On May 5th and 7th I had the
opportunity to represent Vermont as part of the Northern New England Dairy
Discussion webinars hosted by the University of New Hampshire’s Elaina Enzien.
Extension dairy specialists Peter Erickson, Mike Sciabarrasi, Carl Majewski and
Seth Wilner (New Hampshire), Gary Anderson and Rick Kersbergen (Maine) and I
offered participants some sound dairy management strategies to help deal with
the recent low milk prices and new pricing models. We focused on “right sizing”
animal numbers, switching from 3x to 2x milking frequency, ration adjustment
and using milk to feed animals on the farm as means to achieve cooperative
Also on the webinars were Catherine DeRonde from Agrimark,
and Leon Berthiaume from DFA /St Albans to discuss the two-tier milk pricing
model and what producers in each cooperative can expect for the remainder of
the summer. Milk market volatility is now being driven by supply and
distribution chain challenges brought on by the COVID-19 pandemic, with both
cooperatives forced to take measures to reduce the flow of milk coming in to
The series proved to be timely and very popular, with over 140 participants registering for the two-day session. A link to presentation materials and the video recording of the webinars can be found HERE at the UNH website. We plan to continue the series throughout the summer, with the next session being held on Tuesday, June 16th. Find more information and register HERE.
For the remainder of April UVM Extension Agricultural Business
will host a 30-minute web forum every Thursday at 12:30pm to keep pace
with emerging COVID-19 issues faced by farm and forest businesses. Each session
will include an update on market situations for our farming sectors
and information on hot topics, as well as time for questions and
Weekly Focus Topics:
April 16th: SBA Emergency Loan Programs
April 23rd: Cash Flow Triage for Small Business
April 30th: Digital Entrepreneurship and Online Marketing
If your farm, forest or maple business is under pressure to plan for COVID-19 disruption, our educators are available for business coaching and can assist with locating resources. We can help with critical business decision-making, assessing changes to markets, financial planning and other issues facing your enterprises.
Contact one of our educators by email or leaving a voicemail to make an appointment:
UVM Extension Business Specialists Mark Cannella, Tony Kitsos, Chris Lindgren, Betsy Miller and Zac Smith are available to work one-on-one with farm, forest and maple businesses on their finances. Reserve a 1½ hour appointment to prepare documents that will help manage the business. Use the time to develop a balance sheet, update financial statements, review a business plan, consider changes to the business and more. Bring your financial statements, recent records and questions!
➥ 1½ hour, private meetings ➥ Nearly 100 appointments available from February – April 2020 ➥ Held at UVM Extension Offices in 9 locations (Online or phone meetings are also available) ➥ FREE!
Contact Christi Sherlock at Christi.Sherlock@uvm.edu or 802.476.2003 to register for one of the appointments listed below.
To ensure adequate preparation, reservations must be made by the Thursday of the week before your appointment. If you require a disability-related accommodation to participate, please call at least three weeks in advance of your scheduled session.
I work with many types of farms and farmers in business planning. I don’t keep track of the percentage, but I would say a majority of the folks I work with hire a professional to prepare their tax returns. However, I am a firm believer that a basic understanding of the rules is helpful even to those who hire a professional.
When I sat down to write this I planned to share a few links of resources that would be helpful to farmers who either prepare their own returns or just want a better understanding. What I found was a little disturbing. Many of the sites that I used to find helpful are now out of date. We all expect things to change from one year to the next, but there were some big changes in 2018 and many of the farm tax resources out there do not reflect or even mention those changes.
I urge any of you who use the internet to find tax resources to check the dates on what you are reading. Make sure you are getting current information.
The number of maple taps in Vermont has doubled in the last 10 years. Many producers are expanding and securing a lease on a maple sugarbush can be a viable alternative to purchasing the land.
Maple stand quality, accessibility, access to power and
other factors will impact the rental price. Cash rental rates are common for
maple forests. A typical rate in recent years has been about $1.00 per tap. In
competitive maple regions in Vermont rental rates are $1.50 or more per tap. In
regions with less demand or less desirable forest parcels $0.50-$0.99 is
Setting flexible terms is an option for parties that want to
share profits or risk between tenants and landowners. A flexible cash rate can be
written so that the annual rate adjusts for the market price of syrup. Rental rates
could also be adjusted for a variable crop yield.
UVM Extension is working on rental resources and maple lease
templates this fall. New resources will be presented at Vermont Maple
Conferences in January and made available online. Register now for the 2020 Vermont Maple
Conferences in Middlebury (January 11th), Brattleboro (January
18th), and Hyde Park (January 28th).
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!
University of Vermont has created a suite of short-form business planning tools for maple operations. The Maple Business website provides web-based modules that include a yield calculator, a pricing tool with a sales forecast report, and a budget tool with a cost analysis report. A self-guided business plan is also available for users to draft and print sections of a written business plan. The modules offer an optional log-in feature that enables users to save their progress and return to work on their plan at another time.
Are you developing a new marketing plan? Using the Gross Sales Forecast a maple producer can take their entire maple crop and assign it to different container sizes and prices. Here is a sample report for 6,000 tap enterprise selling 80% of the crop as bulk syrup and 20% in retail containers.
More Maple Business Coming in 2019
Northeast Maple Producer Survey: In late August UVM Extension will be sending a survey across the Northeastern United States inquiring about business practices, business outlook and forestry practices.
Maple Leasing Resources: In Fall 2019 UVM Extension will begin publishing a series of maple leasing templates and legal resources to guide the development of business partnerships and other business-to-business relationships.
Are you looking for a new resource or business calculator to move your decision-making forward? Contact Mark Cannella at UVM Extension Maple Business today and share your ideas!
On a recent visit to a diversified farm I noticed a whiteboard posted in the office that listed sales goals for each month. At the end of each month actual sales were tallied and written alongside the goals set back in January.
Goal setting is an important part of the business planning process. People commonly refer to “SMART” goals – usually meaning Specific, Measurable, Achievable, Relevant, & Timely. Setting goals that clearly define success (or failure) make it much more likely that we will hold ourselves accountable for the plans we make. The farm I visited has a prominent display reminding them every day where they are relative to meeting sales goals.
As important as it is to set those goals in the first place, it is equally important to review them, update them, and determine if they were met. Mid-year check-ins can help to identify areas that might be lagging while you still have time to change course.
Don’t let your goals become like New Year’s
resolutions forgotten by Groundhog Day. Keep
them fresh and check regularly to see if you are on track to reach them.
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.