NC Farm School. Session 2: Comparing New Farm Enterprises

Transcription

1 NC Farm School Session 2: Comparing New Farm Enterprises

2 Warm-up Review your farm inventory. What do you have that will contribute to your ability to meet your mission and goals? What are you missing? Share your thoughts with a partner and be prepared to share a few with the whole group.

3 Review of Homework & Business Plans What components of your enterprise were you able to describe? What inventory do you already have?

4 Today s Goals: What is technical/production feasibility? What are the factors to consider when evaluating the technical/production feasibility of new enterprises? How does farm location impact potential markets for farm products? What are the criteria to select and enterprise? How can you use those criteria to select an enterprise/enterprises to meet overall farm income goals.

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6 Review

7 Website Review Student Section Username: Ncfarmschool Pass: NCfarmschool2018 Additional Resources NC Farm School Manual

8 Ten Minute Break

9 Who Ya Gonna Call?

10 Ghostbusters? For working farms and future farms there are many resources out there, but it can be a confusing sea of acronyms

11 It can make you feel like screaming

12 Resources for Your Farm Enterprise

13 Questions About Property Taxes Property Taxes: PUV (Present Use Value) Minimum acreage in production Horticulture 5 acres $1000 income Agriculture 10 acres $1000 income Forestry 20 acres Need a forestry management plan call your County Forest Ranger, or contact a consulting forester Call your local county tax department

14 Voluntary Ag District Authorized by the NC General Assembly Purpose is to preserve and protect working farmland County Agriculture Advisory Boards establish an agricultural district and approve farm participation.

15 VAD Benefit for Farmers Recognition and public education about agriculture Increased protection from nuisance suits Waiver of water and sewer assessments Public hearings required for proposed condemnation Possible eligibility for funding Official role in county or city government

16 Sales Tax Exemption NC Department of Revenue (NCDOR) If you are selling at a farmers market you will need to register with the Department of Revenue

17 Income and Sales Taxes CPA File a Schedule F for farms for your Federal Income Taxes Sales Tax Exemption Qualifying Farmer and Conditional Farmer Exemptions

18 SOIL & WATER County Soil & Water Districts Can help you interpret your soil report Help you develop a plan to manage runoff and erosion General soil information Example, best place for home/ building/ fields Answer general Pond construction questions Each has a board of directors, three elected officials (general county elections), two appointed by Soil and Water Conservation Commission (State level commission to set policy)

19 SOIL & WATER PROGRAM Ag Cost Share, help you with any conservation measure, but you have meet certain qualifications CCAP- Community Conservation Assistance Program Ag WRAP- Water Resource Assistance Program No Till Drills available for rent in some counties check on tractor size needed to operate

20 NRCS Natural Resource and Conservation Service Part of USDA Help you develop a conservation plan Administer USDA programs that fund conservation projects CRP, EQUIP, FLP

21 USDA Farm Service Agency USDA Farm Service Agency Provide you with a farm number Disaster Assistance programs Beginning Farmer and Rural Youth Loans Each County FSA office has a farmer county committee. Committee members are the local authorities responsible for fairly and equitably resolving local issues while remaining dually and directly accountable to the Secretary of Agriculture and local producers though the elective process. They operate within official regulations designed to carry out Federal laws and provide a necessary and important voice in Federal decisions affecting their counties and communities. Committee members make decisions affecting which FSA programs are implemented county-wide, the establishment of allotment and yields, commodity price support loans and payments, conservation programs, incentive, indemnity, and disaster payments for commodities, and other farm disaster assistance.

22 Do I need one? Farm Numbers If you are or want to participate in one of the USDA programs If you are want to participate in the some of the NRCS programs Go through your county FSA office to apply for a farm number

23 NC Forest Service NCFS Write forest management plan Help determine the health of your forest Administer the FDP cost share, EQUIP,

24 NCDA & CS North Carolina Department of Agriculture & Consumer Services Pesticide Licensing Nursery licenses/certifications Soil testing lab, plant tissue analysis, nematodes, water testing (irrigation water), Meat Handlers License USDA GAP Certification and cost share assistance Kitchen certification Marketing Division

25 North Carolina Cooperative Extension Extend the research of the University in every county County faculty and State specialists work to solve problems and support agriculture, food and youth development Classes, workshops, web portals, farm visits, office visits Offer Pesticide Credits and training Soil sample analysis Resources can be found at:

