Showing posts with label farm finances. Show all posts
Showing posts with label farm finances. Show all posts

Sunday, January 8, 2012

Economy and Agriculture: The Future


As I explained previously, the number of farmers and folks who live on farms is at an all time low in this country, having dropped from 90% in 1790 to less than 1% today. Why is that, exactly?

Well, the way conventional farming works these days makes it very hard to make a living just by being a farmer. According to the EPA, 40% of farmers list another occupation other than farming, and another 14% of farmers are retired. The implication is that farming is just not that lucrative.

Au contraire, says the Leopold Center for Sustainable Agriculture. According to a 2010 study of theirs, farming can have quite the economic impact for a region... but you have to do it right. 

The study analyzed the impact of expanding fruit and vegetable production in six states in the upper Midwest (IL, IN, IA, MI, MN, WI). The study looked at 28 different fruits and vegetables, but did not include crops that are already being grown in ample quantities (e.g. sweet potatoes, corn and apples). The study examined two different scenarios. The first looked at the economic impact of increased production on the farm level; the second scenario at the impact of increased production for 28 metro areas in and around the six states.

In the first scenario, the study found:
  • Increasing production of 28 fruits and vegetables in the six states could mean $882 million in sales on the farm level, more than 9300 jobs and $395 million in labor income. 
  • If half the increased production were sold in producer-owned stores, this would mean 1405 establishments, 9652 employees, and over $287 million in labor income.
  • Only 270,025 acres would be needed to grow the needed produce, roughly the same as the cropland in just one of Iowa's 99 counties.
  • The job gains would be significantly higher than the number of jobs produced by the same number of acres under conventional production. For example, increased fruit and vegetable production in Iowa would result in 657 farm-level jobs, compared to just 131 jobs currently available with the same land under corn and soybean production.

In the second scenario, the study found:
  • Increased fruit and vegetable production for the 28 metro markets would result in more than $637 million in farm-level sales and 6694 farm-level jobs - there are currently only 1892 jobs available under corn and soybean production in the area.
  •  An additional 6021 jobs would be created due to the farmer-retail direct economic impact of the increased production.

Here's what I take away from this study: there is no substitute for diversified farming. Growing a large number of different crops not only makes a farm more marketable to consumers (who wants to just buy corn all the time?), but insures that if you have one crop fail due to a poor year, you have a back-up with your remaining crops.

Also, diversified farming is far better for soil health - growing the same crop in the same area will deplete the soil of necessary nutrients. Not to mention, the deer will know exactly where to find your green beans. Tricky devils.

So now we can agree: farming can, in fact, be enough to make a living. But there are still obstacles for those who are trying to make it in the farming business. So stay tuned in the days ahead for Part III!

Saturday, January 7, 2012

Economy and Agriculture: The Past

 
It seems like every day I hear yet another story about the recession, the unemployment rate, or the number of jobs created or lost. Understandably, I suppose... given the tenacity of our country's economic lows, and the failure of the "good times" to show so much as the tip of its nose, it is not surprising that the story of America's economy is on the front page more often than not.

Dean (of Dean and Susan Vidal, owners of Brightwood Vineyard and Farm, where I spent much of 2011) was fond of talking about how sustainable agriculture - specifically, small family farms with a local focus - could be instrumental in turning our economy around.

History agrees with him. One theory I've heard (although one I can't cite because I don't remember where I read it... sorry, I know you're probably really upset about that) is that one reason the Great Depression hit so hard was that, up until that point, the majority of American citizens lived on farms. Their needs as consumers were fairly low because they grew and made most of what they needed, so recessions never seemed to have as much of an impact or last for too long.*

Interesting. Let's examine this idea further.

By the 1930s, there had been a significant exodus from the countryside to the cities, thanks to the Industrial Revolution. In 1790, farmers were 90% of the labor force. By 1860, it was 58%; by 1900, 38%; and by 1930, the beginning of the Great Depression, farmers were 21% of the labor force. According to the USDA, the number of people living on farms declined from around 40% in 1900 to around 27% in 1930. While the Great Depression would have been devastating regardless, it's likely that having the lowest percentage of people to date living on farms worsened the situation. (And the Dust Bowl probably didn't help.)

