to hireinexperienced people and train them. Finally, shesuggests in particular that a university studentinternship program could be valuable. She citesNew Zealand’s college/farm network, “WillingWorkers On Organic Farms”(WWOOF) as a particularlygood example.

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Stuart Smith and Roger EischensCress Springs Farm3830 Forshaug Rd.Mt Horeb, WI 53572(608) 437-4149

The Dream

“I wanted a farm which would operate withinecological principles, and which would workeconomically -- which would provide me with anincome that met my lifestyle expectations. I wantedto avoid monoculture, and produce a variety ofcrops, both to provide a complete diet and to farmmore sustainably.”

The Operation

Stuart and his partner, Roger, operate a small farmin Mount Horeb with about 20 tillable acres.Currently, two acres are in vegetables and four inred clover. They use the clover as mulch, and tobarter with a neighboring farmer. They raise about30 different vegetables for the Saturday farmers’market in Madison, and for 35 customers organizedinto four buying clubs who purchase vegetablesmidweek. This is Stuart and Roger’s second year ofreal commercial operation, and their third on thefarm; the first year they ran a trial garden. Theyplan to plant about 2 acres in winter rye and a covercrop next year.


Land and Facilities: Roger owns the farm, whichhe purchased several years ago. He leases part of itto Stuart, whom he invited to become a partner ina subscription farming operation that he hoped toset up. Stuart perceives that affordable land closeto Madison is difficult to come by for most people;however, this was not adifficulty for him.

B e c a u s e t h e y a r efocusing on raisingvegetables, the limitedtillable acreage isadequate. They startedout with no tools ormachinery however, and

have found it difficult to find equipment suited toan operation their size. One essential facility is thewalk-in cooler, which has allowed for more flexiblemarketing and a longer life for harvested vegetables.

Technical Expertise: Roger grew up on a farm.Stuart has a degree in horticulture, as well as threeyears of experience in a nursery working with wildflowers, and one year in landscaping. He has foundit somewhat difficult to come by information usefulfor a small commercial vegetable farm, and it has

“There are a lot of goodsources of information outthere, but it doesn’t alwayscome in a form I can use.

The lunger I’m in this though,the more resources I find.”

taken a while to meet other people who could help.“There are a lot of good sources of information outthere, but it doesn’t always come in a form that Ican use. The longer I’m in this though, the moreresources I find.”

Stuart claims he’s made a lot of mistakes andlearned some things the hard way. In particular, it’sbeen difficult to balance the need for crop diversitywith the need for an operation that’sadministratively manageable.

Financing: Both Roger and Stuart have outsideincomes. Roger is part owner of a shoe store(Moving Shoes in Madison) and teaches yoga parttime. He also holds yoga retreats at the farm forstudents from Madison and Chicago. Stuart sellsChristmas trees during the winter. Theyexperienced little difficulty obtaining a mortgage forthe land; however, between loan payments andnecessary investments in the farm to make itproductive, they are still operating in the red.Stuart estimates that without loan payments, theywould be nearly breaking even now.

Stuart is hopeful that they can obtain a grant fromthe Department of Agriculture, Trade, and

27

Consumer Protection (DATCP) SustainableAgriculture Program for some experimental workthat would also help capitalize the farm. “If we’renot in the black in two years, we’ve got to questionourselves. We’ve learned a lot and made a lot ofchanges, and we’re still investing, but at some pointwe’ve got to start making an income off this.”

Each customer makes one order a week. Theorders are compiled by one person in each buyingclub and called in to the farm. This greatlysimplifies distribution and billing for Stuart andRoger. It does not provide the farm with operatingcapital up front, and probably reduces the quantityof vegetables sold. It also requires more work from

the buying clubs. On the other hand,Labor is an important financialconsideration for the farm. Theprimary way Cress Springs reduces theneed for hourly wage labor is by takingon interns who work in exchange forroom, board, and a small stipend.

it gives customers more flexibility,and operating capital has not beentoo much of a problem.

