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Showing posts with label Penn State Extension. Show all posts
Showing posts with label Penn State Extension. Show all posts

Friday, March 17, 2017

Farm Business Transition


By John Berry, Penn State Extension Educator, Lehigh County

Many of the farmers I work for have a tough time with the process of getting their business into the hands of the next owner/manager. The reasons for this are many; no time, unwilling to think about mortality, not aware of what should happen, and uncertainty about losing control are some of the primary reasons often heard. Because of the intimate relationship between most farms and the families that work and live there; the unknowns around a broad family conversation on business transition can be a bit scary.

 

When is the best time to start the discussion?

 

If succession planning has been on your mind remember there are just six weeks left in 2016 and some holiday celebrations coming up. This could be a great time for a discussion with family regarding farm transition and succession planning. It's great that you're thinking about succession planning, but remember, conversations about farm succession are conducted from a business standpoint. Do you really want to turn your Thanksgiving table into a business conference table?  Do you want to take your time around the Christmas tree and turn it into a water cooler discussion on strategic planning?

 

While it may be tempting to start these discussions while family is home and together, make sure you're keeping family time for family and setting aside a special time for holding a family business meeting. If it needs to be connected to a holiday to have family present, think about sending out a formal invitation and agenda to the meeting ahead of the holiday, with a set time and date for the meeting later in the holiday weekend.

 

When should I start planning?

 

You may have heard the old Chinese proverb. “The best time to plant a tree was 20 years ago, the second bet time is now.” That same principal can be applied to succession planning.  It really is NEVER too early to start planning for the future, but it can become too late to start!  Almost everyone knows a family torn apart by disagreements following the passing of a loved one. This often happens because they never found the time to put their plans down on paper.

 

You can never tell what tomorrow will bring. Starting your succession plan early in your agriculture career can help you save money and can make sure your business continues as you see fit in the case of retirement, death or disability.  If you create a plan early in your career, it does not mean you are done.  A good succession plan is reviewed and improved often to make sure it still fits with the wants and needs of everyone involved in the operation.

 

Wednesday, February 15, 2017

Cultivating Knowledge; Food, Fruit & Veggies… For thought


By John Wodehouse, Penn State Extension Educator, Chester County

Hundreds of fruit and vegetable growers and industry exhibitors gathered in Chocolate Town for the 2017 Mid Atlantic Fruit & Vegetable Convention.

 

Take heed, chocolate, there’s a new sweet in town. For four days in early February, vegetable and fruit producers met at the Hershey Lodge & Convention Center to learn more about the fruit and vegetable production business.

 

This is the first of three related articles. I encourage you to journey through the fruit and vegetable convention experience with me in the weeks to come. It’s more than just fruits and vegetables; it’s about sharing knowledge.

 

Back in mid-November, a fellow educator, John Berry, reached out to me with a question.

 

He said, “How’d you like to get involved at the Fruit & Vegetable Convention in Hershey this year?”  He quickly added: “The hot chocolate up there is the best.”

 

“Sure, sounds good,” I responded.

 

As I agreed to help, I was thinking: What a great opportunity to learn, while building and fostering networks. And who could pass up the great hot chocolate?

 

My charge was to assist Tom Butzler, of the Penn State Extension. This year, he and his team took care of the equipment set-ups for all the speakers. Tom asked me to load each presenter’s slides and make sure all the other technologies worked seamlessly. As you’ll see, I got a chance to do a lot more.

 

The first person I met when I arrived at the registration desk at 7:25 a.m. on Tuesday was Bill Troxell, of the Pennsylvania Vegetable Growers Association.  He happily greeted me and helped me with the registration process. Complete with a name tag, I was on my way.

 

Over the coming days, topic-specific research discussions, concerning either vegetables or fruits, in both English and Spanish, were offered each half-hour from 9 a.m. until 4 p.m. Presentations were held in various rooms in the Convention Center. Some were given by the farm owners and growers themselves, while others were given by scholars and educators from such entities as Penn State and the Penn State Cooperative Extension, Cornell Cooperative Extension, Rutgers Cooperative Extension, the University of Maryland Extension, Michigan State, Virginia Tech, the Virginia Cooperative Extension, University of Delaware, University of Minnesota and North Carolina Extension. 

