DES MOINES, Iowa - A new project is helping some beginning Iowa farmers enter the business with their eyes and accounting books open.
As part of the Whole Farm Financial Project created by the group Practical Farmers of Iowa, about a dozen fruit and vegetable growers shared their financial data so their peers could review and compare to assess their own potential profitability.
Rick Hartmann, co-manager of Small Potatoes Farm in Minburn, contributed to the data, which he says adds some clarity for aspiring growers.
He explains it's never been clear just how well small, direct-market farmers have been doing, given the increased interest in local foods.
"It's one of the few growing areas of farm ownership," says Hartmann. "And there's been a lot of enthusiasm around it and so I think maybe that bucolic picture that was painted went a little far without looking at some of the financial realities."
The project analyzed data from 2013 and is now available for review at practicalfarmers.org.
The project's goal is to have 50 farmers share financial information in some way by 2017.
Hartmann says he's been a cheerleader for the project from the beginning, as he has always wanted to compare data with other operations to assess weaknesses in order to improve business.
"I didn't feel comfortable asking my peers, 'So, what's your return on equity?' But we have a very small farm and to operate efficiently is very important to our success," he says. "I was able to look at things like operating margin, return on assets, net income ratio - compared to other similar farm businesses."
The data is not a blueprint for success, but Hartmann says it does show farmers which ratios to track and what level of revenue might be reasonable to expect.
"It might say to me, as a beginning farmer, there's a wide range of financial success or financial insecurity among the people that participated in this," he says. "It looks like it's not a sure thing perhaps; maybe it's not a financially guaranteed avenue."
Data from 2013 is available in the report. It shows five of 11 farms are hitting their profitability goals, and six that anticipate eventually earning 100 percent of household income from their operation.
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Minnesota has had a dry start to the fall but saw record rain this past spring.
One farmer said changes to his land made it easier for the crop fields to survive, an encouraging sign in a more industrialized farming era. High rainfall amounts from April through June contributed to flooding in some parts of the state.
Adam Griebie, a Hutchinson-area farmer, no longer sees huge ponding and gullying in his fields after a heavy rain. The solution is a series of water retention basins funded by federal conservation programs. He said it is a big sigh of relief to the soil on his property.
"I like to say it slows the water down," Griebie explained. "The slower the water moves, the less that it erodes and gathers nutrients and pollutants."
Not only does it mean his crops are in solid shape for the fall harvest, local waterways are not exposed to harmful runoff. Griebie estimated eight surrounding farms also embrace the approach.
He pointed out it is harder for smaller operations like his to compete at a time when factory farms proliferate across the U.S. and despite the popularity of conservation incentives, he said there are still barriers to accessing them.
Over the past few years, the USDA has announced funding to improve access to these programs, often for selected projects involving historically disadvantaged farmers.
Even with the challenges in applying for cost-sharing aid, Griebie noted initiatives like the Environmental Quality Incentives Program help to ensure independent farms will not disappear, potentially giving them an edge as the nation rethinks how food is produced under the threat of climate change.
"It really gives us small to mid-sized farmers that opportunity to do the right thing," Griebie emphasized.
He has also tapped into incentives to improve prairie habitat. According to the Institute for Agriculture and Trade Policy, only 26% of Environmental Quality Incentives Program applicants in Minnesota were awarded contracts. The Land Stewardship Project found hundreds of millions of dollars in funds have been spent on projects to support factory-farm operations, providing little environmental benefit.
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Access to nutritious food can be hard to come by for underserved populations.
A Wisconsin program that relies on contributions from locally based producers serves as a go-between, with the added bonus of a smaller climate impact.
The state's Local Food Purchase Assistance Program is closing in on its second anniversary.
Under the initiative, farmers around Wisconsin are awarded grants to set aside some of their fresh produce and other items that get picked up and distributed to hunger relief sites.
The Wisconsin Farmers Union helps lead the effort, and the organization's Local Foods Organizer Forrest Humphrey said one of the benefits is helping smaller farms expand their markets.
"This guaranteed income has allowed farms to invest in their operations, and do things that they otherwise wouldn't be able to do," said Humphrey, "because we've been able to provide some stability through some unpredictable growing seasons."
And for people seeking help from hunger-fighting groups, their outcomes might improve if food insecurity becomes one less thing to worry about.
Meanwhile, agriculture and the food-production system are under pressure to reduce their carbon footprint.
Humphrey said the program allows sites to order food in bulk that doesn't have to travel from other regions or states, potentially reducing transportation emissions linked to supply chains.
Researchers say there's debate over just how effective locally grown food is in reducing emissions, when focusing on how products are delivered.
Still, Humphrey pointed out that a number of the small farms signed up for the program prioritize climate-friendly practices.
"We have producers, for example, who are providing some really, really high-quality grass-fed beef into the program," said Humphrey. "And the reason that they're able to do that is because they have a really sophisticated managed grazing setup on their farms."
The exact climate impact of the program is unclear - but officials say, so far, it has served 70 counties across Wisconsin, with nearly $3 million worth of food delivered.
Organizers are hosting several events this fall to provide technical guidance and other resources as local partners try to sustain these newer, more efficient supply chains.
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Massachusetts fishermen said they are optimistic the next Farm Bill will provide greater support to smaller, community-based fishing fleets.
The bill's framework includes provisions to increase the amount of domestic seafood purchased for federal nutrition programs and creates a special seafood liaison to the U.S. Department of Agriculture.
John Pappalardo, CEO of the Cape Cod Fishermen's Alliance, said the liaison could help local fishermen gain access to federal programs geared toward larger farming operations.
"Hopefully we can put somebody in the USDA that talks fish and talks ocean," Pappalardo explained. "Lock some of those opportunities for the smaller food producers like the fishermen on Cape Cod and in the Commonwealth."
The Farm Bill is renewed every five years and Pappalardo said fishing groups have been lobbying to raise the industry's value within the Department of Agriculture. The U.S. currently imports roughly 65% of its seafood.
The Farm Bill remains the largest source of federal funding for America's food producers and Pappalardo observed ensuring initiatives for fishermen in the bill is a bit like "herring pushing upstream, battling a political flow."
He argued it is important local fishermen and the businesses that support them have a level playing field with farmers, ranchers and loggers.
"The United States is divided into eight regions when it comes to fisheries management," Pappalardo pointed out. "We'd like to see each region have an opportunity to participate in the funding and training opportunities that are currently in the Farm Bill for farmers."
Pappalardo wants an expansion of the 2020 Young Fishermen's Development Act in the Farm Bill to ensure the next generation get the training it needs to grow the seafood industry, while preserving the traditions of independent small-boat fisheries supporting communities like on Cape Cod. He said one day perhaps the Farm Bill could even be renamed the "Food Bill."
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