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W
ith the growth of the local food movement exploding in the past few years, there’s never been a better time to consider starting a specialty crop agricultural business in Arkansas. The idea of making a living from working with a bare patch of soil has an appeal to many people who want to eat better, become better stewards of the environment or just enjoy working outside. It’s the execution of the dream that leaves so many frustrated to the point where many would-be farmers never put a single seed in the ground. continued on page 14
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RE T T PE E K
Five Steps Toward Farming
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his guide exists to present some clear signposts to help any potential farmer along the road to success. In it, we have detailed five separate areas that new farmers should look at when building a plan to farm, and provided a list of resources associated with each that take a lot of the fear out of starting a new agricultural endeavor.
1: EDUCATION
Previous page: Cattle graze at St. Joseph’s Farm in North Little Rock. Above: At North Little Rock Community Farm, volunteers learn how to build raised beds, a skill that can be applied to their own farm endeavors.
The Dale Bumpers School of Agriculture, Food and Life Sciences at the University of Arkansas in Fayetteville offers undergraduate and graduate degrees in different agricultural disciplines, as well as online programs and practical farm experience. The university system also operates the University of Arkansas Cooperative Extension, a valuable resource for farmers of all experience levels. Call 1-800-2152024 or email the Dean’s office at dbcafls@uark.edu for more information.
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Arkansas State University in Jonesboro offers degrees and practical instruction in the agricultural sciences through its College of Agriculture and Technology. ASU also offers community outreach programs on topics like soil and water education and agribusiness solutions. Contact 870-972-2085 or email CoAT@astate.edu for more information.
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Arkansas Tech University in Russellville offers degree programs and practical experience through its Agriculture Department. Contact 479-968-0251 or email Susan Morrins at smorris@atu.edu for more information. 14 | FOOD & FARM
BR I A N CHIL SO N
Growing plants and raising livestock is science, and our understanding of this science gets better and better all the time. Arkansas has a number of excellent universities that are educating the farmers of tomorrow in the ways of crop and livestock management. In addition, our universities are constantly conducting research on various plant cultivars and livestock breeds, as well as studying food safety, processing and ways to increase yields. A farmer’s education comes from many sources—formal agricultural education, seminars and workshops as well as community outreach events.
Southern Arkansas University in Magnolia offers degree programs and practical experience and boasts an expanded agricultural center that opened in 2013. Contact 870-2354350 or email Jeffery Miller at jsmiller@saumag.edu for more information.
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The University of Arkansas at Monticello offers degree programs and practical experience, as well as operating the Southeast Research and Extension Center. Contact 870-4601014 or email the Agriculture Department agridept@uamont. edu for more information.
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The Foundation Farm School in Eureka Springs is a practical, non-traditional school that operates a three-season (spring, summer, fall) curriculum that takes students through an entire growing season. The school is tuition free and provides information about how to make small, specialty crop farming work in Arkansas. Contact Patrice Gros at 479-2537461 or email mamakapa@yahoo.com for more information.
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2: LAND
They may not be making any more land, but it’s something pretty much every potential farmer needs some of to get a farm business running. Local real estate agents can help a beginner farmer with listings suited for agriculture, but there are some assets available specifically geared toward connecting folks that want to farm with the specific type of property that fits the farmer’s needs.
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The Center for Rural Affairs has excellent information about alternatives to buying land, including farm transfers, which connect retiring farmers with younger farmers in order to keep land working. These land-match programs often result in better deals for beginner farmers as well as placing new growers on plots of land where there is already existing infrastructure. Go to www.cfra.org for more details. LandsofArkansasisanArkansas-specific section of a national clearinghouse for rural land for sale, including farmland, ranchland, houses and other buildings. www.landsofarkansas.com
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Shared Earth is an online forum where people with land list what they have so that people looking for places to plant can match up with them. www.sharedearth.com
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Land and Farm is a clearinghouse site that lists farm properties all across the country. Properties can not only be narrowed down by state, but also by specific county. www.landandfarm.com
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Mossy Oak Properties of Stuttgart is an Arkansas-based company that offers hunting and farm land all across the state. www.farmandhuntingland.com
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Shared Land: Fayetteville’s Tri Cycle Farm is a collaborative effort for beginning and experienced farmers alike to share growing space.