So back to the present.

Today, less than 1% of Americans say they are farmers, and only 2% live on farms. The number of farms has decreased from 6000 in 1900 to around 2000 today, with the average farm nearly doubled in size. But perhaps most telling: the average number of commodities per farm has decreased from more than five in 1900 to less than two. And as Michael Pollan famously investigated in The Omnivore's Dilemma, many of these farms are only surviving thanks to government subsidies for crops of soybeans and corn.

Although most people probably don't think the state of agriculture in our country has much, if anything, to do with the ongoing recession, I think the opposite. If more people grew their own food instead of shelling out their increasingly scarce dollars to purchase it, would this recession have been so bad, or lasted so long? History says no.

Frankly, I think updating our food system to one that focuses on diverse production, a local focus, and an interest in the environmental conservation of their land and soil health can have enormous economic benefits.

And if you come back soon, I'll talk about how that works in Part II.





*Incidentally, who knew there were so many recessions in American history?

Friday, November 18, 2011

Visiting Farms 101



Hello again, dear blog. The last three weeks have been a whirlwind. I spent two weeks in Washington DC, drove up to Boston for an extended weekend, and have been in Perryville, Maryland for the last two days, where I attended the awards ceremony and graduation for NCCC's Class XVII. There were lots of friends to see, unending beers to drink, many miles to drive, countless Fresh Air interviews to keep me company on the road, and far too few hours spent sleeping. It was, in short, amazing.

It hasn't all been partying hard with old friends, though. Last week, I visited three farms in the DC area to interview for apprenticeships next year.

See, here's the thing: I can only work through the end of July, since I should be starting grad school in late August, pending my acceptance. That makes finding a farm job a little awkward, to say the least. No one wants a worker who will leave right when the harvest is ready. So as I started my search, I kept that in mind. In the end, I had interviews with three farms: Clear Spring Creamery in Clear Spring, Maryland; Whitmore Farm in Emmitsburg, Maryland; and Waterpenny Farm in Sperryville, Virginia.




Clear Spring Creamery is a small family operation run by Mark and Clare Siebert. They have about forty milk cows, which are a mixture of Jersey and Holstein. They took me for a tour around the farm, which has been in Mark's family for more than a century. Housing is a camper with a full bed, a bathroom and shower, and a kitchen (although the stove doesn't work). Meals can be on your own or with the family (they have two kids, 10 and 13).


The day is about half farm work and half in the creamery, pasteurizing, bottling, and making cheese and yogurt. I got to try some of their milk, cheese and yogurt, and all of it was quite delicious. Interns get two full days off, usually Sunday and Monday.

The farm itself is quite nice, but the surrounding area doesn't have a whole lot. There is hiking nearby - the Appalachian Trail is about twenty-five miles away, for example. And DC is just a two hour drive.


Overall, I liked Mark and Clare a ton. They were incredibly personable, and answered my rapid-fire questions without batting an eye. They get 100% of their income from the farm, and I think I would get an in-depth look into not only the business of running a small farm, but also the ins and outs of working with government agencies and all the accompanying bureaucratic shenanigans. They also attend three farmers markets, so I would get more experience in that aspect of farm work.




Whitmore Farm focuses on animal husbandry, and has a very diverse operation with chickens (layers and broilers), rabbits, pigs, sheep and goats. Almost all their livestock are heritage breeds, including fainting goats. Sadly, I didn't get to see them. (YouTube them if you haven't already.) One really cool thing about this farm is that they do their own breeding, rather than buying chicks or stockers from an outside source. They also do a little bit of vegetable production.


The housing was a beautiful old home that Will and Ken, the owners, restored a few years ago. Interns get their own rooms and share a bathroom. The area is pretty rural, but being Maryland, you don't have to drive too far to find something.


Ken works full time off-farm, however, which makes me a little leery, since I specifically want to learn more about the business of making a farm profitable. Additionally, Will described their meat products to me as "boutique" and quite high priced. The question of how to price organic products is something I think a lot about, and while I think there is definitely a place for products like this, it's not what I'd like to focus on. I see my farm jobs as much or more about educating myself as being employed, and I believe firmly that organic food can and should be affordable for the majority of people out there.


