Growing and Selling Vegetables to a Hungry Market

2. Growing and Selling Vegetables to a Hungry Market Overview • Keewaydin Farms History • In The Beginning • You Want to do What? • Dealing With Disaster • The New Plan • Crop Selection and Season Extension • The Budget and The Business Plan • Marketing Options Pros and Cons • Do as I say not as I have done (maybe)

3. Keewaydin Farm and Field Map

4. Keewaydin Farms History • Established as a sheep ranch in the 1850’s by the Drake family • Bought by Lynford Looker in 1948 and operated as a sheep ranch then dairy farm

5. Keewaydin Farms History Farmed with horses until 1958

6. Keewaydin Farms History Bought by Richard and Mary Haucke in 1976 Operated as a 60 cow Registered Holstein Dairy Farm until 1996

7. Keewaydin Farms History • Became a second generation family farm operated by the Haucke’s in 2005.

8. Keewaydin Farms History • Operated as a multi enterprise farm including Dairy, Vegetables, Row Crops, and pastured meats from 2007 thru 2010.

9. Keewaydin Farms History • In 2010 Rufus Haucke took full ownership of family farm and changed operation to Annual Vegetable and Crop operation.

10. In the Beginning Spent a year or so dreaming about what it may be like to be a farmer Began reading publications about organic gardening and how to write a business plans

11. In the Beginning Lets talk financing options • Yourself • Family and Friends • FSA • Bank • Other • Non profits • Venture capital • Slow Money

12. In the Beginning • Got a job working for A 40 acre vegetable operation in Viroqua, WI area • Spent the year working/learning. • Began working with the FSA to figure out how to buy part of the family farm

13. In the Beginning • Bought 60 acres and formed Keewaydin Family Farms and General Partnership between the Haucke siblings (Jessica, Rufus, Jacob) • In 2005 began vegetable farming on ½ acre.

14. In the Beginning Equipment Year one • Home made 12x20 Greenhouse • Earthway seeder • Wheel hoe • 2 stainless steal wash tanks • Rented Rototiller • Computer and Printer • QuickBooks

15. In the Beginning • Marketed through farmers market in Viroqua and wholesale to a few coop groceries in Minneapolis and Madison. • Main Crops where Swiss Chard, and Brussels Sprouts and a few culinary herbs

16. In the Beginning • All three siblings worked off farm to support living expenses

17. In the Beginning • Second season secured an operating loan from bank used to purchase Equipment and supplement cash flow • Planted 3 acres of garden and made hay off of remaining crop ground

18. In the Beginning • Marketed through farmers market in Madison and wholesale to a few coop groceries in Minneapolis and Madison. • Main Crops where Swiss Chard, celery, Green Top Carrots, Brussels Sprouts, Garlic, Dill, and Cilantro

19. End of year financials Year Two • All sibling maintained off farm work. Rufus and Jessica move to part time off farm work

20. You Want to Do What? • Working with the FSA the Haucke Siblings bought 80 more acres with the farm buildings, more equipment, a 40 cow dairy herd and received more operating capital. • Built Swing 8 milk parlor, began renting neighboring land. Planted 4 acres of garden, milked 30 cows, raised several hundred acres of hay, 30 acres of corn and a couple acres of small grains

21. Adding Animals to Your Farm Pro Con Requires constant attention Expenses Increase Less Control of market/pricing Requires more land Requires more equipment/facilities • Adds diversity • Provides Manure for compost • Can help to bring less productive land into rotation • Increases revenue stream • Allows access to more markets

22. Equipment Year 3 • Massey 1100 Tractor • Massey 1135 Tractor • Massey 65 Tractor • Skid Steer • 9’ Grain Drill • 6’ Rotovator • 9’ Haybine • 30’ X 60’ Greenhouse • 2 Self Unloading Wagons • Manure Spreader • 6’ Brush Hog • 8’ Disk • 4 Bottom Plow • Chopper • Round baler

23. You Want to Do What? • Marketed Vegetables through CSA in Madison and wholesale to a few coop groceries in Minneapolis and Madison. Marketed Milk to Organic Valley