 

On Tuesday, more than 56 different session topics were offered through the day. Much of my time was spent in the Organic Vegetable session room.

 

At 8 a.m. sharp, I helped Tony Ricci load his presentation titled Organic Herb Production. Tony owns and operates the organic-certified Green Heron Farm and CSA in Huntington County, Pa. His discussion centered on adding herbs to your production mix, to add cash flow back into your business.

 

As I loaded his speaking materials into the computer, Tony and I talked about the beautiful herb pictures included in his slides. We then talked about the pros of planting herbs in addition to vegetables. The best part of Tony’s presentation - to the 60-plus growers in attendance during the first organic session - was that he gave away some of his best-kept secrets. He shared a few of his proven methods with regards to producing great, not just good, sage, parsley and Greek oregano.  

 

“Plant your herbs in double rows on black (not red) plastic, and treat them as annuals,” Tony recommended.  “This is done to preserve quality, disease resistance, and yield.”

 

Next up on in the Organic session room was Dr. Gladis Zinata of the Rodale Institute. Her  report was titled Adding in Rotational No-Till and Insectary Strips for Organic Cucumber Production. Dr. Zinata described the results of a cucumber test-plot she and a team planted and documented at Rodale. The experiment focused on this question: Does increasing species diversity by planting grass and perennial insectary strips between cucumber rows allow for improved natural insect and pathogenic resistance? My take after hearing her findings: Definitely yes. Dr. Zinata’s research supports adding grass strips and incorporating other vegetative diversity into your fields to offset the pressures of insect and disease.

 

Growers next met Jennifer Glenister, a senior staff member at the organic New Morning Farm in Hustontown, Pa. She has worked nine seasons at New Morning. She gave a very well-designed and well-delivered talk entitled Organic Snap Bean Production, followed by a lively Q&A session.

 

Jennifer shared her tried-and-true organic snap bean production strategies, along with her sowing and growing schedules. Especially valuable were her succession planting tips for longer harvests, and remedies she suggested for dealing with deer.

 

“We tried many things on the farm, but the one that worked for deer was the 3D electric fence,” Jennifer said, as a slide showing a three-tiered, offset, poly-wire fence came up.

 

While scouting, Jennifer said the minute she sees certain insect levels, she immediately deploys beneficial insects (a species of parasitic wasp) as a strategy to manage the yield-robbing pests.

 

Jennifer’s snappy presentation was followed by another inspiring discussion. This one, from Elsa Sanchez, Ph.D. and associate professor at Penn State, was entitled Using Cover Crops. Elsa talked about the benefits of diversifying cover crops. She encouraged the organic growers to combine different cover crops into their field rotations. Additionally, Elsa went into detail about choosing cover crops with alleopathic characteristics, such as wheat and grain rye.

 

“Wheat and rye cover crops both contain beneficial natural weed suppressants,” Elsa said.

 

The term alleopathic refers to cover crops with natural weed suppression characteristics. During her discussion, Elsa also gave the group per-acre cover crop seeding rates and biomass tonnage per-acre estimates for cover crops.

 

An informative discussion given by Abby Seaman of the New York State IPM Program, on Managing Late Blight on Organic Farms, followed Elsa’s cover crop discussion. Abby mentioned the need for producers to scout the field for fall-offs and/or leftovers. Her recommendation:  try to eliminate any volunteer tomato and potato plants before they germinate to reduce the likelihood of late blight outbreaks in the next season.

 

“Late blight on potatoes and tomatoes needs living tissue to overwinter, so I recommend removing any leftover product from the field,” Abby said.

 

During Abby’s presentation, we also learned about two internet-based resources designed to help producers report and monitor late blight in Pennsylvania and New York.