In addition to the buying clubs, theysell produce at the Madison Farmers’

They also benefit from occasional freelabor contributions from friends andacquaintances. Given the seasonallabor bottlenecks in agriculture, even relativelylimited amounts of help at critical times can makea significant difference to the operation.

Marketing: Roger started out with the idea ofdeveloping alternative marketing channels. Inparticular, he wanted to try a subscription farmingsystem. He is particularly well-positioned todevelop such a system because of his extensiveconnections with potential consumers: yoga studentsand customers at his athletic shoe store. Roger and

“[Our customers] really like it-- it’s a connection beyond

just buying our vegetables.The hard part is working out

a good transportation andbilling network.”

Stuart feel that their system would have gotten offthe ground even without these contacts, but that itwas considerably easier with them. “There are otherways of doing it, but we had a natural core group ofpeople.”

The system they use now is a variant of the morecommon system whereby subscribers pay up frontfor a set weekly “basket” of produce. They haveorganized 35 customers into four buying clubs.

Market. However, they prefer their“subscription farming” system toattending a mid-week market. One

of the positive aspects of their marketing system isthe close contact they have with their customers.Many come out to the farm periodically. “Theyreally like it -- it’s a comrection beyond just buyingour vegetables. The hard part is working out agood transportation, distribution and billingnetwork. Last year we were making out 35 separatebills, and it just took too long. Now it’s just fourbills and four drop-off points.”


“Well, I’ve learned a lot and made a lot of changes.I feel positive about it -- things are going prettywell. But money is still the hard part. I’m relyingon this eventually to be a real source of income.We’re still losing money; I’ll give it another coupleof years and see how it looks.”

As a partnership, things have worked well. Theinformal division of labor which has evolved seemsto suit both Roger and Stuart well; Roger takes careof most of the overall organization, the finances,and the buying clubs. Stuart coordinates most ofthe field work. They have been careful to keeplines of communication open. “It’s critical to the

partnership to meet once aweek to talk and plan, even ifyou work together all the time.Sometimes we’re tempted toblow off the meetings becausewe’re so tired or busy, butthings don’t go well when westop having meetings.”

Lessons

Stuart suggests three basic categories of help thatwould be useful: information; financing and grantwriting; and obtaining machinery and productioninputs. Regarding information, he feels that thereis a great need for more networking among farmers,

“Tltere’s no infrastructure outthere for people like us. We

need a network so we can buyinputs in bulk and find took

and machinery that areappropriate to small farms.”

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and between farmers and consumers. He’d like tosee a local organization or network of farmers doingorganic and community supported agriculture, and

a newsletter with information about similar farms,marketing, sources of inputs, and productionpractices. “We need to develop local connectionsand help each other out. Other farmers are usuallythe best source of useful information.”

Regarding financing, he thinks help in writing grantproposals would be very useful. He has not foundobtaining credit to be a serious barrier, althoughgenerating enough farm income to pay it off isdifficult.

Finally, he points to the services that the CouleeRegion Organic Produce Pool (CROPP) provides itsmembers, purchasing inputs in bulk and passing thesavings on to producers. “There’s no infrastructureout there for people like us. I have to go intoMadison to get the kinds of seed I need, and I haveno idea where to get some kinds of equipment. Weneed a network so we can buy inputs in bulk andfind tools and machinery that are appropriate tosmall farms. One of the hardest things sometimesis just getting the supplies we need.”

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c

Susan WatermanOdyssey FarmW. 1554 Mortenson Rd.Brooklyn WI 53521(608) 455-2901

cThe Dream

“I knew I wanted to leave my University job and livein the country and be a farmer -- whatever in theworld that meant. I was interested in naturalcolored sheep and Angora goats and a pasture-based system, and I wanted the farm to be self-supporting.”

The Operation

Susie has an 85-acre farm in Brooklyn, about halfan hour south of Madison. About 14 acres are inpermanently fenced pasture, 14 acres in hay, 30 inthe Conservation Reserve Program, and the restwoods or unfenced pasture. She has a flock of 17long wool sheep (Corriedale/Border Lester crosses),160 Angora goats, and 14 recently purchasedShetland sheep.

