There must be as many ways to harvest timber as there are loggers, likely more. Every approach may not be “best,” but most are acceptable. Each logger has a different set of equipment and a different crew with a variety of experience and skills, forest landowners have varying visions and objectives, and forest managers approach forest systems and forest operations based on their sensibilities. Each of these variables factor into a logger’s approach.
Whatever the circumstances, all parties
desire a positive economic outcome. At all stages of production those who add
value want to be fairly compensated for their work. The win-win result hopefully
applies to both the cash value of materials harvested and the impacts on the
residual stand, as well. Clearly, this is not always how it works out.
When I first began business planning work with logging contractors, one of the first workshops I attended was with Steve Bick of Northeast Forests LLC. I “got” to play a game Steve called penny logging. This game was like production and assembly exercises I had encountered at various lean trainings over the years. The objective: given certain constraints, arrange assets and production to achieve the smoothest, most economic output. Over the years I have become keenly aware of the constraints (terrain, soil, weather, ownership, regulation) on any given timber harvest. The harvest in the video above is an example of loggers using the constraints to their advantage, creating an exciting and elegant material flow. Enjoy!
The University of Vermont is conducting the Northeast Maple Producer Survey to understand the recent development in the maple sector and to inform how education and research can support maple producers. The survey will ask you about your maple production history, forestry practices, business goals and educational interests. Current projects focus on the Northeast but producers in any US state are welcome to complete the survey!
Participants will be asked to complete the online version or print survey. The survey will take approximately 20 minutes to complete. If you would like to complete a paper version you can contact Christi Sherlock at 802-476-2003 or Christi.Sherlock@uvm.edu to have a copy mailed to you.
The results of this survey will be published by University of Vermont Extension, shared in industry publications and discussed at maple conferences beginning in Fall 2019.
This spring has been quite a challenge, to say the least! Weather reports across the state talk about rain in some location on any given day, and that makes us a bit grumpy! We’ve waited all winter to get this year’s crops in the ground and take first cut off — and here it is June 5th with plenty of work to do on most farms.
On a recent early-June drive from Morrisville to Middlebury I saw a good many cornfields un-spread, un-plowed, and unplanted. And the window for getting a mid-May first cut in and covered was slammed shut by a month with rainfall 4” over the historical average. The New Englander’s adage of a year’s seasons being 4 months of winter and 8 months of damn poor sleddin’ has held court. It seems that if there’s less that can be done in the field, it hampers doing other projects – just don’t want to get wrapped up in anything else in case the weather breaks and it’s time to head to the fields.
All well and good, but while we wait, we need to turn our attentions to another season that’s upon us… Construction season. As if having too much water in the fields isn’t enough, there’s plenty of mud hanging around the farmstead and making quite a mess! It’s pointing out some of the high-risk areas that need to be filled in, drained, graded, or whatever is needed to minimize farmstead runoff into our waterways. Take the opportunity to find areas needing attention. Do some easy fixes. And be sure that we’re all responsible for containing runoff when and where it occurs.
UVM Agricultural Business has funds to help you assess the financial feasibility of some of the more comprehensive projects. We work independently, or with NRCS and VAAFM staff to help you find the best, most cost-effective solutions to most any water quality situation. Give us a call at the St. Albans office at 802-524-6501 and ask for Tony Kitsos. I’m looking forward to starting the conversation.
UVM Extension Forest Business has added a new tool to the digital resources available to forest products businesses.Small Business Planning for Loggers was produced by Steve Bick and Chris Lindgren with support from Vermont’s Working Lands Enterprise Initiative.
Forest Business has been supporting digital tools and skill development in our work for five years now. Whether it’s bringing bookkeeping to the computer or online, using video conferencing for meetings, developing digitally based tools, or collaboration in cloud-based applications, acceptance of digital tools is increasingly becoming the norm with the business owners who engage in our program.
