Ag 101Ag 101Beginning A Successful Beginning A Successful

Small Farm Small Farm

Terry E. PooleTerry E. Poole

Extension AgentExtension Agent

Frederick CountyFrederick County

Small FarmSmall Farm Operator ObjectivesOperator Objectives

1- How to simplify production techniques.1- How to simplify production techniques.

2- How to locate the most efficient 2- How to locate the most efficient equipment and tools.equipment and tools.

3- How to reduce costs, increase 3- How to reduce costs, increase profitability.profitability.

4- How to efficiently market what the 4- How to efficiently market what the farm produces.farm produces.

Beef cows:Beef cows: 411 farms; 9,130 head411 farms; 9,130 head Dairy cows:Dairy cows: 256 farms; 28,197 head256 farms; 28,197 head Hogs:Hogs: 73 farms; 5,117 head73 farms; 5,117 head Sheep: Sheep: 92 farms; 3,297 head92 farms; 3,297 head Layers: Layers: 76 farms76 farms Broilers:Broilers: 4 farms 4 farms

*1997 U.S. Census of Agriculture*1997 U.S. Census of Agriculture

Frederick County AgricultureFrederick County AgricultureLivestockLivestock

Frederick County AgricultureFrederick County AgricultureCropsCrops

Field Corn (grain/silage) Field Corn (grain/silage) 48,000 acres48,000 acres SoybeansSoybeans 26,500 acres26,500 acres WheatWheat 13,500 acres13,500 acres BarleyBarley 6,700 acres 6,700 acres OatsOats 1,400 acres 1,400 acres HayHay 44,000 acres44,000 acres VegetablesVegetables 612 acres 612 acres

*2001 MDA Ag Statistics *2001 MDA Ag Statistics

Frederick County Farm SizeFrederick County Farm Size1304 Farms: Avg. 166 Acres1304 Farms: Avg. 166 Acres

1 to 9 1 to 9 acresacres 96 96 10 to 49 10 to 49 acresacres 372372 50 to 17950 to 179 acresacres 463463 180 to 499180 to 499 acresacres 300300 500 to 999500 to 999 acresacres 50 50 1,000 plus1,000 plus acresacres 23 23

* 1997 U.S. Census of Agriculture* 1997 U.S. Census of Agriculture

Less than $2,500Less than $2,500 356356 $2,500 to $4,999$2,500 to $4,999 161161 $5,000 to $9,999$5,000 to $9,999 173173 $10,000 to $24,999$10,000 to $24,999 189189 $25,000 to $49,999$25,000 to $49,999 89 89 $50,000 to $99,999$50,000 to $99,999 91 91 $100,000 plus$100,000 plus 245245

*1997 U.S. Census of Agriculture*1997 U.S. Census of Agriculture

Frederick County Farm IncomeFrederick County Farm Income

SmallFarms

Big

What is a farm?What is a farm?According to the U.S. CensusAccording to the U.S. Census

1850-18691850-1869 $100 in sales$100 in sales

1870-18991870-1899 $500 in sales, or 3 acres$500 in sales, or 3 acres

1900-19091900-1909 1 full-time person1 full-time person

1910-19241910-1924 $250, or 3 acres,or 1 person$250, or 3 acres,or 1 person

1925-19491925-1949 $250 in sales, or 3 acres$250 in sales, or 3 acres

1950-19581950-1958 $150 & 3 acres, or $250$150 & 3 acres, or $250

1959-19741959-1974 $50 & 10 acres, or $250$50 & 10 acres, or $250

1975-present1975-present $1,000 in sales$1,000 in sales

Can small farms have a role?Can small farms have a role?Typical problems and needsTypical problems and needs

Limited resourcesLimited resources - - land, equipment, financesland, equipment, finances

Limited ag and business education and experienceLimited ag and business education and experience Limited purchasing powerLimited purchasing power Limited market potential for productsLimited market potential for products A silent segment of the ag communityA silent segment of the ag community Citizens want more diversity from agCitizens want more diversity from ag Currently contribute little to ag economyCurrently contribute little to ag economy

A cooperative effort is the A cooperative effort is the answer.answer. Benefits Include: Benefits Include:

Group purchasing will lower costsGroup purchasing will lower costs Group marketing will bring higher prices and Group marketing will bring higher prices and

more opportunitiesmore opportunities Market strategies can be developed for niche Market strategies can be developed for niche

markets, diversity of goodsmarkets, diversity of goods Members can be networkedMembers can be networked Focus groups can be developedFocus groups can be developed Members can share resources and experiencesMembers can share resources and experiences

