Market Farming

["Steven Rogers" <singingpigfarm AT earthlink.net>]

I wish there were space here to contrast several business models. The keys lie more in the business model than in production. I see many people who can produce huge crops but I can't call them farmers because they don't get have the sales pipeline to move their product. and they don't have a way to distribute what they do sell. Farming is a business, and if attention isn't paid to the business side then you have just put a huge limit over yourself.

I am a big fan of the book "Gardening for Profit" by Peter Henderson. It was written in 1865 and is more right on target than any other market gardening book I have read. He starts out with the 11 requirements necessary for success as a market farmer. When I started I met 10 out of the eleven-the one I didn't have was my biggest limiting factor. You need adequate capital to fund your operation. I started with literally $200 in seed money and a marketing plan. I just kept turning that $200 over and over and fine tuning my plan. I started out with 1/2 acre of garden space on the one acre lot I owned in Portland. I rented another 1/2 acre from a friend for the next 13 years.

There is another grower in my area who farms 7 acres every year and averages gross sales of $100K/acre. His expenses per acre average $30K/acre-with most of that being labor. He has a Phd in I believe horticulture and spent several years working in that environment. He already had the education, experience, and and intimate knowledge of greenhouse growing. He started out  owning a farm in one of the most productive agricultural areas in the world. I don't know his acreage, but he keeps some in cover crop every year and only farms 7 acres. He also started out with a full blown business plan and the fuding to cover the first five years of operating expenses. He did everything right and he is receiving the rewards of his good decisions he has made in his life. He sells to the same niche I sell to: fine dining restaurants. H also does a farmers' market, which I avoid.

Look at the contrast between the two operations. I started my business quickly on a shoestring because I was burnt out on my career in telecommunications. I had to make decisions that would give me instant short-term cashflow because I had a family to feed and bills to pay with no cash reserves. He totally thought out what he was doing, planned for it for years, and started out with a 5-year cash reserve. This gave him the ability to think and act long-term which let him hit the top levels of the business in maybe 1/3 the time as me.

I know everyone is wanting to hear more about production instead of business, but without the proper business structure the production isn't important.

 

Steven Rogers

singingpigfarm AT earthlink.net

EarthLink Revolves Around You.