The Business Side of Farming

We’ve talked before here and there on the blog about the business aspects of farming, and today is going to be another one of those days. It’s fresh on our minds, after we just spent a considerable sum on a month’s worth of feed for our animals over the weekend, and please let me assure you that the farm has never brought in that dollar amount over a month’s time. In fact, it represents several months of income for the farm. This means that George’s off-farm paycheck heavily subsidizes the foods that are grown here. So why do we keep doing this if we are operating at a loss? That’s a complex answer that involves a mix of philosophy and business. I’m covering the latter in today’s post.

BUsinessSideFarmingThe reason we started farming was to improve our own family’s supply of food. It quickly expanded beyond that, because we had people asking whether we could raise items for them, too, as they would be interested in those kinds of foods for themselves. We have had a steady core of customers who have been making regular purchases over the years, and we are incredibly grateful for their support and loyalty. We have, however, learned a lesson and it has been a somewhat painful one: don’t necessarily take people seriously about their expressed interest and even their stated intent to purchase. Before you accuse me of being a cynic, please allow me to elaborate.

We have realized that it’s very easy, especially on social media, to express enthusiasm about new ideas for food production that we are kicking around, and even to say “I’d buy that.” But the effort required to actually procure the item seems to be too much for some people. We’ve had folks say your choice of the following phrases, or something like these:

  • “How does your product compare to the one [insert massive chain store, including the organic ones] is selling? They do it for cheaper than you do.”
  • “It’s just so far for me to drive.”
  • “I’m not sure where I’ll find the time.”
  • “If only you were at a farmer’s market.”
  • “You give away free samples before I have to buy anything, right?”

Well, let’s take a look at each of these obstacles.

As far as the questions about our products in comparison to those sold at mass market retailers, including the high end organic outlets  we have had to ask ourselves- are the foods we raise somehow undesirable? And we don’t believe so – we get great feedback from our customers about these foods. And those who do purchase these items generally return for more. So, this is unlikely. Samples? Well, that’s a difficult one. Considering the small profit margins that farms which are making money operate within, asking them for free samples of entire products leaves the farmer with the impression that the person is really just trying to get something for nothing and is not likely to return for a purchase. It demonstrates a lack of appreciation for what the farmer had to invest to produce that item, whether it is food or another farm- made product. We have offered mini-bars of our soap to folks in person, but expecting us to mail those means we incur the cost of transportation to the post office, packaging, and postage. All in the hope that the person “might” make a future purchase. That’s just not something we see as advisable for us to do.

Questions about our product in comparison to others has caused us to wonder, are we not providing enough information to customers and potential customers? I’m not going to lie, I laugh when I ask myself this question. If there’s one thing we are focused on, it is being information-rich, whether that means our website you are currently reading, that is chock full of information, or whether you call or visit us and we answer your questions. If you’ve spoken with me, you know I am brimming full of information that I can’t wait to share with you, so much that I stumble over my words because they won’t come out quickly enough. I have spent many phone calls answering people’s questions, sometimes spending up to an hour with them addressing their queries, and they’ve assured me that they will be by to make a purchase. I never hear from them again. So it is disappointing when you try to be very helpful and invest a good portion of your precious time with someone, and they seemingly don’t appreciate that. Perhaps I’m a bit sensitive about it, but I get pretty disenchanted when I have that lengthy, informative, positive conversation with someone and they assure me they are going to come out to make a purchase – but never do. Did they go elsewhere? Did another farmer benefit from my investment of time? Did a large retail operation? We’ve put ourselves out there in terms of information, so we really don’t believe that our customers and potential customers are going without. If there is something we need to better cover, whether on our website, or in conversations, we need some feedback on that so that we can improve our offering. Please don’t hesitate to let us know if you have a suggestion in this regard.

Complaints about time, distance and us not being at farmer’s markets bring up the question – is access the problem? Usually the people who ask about farmer’s markets are asking about one that they already go to – and it is usually a distance from us. So really, what they are asking us to do is transport the food closer to them. I can appreciate the inconvenience of having to travel outside of one’s typical route for food. We are the family who just got a 1/2 grass-fed steer back in February and had to drive up to Frankenmuth (about an hour from us) twice: the first time to help the farmer deliver the animal (not typical but we were totally open to assisting in that regard, being fellow farmers), and the second to actually pick up the meat. So yes, I can understand. But I also feel it is worth it. We work hard to make our offerings here worth the drive for people, too. Plenty of our existing customers drive a distance to come here. We are right off of US-23 between Hartland and Fenton, so it’s not a difficult destination to reach. Many people like to enjoy a meal at The Laundry restaurant up in Fenton – they are very supportive of local agriculture on their menu and a visit there could easily be tied in with coming to the farm for an order. There are also a couple of cider mills and U-Pick orchard/berry patches within five miles of us that could be part of a day in the area. We have a variety of items available, to make the trip worthwhile.