J. S’s 10 Commandments of J. S’s 10 Commandments of Succeeding on the Farm Succeeding on the Farm

#1 Stay at Home#1 Stay at Home- your farm is your life and work- your farm is your life and work

#2 Be honest about luxuries#2 Be honest about luxuries- separate business and pleasure- separate business and pleasure

#3 Build relationships with the neighbors#3 Build relationships with the neighbors- don’t be stuck-up, a know-it-all, or a - don’t be stuck-up, a know-it-all, or a complainer complainer

#4 Invest in money making things#4 Invest in money making things- a livable house is all you need- a livable house is all you need

More CommandmentsMore Commandments

#5 Be committed#5 Be committed

- get up when you fall down- get up when you fall down

#6 Do something#6 Do something

- it’s in the doing (right or wrong) - it’s in the doing (right or wrong) that is how you learn that is how you learn

#7 Write down a plan#7 Write down a plan

- boil down your approach to a single - boil down your approach to a single goal goal

Final CommandmentsFinal Commandments#8 Fully utilize your resources#8 Fully utilize your resources

- inventory the farm, more ideas will - inventory the farm, more ideas will come with experience come with experience

#9 Surround yourself with competent #9 Surround yourself with competent counselcounsel

- look for people who are doing - look for people who are doing successfully what you want to do successfully what you want to do

#10 Be consistent#10 Be consistent- don’t start and stop endeavors- don’t start and stop endeavors

Selecting The LandSelecting The Land Air DrainageAir Drainage

- growing plants need fresh air- growing plants need fresh air - low - low areas restrict air movementareas restrict air movement

WaterWater- excess water is a flood and not - excess water is a flood and not enough water is a droughtenough water is a drought - be sure - be sure to research the history of the to research the history of the farm farm

- check on the water - check on the water holding capacity holding capacity of the soil of the soil

Geographic LocationGeographic Location - - concerns proximity to marketsconcerns proximity to markets

AccessAccess - if necessary, can customers easily get - if necessary, can customers easily get to your farm; can they find you? to your farm; can they find you?

SecuritySecurity - most farmers fail to recognize this- most farmers fail to recognize this - - theft and vandalism are problemstheft and vandalism are problems - - evaluate fencing, nearby dwellings, evaluate fencing, nearby dwellings, developments, and field visibilitydevelopments, and field visibility

More on The LandMore on The Land

More on The LandMore on The Land WildlifeWildlife

- some species are very destructive- some species are very destructive- adjacent woodland and nearby - adjacent woodland and nearby bodies of water should serve as clues bodies of water should serve as clues

AcreageAcreage- the ultimate availability of land- the ultimate availability of land- evaluate the potential for all of your - evaluate the potential for all of your land; some may not be suitable for land; some may not be suitable for growing cropsgrowing crops

J.S.’s Land SlideJ.S.’s Land Slide

Man is financially successfulMan is financially successful He saves his moneyHe saves his money Dreams of being gentleman farmerDreams of being gentleman farmer Begins looking at real estate adsBegins looking at real estate ads Looks at some landLooks at some land Makes sizeable down-paymentMakes sizeable down-payment Sells house, puts equity in farm, and borrows Sells house, puts equity in farm, and borrows

the restthe rest

More of J.S.’s Land SlideMore of J.S.’s Land Slide Needs job to pay debtNeeds job to pay debt Too tired from off-farm job to do anything with Too tired from off-farm job to do anything with

the farmthe farm Weeds growWeeds grow Honeymoon is over, feels frustratedHoneymoon is over, feels frustrated Trapped with big debt, thinks farming doesn’t Trapped with big debt, thinks farming doesn’t

paypay Dream vanishesDream vanishes Puts farm on the marketPuts farm on the market

What do I produce?What do I produce? What ag interests do I have?What ag interests do I have? What resources are available?What resources are available? Can I afford to do what I want?Can I afford to do what I want? Will the farm support what I select?Will the farm support what I select? How will I establish, manage, harvest, store, or How will I establish, manage, harvest, store, or

feed my selection?feed my selection? Is there a market for my product?Is there a market for my product? Is there a knowledge, or support base?Is there a knowledge, or support base? Will there ultimately be a profit?Will there ultimately be a profit?