Susie does most of the farm work herself, thoughher husband, Clark, helps out. She also hires anexperienced, part-time helper about 8 hours perweek -- more during peak periods. Susie has beenfull time on the farm for two and a half years.


Land and Facilities: “We had multipleconsiderations when we were buying land. I neededto be within a half hour drive from the Madisoncampus, since I wasn’t sure how long I would needto continue working there, and I didn’t want a longcommute. We also needed to be reasonably nearChicago and Clark’s clients [Clark is a stained glassartist]. We wanted the farm to be pretty, and wewanted a house that didn’t need a lot of work.”

Susie and Clark eventually settled on a small pieceof land -- just 10 acres -- with a house in goodcondition, and enough barn and shed space to getstarted with a small herd of animals. They plannedto acquire available neighboring land for pastureand hay as they needed it. They fenced the land

themselves, and ultimately built a 4000 square footbarn designed for goats.

“I’m glad we didn’t wind up with a lot of oldbuildings and a house we would have needed torework. Maybe this way was more expensive, butredoing things isn’t cheap either, and this way wegot what we wanted. And trying to fix up a housewould have been a real drain on our energy andresources.”

Technical Expertise: While Susie had nobackground in farming, she did not find information-- or the lack of it -- to be an obstacle. “There’s alot of good information out there. I met a lot ofsheep producers, I took the MATC (Madison AreaTechnical College) sheep course for two semesters,I talked to people at the university... I’ve also gottena lot out of talking with vets and other farmers.”

‘There’s no room for ’carelessness or sloppiness; you

have to look at it like abusiness. I’m a tight

manager, and my sciencetraining is partly why.”

Susie’s academic background was in plant physiologyand biochemistry, in which she holds a PhD.Looking back on it, she thinks this was morerelevant than it first appears. She feels that becauseof her training, she has a better understanding ofveterinary issues, nutrition, ecology, pasturemanagement, and the problems of chemical use inagriculture. She also points out that fiberprocessing and dying involves chemistry.

Perhaps the most important advantage of herscientific background is more general, however.“You have to be organized in science -- you have toknow exactly what you’re doing, run a tight ship,and keep good records. There’s no room forcarelessness or sloppiness; you have to look at it likea business. I’m a tight manager, and my sciencetraining is partly why.”

30

Financing: Susie and Clark had some savings andan inheritance which they put toward the farm, andthey also obtained a bank loan against Susie’suniversity income. They had some difficultyobtaining a loan at first; the property was too largeto qualify for a home loan and too small to qualifyfor a farm loan. “We had to talk the bank into it.”

After purchasing the farm, Susie worked for threemore years at the university to cover the cost ofinitial improvements. Clark contributed somemoney as well, although most of his earnings wentinto fixing up his studio.

At this point, the operation is in the black as longas initial investments in land and buildings are nottaken into account. Fiber and animal sales morethan pay for animal feed, vet care, and operationalcosts. “Our largest single purchase was a tractor --we couldn’t do without it.” Susie predicts that inanother two years, after the first five-year block ofsizable depreciation charge-backs, sales of fiber andbreeding stock will begin to generate a moresubstantial income -- “adequate for our simplelifestyle.”

Marketing: “Originally I expected to get SO% ofmy income from sales of registered breeding stockand 50% from selling fiber for hand spinners. Butthe market for fiber hasn’t grown the way I thoughtit would -- at this point, I’m selling 30-40% of whatI thought I’d be selling. The market for handspinners is saturated, and more and more of themare doing their own dying and processing.”

“It’s sometimes hard to knowwhat you can call marketing

and what’s just a time sink. Ihave to be careful how much

time I give people.”

Susie has started to sell more mohair [from theAngora goats] commercially, to the big warehousesin Texas. The commercial price for mohair is$lSO/pound (compared to about $O.lO/pound for

ordinary wool.) Mohair from a yearling sells for$2.50-3.00Jpound, while a kid’s is worth $5.00-6.00/pound. Despite these prices, which are lessattractive than those obtained selling directly tohand spinners, the goats more than earn their keep.

