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Webster County Diversified Agriculture Conference -Marshfield, MO
1/18/2014
1
Options for Small Acreages
John Hobbs – Ag & Rural DevelopmentUniversity of Missouri Extension
Pineville, MO
My Small Farm
What can I do with it?
No easy answers. Landowners soon find decisions get complicated
with web of details. Like any other small business, a small farm
requires long hours, commitment, risk taking, entrepreneurial spirit.
Factors to consider: 1.Farm Goals 2.Farm Resources 3.Enterprise 4.Family Resources
The major components involved in a farm enterprise decision
Farm Goals Hobby or Lifestyle
Tax Deferment
Supplemented or
Family Income
Farm Resources Land – Soil Types and
capabilities
Water- Irrigation
Climate or microclimate
Enterprise • Production Technique -
conventional, organic, or sustainable
• Crops – conventional or specialty
• Marketing-wholesale or direct to consumers (farmers market, restaurants, csa’s)
• Livestock• Agri-tourism
Family Resources and Skills• Finances• Credit• Family Skills and Desires• Labor: Farming business and marketing
skills Risk-taking ability Lifestyle desires
Are Small Farms a Factor in Missouri ag industry today?
86% of farms in SW MO had sales lessthan $50,000
and 45% of those farms had sales of less than
$1,000
There are 1,444 farms in SW MO less than 50 acres
The average beef herd in MO is 30 head
A good foundation is key to any successful endeavor
There are six factors to consider when looking at a new ag enterprise
P stands for profitability
R stands for resources
I represents information
M represents marketing
E stands for enthusiasm, and
R stands for risk
Webster County Diversified Agriculture Conference -Marshfield, MO
1/18/2014
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PRIMER Score Sheets
ProfitabilityCircle your most likely response
Cash cow…………………………………………………………………………… 10Probably profitable- just needs a little planning……………… 8Profitable if I can get some start-up funds………………………. 6Profitable, but easily duplicated and limited market……….. 4Can make a profit if all stars line up right………………………… 2Profits unlikely, but still looks like fun………………………………. 0
ResourcesCircle your most likely answer
Have everything I need…………………………………………………….. 10Need a few minor low-cost items……………………………………… 8Missing one important resource, but can acquire it at
some expense……………..………………………………………………….. 6No experience with enterprise, but can develop it in
time…………………………………………………………………………………… 4No experience and needing to acquire some major
resources…………………………………………………………………………. 2Starting from scratch………………….………………………………………. 0
PRIMER Score Sheets
InformationCircle your most likely response
Production & marketing info well in hand…………………………. 10Need to do a little homework…………………………………………….. 8Need to do a fair amount of homework…………………………….. 6No one has ever seen this done here before but
can find info elsewhere……………………………………………………. 4No access to computer, extension or library……………………… 2Starting from scratch…………………………………………………………... 0
PRIMER Score SheetsMarketingCircle your most likely response
MarketingPromising, accessible markets already exist –
people are begging for the product……………………………….. 10Accessible markets but will take a little effort
to develop ……………………………………………………………………… 8New retailing or cooperative marketing will have
to be developed, but still a good market……………………….. 6It may take some time and $ to help consumers
appreciate the value of this product/service…………………… 4The market is pretty well saturated with similar
products……………………………………………………………………………. 2Selling ice cubes to Eskimos……………………………………………….. 0
PRIMER Score Sheets
EnthusiasmCircle your most likely response
I can’t sleep at night, this idea is so exciting……………………. 10I’m excited about it but some in my family are
reluctant……………………………………………………..……………………. 8It’s as good an idea as any of the others I’ve
come up with…………………………………………………………………….. 6I could get excited but only if it works out fairly
soon………………………………………………………………..…………………. 4I’m out at the first sign of rough sailing………………………………. 2Why do I even have to do this?....................................... 0
PRIMER Score Sheets
RiskCircle your most likely response
I’m very comfortable with the return estimatesrelative to the risk involved…………………………………………… 10
I’m reasonably comfortable………………………………………………. 8Somewhat comfortable……………………………………………………… 6It looks OK, there’s just a lot still unknown……………………… 4I think I could make it, but there are possibilities
for significant loss…………………………………………………………... 2I’m better off buying a lotto ticket…………………………………….. 0
PRIMER Score Sheets
Webster County Diversified Agriculture Conference -Marshfield, MO
1/18/2014
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Score Sheet Summary
Very promising, move ahead…………………………………….48-60
Has promise but will need some work………………………38-47
Has promise and some serious hurdles.Carefully evaluate whether this is a good fit…………….28-37
What others are doing
Backyard Poultry
Backyard Layer Flock Budget (4 hens, 3 years of Income/Yield Three years
1.Dozens of eggs produced 209 Doz.
