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  • From: "Bill Shoemaker" <wshoemak AT inil.com>
  • To: "Market Farming" <market-farming AT lists.ibiblio.org>
  • Subject: Re: [Market-farming] Why do it II
  • Date: Mon, 28 Apr 2008 16:31:04 -0500

While I think it's very difficult to do it, I think it's possible to make a good living market farming. I know people who do it. But I'm sure scale-of-operation has something to do with it. I think it's difficult under 20 acres. The larger the scale, the greater efficiencies can be exploited. Sure, it takes capital to scale up, but it takes scale to get back capital. Once a grower has a committed, knowledgeable staff who don't mind working long hours (14-16/day sometimes) those efficiencies develop more "bang-for-the-buck". I don't think it's for the feint of heart. And I don't think anyone should do it without putting together a detailed business plan that's been reviewed by at least two other successful growers. And that plan should include cost of management, in other words, pay the grower what they deserve ($20/hr plus).
 
Bill Shoemaker, Sr Research Specialist, Food Crops
University of Illinois - St Charles Horticulture Research Center
www.nres.uiuc.edu/faculty/directory/shoemaker_wh.html

I think what we're getting back to here is the different between GROSS profit and NET profit. Gross profit is the profit before costs have been deducted. Net profit is what you have left over after you've paid all the costs. A farm can gross a great profit, or even a small profit, but unless that profit is greater than the costs, it's a hobby, not a business.

Most dedicated people can turn a gross profit (i.e. make money). Only business-minded folks, with their spreadsheets and accounting in order, can turn a reasonable net profit--as Beth described. And they do exist but, from what I've seen, their farms and lifestyles aren't as "romantic" or leisurely as the vision that draws many people into farming (myself included). They never stop crunching numbers and figuring out how their profits are going to outweigh their costs, and they sure know how to get things done.

-Krystle
Salem, OR
http://www.selfmadefarmer.com

On Sun, Apr 27, 2008 at 4:52 PM, Beth Spaugh <lists AT rhomestead.com> wrote:
Yes. But they are top notch business people, who keep good production and
cost records, and use them. I am not there yet, but have spoken with those
who are so I know it can be done.

And if they are not making $10-20/hr straight finances, if you figure in the
tax breaks, etc, it can best some town jobs. Unless you have large cash
expenses - you mentioned large mortgage. It is important to be able to save
ahead for purchases to avoid paying interest.

But I know folks who have built a nice house (own labor), made good
investments in the farm, are saving for retirement, etc. The wife worked out
during the early years. They tore down and moved two small old barns for
their packing shed. Etc. But are driving decent cars, have amenities, just
invested in about $60,000 greenhouse plus put up a bunch of solar panels.
But they are not only hard workers but very good business people.


Beth Spaugh
Rehoboth Homestead
Peru NY
http://rhomestead.com

"How we eat determines, to a considerable extent, how the world is used."  -
Wendell Berry

"Without power over our food, any notion of democracy is empty." - Francis
Moore Lappe

-----Original Message-----
From: market-farming-bounces AT lists.ibiblio.org
[mailto:market-farming-bounces AT lists.ibiblio.org] On Behalf Of Lynn
Wigglesworth
Sent: Sunday, April 27, 2008 10:10 AM
To: Market Farming
Subject: Re: [Market-farming] Why do it II

Does anyone make enough farming to pay themselves $10-20/hour?

Lynn Wigglesworth
Cowbridge Farm

----- Original Message -----
From: "Willie McKemie" <mf AT austinfarm.org>
To: "Market Farming" <market-farming AT lists.ibiblio.org>
Sent: Sunday, April 27, 2008 10:05 AM
Subject: Re: [Market-farming] Why do it II


> On Sun, Apr 27, 2008 at 08:49:29AM -0400, Lynn Wigglesworth wrote:
> > From: "TradingPostPaul"
> > > I'm on one acre myself and garden part of it profitably, and
> > > alone at 64.
> >
> > There's profitable, then there is making a living. Profitable just
means
> > getting back more than you put into it. I farm (pasture-raised beef
and
> > some eggs and vegetables sold from a farmstand), and I turn a profit
of
> > $3,000-4,000 in a good year.
>
> >I< would consider "profitable" to be having money left over after you
> paid yourself $10-$20 an hour and after you paid yourself several
> hundred dollars per acre for land rent.  And, of course, after you
> amortize off all your equipment and improvements.  You should not
> consider temporary positive cash flow to be "profitable".
>
> --
> Willie, ONWARD!  Through the fog!
> http://counter.li.org Linux registered user #228836 since 1995
> Debian3.1/GNU/Linux system uptime  134 days  2 hours 59 minutes
> _______________________________________________
> Market-farming mailing list
> Market-farming AT lists.ibiblio.org
> http://lists.ibiblio.org/mailman/listinfo/market-farming
>
>

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