This morning as I was working on this blog I read a press release about a new report on digital skills development in rural America—Unlocking the Digital Potential of Rural America. Commissioned by Amazon and researched by the US Chamber of Commerce the report concludes that the adoption of new digital skills and technology in rural America will lead to significant economic gains.
“Increased adoption of online tools and digital services for businesses across rural America could create more than 360,000 jobs in the next three years.”
“Increased adoption could grow annual revenues of rural small businesses by more than 21% over the next three years – the equivalent of $84.5 billion per year.”
“Online tools and technology have the highest potential impact on rural small businesses with annual revenue under $100,000.”
UVM Extension has posted a new fact sheet describing the federal conservation program payment limitations related to different types of farm business entities. The Farm Business Entities and Conservation Payment Limits fact sheet provides an overview of the opportunities and limitations facing individuals, partnerships and limited liability entities that apply for NRCS conservation programs.
When you are planning a bold farm diversification or expansion who do you want on your planning team? An ultra-advocate….”we can do this!” or the devils-advocate… “here is something that could really go wrong!”. Consider the premortem analysis process. Don’t wait to complete the postmortem debrief after the project fails. At that point it is too late. The team can learn from the mistakes but it will be too late to recoup sunk capital, time and possibly relationships that suffer from the failure.The premortem analysis takes an important look at all the factors that can wreck your project. It is a key process to anticipating these risks, fine tuning the plan and building in sufficient contingencies.. Business advisers can facilitate this process or business owners/project leaders can do it within their groups.
Feasibility planning regularly suffers from over-optimism or key leaders that are over-invested in success (at all costs!). The project premortem is an essential step in the planning process. Here is a list of key steps to complete the project premortem
Gather key projects members and stakeholders that have already been briefed on the anticipated project goals.
Make the announcement “the project has failed”.
Team members must start with the brainstorm first (don’t try to problem solve). Ask participants to list 2-3 the things that caused the failure. Ideally, get people to develop their list independently without group conversation. Create space for all team members to get their perspective into the process.
Team leaders and/or the group reviews the premortem symptoms and ranks the highest priority items.
Look for ways to strengthen the project plan.
Farming is a risky business and certain farms are challenged to retain profits. At any point in the business planning process it is OK to ask, “is there more evidence pointing to project failure compared to success? Can this be a viable project?”
The premortem perspective will bring your farm planning to a higher level. Forcing projects to fail on paper will improve a manager’s ability to make them work in real life.
The University of Vermont Extension seeks a Farm Business Educator to deliver business management education to owners and managers of commercial farms. The position will focus on business analysis, financial planning and outreach education programs. A Bachelor’s Degree in agriculture, economics or a closely related field and at least 3 years of experience in agricultural development is required. The University is especially interested in candidates who can contribute to the diversity of the institution and deliver high quality outreach programs to a broad audience. Applicants are encouraged to include in their cover letter information about how they will further this goal. The position is located in Berlin Vermont. This is a grant funded position that starts at 0.80 FTE with the option to increase over time. For further information or to apply, search for posting # S796PO at our website: www.uvmjobs.com .
As a farm business adviser it can be very difficult to reconcile a few concepts that impact farm viability and innovation. This Canadian article on fast-food giants converting to cage free eggs does a great job discussing the market and production dynamics at play in food systems:
Back to farm planning topics. First: consumer is king, queen and treasurer, right? Farmers must provide a product to the market that is in demand. Second: price-maker or price taker? Farms that innovate have the opportunity to set prices, at least for a while, until the rest of the suppliers catch up.
Consider an innovation that dazzles the consumer population. But remember that the 98% of the US population that are non-farmers are guided by factors reasonably detached from practical farm matters or even science based attributes. Add a few mega corporations, advocacy groups and social media into the mix and now you have a marketplace. Check out this article: The Cage Free Trend… (the Globe and Mail)
Reports are coming in that 2016 is a record crop season. Producers are excited about yields but wary about possible price shifts if supply outpaces demand. Tune in to see what maple business owners consider to ensure this great Vermont product reaches your kitchen table.