Susie is also optimistic that the Shetland sheep willadd significant income; their wool is worth $8.00-14.00/pound for hand spinners, and they fetch ahigh price as breeding stock. She estimates that itwill take two years to recover her recent investmentin the Shetland sheep.

“Zt’s harder work than I everimagined... It requires a lot ofJlexibility, too... going with theflow of the market, going withthe flow when 100 animals gothrough the wrong gate in the

morning...”

An important ingredient in the success of OdysseyFarm is steady public relations and advertising.Regular advertisements in magazines have helpeddevelop the farm’s reputation and generatecustomers. “We have a reputation for being a bitexpensive, and that’s fine with me. We sell highquality animals, and they’re worth what we ask forthem.” Susie has also received two grants from theDATCP (Department of Agriculture) AgriculturalDevelopment and Diversification program. She wasgranted a total of $16,850 for 1990-91 to promoteAngora goats in Wisconsin. This helped withadvertising, and the transport and maintenance ofsome new breeding stock.

Susie notes somewhat ruefully that DATCP alsodoes its own PR on its grant recipients, with theresult that after a DATCP announcement or pressrelease, Susie’s phone rings off the hook for a fewdays. “Most of the calls aren’t productive -- peoplecall me for information and then buy their animalselsewhere. It’s sometimes hard to know what youcan call marketing, and what’s just a time sink. Ihave to be careful how much time I give people.”

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“It’s harder work than I ever imagined. It also takesa long time to establish a good reputation as abreeder and seller of registered livestock. Itrequires a lot of flexibility, too... going with the flowof the market, going with the flow when 100 animalsgo through the wrong gate in the morning...”

“But I’m really glad we’re doing it, and we plan tocontinue. I like this area, I enjoy the work a lot,and we get lots of support from local, low-inputfarmers. We’re very lucky to have someone good toleave the farm with, too -- we can really count onTonja, our helper, when we need to go away. Westill get more farm-bound than we want to, though.Some of our friends from Madison don’t call us anymore.”

“We work hard for everypenny we earn, and we have a

simple lifestyle... Still, I’mpretty confident we’re on solid

ground now. Leaving theUniversity was clearly theright thing to do for me.”

“The income problem is relentless. We work hardfor every penny we earn, and we have a simplelifestyle. No fancy vacations in Hawaii. Still, I’mpretty confident we’re on solid ground now.Leaving the University was clearly the right thing todo for me.”

Lessons

Susie points to a number of factors important in thesuccess of Odyssey Farm. These include careful

planning and frequent reassessments; tight financialmanagement; a low-investment and low-inputproduction system; persistent advertising; developingand maintaining a reputation for quality; andseeking advice from people with experience.

“I do a farm plan, and then I project and re-projecton the feed bill [the main expense]. I do the booksevery two months, and I’m a tight manager.“

“I’m really glad we’re doingit, and we plan to continue. I

like this area, I enjoy thework a lot, and we get lots ofsupport from local, low-input

farmers.”

“We also got a good price on the farm, and webought a manageable amount of acreage.

We’ve kept our investment in equipment low --we’ve spent less than $3,000 on all of our hayingequipment. We also don’t buy on credit. Weproduce most of our own feed -- pasture and hay --and buy only the grain.”

Susie also suggests several ways that many beginningfarmers need help. One area is in preparation offarm and business plans. These must usually beprepared before going to a banker or tax advisor.A worksheet or formula approach might help somefarmers. She also feels that general farm tours andspecialized technical seminars are very helpful, butthat these cannot rely too heavily on freecooperation on the part of the established farmers.A financial incentive must be offered to maintain apool of farmers willing to talk with and advisebeginning farmers.

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Obstacles For Beginning Farmersand Strategies for Overcoming Them

Overview

The fundamental problem for begimting farmers,leading to or exacerbating almost all otherproblems, is income. Farming simply does not paywell. This makes it difficult to purchase land,difficult to obtain a mortgage or production credit,difficult to pay back loans which are obtained,difficult to survive mistakes, and difficult to findtime for anything beyond production. Most farmersare working so hard that they have little time tolearn better ways of doing things, to developmarkets, or to enjoy the lifestyle and setting thatattracted them to farming in the first place.

