6/15/20151 Overview of Module 7: So You Want to Make a Buck? Cinda Williams and Kevin Laughlin Cinda Williams and Kevin Laughlin July 2008 LOL Training Bozeman, MT

6/15/20152 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

Marketing and Economics for Small-acreage Properties UNCE, Reno, Nev. 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

6/15/20154 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

6/15/20155 Module 7 Lesson 1 - Lesson Plan TimeSectionGoalActivityInstructor 10 min IntroductionsAnswer any questions and address any concerns from the last lesson. Clearly delineate what will be covered. Agenda Re-examine your property goals Do you want to make a buck? Can you make a buck? Business plans Marketing methods Keys to success Resources Depending on number of repeat participants and time between this and the last lesson, an icebreaker may be needed here. PowerPoint Slides min Re-examine your property goals Start the group thinking about possible enterprises for their property. Focus on the questions participants need to ask themselves to decide if the enterprise is right for them and their property. Re-examine your property goals Questions to ask  What are you going to sell  Are your physical resources adequate?  You are a physical resource. Fill out the Personal Evaluation Activity Sheet  Family issues  Time and money  External factors How are you going to decide? Fill out the Testing Possibilities Activity Sheet  Decision-making process (brainstorming activity)  SWOT (strengths, weaknesses, opportunities and strengths) analysis activity Personal Evaluation Activity Sheet Testing Possibilities Activity Sheet PowerPoint Slides 3-15

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

6/15/20157 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

What to sell?

6/15/20159 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

6/15/ Start the Business Plan by knowing your product Crops Livestock Value-added products NCSU Proposed Enterprise Development Sheet M7L1 pages 11-14

6/15/ U-pick Community supported agriculture (CSA) Custom livestock Restaurants or grocery stores Institutional customers Farmers’ markets Value-added processing Agritourism Marketing Strategies

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

6/15/ Introduces importance of planning for: ProductionMarketingFinancialLaborManagement Contingency plans

Peer resources and support NRCS Agencies Extension Other producers

6/15/ Why buy my product? “Tell your story” as a PRODUCER to explain why someone would want to buy your products. “Tell your story” as a CONSUMER to explain why you would want to buy the producer’s products. Proposed Enterprise Development Sheet M7L1 pages 11-14

6/15/ Proposed Enterprise Development Activity Sheet M7L1 pages Examples of additional questions posed on this form Proposed Enterprise #1 Describe the customers that you are targeting for your product/service What is your production plan? How will you manage your enterprise? Who is responsible for which elements?

6/15/ Production: It’s All About Systems USDA NRCS 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

6/15/ Module 7 Lesson 2 introduces: Production systems  Traditional or conventional  Sustainable  Certified organic Certifications Risk management

6/15/ 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.

6/15/ An overview of some sustainable tools and practices Univ. of Idaho Extension

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

6/15/ Organic production systems

6/15/ “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.” The National Organic Standards Board defines organics as:

6/15/ 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

6/15/ Organic crop production Organic livestock production Organic handling or processing operations 100% % 70-95% 0-70% Organic product labeling

6/15/ Made from milk from contented cows Free Range Cage Free No Artificial Ingredients No Detected Pesticides Residues 100% Natural Hormone and Antibiotic Free Grass Fed What does a label really mean?

6/15/ Other Certifications

6/15/ 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

6/15/ Activity for Lesson 2 Proposed 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.

6/15/ Can You Make It Work? Developed by: Melody Hefner Susan Donaldson University of Nevada Cooperative Extension

6/15/ 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

6/15/ The “What If?” game What if…Activity Sheet and Instructions see M7L3 pages 6-7

6/15/ How have others made their enterprises successful? USDA NRCS

6/15/ Case Study One: Story Hill Farm, Montana

6/15/ Lauren and Ewell Culbertson Longmont, Colorado Case Study Two

6/15/ Bear River Valley Beef, California

6/15/ Looking at some case studies… NRCS WSU Food Alliance St. Paul Farmer’s Market Case Study Presentation Activity Sheet M7L3page 8 Case Study Presentation Activity Sheet M7L3 page 8

6/15/ 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?

6/15/ 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.

6/15/ 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