Have you reached the end of the “busy season” exhausted and at odds with your family and business partners; do you dread tax season? Every day we juggle life and farming: social relationships (family and business), financial success and environmental stewardship. Most of us find our way, but we are exhausted and guilt ridden with undone tasks.
Always remember, we love farming. That’s why we do it. But it sure can drive us crazy!
“There is a better way,” says Seth Wilner, farmer and University of New Hampshire Extension Educator specializing in whole farm planning. December 9th, Wilner led the first of four Holistic Management (HM) workshops at the University of Rhode Island. These hands-on, interactive sessions help farmers accomplish more and enjoy their chosen work. Two sessions will address Problem Solving and Strategic Decision Making and two will focus on Financial Planning using the Holistic Management process.
Quality of Life & Farm Goals:
It is easier to manage life and your farm if everyone on your farm is on the same page and is clear what the farm is managing towards. All potential changes in farm management or new ventures should be weighed against the overall Farm Goal and Future Farm Plan.
Elements in a Whole Farm Goal are based on the values of the farmers and could include: desired level of financial prosperity, feelings toward debt, relationships on the farm, communication goals, time with family, leisure time, production methods and values, expressions towards physical health or spirituality. You can define what you want your life to be like on the farm and manage your farm towards this life. If there are numerous ways to run a profitable farm, which of these will allow you to have the life you want?
To develop a Farm Goal and Whole Farm Plan, consider the resources you already have and who the key decision makers are. Things to consider are:
Decision Makers
Family members, staff and business partners are often involved in decision making and Farm Planning.
Resource Base
This includes land, livestock, farm buildings, home, vehicles, tractors, equipment and other assets.
People who influence or are influenced by our decisions
Your network offers great resources for information and marketing potential. This can include Extension Agents, NRCS staff, veterinarians, fertilizer and seed sales staff, neighbors (farmers and non-farmers) friends, associations, customers, parents, etc.
Skills
Your family and staff have many skills beyond what they are currently utilizing or were hired for.
Assets
Consider all inventory and streams of income, loans, bank accounts, credit cards and credit lines. This includes off-farm income, checking and savings accounts and income from sale of farm products.
Wilner recommends several ways to get the Whole Farm Goal and Farm Plan conversation started. While doing a tedious chore ask, “What else stinks around here?” and while doing a fun chore ask, “What else do we love about this job?” When you gather around a holiday table with the whole family ask, “Where do you see the farm in 5 years, in 20?” You can ask children, “Do you want to come back to the farm after college? Do you want to be active in major decisions or daily choices on the farm?” Discuss what happens if one child wants the farm and others do not; what role, obligations or privileges should other siblings have if they do not want to actively run the farm? You can ask your parents how long they want to work and manage the farm, and have they thought about other adventures or travel they might desire?
Ask yourself, your family and your farm partners, “What would a farm look like where we want to work together?” Think of all the things that deplete you and make the opposite your goal. For example: chaos, conflict, anger wasted time, financial stress and being tired all pull you down; proactive goals can include respect, working well together, efficiency, making a decent profit and having family leisure time. You may discover what you unconsciously value by looking at the photographs of your family on your desk, refrigerator or walls. This might include leisure time for boating or travel, spending time with friends or volunteering with church or civic groups.
Are you making any money?
When Wilner asks farmers, “What does it cost you to raise a dozen ears of corn?” he is amazed that most cannot answer. How can farmers decide whether to add or shrink the acreage in a crop without knowing if it is a profitable crop in the first place?
Farm data collection should provide enough information to determine if each current crop, herd or project actually makes any money. Wilner recommends “The Organic Farmer’s Business Handbook: A Complete Guide to Managing Finances, Crops, and Staff - and Making a Profit” by Richard Wiswall as a step by step guide to creating a business plan with data collection templates. Wiswall’s 27 years at Cate Farm guides his advice on efficient, profitable vegetable production as well as better employee and financial management.
Once appropriate data collection is in place, each crop or herd or project (farm enterprise) can be evaluated against the Farm Goal. Is this crop or project helping us work towards our Goal? Is this crop or project profitable? Shall we grow, shrink or change to achieve our Goals?
Promotion versus Production:
We could run ads and a clever marketing campaign to sell more products. We could increase production and use more land, resources and time to fulfill that demand. Would this get us closer or further from our Whole Farm Goal and improve the quality of our farm and environment? Many farmers decide to downsize or shift their crop mix after careful analysis of their Return On Investment (ROI) in effort, time and money as well as the impact on their family and environment.
“We drive the farm business, if shouldn’t drive us,” urged Wilner.
Whole Farm Goal
Your family, staff and business partners can all benefit from a simple Management Plan covering everything under your control. This internal document will not be shared with customers or the public. The Whole Farm Goal should include the Quality of Life values that you and your fellow decision makers strive for. Describe “What” rather than “How” you will achieve those values and include your infrastructure needs as well as relevant policies and procedures. You may also describe the future farm landscape you are managing towards.
Wilner recommends learning about the biodynamic Roxbury Farm in Kinderhook, NY. Their farm website describes their communication practices, harvesting techniques and includes some of their management documents.
Business Plan:
If you have ever tried to seek outside funding, you know better results come with a well developed Business Plan and/or Farm Plan. Future sessions will guide farmers through development of this valuable tool.
Seth Wilner teaches beginner farmers, consults with established farmer, grows non-certified organic vegetables for nearby restaurants and has worked with the UNH Cooperative Extension since 2000. For more information, contact Wilner via email, at 24 Main Street, Newport, NH 03773-1515 or call (603) 863-9200.
The next three sessions will be held in 2012: Problem Solving with Holistic Management on January 20, Financial Planning with Holistic Management on February 3 and March 2. Each session will run 8 a.m. to 4 p.m. and include lunch at URI’s East Farm, Bldg. #75, Kingston, RI 02881. The cost is $20 per person per workshop payable to URI and mail to, URI Cooperative Extension, 3 East Alumni Avenue, Kingston, RI 02881. If you have questions, please call (401) 874-2967.
This University of Rhode Island workshop series is funded through a USDA Northeast SARE State Professional Development Program grant administered through URI.
A similar story ran in the January 16, 2012 New England edition of "Country Folks."
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