“The fundamental problem forbeginning farmers, leading to

or exwerbating almost allother problems, is income.

Farming simply does not paywell. ”

We are not optimistic that this fundamentalproblem can be solved without radical change in thewhole agricultural sector. We are also notoptimistic that such change will occur. However,there are many difficulties that beginning farmersface which could be eased somewhat. There areopportunities for making life a little easier, and forproviding a leg up. The following analysis, which isgeared for organizations working in farmerassistance and agricultural extension and research,suggests the most promising directions for beginningfarmer assistance programs.

Finding Land and Facilities

While many of the farmers interviewed reporteddifficulty in finding the right farm, there was no

general pattern to the difficulties they faced. Thatis, some had very specific locational needs, othersneeded specific types of facilities, while still otherswere concerned about the aesthetic characteristicsof the land. It is likely that a “matching people tothe land” project or database would have to be verylarge to really serve the heterogeneous needs ofbeginning farmers. Furthermore, it is likely thatmany beginning farmers would try to produce forniche markets, and would be less interested in thedairy and cash grain farms which would undoubtedlymake up the bulk of the available properties inWisconsin.

It appears that normal information channels aboutproperty are more or less adequate for those tryingto purchase farms by taking on a mortgage. Forthose wishing other financial arrangements, this isnot the case. One respondent reported that acontact resulting in an unusual (and financiallyadvantageous) agreement between producers andlandowners was made only because of an article inthe WRDC newsletter. No other respondents havefound such arrangements that bypass the problem offinancing land acquisition. This issue is discussedbelow.

Financing

Financing Land Acquisition

This was widely experienced as an obstacle. Reales ta te loans were e i ther unat ta inable orunsupportable with expected farm income (thoughseveral of the beginning farmers qualified for loansbased on income from other activities.) Fewfarmers who qualified for a real estate loan thoughtgetting one would be a good idea, and manyrespondents did not qualify. Credit thus does notseem to be the answer; other forms of land transferand purchase need to be developed.

There appears to be a major unmet need here -- for

33

information, leadership, and creative ideas. Thismay also be a particularly auspicious time for workon innovative land transfers. There are manyfarmers who will be reaching retirement age in thenext few years, as well as many dairy farmers tryingto leave the farm. They are facing particulardifficulties in selling their farms, and may be moreopen than they would otherwise be to unusualfinancing arrangements.

“There [is] a major unmetneed here...for creative

financing and land transferarrangements that allow cash-

poor beginning farmers toeventually own land.”

Probably the simplest and least costly approachwould be to document and describe creativefinancing and land transfer arrangements that allowcash-poor beginning farmers to eventually own land.Such arrangements could include rent-with-option-to-buy systems, building up sweat equity, land trusts,and sharecropping, among other things. Oneimportant area of research would be tax and legalretirement issues for older farmers passing on theirland.

A short manual describing various options couldgive both current and potential landowners an ideaof the possibilities. If there is sufficient interest, a“matchmaking” seminar could be organized, at whichcurrent and aspiring landowners learn togetherabout different avenues for land transfer, and meeteach other.

Start-Up Capital and Prod&on Financing

This was an issue for virtually all the beginningfarmers, and they had one major way of dealingwith it: off-farm jobs. In this, it should be noted,their situation is no different from that of manyestablished conventional farmers.

Most of the farmers in this study were wary of debt,and were prepared to spend several years asweekend or part time farmers, working elsewhere to

capitalize their operation. Most of them saw this asinevitable, and felt that it actually had the advantageof letting them start slowly and learn as they wentalong. Several said it was just as well they didn’tjump in any faster.