We are considering making the investment of putting in a small building off of our driveway to serve as a little mini farm market of sorts. Perhaps this would make a visit more appealing, because it would feel more like a proper store, and maybe that physical presence of an area to browse is the psychological barrier we need to address. But we don’t want this to be another outlaying of money on our part that is simply a loss. We just can’t keep doing that. It’s not sustainable.

We can offer a delivery option in the sense that George can bring items that are pre-ordered/pre-arranged with him to work on weekday mornings. He works in Troy near the Meijer right off of Crooks. We just need a couple of days notice if you want to use this option.

A farmer’s market would require us to produce enough food for sale that we could cover the cost of participation, the cost of equipment required to participate  – usually a pop-up canopy tent, folding table and chairs, coolers, ice each week, packaging supplies, a sign, fuel costs, and our time to prep for the market, travel there, set up, the actual market hours, tear down, travel home, and restocking any items that did not sale and that did not perish during those hours. There are sometimes additional labeling considerations and other requirements as well, depending on the market. Now consider that our weekends are packed with work. We haven’t been able to attend social functions of any kind for the last couple of years, including several friends weddings, because our schedules are so packed, and even if there is an hour or two of free time, we are typically exhausted. There are only two of us, and George works off-farm full time “plus” – including an hour each way to his office every day. Typically he doesn’t have to go in on the weekends, but he often has to work from home doing after-hours support on the weekends. I’m not sure where a farmer’s market fits into that equation, exactly. I mean, we’d love to be able to do that, don’t get me wrong. But unless we somehow discover some Spaarti cloning cylinders and overcome the problem of clone madness such that we can make decent replicas of ourselves…I’m not seeing how we can manage that at this time.

One of our heroes, Joel Salatin of Polyface Farms, focuses on direct marketing to customers from their farm, and even though they are very off the beaten path, customers travel to their location, sometimes for several hours, to procure the nutrient-dense foods that are grown at Polyface. That’s really been our inspiration, and what we hope to continue doing. However, we are finding that we end up with a backlog of inventory on a more frequent basis than is desirable. If we are going to continue raising foods at the rate that we do, more of those foods must sell so that we can continue to afford to feed our animals. Which leaves us asking, what are we doing wrong? We know when our goods sell, people give us rave reviews, and we’ve had many folks give us a sincere thanks for all of the work we have done. We’ve had people tell us that to get comparable brown chicken eggs at one of the upscale organic chain stores, they have to pay $7 a dozen or more, and they don’t even like those eggs as much as the ones our birds are laying. Many people recognize that in order to get the level of quality in their food that they are seeking, there is a higher cost. It is truly a matter of you get what you pay for. And we are not making a killing by any means. So why isn’t the food selling? We’re going to continue trying to figure that out and to address the issue(s) behind it. If you have thought about purchasing eggs, meat, or soap from our farm but haven’t done it yet, if you’d be willing to offer some feedback on what has caused you to hesitate, we’d love to hear more about those reasons in the comments. If you are more comfortable responding privately, please use our contact form.

I’m really not trying to come across as morose in this post, so I hope what I’ve said doesn’t carry that tone. It is just very honest talk about the kinds of issues we are facing on a daily basis here on the farm. One of the things that is encouraged in the local food movement is building a relationship with your farmer. Well, this farmer had some venting to do today, and hopefully that is an acceptable part of the relationship – seeing not just the highs, but the lows as well. Perhaps knowing that these are the kinds of issues that we and many other small farmers regularly face will give farm customers a new appreciation for the sacrifices that go into raising their foods, and also give anyone considering starting a small farm some points to consider so that they can work that into their business plans.  Maybe it will even inspire some folks to become new customers at farms, whether ours or others. But know this: if you are trying to incorporate high quality, humanely and locally raised foods into your diet, your farmer needs you to support their efforts in order for them to continue. We hope that we might hear from some new customers in the near future. We thank our existing customers for their continued support and encourage you to share our information with family and friends who might be interested. Many thanks in advance!

 

 

 

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