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Overview of Module 7: Overview of Module 7: So You Want to Make a Buck? So You Want to Make a Buck?
Cinda Williams and Kevin Laughlin Cinda Williams and Kevin Laughlin July 2008
LOL Training Bozeman, MT
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What we’ll learn todayWhat we’ll learn todayIntroduce 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
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Marketing and Economics for Marketing and Economics for Small-acreage PropertiesSmall-acreage Properties
UNCE, Reno, Nev.
Developed by:Cinda Williams, University of Idaho ExtensionBob Hamblen, Colorado State Cooperative ExtensionKevin Laughlin, University of Idaho ExtensionSusan Donaldson, University of Nevada Cooperative Extension
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M7L1 allows participants to: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
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Module 7 Lesson 1 - Lesson PlanModule 7 Lesson 1 - Lesson PlanTime Section Goal Activity Instructor
10 min
Introductions Answer any questions and address any concerns from the last lesson. Clearly delineate what will be covered.
AgendaRe-examine your property goalsDo you want to make a buck?Can you make a buck?Business plansMarketing methodsKeys to successResources
Depending on number of repeat participants and time between this and the last lesson, an icebreaker may be needed here.PowerPoint Slides 1-2
30 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 goalsQuestions to askWhat are you going to sellAre your physical resources adequate?You are a physical resource. Fill out the Personal Evaluation Activity SheetFamily issuesTime and moneyExternal factorsHow 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 SheetTesting Possibilities Activity SheetPowerPoint Slides 3-15
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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 Bar
n
Revisiting the Property MapRevisiting the Property Map
Manure compost area
Water trough
Bare ground
Processing shed
P Pasture
GC Groundcover planted
GH Greenhouses (high tunnels)--- Wildlife planting area
C Cropping area
Hot-wire fence
GH
GH
GHGH GH
New gravel road for access
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Re-examine personal goalsRe-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
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What to sell?What to sell?
www.sustainablepoultry.ncat.org
www.eatapples.com http://blog.americanfeast.com
http://blogs.venturacountystar.com
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Determine if resources Determine if resources are adequate…are adequate…
Physical?Human (self and family)?Time?Financial?External Factors
Testing Possibilities Activity SheetTesting Possibilities Activity Sheet
see M7L1 page 10Brainstorm possibilities, conduct SWOT analysis
yourproduceman.com
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Start the Business Plan by Start the Business Plan by knowing your productknowing your product
Crops
Livestock
Value-added products
NCSU
Proposed Enterprise Proposed Enterprise Development SheetDevelopment Sheet
M7L1 pages 11-14M7L1 pages 11-14
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U-pickU-pick
Community Community supported supported
agriculture (CSA)agriculture (CSA)
Custom Custom livestocklivestock Restaurants Restaurants
or grocery or grocery storesstores
Institutional Institutional customerscustomers
Farmers’ Farmers’ marketsmarkets
Value-added Value-added processingprocessing
AgritourismAgritourism
Marketing Marketing StrategiesStrategies
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Introduction of Introduction of business plan as business plan as
a road map to a road map to successsuccess
www.internest.com
Includes basics of developing mission, goals Includes basics of developing mission, goals statements. statements.
The Business Plan as a Road MapThe Business Plan as a Road Map
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Introduces importance Introduces importance of planning for:of planning for:
ProductionProduction
MarketingMarketing
FinancialFinancial
Labor Labor
Management Management
Contingency plansContingency plans
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Peer resources Peer resources and supportand support
NRCS
Agencies
ExtensionOther producers
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Why buy my product?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 SheetProposed Enterprise Development SheetM7L1 pages 11-14M7L1 pages 11-14
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Proposed Enterprise Development Proposed Enterprise Development Activity Sheet Activity Sheet M7L1 pages 11-14M7L1 pages 11-14
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?
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Production: Production: It’s All About SystemsIt’s All About Systems
USDA NRCS
Developed by:Developed by:Bob Hamblen, Colorado State Cooperative ExtensionBob Hamblen, Colorado State Cooperative ExtensionCinda Williams, University of Idaho ExtensionCinda Williams, University of Idaho ExtensionKevin Laughlin, University of Idaho ExtensionKevin Laughlin, University of Idaho ExtensionMelody Hefner, University of Nevada Cooperative ExtensionMelody Hefner, University of Nevada Cooperative Extension
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Module 7 Lesson 2 introduces:Module 7 Lesson 2 introduces:
Production systems
Traditional or conventional Sustainable Certified organic
Certifications
Risk management
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Sustainable production Sustainable production systems: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.
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An overview of some sustainable An overview of some sustainable tools and practicestools and practices
Univ. of Idaho Extension
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Integrated pest Integrated pest management management
(IPM)(IPM)
Biological
Cultural
MechanicalChemical
Biological pest controlBiological pest control
Biorational Biorational pesticidespesticides
Add manure or compostAdd manure or compost
Green Green manures manures and cover and cover cropscrops
MulchesMulches
Planned Planned crop rotationcrop rotation
SolarizationSolarizationPhysical barriersPhysical barriersIntegrating crops and Integrating crops and
livestocklivestock
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Organic production systemsOrganic production systems
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“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 The National Organic Standards Board defines organics as:Board defines organics as:
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Certified organic productionCertified 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
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http://chatham.ces.ncsu.edu
Organic crop productionOrganic crop production
Organic livestock Organic livestock productionproduction
Organic handling or Organic handling or processing operationsprocessing operations
100% 95-100% 70-95% 0-70%
Organic product labelingOrganic product labeling
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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?What does a label really mean?
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Other CertificationsOther Certifications
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Don’t forget risk managementDon’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
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Activity for Lesson 2Activity for Lesson 2Proposed Enterprise Development Sheet, see M7L2, pages 7-11 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.
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Can Can YouYou Make It Work? Make It Work?
Developed by:Developed by:Melody HefnerMelody Hefner
Susan DonaldsonSusan DonaldsonUniversity of Nevada Cooperative ExtensionUniversity of Nevada Cooperative Extension
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Lesson 3 uses case study Lesson 3 uses case study examples to: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
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The “What If?” gameThe “What If?” game
What if…Activity Sheet and Instructions What if…Activity Sheet and Instructions see M7L3 pages 6-7see M7L3 pages 6-7
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How have others made their How have others made their enterprises successful?enterprises successful?
USDA NRCS
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Case Study One: Case Study One: Story Hill Farm, MontanaStory Hill Farm, Montana
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Lauren and Ewell Culbertson Lauren and Ewell Culbertson
Longmont, ColoradoLongmont, Colorado
Case Study TwoCase Study Two
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Bear River Valley Beef, Bear River Valley Beef, CaliforniaCalifornia
http://bestgrassfedbeef.com/index.htm
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Looking at some case studies…Looking at some case studies…
NRCS
NRCS
NRCS
WSUFood Alliance
St. Paul Farmer’s Market
Case Study Presentation Activity Sheet Case Study Presentation Activity Sheet M7L3M7L3 page 8page 8
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Homework for M7L3Homework 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?
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Resources for InstructorsResources 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.
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Summary and next stepsSummary and next stepsQuick 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