Ann Topham and Judy Borree were fortunate inhaving friends and relatives willing to help out andinvest. However, given their commitment toproviding a place for their friends to come, thissupportive network didn’t happen by chance. StuartSmith and Roger Eischens had a similararrangement, although it provided less capital;Roger holds yoga retreats at the farm. At onepoint, he offered his yoga students the opportunityto contribute money toward the farm in exchangefor the right to come out for visits and retreats.Such financing arrangements may be a promisingavenue for more beginning farmers, particularlythose with strong urban connections.

There is another lesson here for beginning farmers:skills and connections developed in an urban settingcan be a great source of strength and vitality for anew farm operation. These ties and special abilitiesshould be tapped and nurtured, not abandoned.

“...skills and connectionsdeveloped in an urban setting

can be a great source ofstrength and vitality for a new

farm operation. These tiesand special abilities should be

tapped and nurtured, notabandoned.”

Again, improved access to credit does not, for themost part, appear to be the solution for manybeginning farmers. The development of alternativemodes of production financing, such as communitysupported agriculture (CSA), could provide a realleg up to some farmers. Realistically, however, CSAwould probably not be appropriate for very new orinexperienced farmers.

This study suggests that an indirect though

34

occasionally critical source of help may lie in therural economy as a whole -- the existence of off-farm jobs that can provide enough income to helpcapitalize a farm. However, we note that the lowprevailing wages for most rural jobs will not provideadequate income for capitalizing a farm, and are notin themselves a solution to the problem of the highstart-up costs and low income associated withfarming.

Credit

Although there are several good reasons why manybeginning farmers are unable to obtain start-up oroperating loans, one unnecessary constraint is thebankers’ lack of familiarity with some of theenterprises and production methods favored bybeginning and sustainable farmers. With regard tounusual enterprises or production practices, thebanking community needs to be educated if it is todo its job well. Making an effort to attract loanofficers to educational events --- or specificallytargeting them for seminars and field days -- mayhelp accomplish this.

Low-Investment and Low-Cost Farming

Given the almost inevitable shortage of capital forbeginning (and other!) farmers, finding alternativesto big machinery and infrastructure investmentswould be a real service to the farm community.Such alternatives could take several forms.

“With regard to unusualenterprises or production

practices, the bankingcommunity needs to be

educated if it is to do its jobwell.”

Creative “making do”: Many of the respondents havelearned how to avoid purchasing new, expensiveequipment by piecing together simple but functionalsystems. Several of the farmers intervieweddescribed their livestock housing, fencing orirrigation systems as “funkylt or “primitive” or “low-

tech.” Most of them can also point to neighborswho started out by buying state-of-the-artequipment, and who went bankrupt soon thereafter.In any educational activities geared for beginningfarmers, emphasizing the practicality and economyof the “make do” approach would be appropriate.

Purchasing and adapting used equipment: Experiencedfarmers are often creative mechanics, and know howto adapt machines to perform a variety of functions.Learning how to do this -- or simply finding out thatit’s possible -- could help many beginning farmerswho are facing large start-up costs. There may besufficient demand among both new and experiencedfarmers to justify offering special seminars oncertain kinds of equipment adaptation.

Sharing or renting equipment: For pieces ofequipment that aren’t needed by everyone at thesame time, it may be possible to form a “lendinglibrary,” or simply identify a pool of equipmentowners who are willing to rent large or specializedmachinery to other farmers. There do not appearto be established communication networks toaccomplish this. One simple and inexpensivesolution might be to persuade publications servingthe farm community to have special classified adsections dealing with farm equipment rental.Another possibility would be to encourage existingfarm organizations to poll their members and see ifmembers currently own pieces of equipment thatcould be used more intensively, or whether there issufficient demand that purchase of a sharedmachine would be feasible. Such a solution wouldrequire that there be a “critical mass” of farmerswith similar needs living in a reasonably small area,however.

Devebping low-cost production systems: Beginningfarmers are in a good position to start out with low-cost production techniques and avoid debt. Theyshould be encouraged to look at rotational grazingsystems for livestock, cropping systems that rely onfew purchased inputs, and farm enterprises thatcomplement each other and make the best use oflimited resources.