Price per dozen $3
3.Gross Income per AFlock $627
Variable Cost per 4 Hens
1.Housing 250
2.Heat lamp,feeders, waterers 50
FEED
3.Chick Starter 2 bags 32
Chicks 40
4. Layer Feed 19 bags 266
6.Total Variable Costs $638
Total Cost per Dozen Eggs $3.05
Labor .25 hours per day X 1095 days = 274 hours
Over three years, 200 days are needed for raising chicks and molting.
Production is calculated as 895 days x 4 hens x 70% egg yield per day.
Webster County Diversified Agriculture Conference -Marshfield, MO
1/18/2014
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Cut Flowers
$2000-4000 gross returns per acre
U-Pick
Webster County Diversified Agriculture Conference -Marshfield, MO
1/18/2014
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Strawberry BudgetIncome/Yield Establishment
1. Yield # Pounds per Acre 6000
2. Price per pound 1.5
3.Gross Income per Acre 9000
Variable Costs per Acre
1.Plants 5445 x .50 2722
2.Fertilizer, Lime, etc. 200
Irrigation/Plastics/Fuel 600
3.Pesticides 100
4.Labor $10 per hour 1000
5.Harvesting Supplies 1000
6.Total Variable Costs 5622
Fixed Cost per Acre
1.Interest on captial investment,equipmen 250
2. Taxes 30
3.Total Fixed Costs 280
Total Costs per Acre 5902
Net Returns $3,098
$3000 to 5000 gross per acre
Blackberry BBudgetIncome/Yield Establishment
1. Yield # Pounds per Acre 6000
2. Price per pound 1.5
3.Gross Income per Acre 9000
Variable Costs per Acre
1.Plants 1452 x $4.50 6534
2.Fertilizer, Lime, etc. 200
3.Pesticides 100
4.Labor $10 per hour 1000
5.Harvesting Supplies 200
6.Total Variable Costs 8034
Fixed Cost per Acre
1.Interest on captial investment,equipmen 250
2. Taxes 30
3.Total Fixed Costs 280
Total Costs per Acre 8314
Net Returns $686
Bees
Webster County Diversified Agriculture Conference -Marshfield, MO
1/18/2014
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Honey BudgetIncome/Yield Establishment
1.Yield for Ten Established Colonies 700
2. Price per pound 3
3.Gross Income per Acre 2100
Variable Costs per Acre
1.Replacement Bees/Queens 250
2.Parasite & Disease Control 200
Sugar/Jars/Labels/Buckets 460
3. Vehicle 83
4.Labor $10 per hour 200
5.Marketing/advertising 150
6.Total Variable Costs 1343
Fixed Cost per Acre
1.Interest on captial investment,equipmen 250
2. Taxes 30
3.Total Fixed Costs 280
Total Costs per Acre 1623
Net Returns $477
Roadside StandsFarmers Markets
Corn Maize
Webster County Diversified Agriculture Conference -Marshfield, MO
1/18/2014
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Pumpkin Patch
Corn Maze for 5 acresIncome
Admission Fees @$7/person $35,000
Parking
Corn Harvest 500 bushels $2,250
Total Income $37,250
Maze Costs
Corn Production @ $450/Acre $2,250
Maze Design and Cutting
Design costs and cutting $1,500
Path Maintenance Labor $10 x 30 Hours $300
Fuel $120
Marketing $9,000
Wristbands $200
Restrooms $800
Liability Insurance $1,500.00
Hired Labor 900 hours @ $8.00 $7,200.00
Total Expenses $21,370
Net Income $15,880
Fee Hunting and Fishing Petting Zoo’s
Webster County Diversified Agriculture Conference -Marshfield, MO
1/18/2014
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Goat Production
SAMPLE MEAT GOAT BUDGET by Susan Schoenian
Annual kidding You can only edit values highlighted in yellow.
HERD COMPOSITION: PRODUCTION PARAMETERS
Number of Does 30 Percent kid crop raised 150%
Number of Bucks 1 Doe replacement rate 20%
Adult death loss 5.0% Buck Replacement Rate 33%
INCOME CALCULATION: No. Head lbs./hd Net Price Unit Total Per doe
Market kids 39.0 70 $2.00 lb. $5,460 $182.00
Cull does 4.5 90 $0.75 lb. $304 $10.13
Cull bucks 0.33 170 $0.75 lb. $42 $1.40
Other income $0 $0.00
TOTAL INCOME $5,806 $193.53
OPERATING COSTS: No. Head Amt/hd Unit Cost Total Per doe
Feed costs
Hay 31 0.25 ton $90.00 $698 $23.25
Grain 31 135 Lb. $0.12 $502 $16.74
Salt and Minerals 31 12.0 Lb. $0.16 $60 $1.98
Supplemental feed for kids 45 0.0 Lb. $0.15 $0 $0.00
Pasture maintenance total acres 6.0 acre $30.00 $180 $6.00
Health program doses
Deworming (adults) 31 3 doses $1.00 $93 $3.10
Deworming (kids) 45 3 doses $0.75 $101 $3.38
CD-T booster (adults) 31 1 doses $0.50 $16 $0.52
CD-T vaccinations (kids) 31 2 doses $0.50 $31 $1.03
Other vet costs 31 head $4.00 $124 $4.13
Buck replacement 0.33 head $250.00 $83 $2.75
Bedding 31 head $3.00 $93 $3.10
Marketing and Hauling 44 head $5.00 $219 $7.31
Supplies 31 head $3.00 $93 $3.10
Additional Cost Total cost $.00 $0 $0.00
Additional Cost Total cost $0.00 $0 $0.00
Interest on operating money 5.0% Cost for 6 months $57 $1.91
TOTAL OPERATING COSTS $2,349 $78.30
Returns $115.30
Example is for herd of 100 does & 3 bucks with 170% kid crop raised; 20 doe kids retained as replacements. Purchase bucks at $300 each.