26 NON PROFIT AGENCIES CFSA- Carolina Farm Stewardship Association AWA- Animal Welfare Approved NC Choices Southern Sustainable Agriculture Working Group NC FarmLink - Farmland Seekers and Owners

27 Marketing & Commodity Groups Piedmont Grown NC Farm Fresh Goodness Grows Strawberry Growers Commercial Flower Growers Vegetable Growers Greenhouse Vegetable Growers Local Harvest NC Cattlemen s Assoc. And many many more

28 You can connect! Most agencies and organizations are happy to include you in their mailing list, list, listserv, etc. Like us on Facebook and visit the websites! Sandhills Farm School Facebook Page Extension Websites Who do you follow?

29 Comparing Enterprises

30 Feasibility Production possible to produce profitable yields given location and resources Market measuring the actual or potential market including profitable prices Financial whether the revenue will result in profitability, includes costs and revenues

31 Planning Strategic planning -- Doing the right thing Tactical planning -- Doing things right

32 Strategic Planning Emphasizes Assess external environment Identify opportunities Framework or system to response by: Setting goals Assess strengths and weaknesses Identify threats/opportunities Setting priorities Allocating resources

33 Business Trends Changing demographics Demand for Fresh, Local Product Nostalgia One dish meals, 1 in 10 meals eaten on run What for dinner? who is cooking Marketing for health Convenience is no longer an option

34 Strategic Planning External Forces Economic trends Commodity markets Input costs Technology Regulations / Government policies

35 SWOT stands for Strengths Weaknesses Opportunities Threats SWOT Analysis

36 Taking Inventory Personal and Family Time to devote to farm Management ability Production Feasibility What can the farm produce Does the farm have suitable soil Market Feasibility Financial Feasibility Legal, regulations, permits and insurance

37 Evaluate Your Resources How much and when will labor will required? Will I need additional machinery? Do you have under-utilized resources? Physical resource: land, buildings, machinery, climate?

38 Personal Do you have the time to devote to new enterprise? Do the labor requirements match supply? Do you have the management and skills? Will family members help?

39 Land Are the soils suitable for the enterprises you are considering? How many acres of potential crop land, timber, pasture? Are there sufficient water if you will irrigate?

40 Equipment, Buildings What equipment does the farm have? Condition of the equipment What is current value of equipment Buildings? Condition of buildings

41 Comparing New Enterprises What size, how many acres, number of livestock Production Feasibility Crop s soil suitability Land requirement for production Cow calf Labor: family and hired Fence for livestock What equipment is needed

42 Financial What financial resources are available Money in saving Asset to sell Family member s help Current employment Will you borrow money to start

43 Marketing Feasibility Direct marketing On-farm marketing Pick your own Farm stand Off farm marketing Farmers markets CSA Wholesale marketing PRICE

44 Financial Feasibility Required Capital Investment Start up cost Labor Availability Impact of price and yield

45 Start up Cost Examples Enterprise Annual labor Key months labor Start up Cost Annual Returns Strawberry 2,200 April-May $12,000 $15,000 Blueberry 2,000 May-July $9,300 $12,000 Honey, 10 hives Beef steers 20 head 16 hours/hive Mar-Nov $2,200 $350-$1, May-Sept $20,000 $1,500/$75 Sheep Ewes 160 Feb-Sept $10,000 $10/ewe

46 Smith Case Study Property Resources 20 acres pasture and hay land 20 acres timber Small pond Some farm equipment 19 possible enterprises

47 Smith Farm Possible Enterprise Analysis Strawberry Blackberry Tomatoes Watermelon Squash Bell pepper Carrots Kale Market garden High tunnel Hops Honey Meat goals Sheep Poultry eggs Poultry meat Pasture pigs Agritourism-event center

48 NC Farm School Website

49 In-class Activity Moore Creek Farm Business Selection Working in your team, use what you learned today to develop answers to the case study questions.

50 Homework for Session 3 Feasibility of your enterprise Ag Plan complete: Business Overview Location Business History Facilities

51 Homework for Session 3 Feasibility of your enterprise Ag Plan complete: Business Overview, Location, Business History, and Facilities Next, complete the Products, Services, Production System, and Customer Service sections of AgPlan for your enterprise.

52 Field Trip Guide You will receive a handout with guiding questions for our field trip. This is to help you focus on the aspects of our trip that are relevant to today s topic.

53 Wrap-up What questions do you have about resources and feasibility?