Creating an Input Supply Network: A number offarmers cited the difficulty of locating and obtainingneeded inputs -- and the high cost for purchasingsmall quantities. Buying clubs could fill a real need

c

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here, reducing research time and per-unit inputcosts. However, such an approach would requirethat participating farmers produce similarcommodities and live relatively near each other.

Production Expertise

Respondents varied widely in what they knew whenthey started, how well they evaluated theirinformation needs, and how they went abouteducating themselves. The magnitude of what abeginning farmer needs to learn is daunting by anymeasure. It is also true that many farmers who arejust starting out don’t know what they don’t know.Finally, as this study suggests, the informationalneeds of beginning non-traditional farmers may betoo heterogeneous to address through conventionalmeans.

A great deal of what needs to be learned isvocabulary, and what the important questions are.Once beginning farmers have overcome this initialhurdle, many more resources (such as conventionalfield days and seminars) will be accessible to them.It should be noted, however, that beginning farmerswho are at this stage of learning are difficult to find-- they are often living in cities, own no land, andare not plugged into any of the agriculture networksor communication channels.

However, despite the difficulties of serving thebeginning farmer population, there are several waysthat information access could be improved.

First, a set of case studies like the present documentcould be a valuable source of inspiration, cautionand basic guidance for aspiring farmers at theinitial, exploratory stages.

Second, existing networking and extension projectscould make a greater effort to tailor some of theiractivities to beginning farmers, or conduct outreachwith this group. Maintaining a file of farmers whoare willing to talk with beginning farmers and helpthem learn what they need to know would be agreat service. Most of the respondents felt that thiswould have been the single most useful thing tohelp them on their way.

One difficulty with this approach may be thatexperienced farmers who communicate well with

beginning farmers may find themselves swampedwith requests for information and advice. This canbe a significant drain on time and resources. Onepossibility would be to encourage these experiencedfarmers to offer paid seminars on, for example,raising sheep or running a B&B. In addition, otheragricultural organizations (in Wisconsin, such groupsas the Coulee Region Organic Produce Pool, theBiodynamic Farming Association, the MarquetteCounty Farm Produce Coop, etc.) could beencouraged to tailor some events to beginningfarmers.

It may also be helpful to maintain a file of farmerswho are willing to hire individuals who want to getstarted in farming but have little or no experience asyet. For some of the respondents, informationneeds were basic enough that probably the mostefficient way to learn would have been in astructured on-farm experience. Several respondentswere willing to hire interns -- whom they foundrewarding to work with, even if they were lessexperienced. Another said she could not findexperienced farm workers in any case, and alwayshad to train people. Developing an internshipprogram for college students -- perhaps incollaboration with other sustainable farmingorganizations -- could serve the needs both of youngaspiring farmers and more established producers.Such a program could be modeled on NewZealand’s WWOOF project (“Willing Workers OnOrganic Farms”).

If there is sufficient demand, it may be possible tooffer special field days geared for beginning farmers.Topics could cover such issues as fencing, barn andhousing needs for different types of animals, basicequipment, lifestyle issues, etc. One way to reachthem might be to advertise at natural food storesand farmers’ markets. One example of a promisingapproach is the annual farm tour which theWisconsin Rural Development Center organizeswith the Willy Street and Mifflin Street Coops inMadison. This event often attracts aspiringWisconsin farmers.

It should be noted that in general, respondentsfound no shortage of publications dealing withfarming, but that beyond a certain point, theknowledge they needed was more specialized andspecific than what could be found in books,magazines or newsletters. Virtually all of them

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stressed the importance of research and reading theliterature -- and all agreed that it wasn’t enough.

Business Planning

Several respondents had difficulty developingbusiness plans -- either to present to a loan officeror potential granting agency, or to have a cleareridea themselves of what to expect financially. Partof the problem was a lack of business skills. Insome cases, the problem was the lack of reliableeconomic information on production costs andrevenues from non-traditional products or goodsproduced in non-traditional ways and sold throughnon-traditional marketing arrangements.

