Delayed Planting, Reduced Yield and Crop Insurance

Steady rains throughout many parts of Vermont have caused delays for farms of all types. USDA Risk Management Agency (RMA) crop insurance products can adjust for delayed plantings or plantings completely prevented under certain circumstances. See this attached Prevented Planting Information Sheet that explains how crop insurance adjusts for prevented planting.

If you want to learn more about crop insurance options for your business contact UVM Crop Insurance Educator Jake Jacobs: 802-656-7356 or Jake.Jacobs@uvm.edu

 

Use Pre-Mortem Analysis to Prevent Project Failure

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.

 

Legal Education and Water Quality Regs: Workshops this Month

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Photo: Lisa Borre

UVM Extension is holding legal education workshops for farmers on December 15th (Vergennes), 16th (Randolph) and 20th (Enosburg). This workshop will focus on farmer rights and responsibilities as a new regulatory framework is established.

Workshop Features:

  • Legal Education Presentations
  • Break-out Groups: Compliance, Liability, Leases
  • Farmer to Farmer Networking
  • Participants will develop short term legal risk management plan

Presenters include: Tony Kitsos & Mark Cannella, (UVM Extension), Annette Higby, (Attorney at Law)

Register Now at:   https://www.eventbrite.com/e/water-quality-regulations-and-legal-education-for-farmers-tickets-29757524557

 

 

 

 

 

 

Farm Business and Budget Clinics in October

UVM Extension farm business educators (Mark Cannella, Tony Kitsos and Betsy Miller) are available to work one-on-one with farmers on their finances and business planning.Fall 2016 Business and Budget Clinics are scheduled for October 11- October 28 at our statewide offices. Reserve an appointment now at www.regonline.com/fallclinics2016

Bring your financial statements, business plans, recent records and questions for this 1 ½ hour scheduled private meeting. This might include internal accounting statements, the IRS Schedule F and files on a portable farm computer. Use the time to prepare the statements that will help manage the business.The session can also be used to review a written business plan or feasibility plan.

In this session you can expect to develop an accurate balance sheet or a budget for the farm. Alternatively, the time can be used to assess or revise business planning goals including: capital access, marketing,strategic planning, and business plan preparation.

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

Online Farm Planning Resources

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Farm managers have dug into winter business planning projects and by now everyone has identified key questions that require analysis, research and technical information. UVM Farm Viability has filtered the internet universe and posted  the best resources to assist managers with legal decisions, market research and financial records. Visit our Resource Library and open up the Legal Toolbox, Market Toolbox and archive of online recordings.

The Most Common Question: Rental Rates and Terms

The most common question these days is what to charge, what to pay and how to set terms for renting agricultural assets. Follow these links to our resource library to learn more about farm rental relationships. These resources are to be used for educational purposes and we encourage you to seek consult from legal, tax and insurance professionals when establishing formal rental relationships.

Sample Lease: Multi-year

Sample Lease: Short Form

Farm Rental Rate Guide

You can also contact Land for Good. They provide limited introductory consult and additional support services to assist you with your decisions.

Spaces Limited for Winter Farm Business Planning

UVM Extension Farm Viability provides individualized business planning support to commercial farm owners in Vermont. We have a small number of spaces left in our program for farms seeking to develop business plans or complete business analysis by Spring 2016. Sign up now or contact the program for more information. Once the winter roster is full we will begin to enroll participating farms on a short term waiting list for next years program cycle. Eligible farms are required to have been in  business for at least 3 years and show gross sales of at least $15,000 in the most recent year.

UVM Extension Farm Viability works with farms to develop business plans, complete enterprise analysis, prepare cash flow budgets/financial analysis and develop farm succession plans. Coming up this winter, our staff will also be providing additional business education programs. Watch our website for the schedule of winter 2016 programs.

 

Free for Farmers! Workplace Services and Counseling

Farm First is a free and confidential  program available for Vermont farm owners and family members seeking assistance on a  personal and workplace issues. The program can provide assistance when dealing with farm labor issues  that are difficult to resolve on your own.

The program can also provide confidential counseling services related to stress, anxiety, depression,addiction and other situations where the guidance of a professional is needed. The program is available to farm owners and related family members involved in the business. Farm owners can also consider if they want to enroll in expanded employee assistance programs (EAP) to make similar services available for their employees at a very low cost.

Call Farm First at  1- 877- 493- 6216

Click this link for the Farm First description at the Vermont Agency of Agriculture website: Farm First for Vermont Farmers

Follow this web link to Invest EAP

 

Milk Prices Dropping: New MPP Deadline Dec 19th

The USDA has extended the application deadline for the Dairy Margin Protection Program to December 19th. Milk price forecasts are showing significant decline in prices over the next several months.

Bob Parsons, University of Vermont Ag Economist, has shared these figures below that show the probability of margins dropping below various coverage levels….

“From the table below, the % numbers are the probability of return over feed cost dropping below the amount on the left hand column.  For example while the expected return over feed costs for March-April is $8.52, the probability of it dropping below $7 is 18% and 10% chance of dropping below $6.50. Remember that in the past that when milk prices drop, they tended to drop further than the markets predicted.”

Margin Level Nov-Dec 2014 Jan-Feb 2015 Mar-Apr 2015 May-Jun 2015 Jul-Aug 2015 Sep-Oct 2015 Nov-Dec 2015 Jan-Feb 2016
Expected $12.91 $9.20 $8.52 $8.64 $9.18 $10.13 $10.12 $9.79
< $8.00 13% 39% 39% 30% 15% 21% 29%
< $7.50 6% 28% 29% 21% 10% 15% 23%
< $7.00 2% 18% 20% 15% 6% 10% 17%
< $6.50 10% 12% 10% 3% 6% 12%
< $6.00 5% 7% 6% 1% 4% 8%
< $5.50 2% 4% 3% 1% 2% 5%
< $5.00 1% 2% 2% 1% 3%
< $4.50 1% 1% 1%
< $4.00 1%