Selecting an EnterpriseSelecting an EnterpriseThe Do ListThe Do List

Be original, select enterprises that are not Be original, select enterprises that are not being done by the larger farmsbeing done by the larger farms- the easy stuff is already being done- the easy stuff is already being done

Diversify - spreads out your riskDiversify - spreads out your risk Experiment - that is how you learnExperiment - that is how you learn Locate, develop new market nichesLocate, develop new market niches

- the early bird gets the worm- the early bird gets the worm

Selecting an EnterpriseSelecting an EnterpriseThe Don’t ListThe Don’t List

Market to middlemenMarket to middlemen - - you want to sell directly to customeryou want to sell directly to customer

Hire outside laborHire outside labor - - increased costs and unreliabilityincreased costs and unreliability

Get too far in debtGet too far in debt - - remember nobody went into small remember nobody went into small farming to get richfarming to get rich

Overwork yourself on the farmOverwork yourself on the farm - - remember why you got into farmingremember why you got into farming

Small Farm Enterprise OptionsSmall Farm Enterprise OptionsObjective: High Value / AcreObjective: High Value / Acre

Rent your landRent your land Organic animals, dairy, produceOrganic animals, dairy, produce Landscape plantsLandscape plants Meat goatsMeat goats Free range chickensFree range chickens RabbitsRabbits Fee huntingFee hunting Wine grapesWine grapes Cut flowers, herbsCut flowers, herbs Small fruitsSmall fruits GreenhouseGreenhouse

Name of the Game:Name of the Game:Niche MarketingNiche Marketing

Identify marketsIdentify markets Determine special needsDetermine special needs Position yourself to serve those marketsPosition yourself to serve those markets Find out what the larger producers can’t Find out what the larger producers can’t

supply: What is too small for them?supply: What is too small for them? Look for ways to differentiate your product, not Look for ways to differentiate your product, not

only from what you grow, but how you grow it, only from what you grow, but how you grow it, what you do with it, or how you package it, or what you do with it, or how you package it, or market it.market it.

Some Examples of Current Some Examples of Current Niche Market TrendsNiche Market Trends

FreshFresh, in-season local produce, in-season local produce ColorColor, (white eggplants, blue potatoes), (white eggplants, blue potatoes) NostalgiaNostalgia, (traditional American comfort , (traditional American comfort

foods, i.e. corn-on-cob, corn bread, foods, i.e. corn-on-cob, corn bread, vegetable varieties from several years ago)vegetable varieties from several years ago)

Organic foodsOrganic foods, people believe it is safer, people believe it is safer Edible and cut flowersEdible and cut flowers

Where to buy thingsWhere to buy things

AuctionsAuctions ClassifiedsClassifieds Trader BulletinsTrader Bulletins CataloguesCatalogues Hardware storesHardware stores Farm storesFarm stores WebWeb

Be ResourcefulBe Resourceful Need to be innovative, use what’s aroundNeed to be innovative, use what’s around Use less expensive buildings, coversUse less expensive buildings, covers Buy used equipmentBuy used equipment Equipment should have multiple usesEquipment should have multiple uses Don’t buy more than is neededDon’t buy more than is needed It may be cheaper to hire out the workIt may be cheaper to hire out the work It may be cheaper to buy a product than produce itIt may be cheaper to buy a product than produce it Develop enterprises that can fit togetherDevelop enterprises that can fit together

The Big Red Barn SyndromeThe Big Red Barn Syndrome

Many small farms fail due to high overheadMany small farms fail due to high overhead High overhead items such as new tractors, High overhead items such as new tractors,

board fence, and the big red barn are tough board fence, and the big red barn are tough to cover the costs on within a limited to cover the costs on within a limited resource operation.resource operation.

Remember, agriculture is a business. If the Remember, agriculture is a business. If the farm business can’t support it, don’t buy it.farm business can’t support it, don’t buy it.

Operate within the established objectives Operate within the established objectives of the farmof the farm

Always ask: “Can the farm afford to buy Always ask: “Can the farm afford to buy it in the context of the business?”it in the context of the business?”

The same thought process is applied to The same thought process is applied to crop and livestock production. crop and livestock production. If you If you can’t cover your variable costs, don’t can’t cover your variable costs, don’t grow it!grow it!

Operators should be: Operators should be: Business SmartBusiness Smart

Rats can carry off 50 chicks in 2 hoursRats can carry off 50 chicks in 2 hours Unseasonably wet, or dry is normalUnseasonably wet, or dry is normal Normal weather is exceptionalNormal weather is exceptional Weeds grow faster when you’re not lookingWeeds grow faster when you’re not looking Best place for a fence is where the rocks come Best place for a fence is where the rocks come

to the surface of the groundto the surface of the ground The tractor never breaks unless you’re using The tractor never breaks unless you’re using

itit

J.S.’s Lessons for All FarmersJ.S.’s Lessons for All Farmers

MoreMoreJ.S.’s Lessons for All FarmersJ.S.’s Lessons for All Farmers

Little apple trees have radar that attracts Little apple trees have radar that attracts deer and rabbitsdeer and rabbits

