VT Ag Business Today: Produce Cost Studies, Food Safety Grants and more…

The Vermont Farm Viability Service Provider Network met on October 4th. This meeting of consultants and business educators is a place to share current resources to enhance farm business planning in Vermont. Topics of the day:

  • NOFA-VT has produced cost of production benchmarks for carrots, onions, lettuce, winter squash and potatoes. The study has also produced whole farm financial benchmarks. Go to the cost of production benchmarks to see  the sales per acre, costs per acre and net profit per acre for these crops.
  • VT Agency of Agriculture, Food and Markets announced the first round of Vermont Produce Safety Improvement Grants that farmers can apply for to improve on-farm produce safety. Farms can also get support for an On-Farm Readiness Review to have a one on one conversation on how the farm is doing on produce safety in advance of formal inspections.
  • Dairy Industry Overview: discussions continue about how the oversupply of conventional and organic milk is impacting farm gate prices. Stagnant or declining prices paired with regulation/certification driven investments present a difficult situation for dairy business owners to navigate. Farm transfer planning is further complicated as the outlook for many dairies remains uncertain. Back to brass tacks, this group talked about the need to revisit accurate and responsible asset valuation on dairy herds and how to develop pro forma statements that negotiate short term cash flow shocks.
  • Farm to Institution Spending: active research continues to explore possible opportunities to enhance regional institutional spending (schools, colleges, hospitals) on agricultural products. The looming question remains: What will it take for farms or distributors to find solutions that get the right products to the buyers at the right price.

Business Skills for Logging Professionals: Workshops November 8th and 9th

UVM Extension will offer this free workshop for logging companies on November 8th (Chester, VT) and November 9th (Hardwick,VT). The workshop builds beyond topics covered in seminars last year. Presenters include: Sam Lincoln (VT Dept of Forests, Parks & Recreation), Paul Frederick (VT Dept of Forests, Parks & Recreation), Chris Lindgren (UVM), Christine McGowan ( VT Sustainable Jobs Fund) and Steve Bick (Northeast Forest LLC.). Topics this year include: current legislative issues, 5 smartphone apps for loggers, market/industry updates, business planning, personal finance and much more! Register Now!

 

New Factsheet on Farm Business Entity Formation and Conservation Payment Limits

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.

This new fact sheet and other legal education materials related to Vermont’s water quality regulations can be found on the Legal Education and Environmental Regulations web page.

Dairy Improvement and Water Quality Grants

The Vermont Farm & Forest Viability Program, a program of the Vermont Housing & Conservation Board, announced the availability of grant funds for on-farm capital improvement projects. Eligible farmers can apply for Water Quality Grants or Dairy Improvement Grants, both of which allow up to $40,000 in funding.

Water Quality Grants will help farmers make water quality-related capital improvements in on-farm infrastructure.The grants will assist with the costs of improvements required to comply with new regulations and are designed to complement existing federal and state grant programs that address soil health and water quality.

Funding for the Dairy Improvement Grants comes from Ehrmann Commonwealth Dairy, LLC, whose Brattleboro plant produces Green Mountain Creamery Greek yogurt from Vermont milk. To be eligible for Dairy Improvement Grants, farmers are required to provide a business plan and be members of the St. Albans Cooperative Creamery or Dairy Farmers of America.

You can find more information about grant opportunities at the Vermont Farm & Forest Viability Program website.

Farm Viability Network Resources

On February 17, 2017 the VT statewide farm viability business planning network members met to share current research and resources to advance farm business plans.The session included farm business benchmarks, feasibility studies and conservation easements.

The Farm to Plate Viability Indicators Task Force is collecting key benchmarks and indicators for produce, livestock, maple and other ag sectors in VT. Picture the scene, 17 business planners adding notes to a group spreadsheet and punching calculators to document business metrics used to evaluate performance and management: labor expense ratio for produce farms, gain per day for grass-fed beef finishing, debt repayment margins for robotic dairies. The task force will be publishing key benchmarks later in 2017.

Rose Wilson shared recent feasibility projects she has been working on. Right now, enterprise analysis projects for organic enterprises including grass only milk, laying hens and pork is underway. Spoiler…. these enterprise are challenged to break even at the current cost and market price levels. More studies include….

Feasibility Study for a Leased Vegetable Storage Facility, Rose Wilson This reports explores the demand and business  feasibility for a shared-use leased vegetable storage facility.

Northeast Kingdom Agricultural Transportation Feasibility Study, Rose Wilson
This report presents different freight service delivery solutions and includes cost analysis, route mapping and other business considerations.

The meeting concluded with an extended panel featuring the VT Land Trust Farmland Access Program.  A key discussion centered on  on farm labor housing and appraisal considerations relating to collateral values and credit decisions. Conservation easements continue to be an important way to meet conservation goals, facilitate farmer exit planning and provide affordable farmland access for new farm businesses.

Public Input on Water Quality Regulations Due July 7th

The Vermont Agency of Agriculture, Food and Markets is collecting public comment on the new water quality rules and Required Agricultural Practices (RAPS) until Thursday July 7th. A series of public hearings on the updated proposed RAP rule were held in June tomanure injection explain changes to the proposed rule over the past several months.

Submit your comments to the Agency of Agriculture by July 7th. At that point, the RAPS rule will undergo final revisions and be prepared for legislative review in August. Click here to see the rule making timeline.

 

Public Comment regarding the Draft RAPs can be submitted by e-mail to the address below:

AGR.RAP@vermont.gov

Conservation Stewardship Grants at NRCS

Farmers can apply for funding to advance  their conservation investments. Click this link to see the full press release: CSPSignUP_Jan2015 

“CSP is a way of incentivizing farmers, ranchers, and private forest managers who maintain a high level of conservation on their land and agree to adopt higher levels of stewardship,” said Vicky Drew, Vermont State Conservationist for USDA’s Natural Resources Conservation Service. “By focusing on multiple resource concerns, landowners are able to achieve a sustainable landscape and maintain or increase the productivity of their operations.”

Through CSP, participants take additional conservation steps to improve the resource conditions on their land, including soil, air and habitat quality, water quality and quantity, and energy conservation.

Click here to view the full press release: CSPSignUP_Jan2015