Additionally, Will told me that they might stop doing their only farmers market and switch to entirely wholesale to high end restaurants next year. While the farm, the housing and the people were all very nice and while Ken and Will are running their farm in a very sound and ecologically friendly way, I don't think this is the farm for me. It's just too different from the food system I want to learn about and work in.




Waterpenny Farm happens to be just half an hour up the road from Brightwood Vineyard and Farm, where I worked this past year, and is run by a couple by the names of Eric and Rachel. They specialize in vegetable production, and get 100% of their income from farmers markets, CSA shares, and on-farm sales. They're also very open about the financial aspect of their farm, and I know I could get an excellent education about the business of running a farm and running it well.


Housing is a house that I would share with the other five interns, complete with kitchen and two bathrooms. I would only get one and a half days off, and they probably wouldn't be back-to-back, which would be problematic for visits to DC. Also, my leaving at the end of July would be more problematic for this farm than the other two, since they're entirely vegetable production and late summer is their busiest time.


Other than the farm itself, which is great, one thing I love about Waterpenny is the surrounding area. Sperryville is a fantastic little artistic community pretty much entirely comprised of local businesses - not a chain in sight. Also, Shenandoah National Park is just a few minutes' drive away. Unfortunately, however, I do not get a lick of phone service there, which - not gonna lie - would be a little difficult for me.




So. What does all this mean? All three farms would be a good experience, and I'm especially drawn to Clear Spring Creamery and Waterpenny Farm. I can expect to hear back from them in January, pretty much across the board. In the meantime, I'll keep my eyes and ears open for other farms where I can apply.

In the meantime, I'll be heading back to Indiana next week for the holidays, applying to grad school, and cooking my little tushie off. Expect lots of pictures of baked goods in the upcoming weeks.

Saturday, July 16, 2011

Little Cabin in the Woods: A Practical Guide to the Farm B&B

So in an interesting twist on the traditional farm business plan, Susan and Dean also have a cottage that they use as a B&B. And this week, I had the opportunity to stay there when my parents came to visit for a couple days.


Normally, my experience with the cottage has been limited to cleaning it. Staying there was phenomenal - leisurely breakfasts of farm-fresh eggs, sitting on the back deck with a steaming mug of tea and seeing a bald eagle fly down the Robinson River, staying up until midnight (gasp!) to finish reading my book. No internet, no phone. Pure heaven, if you ask me.

But quite apart from the very enjoyable act of inhabiting it, the cottage has something else going for it. It happens to be the most profitable enterprise on the farm.


A little background: the cottage started out as a small, delapidated A-frame back when Susan and Dean bought this property ten years ago. Based on the original cottage, they designed a new and improved model with significant expansions, including a kitchen, bedroom, bathroom and back deck. Their daughter and her boyfriend did the actual construction, which included using timber from the property and reclaimed lumber (including chesnut).

Once the construction was finished, they had to purchase everything that goes inside: furniture, decor, linens, microwave, refrigerator, oven, plates, pots and pans, cutlery, games for the kids... well, to make a long story short, they dropped a pretty significant chunk of change on the place to get everything ready. And now, five years later, they have just finished paying it off.




That being said, the amount of money that they must put into the cottage now is minimal. Cleaning supplies, cute little bars of soap, food for the breakfasts (some of which - eggs, for example - comes from the farm)...it's easy to see why, in terms of net profit, the cottage is the most profitable thing happening on the farm. It's also one of the enterprises that takes the least amount of time... and time, as we all know, is money. Especially on a farm.

So how much does an evening in the cottage go for, anyways? I think it's actually pretty reasonable. Sunday through Thursday is $110 a night, and Friday/Saturday are $150 a night, not including a 10% lodging tax.


Mostly the cottage guests are what Dean calls "refugees from DC". Lots of couples out for a romantic weekend, and families with small kids who want to help feed the animals. In any case, it's the perfect getaway for anyone who wants to turn off their phone and laptop for a few days.

It's no Red Roof Inn, thank God. You definitely get what you pay for, and then some.