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 ➥ 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.
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.
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.”
It’s “all systems go” across the US maple regions in February. Producers have begun to tap trees and troubleshoot tubing systems. With only a few rumors of early sap collection in January most Vermont producers have begun or are about to begin setting taps for the 2019 crop. Drop line and spout sanitation practices paired with high vacuum tubing systems enable longer tap hole longevity to catch early runs and maintain production later in the season. UVM Proctor Maple Research Center leads the nation in maple production research and Vermont producer yields continue to lead the nation (see USDA NASS reports on the Extension Maple Pages).
The UVM Extension Maple Program, Addison County Maple Sugarmakers and the statewide VMSMA organized three maple conferences in January. Workshop topics included production, forest health, and food safety. Attendees and presenters put a large emphasis on market conditions. Industry leaders felt the expansion of maple taps continues but it has slowed in the past two years. Representatives from Quebec indicated that roughly 60% of the recent FPAQ 5 Million tap expansion allowance is currently hitting markets. The remaining taps are still being set up over the next few years. The general outlook is that US bulk maple syrup prices will hover near $2.00-$2.10 plus premiums for 2019. No one was willing to predict prices would increase but there was general agreement that nothing significant has prompted the price to drop below $2.00 per pound. Local maple marketers shared insights that wholesale and retail competition has grown dramatically in the northeast. Many marketers are setting their sights on consumers outside the northern maple belt region. Maple businesses are also working to differentiate themselves with unique products, packaging and branding to maintain sales. Large packers reminded attendees that Canadian syrup imports remain competitive due to the current US-Canadian currency exchange rates. Meanwhile, pure maple syrup is well positioned for consumer demand for natural sweeteners in the United States.
UVM Extension Business Specialists Mark Cannella, Tony Kitsos, Chris Lindgren and Betsy Miller 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 2019
➥ Held at UVM Extension Offices in 10 locations
➥ only $25.00 Online Registration Here!
“In preparing for battle I have always found that plans are useless, but planning is indispensable.” Dwight D. Eisenhower
“Everybody has a plan until they get punched in the mouth.” Mike Tyson
I’m not sure if Tyson and Eisenhower are saying the same thing, but they are saying similar things; plans are important, but they go awry. This insight applies to logging businesses particularly. Logging is not boxing or battle, but logging is a risk heavy business significantly influenced by external factors. Improvisation is an essential skill and planning helps you succeed in the heat of the moment.
There is a workshop next week offering free lunch, industry discussion, business skills and technical knowledge to logging businesses. No disrespect to Tyson, but I have found in my work that not everybody has a plan. This workshop is a great place to get one started and to learn how to adjust when you feel the knuckles on your jaw. Offered by University of Vermont Extension, Forest Business, the class is worth 5.5 CFE (Consulting Forester Education) credits and 8 LEAP (Logger Education to Advance Professionalism) credits. This is a great opportunity for professional development. This class will help loggers and foresters understand the shifting economic landscape and stay current on the regulatory and policy front. It is a time to network with peers in the forest products sector and to pick the brains of industry leaders and educators. It is also time to learn business management and finance skills to help your company identify what’s important and where to focus effort.
While preparing for the workshops I have been reading Continuous Improvement in Logging, (CIL) by Steve Bick and Jeff Benjamin. An adept application of Theory of Constraints (TOC) to logging, CIL distills the ideas of CI (Continuous Improvement) providing examples of the productivity of logging operations. With detailed information on productivity and a thorough discussion of common bottlenecks for timber harvesting systems, the book dispenses management wisdom along with rigorous focus on identification of bottlenecks in logging operations. CIL introduces readers to The Goal, a business novel worth a read. The goal is defined as, “making money now and in the future.” This goal focuses all productive effort. Steve will be speaking at the workshop bringing productivity enhancing tools and techniques to those in attendance. These tools will help you continually improve your game, preparing you to avoid the knuckles and spend more time “making money that sticks.”
Punches and lunches lead to continual improvement!
Tell a logger or forester you know to join us or contact email@example.com for more information.
UVM Extension will offer this free workshop for logging companies on November 7th (Rutland, VT) and November 8th (Hardwick,VT). Presentations will cover a range of topics from industry updates to marketing strategies and include new presentations not included in past years. Presenters include: Sam Lincoln (VT Dept of Forests, Parks & Recreation), Paul Frederick (VT Dept of Forests, Parks & Recreation), Chris Lindgren (UVM Extension), Christine McGowan (VT Sustainable Jobs Fund) and Steve Bick (Northeast Forests, LLC). Learn more about the program and how to register!
As global maple syrup production increases the markets, communities, and business owners are facing changes. Vermont has a long cultural heritage of syrup production ranging from subsistence production to commercial activity for over 100 years. 2018 is no different… for every new maple enterprise setting up to tap 50,000 trees we are likely to have 10+ new hobby producers making their own syrup and selling the excess directly in their neighborhood.
Research on farm economics has demonstrated how farms can often get caught in the middle of the push and pull of dynamic business environments and consumer preferences. The 2008 text Food and the Mid-Level Farm (Lyson, Stevenson, Welsh) explains the dilemma that faces “agriculture in the middle.” The super-small farm can often maintain a specialty niche that serves local or direct clientele. It’s common that these farms might be part-time or lifestyle farms. They may be profitable but it may not matter. The largest scale farms are producing goods at low costs and high volumes and they are serving broader markets that value uniform product, lower price points, and require sophisticated supply chain logistics. What’s left is the farm “in the middle”. These farms are full time jobs for their owner -operators that need to earn a livelihood from risky business activity. They are too big to be accepted in niche markets and too small to compete with the big players.
The recent maple price downturn has begun to reveal where the “middle maple producer” may be. Four years of maple finance benchmark analysis has shown how a reasonable owner livelihood can disappear as the business environment shifts. A small sample of 7,500-15,000 tap maple producers in VT has demonstrated the looming risk for a formerly viable owner-operated bulk syrup enterprise that can’t break even if market prices stay below $2.10 per pound. These businesses can be a too big to pivot into niche direct marketing and too small to compete in the larger wholesale markets. We don’t know where the sweet spot for a commercially viable “middle” operation will be but we do know not to assume it will stay in the same place forever. We also wait to see if a group of informed consumers that value the people and practices of “ag in the middle” will persist.
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!