Raccoons have a special affinity for chickensRaccoons have a special affinity for chickens No matter how good your grass is, the cows No matter how good your grass is, the cows

can’t wait to get to the neighbor’scan’t wait to get to the neighbor’s When away from the farm, the spark goes When away from the farm, the spark goes

out of the electric fenceout of the electric fence Things roam around at nightThings roam around at night

MoreMoreJ.S.’s Lessons for All FarmersJ.S.’s Lessons for All Farmers

When the truck is stuck in the mud, you When the truck is stuck in the mud, you don’t get out by floating the valvesdon’t get out by floating the valves

Goats think car hoods are special loungesGoats think car hoods are special lounges To find old rusty fence wire, send out sheepTo find old rusty fence wire, send out sheep Every minutes of winter consumption Every minutes of winter consumption

requires 30 minutes of canningrequires 30 minutes of canning Horses eat twice as much as cowsHorses eat twice as much as cows Deer are not beautiful animalsDeer are not beautiful animals

MoreMoreJ.S.’s Lessons for All FarmersJ.S.’s Lessons for All Farmers

Houses require a lot of maintenanceHouses require a lot of maintenance Only in the wild, or as a hobby do Only in the wild, or as a hobby do

rabbits proliferate easilyrabbits proliferate easily Frost damage is real and deadlyFrost damage is real and deadly Tools really do walk away from the shop Tools really do walk away from the shop

bench; they have a life of their own.bench; they have a life of their own.

Farm Service AgenciesFarm Service Agencies

MMaryland aryland CCooperative ooperative EExtensionxtension NNatural atural RResource esource CConservation onservation SServiceervice Soil Conservation DistrictSoil Conservation District FFarm arm SService ervice AAgencygency MD DMD Department of epartment of NNatural atural RResourcesesources MMDD D Departmentepartment of the of the EEnvironmentnvironment MMaryland aryland DDepartment of epartment of AAgriculturegriculture County Weed ControlCounty Weed Control

Sources of Ag InformationSources of Ag Information

Ag magazinesAg magazines Ag newspapersAg newspapers Ag booksAg books Extension, NRCS, FSA, DNR, MDA Extension, NRCS, FSA, DNR, MDA

publicationspublications Other producersOther producers Ag associations and organizationsAg associations and organizations World Wide WebWorld Wide Web

J.S.’s Being a Good Neighbor

1. Don’t give advice1. Don’t give advice - - unsolicited advice is unappreciatedunsolicited advice is unappreciated

2. Watch your appearance2. Watch your appearance - nose - nose rings make farmers uneasyrings make farmers uneasy

3. Offer assistance3. Offer assistance - - average age of farmer is nearly 60average age of farmer is nearly 60

4. Don’t blab your dreams4. Don’t blab your dreams - most - most farmers don’t have big dreamsfarmers don’t have big dreams

MoreMoreJ.S.’s Being a Good NeighborJ.S.’s Being a Good Neighbor

5. Anything you borrow, bring it back better 5. Anything you borrow, bring it back better than you found itthan you found it - - be careful about borrowing thingsbe careful about borrowing things

6. Respect your neighbor’s property6. Respect your neighbor’s property- keep your animals home- keep your animals home

7. Join appropriate local ag organizations7. Join appropriate local ag organizations- these are educational and social- these are educational and social

MoreMoreJ.S.’s Being a Good NeighborJ.S.’s Being a Good Neighbor

8. Invite neighbors over for a meal8. Invite neighbors over for a meal- holidays are a good time for this- holidays are a good time for this

9. Do business in the community9. Do business in the community- patronize neighbors and other - patronize neighbors and other farmers as much as possible farmers as much as possible

10. Talk10. Talk- farmers love to lean on a truck and - farmers love to lean on a truck and talk talk

Right to Farm You have a “Right to Farm” The State of Maryland allows counties to adopt “Right

to Farm” ordinances Frederick,Carroll, and Howard counties have adopted

ordinances. This prevents some lawsuits since it requires

complainants to first go through the Right to Farm Board before court.

Farms must be following appropriate agricultural practices.

Right to Farm

Communication is the key to avoiding most problems with neighbors.

J.S.’s guidelines on being as good neighbor should be seriously considered.

While you have a right to farm, be considerate of your neighbors. Think about the impact on your neighbors before doing something on the farm. Spreading hog manure on the 4th of July weekend really upsets people.

GOOD LUCKGOOD LUCK