Per Doe
ESTIMATED INCOME PER DOE
Kid sales
No. kids 1.5
Cwt./kid 0.7
Price/cwt. $140.00 $147.00
Cull doe sales
No. does 0.16
Cwt./doe 1
Price/cwt. $55.00 $8.80
ESTIMATED TOTAL INCOME (gross receipts/doe) $155.80
ESTIMATED OPERATING COSTS PER DOE
Pasture (example is rental rate of $30/ac.) $9.00
Hay Tons/doe 0.25 Price/ton $90.00 $22.50
Grain Lbs./doe 50 Price/lb. $0.12 $6.15
Salt & minerals Lbs./doe 43 Price/lb. $0.27 $11.61
Dewormer (6 times/year) 5 Vaccinations 0.5 Marketing & hauling 10 Utilities & machinery costs 6 Livestock facility & fence repair 3 Professional fees (legal, accounting, etc.) 0.3 Miscellaneous 2
Operating interest
Rate/year 6.00%
Portion of year op. costs borrowed 0.5 $2.29
Total Operating Costs Except Labor $78.60
Estimated labor cost Hours 2
Rate/hour $13.00 $26.00
Total Operating Costs Including Labor $104.60
ESTIMATED OWNERSHIP (FIXED) COSTS PER DOE
Depreciation & interest on livestock facilities & taxes $8.00
Breeding stock purchases 10.5
Total Ownership Costs $20.50
ESTIMATED TOTAL COSTS PER DOE $125.10
Income over Operating Costs $51.20
Income over Total Costs $30.70
Value Added Products
Webster County Diversified Agriculture Conference -Marshfield, MO
1/18/2014
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Tree and Nut Production
Webster County Diversified Agriculture Conference -Marshfield, MO
1/18/2014
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High Tunnel Size (sq. ft.) (30x72) 2,160 ft.Utilization 84%Approximate Original High Tunnel Cost $7,000.00
Receipts Yield (lb.) Sq. Ft. $/Lb. TotalCucumbers 567.0 454.0 $2.00 $1,134.00 1.25 $2.50Eggplant 204.1 45.0 $2.00 $408.24 4.54 $9.07Greens 166.9 363.0 $7.00 $1,168.47 0.46 $3.22Herbs 14.5 9.0 $16.00 $232.24 1.61 $25.80Lettuce 208.7 181.0 $7.00 $1,460.59 1.15 $8.07Peppers - Bell 290.3 181.0 $2.00 $580.61 1.60 $3.21Tomatoes - Slicers 1315.4 454.0 $2.50 $3,288.60 2.90 $7.24Tomatoes - Grape 342.9 127.0 $4.00 $1,371.69 2.70 $10.80
Total Receipts 1814.0 $9,644.44 $5.32
Annual Expenses Total Seeds/Transplants $135.00 Fertilizers $108.00 Miscellaneous Supplies $125.00 Water $86.40 Water Test $17.00 Irrigation Supplies $122.00
Total Annual Expenses $593.40
March - SeptemberLabor Costs Hours $/Unit Total
Bed Preparation 17.00 $12.00 $204.00 General Maintenance 23.00 $12.00 $276.00 Planting 10.50 $12.00 $126.00 Pest Management 0.00 $12.00 $0.00 Harvest 48.80 $12.00 $585.60
Total Annual Expenses 99.30 $1,191.60
Ownership Costs Annual Depreciation - Tunnel $875.00Depreciation - Plastic Cover $113.40
Total Ownership $988.40
Total Costs Tunnel $2,773.40 Per Square Foot $1.28
Annual Returns Over Total Costs Tunnel $6,871.04 Per Square Foot $3.18
Gross Per Sq. Ft.
Yield Per Sq. Ft.
Missouri Alternatives Centerhttp://agebb.missouri.edu/mac/index.htm
Small-farm operators develop economic vitality by:• Having a passion for what they do
• Watching their cash-flow cycle
• Producing crops for small but well paying markets
• Marketing aggressively and creatively
• Understanding there is a learning curve to new enterprises
• Invest in good soils and water
• Locate near a major population on paved road
• Match work to the family’s time, desires, and abilities
• Diversifying sources of earnings, including off-farm income, to produce a solid, year-round cash flow