24. Year End Financials Year 3 Rufus and Jacob work off farm part time. Jessica leaves operation and begins attending College

25. You Want to Do What? • 2008 Rufus Haucke started another business called Keewaydin Organics and moved the vegetable enterprise to another farm

26. Dealing With Disaster

27. Dealing With Disaster The Three D’s • Death • Wills, Life Insurance, Clearly defined rolls • Disaster (Natural and Man Made) • Diversity, Insurance, Determination • Divorce • Mediation, Operating Agreement, Kindness

28. You Want to Do What? • 2008 through 2009 Jacob Haucke continued to operate Keewaydin Farms • In 2010 Rufus Haucke took over management of operation then ownership of Keewaydin Farms

29. The New Plan • Dairy Cows Sold in July of 2010 • Focus placed on vegetable operation and home farm.

30. The New PlanEquipment List • Massey 1100 Tractor – 90 horse power • Massey 65 Tractor – 60 horse power • Cub B – Cultivating / Planting Tractor • Assorted Cultivation Equipment • Lewiston, basket, shovels, hilling discs, rotary hoes • Flail Chopper • Manure spreader • Chisel • Disk • 4 Bottom Plow • 2 Self Unloading Wagons • Wash Line • Skid Steer • Rotovator • Brush Hog

31. The New Plan • Increase soil fertility • Expand annual production to 20 acres • Expand greenhouse production • Develop crop plan that keeps production going as long as possible • Begin planting perennial crops • Asparagus • Hazelnuts • Chestnuts • Hardy Fruit Trees

32. Crop Selection and Season Extension

33. Crop Selection and Season Extension Crop Selection • Continuous production • A diversity of plant families • What do you like to grow • Cover Crops • Perennials and annuals Season Extension • Heated Greenhouses • Unheated Hoophouses • Storage Crops • Dried Crops • Mini Hoops • Hydroponics

34. The Budget and The Business Plan • Use IRS SCHEDULE F • Plan out all 12 months • Continue to monitor and adjust • Try to be realistic Contacts -Your Accountant -Neighboring Farmers -Your Bank http://www.irs.gov/pub/irs-pdf/f1040sf.pdf

35. The Budget and The Business Plan Cash Flow

36. Balance Sheet

37. The Budget and The Business Plan • The Business Plan • Cover Page with owners names, Contact info and Business Logo • Table of Contents • 2 to 4 page Narrative • Sections to include • Company description, Products, Markets, Competition, Description of owners/managers skills and rolls, Use of Proceeds, 3 year growth projections • Add Budget, Cash Flow and Balance Sheet • Total Page number 7 to 9 pages

38. CSA Pro Con Complicated Requires people skills Requires strong planning skills High diversity Lots of communication • Money early in the growing season • Direct contact with customers • Strong advocates • Allows for diversity on farm

39. Farmer’s Market Pro Con Unpredictable traffic flow Prices unstable Time away from farm Competition Equipment Requirement • Direct connection with customer • Social event • Encourages Diversity • Network with other farmers

40. Restaurants Pro Con Price sensitive High employee turnover Longer payout Small orders Require more time to maintain relationship • Strong advocates • Popular • Utilize unusual items • Promote freshness • Can change menu with season

41. Grocers Pro Con Have established relationships • Can move good volume • Provides contact with consumer through promotions and demos • Good advocates • Anchors of neighborhoods

42. Wholesale Pro Con End customer is anonymous Might not be loyal Prices can fluctuate with market • Hungry market • Can move large volume • Provides infrastructure • Can contract crops

43. Institutions Pro Con Demand uniformity Require product insurance Require Food Safety Plan and inspections Very price driven • Purchasing power • Ability to plan volumes • Reliable payment policy

44. Do as I say not as I have done (maybe) • Use operating capital very carefully • Establish a strong working bond with all members of operation. Clearly define rolls and stick to the script • Focus on your soil. Make that #1 in any land purchase decision • Plan on Making Money from the beginning • Choose equipment carefully not carefree • Make time for your self and family