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Potomac Vegetable Farms
Basic Facts
 Northern Virginia (DC area)
 2 Farms
 3 owners: Ellen, Hana, Hiu via S-Corp structure
    4 FT permanent Managers
 Ecoganic Methods
 $900,000 gross sales
Crops/Acreages
Vegetables of all types (except sweet corn!) (15 acres
  total)
Culinary Herbs (one half acre)
Cut Flowers (one half acre)
Seedlings (24x96 greenhouse)
What we dont grow
 No Sweet Corn
 No Tree fruit or berries
 No Fancy pants flowers
Diversified Marketing
                    Income


               1%

         20%
                        47%   CSA
                              Farmers Market
       32%                    Stands
                              Wholesale
Where we dont market
  PVF has gone from 100% wholesale to 1% in 45 years

 Few Restaurants
 No Wholesale (other stands, stores)
 No PYO
 No Agritainment (beyond simple tours)
Major Decisions: Longstanding
  Becoming an S-Corporation
  Organic Certification or Not
  Marketing Mix  begin and grow CSA
  Major Equipment upgrade (spader, compost turner)
  Use black plastic
  I want to make MONEY
Why become a Corporation?
 To ensure continuity into the future
 To reward longevity of service
Certification, or not?
Begin and then Grow CSA
 Now our most profitable channel
 Innovations
    Split season
    Other products  some grown by us, some by others
    Market Style pick up
Major Equipment Upgrade
Use Black Plastic
I Want to Make Money $$$
Major Decisions - Newer
  Adopt Nordell style rotation
  Hire Managers
  Test and Balance Soils
  Play with microbials
Nordell Style rotation
advanced organic produce growing
Test and Balance Soil

Test and Balance Soils
 Pictures of MBA, rock phos, lime
Play with Microbials


                  Special Sauce:
                  Fish
                  Seacrop (sea weed/water)
                  Mycotonic (mycorrhyzal
                  fungi)
                  Pepzyme (enzymes)
                  Spectrum (bacterial inoculant)
Avenues to Improve Profits
 1. Reduce Overhead  not so easy
 2. Reduce Operating Costs  labor is our biggest cost
 3. Increase revenue 
    Increase production
    Increase yield/efficiency
    Increase price
Cost of Production (variable only)
          Marketing
          w/out labor
             9%         Misc
                        9%

       Machinery
          8%

                               Labor
   Seed, fert, plant            62%
           s
         12%



                                       Jim Munsch, 2011
Labor Improvements
 Incentivize good pace/attitude through profit
 sharing, bonuses etc
Become a better manager  stop pretending this is less
 important than tillage or fertility


                            Individual Talk
                            Therapy




Seminars,
Continuing
Education,
Management Training
Pay better to hire better
people, and to keep the good ones
Provide housing to widen
the pool of applicants
Do Fun Things Together
Team PVF at local July 4th Parade
institutionalize FUN things
that show your people how
much you value them, and
build team spirit. Beer
Oclock and potluck
Labor Distribution on
         Successful Farms from
Market         Midwest
 10%




           Grow
           30%      Pick and
                      Pack       PVF Labor Distribution
                      60%


                                     Market
                                      25%
                                              Pick and
                                      Grow      Pack
                                      25%       50%
Knowing that pick, pack and wash is where you are
spending big labor dollars   
 How to make picking, packing and washing more
  efficient?
    Streamline the harvest by being super organized and
     delegating the right person for the right task
Create and Maintain Systems:
Little Things Add Up
Harvest Aides
Pick sheet helps
your team stay
organized, and
can then be used
as data collection
for later analysis
Organize, Organize, Organize
Dont waste time looking for things
Make it easy to keep veg from
           wilting
In-Field Wash/Pack
Any improvement in Wash/Pack
gets you closer to food safety regs
 How to use less labor in marketing? And is it a good
 trade off?
   Market style CSA?
   Special market staff?
   Stop trying to have a roadside stand?
1. Fun (high quality of life is a Must)
2. Make a Living
3. No or Low Debt
4. We like people
5. Keep investing in capital assets (the future!)
6. Machines are cool
7. Organic Practices  The Soil Comes First
Value #1 High Quality of Life
 9 month farm season
 no Sunday market (once did 2!)
 8 ish hour work days
 Long lunch experiment
 Hire plenty of people and use experts
 Ecoganic/organic
 Machines help my back
 Very few animals make me happy
 Avoiding debt = stress avoidance
Value #2 Make a Living
 Good wages to owners: $42,000/year
 Good wages to workers: $7-10/hour
 Health Insurance for permanent employees
 401-K for permanent employees
Value #3 Avoiding Debt
 Pay as you go  cash for capital improvements
 Work with what we have
 Blessed by previous generation
What are new economic goals?
 More pay for everyone
 Higher quality employee housing = more permanent
  employees
 Enough money to make major capital investment in
  additional housing and/or new washing station
Value #4 We Like People
 Team Management of tri-woman owned farm
 Hire lots of help
 All retail sales
 On-farm tours, limited PYO
 Hire experts to do some of our work for us:
   Mechanic, tax prep, waste management, fences
   Lani grows eggs
   Zach and Heinz grow early and late veggie
advanced organic produce growing
advanced organic produce growing
Ways we hide from people
Private homes for owners
Farm is generally not open to the public
Chefs are too ego-centric


