| Friday, September 5, 2008 |  |
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Nontraditional Farm Businesses Help the Family FarmIntroductionThe U.S. loses 500 farms every week. Disappearing farmland, dwindling farm program payments, and bringing additional family members into the operation are pushing farm families to seek nontraditional agricultural businesses. As the landscape changes, the American farmer has had to adapt. Instead of raising corn or cattle, farm families are offering everything from emus to entertainment. Eric Barrett is typical of the new generation farmers. The Barrett family owns Sweet Apple Farm near Marietta, Ohio. "My family's farm is right in the center of a growing area," says Barrett, who also is an agricultural extension educator. "We don't want the farm to go to houses someday and we are utilizing agritourism to help the farm business be successful for years to come." Agritourism is opening your farm to the public. Agritourism is the fastest growing segment of the tourism industry, averaging a 30% rise every year since 1987. A Cornell University study shows that tourists want to "do" rather than "view." Families seeking hands-on educational activities or vacations close to home due to rising gas prices, and baby boomers returning to their rural roots are fueling the farm fascination. Eric's father, Jim, began selling pumpkins by the road in the 1990s. The pumpkin business blossomed and grew to include a corn maze and an Ag-tivity Center with pin the tail on the cow, calf roping, and cornhole--a game similar to horseshoes but contestants use wooden boxes and corn bags insead of horseshoes and metal stakes. What's hotWatching a child hold a lamb for the first time sounds like fun. But before you hang out your shingle advertising your entertainment--complete with a corn maze, wagon rides, and baby calves--check out local zoning laws, health department requirements, and liability insurance. Along with agritourism, another trend is direct marketing, driven by concern for food safety and demand for fresh locally grown products. Fruits and vegetables typically travel 1,500 miles to reach the table. Selling directly to consumers is a way to capitalize on the close-to-home trend. Consumers want to know where their food originates. In relationship marketing, the consumer gets to know the producer by visiting the farm or buying fruits and vegetables at the farmers' market. Be forewarned, farmers say: Consumers expect Grade A products and a clean farm. Another hot trend is the organic market. Willie Nelson isn't new to the family farm song, but he's added a new verse. "The Good Food movement is creating new markets and opportunities that help farmers stay on their land and provides hope for new and young farmers to make farming their life," Nelson wrote in the spring 2006 issue of Waterkeeper, a newsletter written for the Waterkeeper Alliance, an organization dedicated to protecting and preserving water from polluters. From meat to eggs, the organic and natural food segment is growing. Before seeding organic green beans or buying natural beef, make sure the growing specifications are clear. For example, in some states organic farms must be certified before you can sell products. What's notBefore planting five acres of pick-your-own pumpkins, examine the population surrounding your farm. If you plant it, will they come? Pick-your-own strawberries were popular, but have rotted in some areas. Will two-income families have time to pick pumpkins--or can you offer hayrides, scare-crow making contests, or corn mazes to attract families to your farm? What can you bring that is unique or different in your area? Visit your credit union to talk about planning and financing your small-business farm ventures.
Check out contracts before signing on the dotted line. You might be able to supply truckloads of tomatoes, but restaurants want fresh food year-round and not just for two weeks when the fruit ripens. Try independently owned restaurants and smaller grocery store chains to market seasonal crops. Follow your heartIf you don't like people tramping on your property, fee fishing in the farm pond probably isn't for you. What are your passions? Do you have the required people power? There are as many opportunities as there are ideas. How about selling beefalo (hybrid of buffalo and beef) or balut (partially incubated duck eggs). For a list of ideas and other sources visit the National Ag Library site.Do your homeworkWhether you're interested in selling honey or sponsoring barn dances, study the idea. Visit and talk to other farmers pursuing the venture. Ask lots of questions about raising and selling the products. Look for books and fact sheets--even Web sites--about the topic. Check with local colleges, the Extension service, or other organizations about business plan and budget classes. Karen Bredthauer of Broken Bow, Neb., suggests taking a class to develop a business plan and budget. She enrolled in the Nebraska EDGE program through the University of Nebraska's Center for Applied Rural Innovation. Your credit union also may have staff members able to help you with your business plan or small-business loan. Bredthauer, her husband Marty, and four children became interested in bison after seeing the animals at a state park. Researching bison--commonly called buffalo--became a project for the Bredthauers homeschooled children. In 1994 the Bredthauers purchased three bison. Today they have 60 head on 320 acres of pasture. The bison meat is processed at a U.S. Agriculture Department-inspected facility. Check state requirements for packaging and selling meat. Many states require that USDA-inspected plants process the meat. The bison is wrapped in sealed plastic and most is sold locally and some is sold on the Internet. When asked about bison saving the family farm, Karen chuckles, "I don't know about that." Establishing a new venture takes awhile. "It was kind of a money loser for several years," she says candidly. "When we got in, breeding animals were high priced. Then heifer prices dropped from $2,000 to $200 apiece." A drought also dried the pastures and the profits. The biggest hurdle is marketing. "Anything in alterative businesses that doesn't have an established market is challenging," Bredthauer continues. "They [experts] talk about niche marketing. But the niche is so small there's hardly any market." There are untapped sources of loans and grants available. The trick is knowing where to find the loot.
Today the Bredthauers profit by marketing the bison locally. Using a trailer equipped with freezers, the family travels to local towns during designated weekends. Another example is the Young family, who began selling bottled milk on a farm near Yellow Springs, Ohio, in 1958, to bring three brothers into the dairy operation. Today, there is a dairy store, Golden Jersey Inn, miniature golf, and batting cages near the red barn built in 1869. The farm, with 220 employees, had 1,350,000 visitors in 2005. "The income generated from that has enabled us to remain here," says Dan Young, chief ice cream scooper and CEO. The next generation includes members from seven Young families. "That would be literally impossible with a [conventional] small dairy," Young adds. 
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