Overview of Module 7: So You Want to Make a Buck?

1. Overview of Module 7: So You Want to Make a Buck? Cinda Williams and Kevin Laughlin July 2008 LOL Training Bozeman, MT

2. What we’ll learn today • Introduce new LOL module • Review highlights of each lesson in module • Reinforce student engagement as part of LOL program • Identify keys to successful delivery • Identify resources for instructors and students

3. Marketing and Economics for Small-acreage Properties Developed by: Cinda Williams, University of Idaho Extension Bob Hamblen, Colorado State Cooperative Extension Kevin Laughlin, University of Idaho Extension Susan Donaldson, University of Nevada Cooperative Extension UNCE, Reno, Nev.

4. M7L1 allows participants to: • Re-examine property goals • Decide if they can make a go at a farm business. • Begin a comparative analysis of three potential enterprises • Learn the basics of business plans • Explore direct marketing methods

5. Module 7 Lesson 1 - Lesson Plan

6. GH Greenhouses (high tunnels) --- Wildlife planting area Legend Revisiting the Property Map Hot-wire fence Well Acres = 25 Trees Weedy Animals = 2 cows, 1 horse, 10 dairy goats House Grasses present = T. fescue, orchard, clover, bentgrass Bare ground PPasture New gravel road for access Soils= sandy clay loam, silt Marshy Processing shed Stream GH GH GH Water trough GH GH Gate Barn Fence Barn GCGroundcover planted Septic C Cropping area Manure compost area

7. Re-examine personal goals • Why do you want to sell a product? • Do you have the skills and resources? • Why do you have to do this….is it going to be FUN? Personal Evaluation Activity Sheet see pages 8-9 of M7L1

8. What to sell? www.sustainablepoultry.ncat.org http://blogs.venturacountystar.com www.eatapples.com http://blog.americanfeast.com

9. Determine if resources are adequate… • Physical? • Human (self and family)? • Time? • Financial? • External Factors Testing Possibilities Activity Sheet see M7L1 page 10 Brainstorm possibilities, conduct SWOT analysis yourproduceman.com

10. Start the Business Plan by knowing your product • Crops • Livestock • Value-added products Proposed Enterprise Development Sheet M7L1 pages 11-14 NCSU

11. Custom livestock U-pick Restaurants or grocery stores Farmers’ markets Institutional customers Agritourism Marketing Strategies Community supported agriculture (CSA) Value-added processing

12. The Business Plan as a Road Map Introduction of business plan as a road map to success Includes basics of developing mission, goals statements. www.internest.com

13. Introduces importance of planning for: • Production • Marketing • Financial • Labor • Management • Contingency plans

14. Peer resources and support • Agencies • Extension • Other producers NRCS

15. Why buy my product? • “Tell your story” as a PRODUCERto explain why someone would want to buy your products. • “Tell your story” as a CONSUMERto explain why you would want to buy the producer’s products. Proposed Enterprise Development Sheet M7L1 pages 11-14

16. Proposed Enterprise Development Activity Sheet M7L1 pages 11-14

17. Production: It’s All About Systems Developed by: Bob Hamblen, Colorado State Cooperative Extension Cinda Williams, University of Idaho Extension Kevin Laughlin, University of Idaho Extension Melody Hefner, University of Nevada Cooperative Extension USDA NRCS

18. Module 7 Lesson 2 introduces: • Production systems • Traditional or conventional • Sustainable • Certified organic • Certifications • Risk management

19. Sustainable production systems: • Address economic profitability, social benefits to the farm family and community, and environmental conservation. • Depend on a whole-system approach whose overall goal is the continuing health of the land and people. • Concentrate on long-term solutions to problems instead of short-term treatment of symptoms.

20. An overview of some sustainable tools and practices Univ. of Idaho Extension

21. Add manure or compost Cultural Biological Chemical Mechanical Integrated pest management (IPM) Biological pest control Green manures and cover crops Mulches Biorational pesticides Planned crop rotation Integrating crops and livestock Physical barriers Solarization

22. Organic production systems

23. The National Organic Standards Board defines organics as: “An ecological production management system that promotes and enhances biodiversity, biological cycles and soil biological activity. It is based on minimal use of off-farm inputs and on management practices that restore, maintain and enhance ecological harmony.”

24. Certified organic production • The Organic Foods Production Act of 1990 mandated uniform organic standards • Use of the term ORGANIC is controlled, versus ‘natural’, ‘pesticide-free’, ‘free-range’ or other ‘marketing’ terms used by growers. • Growers must have an organic plan for their farm and be certified organic. • Annual inspections are mandated after certification

25. Organic handling or processing operations 100% 95-100% 70-95% 0-70% Organic crop production Organic product labeling Organic livestock production http://chatham.ces.ncsu.edu

26. What does a label really mean? No Detected Pesticides Residues Made from milk from contented cows Grass Fed 100% Natural No Artificial Ingredients Free Range Cage Free Hormone and Antibiotic Free

27. Other Certifications

28. Don’t forget risk management • Introduce government risk management programs • Review types of risk and ways to prevent risks in all areas of business • Review risk management tools for producers

29. Activity for Lesson 2Proposed Enterprise Development Sheet, see M7L2, pages 7-11 For each of the three enterprises proposed in Lesson 1: • Determine best production method based on personal goals. • List the pros and the cons of using the production system for each enterprise. • List possibilities and steps required for third-party certifications.

30. Can You Make It Work? Developed by: Melody Hefner Susan Donaldson University of Nevada Cooperative Extension

31. Lesson 3 uses case study examples to: • To compare and contrast some success stories • Identify key factors that make a sustainable enterprise successful • Provide successful models for learning how to make it work

32. The “What If?” game What if…Activity Sheet and Instructions see M7L3 pages 6-7

33. How have others made their enterprises successful? USDA NRCS

34. Case Study One: Story Hill Farm, Montana

35. Case Study Two Lauren and Ewell Culbertson Longmont, Colorado

36. Bear River Valley Beef, California http://bestgrassfedbeef.com/index.htm

37. Looking at some case studies… NRCS NRCS St. Paul Farmer’s Market Case Study Presentation Activity Sheet M7L3page 8 WSU Food Alliance NRCS

38. Homework for M7L3 Participants analyze their own property and/or enterprise by answering these questions: • What were your original goals? • How has your map changed? • How have your goals changed? • How has your property management changed? • What does your to-do list look like?

39. Resources for Instructors • Every lesson has an extensive list of resources for both instructors and students. • Don’t forget to use as many local resource publications as possible. • Consider using relevant small farming videos or DVDs, if time allows.

40. Summary and next steps • Quick review of Module 7 • Introduction to the hands-on activities • Identification of resources • Next steps for you: • Review the Lesson Plans • Read the notes section of slides • Identify partners in your area