Downside to Lots of People
Interpersonal stresses
Inefficiency  Management Intensive
Wages and benefits
Value #5 Continue to Invest
 Building worker housing
 Deer Fence
 Tractor modernization
 Roadside stand improvement
advanced organic produce growing
advanced organic produce growing
advanced organic produce growing
Value #6 Machines are Cool
 I like having and using equipment, it allows me to be
  bigger and better
 Save some back breaking labor (quality of life)
 Ecoganic principles achieved more easily
   Spader   and harrow
   Flail
   Compost turner and spreader
advanced organic produce growing
advanced organic produce growing
advanced organic produce growing
advanced organic produce growing
Drawbacks to Equipment
 Danger/Liability
 Noise, smell of fumes
 Isolation/Boredom of Operator
 Petroleum Dependence
 Expense
Value #7 Organic Practices
 Safe and Beautiful Work Environment
 Market Advantage
 Tasty nutritious food for all of us
 Long term land improvement to make life easier over
  time



            THERE ARE NO DRAWBACKS!!
Who Helps us Decide?
 Mostly other growers
    Neighbors
    Far flung farmer buds
 friends and family
 Experts (becoming an S-corp)
 Conference mania for inspiration and networking
CSA
                 pro and cons
 Good early money           Stress of the Promise
 Weatherproof income        Pushes you to increase
 Builds customer loyalty     variety even if its not
 Builds connections
                              your best crop
  w/other farms              Administration
 Spreads economic
                              headaches
  impact of any one crop     Recipe handholding
advanced organic produce growing
advanced organic produce growing
Farmers Market
                   Pros and Cons
 Fun to set up (for me!)    Bad weather = bad $
 Great customer rapport     Gone from farm
 No promise, no             Serious competition
 disappointment
advanced organic produce growing
advanced organic produce growing
advanced organic produce growing
advanced organic produce growing
advanced organic produce growing
advanced organic produce growing
Roadside Stand
                       Pros and Cons
 You are HOME!                Relentless hours
 Sell other farmers           Infrastructure cost
  product                      Zoning issues
 Total control
advanced organic produce growing
advanced organic produce growing
advanced organic produce growing
advanced organic produce growing
Closing
Thoughts
  Community