“One of the great strengths ofmany of the respondents was

their marketing savvy.Several had strong urban

connections, a sophisticatedunderstanding of various

niche markets, andconsiderable creativity and

persistence in developing newmarkets,”

There are Cooperative Extension and SmallBusiness Development Center resources devoted toimproving farmer business skills and financialmanagement in Wisconsin, and similar resources inother states. However, these traditional sources ofhelp have typically served beginning alternativefarmers poorly; many respondents needed morespecialized help than was available. This may be anarea where a joint effort by Extension or otherpublic agency and a private farm organization couldbest meet beginning farmer needs. The relevantstate agencies could benefit by greater exposure toalternative enterprises and production practices, andnon-profits could benefit from the expertise ofextension agents and business consultants inpreparing business plans, loan applications, andrecord-keeping systems.

Marketing

One of the great strengths of many of therespondents was their marketing savvy. Several hadstrong urban connections, a sophisticatedunderstanding of various niche markets, andconsiderable creativity and persistence in developingnew markets. Several found marketing to be astumbling block, however. One of the biggestconstraints was time -- developing and maintainingmarkets on top of a heavy work load to producegoods and take care of the farm. Most respondentswere working 60-80 hours a week if they werefarming full time, or had other jobs if they were stillgetting started and capitalizing the enterprise.

Even with the more successful marketers, it appearsthat the start-up and maintenance costs ofalternative marketing channels (essential to most ofthem if they are to make a profit) are quite high. Itis also clear that the markets for different productsare highly idiosyncratic, and it would be difficult --and probably not a good idea -- for a generalagricultural organization to offer direct marketingassistance for most products. There would besubstantial organizational risks involved in such anundertaking. There are many “moving parts” to anymulti-farmer production and marketing effort, andmany potential sources of failure which are beyondthe control of the assisting organization. Asignificant failure in marketing could hurt theorganization and impede its work in other areas.

It does appear, however, that for products of fairlybroad and predictable demand, such as vegetablesand some fruits, there may be ways of jump-startingan alternative market system that could serveseveral farmers. A community supported

1

“There are many ‘movingparts’ to any multi-farmerproduction and marketingeffort, and many potential

sources of failure which arebeyond the control of theassisting organization.”

agriculture or subscription farming system wouldprobably be costly to set up initially, but somewhatmore manageable to maintain. The experience ofone respondent using this system has been positive.However, further research on the ongoingorganizational costs of such a system should beundertaken to determine whether this is a realisticoption for many farmers, who are typicallyoverworked and overcommitted already.

“Many of the problems [thesefarmers] face are a result of...

policies...th.ut favor largefarmers over smull...

traditional crops over non-traditionals, and chemical useand system simplification overmanagement skills and system

integration.”

There may also be opportunities to play a limitedrole in bringing together producers who could worktogether on marketing. For example, the existenceof a successful lamb marketing cooperative on theEast Coast attests to the marketing possibilities forthis undervalued product. While we feel that mostof the effort to develop such a mechanism should

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come from the producers rather than an outsideorganization, assistance in convening the firstmeeting or two could provide impetus andencouragement.

Conclusion

Beginning farmers face substantial obstacles.Information needs loom large, and financialchallenges are relentless. The foregoing study,however, has convinced us that it is both possibleand worthwhile to assist beginning farmers. As isevident from the interviews, they collectively possessan unusual degree of dynamism, commitment,creativity, and just plain guts. Talking with themabout their farms and their dreams was a privilegeand a source of real inspiration. They are aresource that rural America cannot afford to ignore.

Many of the problems they face are the result of aset of policies, programs and institutions that favorlarge farmers over small; capital-intensiveproduction methods over labor-intensive ones;traditional crops over non-traditionals; and chemicaluse and system simplification over managementskills and system integration. Bucking these trendsmakes life harder for some of these farmers -- andit is also what makes them worth supporting.

It is our hope that this study will serve as a sourceof insight into what beginning farmers need, andsuggestions of how to design assistance projects.We welcome your feedback and suggestions.

Documents

Finding the Niche: Case Studies of Beginning Small … · Finding the Niche: Case Studies of Beginning Small-Scale ... farmers interviewed for this study has convinced us that the