 

I met Dr. Julie Grossman, professor and originator of The Grossman Lab at the University of Minnesota while helping her set up in the Organic session room. She delivered two afternoon presentations. Her first was entitled Overcoming Tunnel Vision – Using Cover Crops in High Tunnels. Her second presentation, Zone Tillage for Organic Vegetables, wrapped up the organic sessions on Tuesday.

 

Dr. Grossman shared her research findings and the beneficial outcomes of her research team for planting cover crops directly inside high tunnels. She provided cover crop planning strategies growers can employ right away in their tunnels to not only improve soil health and limit soil compaction, but also to better manage weeds and help prevent insect damage.


Of the 56 fruit and vegetable presentations delivered on Tuesday, I had the joy of attending seven of them. The experience was amazing. So many enthusiastic presenters, all in one place at the same time. The knowledge attendees gained from scholars, educators and growers will no doubt be put to work on farms across the commonwealth.

 

For future reference, feel free to explore the following informative and educational resource links:










Friday, April 22, 2016

Managing Cash Flow for Your Farm

Cash flow statements are very useful – they may very well be the first place where a farmer will spot a trend in business performance that may benefit or harm the operation in the long run. Cash flow statements show the business’s liquidity, the ability to pay expenses as they come due.
In accounting, there are both active statements and reflective statements.

Active Statements

The cash flow statement, a record of the dollars that came into and went out of the farm, is considered an “active” statement because it is completed multiple times throughout the year. The cash flow statement should be regularly compared to projected cash flow budgets, estimated cash in-flows and out-flows that will occur in the business in an upcoming period. This helps the farm manager to identify how the cash in-flows and out-flows that were expected differed from or mirrored what actually occurred.

Reflective Statements

In comparison to the cash flow statement, the balance sheet and the income statement are “reflective” statements because they are completed on one particular day of the year in which the farm manager is able to see how the business has progressed. With careful management of cash, the farmer has power over his or her business dealings. Business owners and agricultural producers in particular need to take time to document all sources and uses of cash within a business to keep their “finger on the pulse” of their operation.

Updating Cash Flow Statements

To be effective, farmers should regularly update their cash flow statements. What does “regularly” mean? The answer to this question varies based on whether you have a very seasonal operation (such as selling Christmas trees) or a business that receives cash throughout the year (such as a dairy farm). It is recommended that new financial managers begin with a cash flow statement that has monthly intervals. Although there is a bit of work keeping the statement current, having monthly statements provides an early warning of cash deficits or surpluses. By using the cash flow statement and the cash flow budget the farmer can make well informed management decisions such as when to purchase new equipment, or when to open a line of credit to cover cash deficit periods.


After keeping track on a monthly basis for a while, you may find that quarterly or six-month cash flow statements and budgets meet your need because the funds don’t change that much month-to-month. On the other hand, if you grow and direct market fresh vegetables for example, you may need to use a weekly cash flow statement through the summer, because of fluctuations in the variety of produce sold and the demand for each item throughout the growing season.


Cash flow statements and budgets can be created for the entire farm operation or for a specific enterprise, or profit center on the farm. For example, a dairy farm might have several enterprises in addition to dairy production, such as custom work, hay sales, and maple syrup production. Analyzing a specific enterprise allows the farm manager to determine whether an enterprise costs more than it generates in revenue. An enterprise budget helps the farm manager determine whether a new enterprise might be feasible.


Article adapted from Farm $en$e©, Farm Management Tools for Financial Success.
Farm $en$e© farm financial management courses are offered every fall and winter in multiple locations in Pennsylvania. Contact Juliette Enfield or Miguel Saviroff  for more information.
The Farm $en$e© text will be available for purchase through Penn State Agricultural Publications in November 2016.

Contact Information

Juliette Enfield
Extension Educator
Email:
Phone: 814-563-9388

Miguel Antonio Saviroff, MS
Extension Educator
Email:
Phone: 814-445-8911 x144

Friday, April 1, 2016

Developing a Tasting Room Loyalty Program Part 2

By Dr Kathy Kelley--Professor of Horticultural Marketing and Business Management and Dana Ollendyke-- Extension Associate

In our previous post, we discussed what a loyalty program should do for your business--which, simply put, it should help increase your tasting room’s profits! In this post, we will discuss developing an outline for your loyalty program.