More Related Content

advanced organic produce growing

  • 2. Basic Facts Northern Virginia (DC area) 2 Farms 3 owners: Ellen, Hana, Hiu via S-Corp structure 4 FT permanent Managers Ecoganic Methods $900,000 gross sales
  • 3. Crops/Acreages Vegetables of all types (except sweet corn!) (15 acres total) Culinary Herbs (one half acre) Cut Flowers (one half acre) Seedlings (24x96 greenhouse)
  • 4. What we dont grow No Sweet Corn No Tree fruit or berries No Fancy pants flowers
  • 5. Diversified Marketing Income 1% 20% 47% CSA Farmers Market 32% Stands Wholesale
  • 6. Where we dont market PVF has gone from 100% wholesale to 1% in 45 years Few Restaurants No Wholesale (other stands, stores) No PYO No Agritainment (beyond simple tours)
  • 7. Major Decisions: Longstanding Becoming an S-Corporation Organic Certification or Not Marketing Mix begin and grow CSA Major Equipment upgrade (spader, compost turner) Use black plastic I want to make MONEY
  • 8. Why become a Corporation? To ensure continuity into the future To reward longevity of service
  • 10. Begin and then Grow CSA Now our most profitable channel Innovations Split season Other products some grown by us, some by others Market Style pick up
  • 13. I Want to Make Money $$$
  • 14. Major Decisions - Newer Adopt Nordell style rotation Hire Managers Test and Balance Soils Play with microbials
  • 17. Test and Balance Soil Test and Balance Soils Pictures of MBA, rock phos, lime
  • 18. Play with Microbials Special Sauce: Fish Seacrop (sea weed/water) Mycotonic (mycorrhyzal fungi) Pepzyme (enzymes) Spectrum (bacterial inoculant)
  • 19. Avenues to Improve Profits 1. Reduce Overhead not so easy 2. Reduce Operating Costs labor is our biggest cost 3. Increase revenue Increase production Increase yield/efficiency Increase price
  • 20. Cost of Production (variable only) Marketing w/out labor 9% Misc 9% Machinery 8% Labor Seed, fert, plant 62% s 12% Jim Munsch, 2011
  • 21. Labor Improvements Incentivize good pace/attitude through profit sharing, bonuses etc
  • 22. Become a better manager stop pretending this is less important than tillage or fertility Individual Talk Therapy Seminars, Continuing Education, Management Training
  • 23. Pay better to hire better people, and to keep the good ones
  • 24. Provide housing to widen the pool of applicants
  • 25. Do Fun Things Together Team PVF at local July 4th Parade
  • 26. institutionalize FUN things that show your people how much you value them, and build team spirit. Beer Oclock and potluck
  • 27. Labor Distribution on Successful Farms from Market Midwest 10% Grow 30% Pick and Pack PVF Labor Distribution 60% Market 25% Pick and Grow Pack 25% 50%
  • 28. Knowing that pick, pack and wash is where you are spending big labor dollars How to make picking, packing and washing more efficient? Streamline the harvest by being super organized and delegating the right person for the right task
  • 29. Create and Maintain Systems: Little Things Add Up
  • 31. Pick sheet helps your team stay organized, and can then be used as data collection for later analysis
  • 33. Dont waste time looking for things
  • 34. Make it easy to keep veg from wilting
  • 36. Any improvement in Wash/Pack gets you closer to food safety regs
  • 37. How to use less labor in marketing? And is it a good trade off? Market style CSA? Special market staff? Stop trying to have a roadside stand?
  • 38. 1. Fun (high quality of life is a Must) 2. Make a Living 3. No or Low Debt 4. We like people 5. Keep investing in capital assets (the future!) 6. Machines are cool 7. Organic Practices The Soil Comes First
  • 39. Value #1 High Quality of Life 9 month farm season no Sunday market (once did 2!) 8 ish hour work days Long lunch experiment Hire plenty of people and use experts Ecoganic/organic Machines help my back Very few animals make me happy Avoiding debt = stress avoidance
  • 40. Value #2 Make a Living Good wages to owners: $42,000/year Good wages to workers: $7-10/hour Health Insurance for permanent employees 401-K for permanent employees
  • 41. Value #3 Avoiding Debt Pay as you go cash for capital improvements Work with what we have Blessed by previous generation
  • 42. What are new economic goals? More pay for everyone Higher quality employee housing = more permanent employees Enough money to make major capital investment in additional housing and/or new washing station
  • 43. Value #4 We Like People Team Management of tri-woman owned farm Hire lots of help All retail sales On-farm tours, limited PYO Hire experts to do some of our work for us: Mechanic, tax prep, waste management, fences Lani grows eggs Zach and Heinz grow early and late veggie
  • 46. Ways we hide from people Private homes for owners Farm is generally not open to the public Chefs are too ego-centric Downside to Lots of People Interpersonal stresses Inefficiency Management Intensive Wages and benefits
  • 47. Value #5 Continue to Invest Building worker housing Deer Fence Tractor modernization Roadside stand improvement
  • 51. Value #6 Machines are Cool I like having and using equipment, it allows me to be bigger and better Save some back breaking labor (quality of life) Ecoganic principles achieved more easily Spader and harrow Flail Compost turner and spreader
  • 56. Drawbacks to Equipment Danger/Liability Noise, smell of fumes Isolation/Boredom of Operator Petroleum Dependence Expense
  • 57. Value #7 Organic Practices Safe and Beautiful Work Environment Market Advantage Tasty nutritious food for all of us Long term land improvement to make life easier over time THERE ARE NO DRAWBACKS!!
  • 58. Who Helps us Decide? Mostly other growers Neighbors Far flung farmer buds friends and family Experts (becoming an S-corp) Conference mania for inspiration and networking
  • 59. CSA pro and cons Good early money Stress of the Promise Weatherproof income Pushes you to increase Builds customer loyalty variety even if its not Builds connections your best crop w/other farms Administration Spreads economic headaches impact of any one crop Recipe handholding
  • 62. Farmers Market Pros and Cons Fun to set up (for me!) Bad weather = bad $ Great customer rapport Gone from farm No promise, no Serious competition disappointment
  • 69. Roadside Stand Pros and Cons You are HOME! Relentless hours Sell other farmers Infrastructure cost product Zoning issues Total control