Understanding On-Farm Costs of Production

Understanding On-Farm Costs of Production

Summary

Diggin' Roots Farm had a successful year collecting the necessary data to understand on-farm costs of production. This was the second year the farm attempted to gather this information and with the support of WSARE was able to make investments to ensure our success. Data input stations were installed in the wash/pack area and greenhouse to facilitate data collection. The tablet stations shared a Google Sheet to allow for simultaneous input of data. Staff were trained on the project and procedures and it was integrated into the daily and weekly routines. While minor setbacks occurred, due to funding timing and staffing changes on the farm, sufficient data has been gathered to achieve our goals. We are now in the final stages of analysis with the intention of having it completed in advance of outreach events and the creation of our case study.

Objectives/Performance Targets

Diggin' Roots is on-track to meet all the targets proposed. Updates on specific objectives are outlined below.

• Develop staff training materials- project overview, past season data (proposed Feb/March 2016)
  • WSARE did not release funds for this project until early April so the purchase and development of tracking infrastructure had to be postponed. 
• Meet with OSU/Oregon Tilth, finalize spreadsheets for data input (proposed April 2016)
  • On-farm meetings occurred with OSU/Oregon Tilth as well as meetings for the entire cohort. Spreadsheets for recording data were accessible in the wash/pack shed and greenhouse on the tablet. A large-scale spreadsheet was printed out and posted in the employee break area where morning meetings occurred. 
• Train staff (proposed April 2016)
  • Staff started on the farm in April and were given an initial training on the project purpose and objectives. Training on the various case studies occurred as appropriate throughout the season, largely following the schedule below.
• Time tracking- Greenhouse activities (proposed April 2016)
  • Achieved 
• Time tracking- Planting activities (proposed May 2016)
  • Achieved
• Time tracking- Irrigation activities (proposed June 2016)
  • Achieved
• Time tracking- Weed/Pest activities (proposed July 2016)
  • Achieved
• Time tracking- Harvest/Post-Harvest activities (proposed August 2016)
  • Achieved
• Time tracking- Marketing activities (proposed Sept 2016)
  • Achieved
• Time tracking- Cover crop/Clean-up activities (proposed Oct 2016)
  • Achieved
• Analyze data with Oregon Tilth/OSU (proposed Nov 2016)
  • Analysis was slightly delayed based on scheduling conflicts. Initial meetings were held in November with subsequent check-ins occurring in December and January. This month we'll be entering the final sets of data and should be able to have results before the end of the month. Once results are identified and summarized we'll use this information to draft the case study and present the findings at outreach events.
• Develop case study for outreach (proposed January 2017)
  • Expected to occur as proposed.
• Speak on panels with OSU/Oregon Tilth (proposed Jan-March 2017)
  • Speaking events have been confirmed and are outlined below.
    • OSU Small Farms Conference, Feb. 18th, Tracking and Using Cost of Production Information 
    • Description: Knowing your costs of production is critical for making informed business decisions about pricing, crop mix, market channel mix, scale, production practices, capital investments and more. The Cost Study Program is a project developed through a partnership between OSU’s Center for Small Farms and Community Food Systems, and Oregon Tilth that supports farmers with data tracking needed to determine crop specific costs and with using this information for business decision-making. During this workshop, participants will learn about how the Cost Study Program works and hear from farmers who participated in the 2016 Cost Study Program about how they tracked data, crunched their numbers, and are using the results from this analysis for decision-making focused on improving farm profitability.
    • Headwaters Incubator Project, January 23rd, Intro to Business Management Class
    • Growing Farms, March 9th, Business Management Class
    • Organicology, February 2nd, Organic Farm Business Management

Accomplishments/Milestones

Significant improvements were made in on-farm systems, procedures, and infrastructure to enable data collection. It was incredibly helpful to have the capacity to ensure all staff on the farm were trained on this project and it's implementation. Data collection of this scope would have been impossible without the involvement of all staff. It was quite an accomplishment to have staff and interns engaged and thinking critically about the importance of this work. It was also a learning experience for us in terms of the importance of staff buy-in and ownership over their role in this project.

Developing the physical space and incorporating the data collection into existing record keeping documents and procedures significantly impacted our ability to succeed. As stated in our proposal this data is collected during the busiest times of the year. Funding from WSARE allowed us to accomplish what we otherwise would not have- the collection of sufficient data to analyze and develop crop-specific costs of production.

Impacts and Contributions/Outcomes

Farmers that understand their unique costs of production can make changes to increase productivity and profits. With the data collected we now need to finalize our analysis and evaluate potential on-farm changes to increase our productivity and improve our bottom line. Demonstrating the impact and usefullness of having this information will lead to more farmers participating in efforts to understand their own unique costs of production. Outreach events and materials are planned to share the on-farm systems and procedures we developed as well as the results of our analysis.