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Marketing and Economics for Small-acreage Properties

Marketing and Economics for Small-acreage Properties. Developed by: Cinda Williams, University of Idaho Extension Bob Hamblen, Colorado State Cooperative Extension Kevin Laughlin, University of Idaho Extension Susan Donaldson, University of Nevada Cooperative Extension. UNCE, Reno, Nev.

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Marketing and Economics for Small-acreage Properties

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  1. Marketing and Economics for Small-acreage Properties Developed by: Cinda Williams, University of Idaho Extension Bob Hamblen, Colorado State Cooperative Extension Kevin Laughlin, University of Idaho Extension Susan Donaldson, University of Nevada Cooperative Extension UNCE, Reno, Nev.

  2. What we’ll learn today • Reexamine your property goals • Do you want to make a buck? • Can you make a buck? • Business plans • Marketing methods • Keys to success • Resources

  3. http://fruithome.com/pictures/money_t3.jpg So, you want to make a buck?

  4. Reexamine your property goals Look at the map you made in Module 1, Lesson 1 You’ve added, revamped and changed the plans for your property Now comes the time to ask, “Can I make a buck at this?”

  5. Legend Property Map Acres= 25 Soils= sandy clay loam, silt Well Animals =6 cows, 1 horse, 3 goats Grasses present= Tall fescue, orchardgrass, clover, bentgrass Trees Pastures= 1 Weedy Months animals grazed= 9 House Bare ground Weeds present= Canada thistle, pigweed Marshy Barn Stream Water trough Gate Barn Barn Fence Septic Manure pile

  6. GH Greenhouses (high tunnels) --- Wildlife planting area Hot-wire fence Legend Property Map Well Trees Weedy Bare ground Pasture Marshy Stream Water trough Gate Fence Septic Manure compost area Cropping area Ground cover planted Acres = 25 Animals = 2 cows, 1 horse, 10 dairy goats Grasses present = Tall fescue, orchardgrass, clover, bentgrass Soils = sandy clay loam, silt House New gravel road for access P Processing shed GH GH GH GH GH Barn Barn C GC

  7. Reexamine your personal goals • Why do you want to sell a product? • Do you have the skills and resources to grow, raise, manage and market a product on your property? • Why do you want to do this? Is it going to be FUN?

  8. What are you going to sell? www.sustainablepoultry.ncat.org http://blogs.venturacountystar.com www.eatapples.com http://blog.americanfeast.com

  9. Are your physical resources adequate for the enterprise? • Irrigation water? • Soil? • Climate? • Length of growing season? • Vicinity to buyers or consumers? • Equipment? • Storage? • Property access? yourproduceman.com

  10. You are a physical resource USDA NRCS

  11. Does your family share your enthusiasm for the product and this venture?

  12. Time and money

  13. What about external factors? USDA NRCS

  14. So, you still want to make a buck?

  15. How are you going to decide? • Guess • Throw dice • Use a dart board • Use a decision-making process • Use a SWOT analysis

  16. Another approach: Develop a business plan • Mission statement • Goals (short-term and long-term) • Marketing plan • Production and operating plans • Financial plan • Staffing and labor plans • Management plan • Contingency plan

  17. Why write a business plan?

  18. A business plan becomes the road map for your enterprise www.internest.com

  19. It is specific to each particular business

  20. It serves as the basis for obtaining financing for the proposed enterprise www.communitybank.net

  21. A business plan is most useful if you put it in writing and can refer back to it regularly www.realhomebusiness.com

  22. Why spend so much time on planning? • 70 to 80 percent of new businesses fail in the first year • Failure is often attributed to a lack of adequate planning www.sheepcrc.org.au

  23. Start by knowing your product • Crops • Traditional (acres of a single crop) • Multiple crops • Specialty • Livestock • Traditional • Specialty • Value-added products NCSU

  24. Do your product homework! • Read, research and explore everything you can find about the product • Research similar enterprises • Talk to your family and get their input • Ask yourself: Why might consumers buy my product? What makes it stand out?

  25. Why buy my product? • Take five minutes to develop a plan to “tell your story” as a PRODUCERto explain why someone would want to buy product A, B, C, etc. • Then, take five minutes to develop a plan to “tell your story” as a CONSUMERto explain why you would want to buy product A, B, C, etc.

  26. Understand your market Village Market, Calif.

  27. An example: niche markets • Ethnic vegetables • Kid goats for religious holidays • Heirloom vegetables or fruits • Pesticide-free fruit • Free-range chicken eggs • Duck or turkey eggs

  28. Direct-marketing methods • Roadside stands • U-pick • Community-supported agriculture (CSA) • Custom livestock • Restaurants or grocery stores • Institutional customers (schools, prisons, colleges and corporations) • Farmers’ markets • Value-added processing

  29. On-farm or roadside stands Rural Roots

  30. U-pick Farm-fresh treats and U-pick fun Travel Oregon

  31. Community-supported agriculture (CSA) Great Basin Basket CSA

  32. Custom livestock UNCE, Reno, Nev.

  33. Restaurants or grocery stores bonappetitnetworks farm to fork Rural Roots

  34. Institutional customers bon appetitnetworks farm to fork

  35. Farmers’ markets Jonathon Demcak

  36. Value-added processing Lavenderridgereno.com

  37. Agritourism H. George, UCCE

  38. You’re only limited by your creativity and your ability to successfully market! gunsncoffethestranger.com

  39. More marketing alternatives • Web-based ordering • Mail ordering • Catalogs • Cooperative partnerships • Cooperative marketing • Etc…

  40. Don’t discount word of mouth UNCE, Reno, Nev.

  41. Collaborate with the competition

  42. Now you’re finally ready to develop a business plan! Remember, the parts of a business plan are: • Mission statement • Short-term and long-term goals • Marketing plan • Production and operating plans • Financial plan • Staffing and labor plans • Management and contingency plans

  43. What’s your mission?

  44. Examples of mission statements • Our mission is to bring additional net income into our enterprise by providing the highest-quality product. • Our mission is to provide vegetables for local consumption, which increases the financial security of the operation.

  45. What are your goals?

  46. Examples of goals • Increase the sales of apples by 5 percent for the next fiscal year • Increase the overall return on investment by 10 percent for the next fiscal year • Increase the sales volume by 5 percent in a selected region by next fiscal year

  47. Now you’re ready to write a mission statement and goals!

  48. Marketing plans

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