Assisting Farmers with Enterprise Diversification

Assisting Farmers with Enterprise Diversification

Summary

Low commodity prices stimulate farmers to consider new enterprises that add value to farm products. However, to develop successful enterprises, farmers need training in business and market planning that integrates with their whole-farm plans. Such training and planning assistance will improve the rate of successful adoption of new on-farm enterprises.

The project’s objectives are:

1) Five farmers will develop the skills and understanding to effectively mentor other farmers in the selection, planning, and implementation of new on-farm enterprises;
2) A business planning process to select profitable and sustainable farm-based enterprises will enable 30 farm families to protect the environment and their quality of life;
3) A business planning process to select profitable and sustainable farm-based enterprises will enable one farmer cooperative to diversify enterprises on members’ farms to improve the environment and their quality of life;
4) An enterprise financial database will be collected and enterprise profiles will be developed that will be disseminated to other farmers.

The project facilitates a business planning process for farm families to evaluate and implement new farm enterprises. The planning steps include setting goals, evaluating enterprise options, developing a marketing plan, constructing a production plan, assessing profitability, assessing financial feasibility, making a decision, and preparing for success. The planning curriculum will be “Farming Alternatives” developed by Cornell University. This project will create synergy and accountability among participants through a series of group planning workshops. Five farmers will receive special training to serve as local farmer mentors to other farmers. In addition, farmers will receive technical assistance by means of individual consultation, market research, and financial consultation using the FINPACK software. Participants will prepare a data-based business plan for creditors or prospective partners by taking part in this disciplined planning approach.

Jerry Jost will be the project coordinator and will co-facilitate the workshops with the mentor farmers. The Glacial Hills Resource Conservation and Development Service and the Kansas Cooperative Development Center have provided planning support and will offer technical assistance. The network of 16 Heartland clusters of farmers will provide a farmer base for project participants and a network to disseminate results. Eight Heartland farmers, six of whom are listed as major participants, provided input into planning and will assist in project implementation.

Dissemination of results will be through the Heartland Network, conferences, newsletters, media, and professional affiliations. We expect this project will enable 30 farm families to make reasoned, written decisions on new enterprises. These enterprises will be integrated into site-specific whole farm plans. This entrepreneurial development will provide a model and inspiration for other farmers to diversify their enterprises and markets. These new enterprises should improve quality of life of farm families, add profitability, promote local food systems, enhance environmental quality, increase biodiversity, and stimulate further enterprise diversity that is integrated into on-farm biological resources.