A loyalty program rewards program (photo credit: iQoncept/Dollar Photo Club).

The great thing about offering a loyalty program is that customers understand their basic function, as they most likely belong to other programs. Regardless of the type of program you offer, consider these key questions:
  • Your overall goal – what do you hope to achieve?
  • Will charge customers to join the program, limit the number of members, or will enrollment be free?
  • How will customer purchases will be recorded?
  • What questions will you ask members that will help enhance the program and their experience?
  • What purchases will “count” towards loyalty program benefits, what can members redeem points on, and would a program co-developed with a complementary business be perceived as being even more attractive?
  • How you will determine that loyalty has really been established?
  • How and when might need to end the program (and steps for doing so)?
The next post in this series will focus on your overall loyalty program goal.


Friday, March 25, 2016

Developing a Tasting Room Loyalty Program Part 1

By Dr Kathy Kelley--Professor of Horticultural Marketing and Business Management and Dana Ollendyke-- Extension Associate

If you are a winery owner, you most likely have some type of “case club” or “customer loyalty” program in place, or you have thought about implementing one at your tasting room. Whatever you call it, the intent is probably the same – you try to reward customers who purchase large quantities of wine from you in the form of a discount and/or invitation to special events.


A customer purchase of multiple bottles of wine (photo credit Efired/ Dollar Photo Club).


If crafted and administered correctly, these programs benefit the customer and the tasting room, but sometimes they do not provide the desired return on investment. This blog series will help you take a look at your current (or potential) loyalty program and decide whether your program needs to be tweaked or radically changed in order to be more successful.

What should a loyalty program do for your business? Simply put, your loyalty program should help increase your tasting room’s profits. A research paper written by Sports Loyalty International, a customer loyalty program developer, outlines some of the general benefits of creating a loyalty program.

By enrolling in a loyalty program, members: 

  • may be less likely to “defect” and purchase from another winery
  • could increase their spending over time 
  • and could be more responsive to promotions.

These factors could reduce your marketing costs since you will have information about their preferences and habits, allowing for a more targeted promotional effort. 

Additionally, customers may shift spending to “higher margin products”, and members could refer your program to friends and family based on their positive experience.

The next post in this series will focus on your business's goals for the loyalty program.

Thursday, January 21, 2016

Annie’s Project for Farm Women to be held in Northwestern PA

It’s hard to talk about passing on the farm, but in the long run it’s better to talk about it and make preparations before something unexpected happens.  Farm women can play a key role in planning successful farm transitions.  Annie’s Project is a nationally recognized educational program dedicated to fostering women’s roles in the modern farm enterprise. “Managing for Today and Tomorrow” is an Annie’s Project course geared for farm women of all ages who want to plan now for a successful transition later. 

Penn State Extension along with AgChoice Farm Credit, PAFarm Link, and Pennsylvania Women in Agriculture Network are pleased to offer “Annie’s Project: Managing for Today and Tomorrow”, a course on farm succession planning in Corry, Erie County Tuesday evenings March 1, 8, 15, 22, and 29, 2016 from 5 to 9 pm at the Corry Higher Education Council located at 221 North Center Street, Corry, PA.  

The five-session course includes hands-on activities, relevant educational materials, and the opportunity to interact with local professionals in succession planning, estate planning, retirement planning, and business planning.  Participants of all ages and experience levels will practice tasks to increase confidence in setting goals, nurturing effective family conversations, and defining the farm legacy.  Annie’s Project courses provide an opportunity for dialogue and networking with fellow farm women.


The cost of the program is $125 per person.  Pre-registration is required online or by calling 814-563-9388.  The registration deadline is Thursday, February 18.  For more information please contact Juliette Enfield, Penn State Extension – Warren County at 814-563-9388 or jse15@psu.edu.