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urchasing or leasing land is difficult enough, but it’s the very soil itself that should concern any potential farmer. Before purchasing a plot of land, there are many things to consider about it:
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The type of crops best suited for the soil.
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Where water for irrigation will come from.
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The sort of native plants (weeds) that grow there.
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Infrastructure needs and an assessment of existing farm structures are also vital. The goal in assessing the infrastructure needs is to avoid hidden costs later.
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Equipment costs are also vital to ascertain, because depending on the size of the farm, these costs can be quite expensive.
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Soil testing services are available through each of the 75 county Cooperative Extension offices. Specific instructions for gathering a sample for testing along with a listing of each county office are located on the UAEX website at www.uaex.edu, search “soil testing.”
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3: PLANNING
The USDA has numerous resources to help farmers develop business plans, understand how to balance finances and tips on diversifying farms to maximize profits.
Some of the resources available are:
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Business plan resources including advice, balance sheet templates, information on incorporating the farm and information on turning a farm into a thriving agribusiness. These resources can take much of the guesswork out of business planning.
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Information about farm financing, tips on building relationships with local markets and advice on diversifying farm products.
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A list of available financiers and loan programs, programs for veterans and information on disaster assistance for farmers. Visit ric.nal.usda.gov and search “small farm funding” for more information.
Tunnel Gardening: High tunnels, like this one at Dripping Springs Garden in Huntsville, allow farmers to extend their growing seasons, resulting in more produce for sale.
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he USDA also operates the Start2Farm website www.start2farm.gov. Set up specifically for beginner farms, Start2Farm begins with an assessment questionnaire meant to help establish a starting level for the farmer. The site also includes information on financial planning, risk management, farm management, marketing and ways to plan for growth and expansion. On the state level, the University of Arkansas Cooperative Extension www.uaex.edu is of immense value. With offices in each county across the state, Extension is local— and with the power of the University of Arkansas system behind it, they have the means and resources to provide education on many areas that a beginning farmer needs to know. Some of the things available include:
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Comprehensive information about land management, water quality, soil testing and sustainability. The free soil tests are part of the “Don’t guess—soil test” campaign.
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Video tutorials and workshop information to provide visual aids for farmers. By utilizing these resources, potential farmers develop a base foundation that can be used when applying for grants and loans that are often necessary for new business ventures.
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Pest management, including weeds, parasites, diseases and crop-eating insects.
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Marketing and business resources to help get crops to market.
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Information on livestock and foraging. 16 | FOOD & FARM
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4: FINANCING
Money is the constant worry of any agricultural enterprise, and developing a business plan is the part of farming that is often the most difficult. Securing funding for equipment, land, seed and farm improvements doesn’t just depend on how much a farmer can grow the first year—if that were the case, no farmer in history would have made it too far.
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lanning the financial side of your farm starts with a personal inventory. An honest personal inventory of a potential farmer’s management skills, willingness to work long hours and existing capital to invest are all vital before taking out loans that must be paid back no matter if the farm succeeds or fails. There are a great number of grant and loan programs available to beginning farmers and farmers looking to expand, some of which could be the difference between success and failure of the farm. In addition, many of these programs come with planning help. The government has programs (listed below) to help farmers defray some of the costs of land improvements, while local companies offer loans tailored specifically to any farm’s needs.
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National Resources Conservation Service (NRCS): The NRCS is the part of the USDA devoted to helping farmers care for their land by helping fund a variety of improvements. Beginning farmers or farmers who are looking to expand their footprint in the market alike are eligible as long as the farm in question generates at least $1,000 per year. Programs offered include:
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Conservation Stewardship Program (CSP): Offers technical and planning advice for resource assessment and monitoring. Also offers financial assistance to people looking to make improvements to farm or ranch land in the form of compensation for work done to make improvements based on an NRCS-approved plan. arkansasfoodandfarm.com
THE
FOUR Ps PURPOSE
Why do you want to farm? A personal mission statement can be an important part of maintaining the motivation required to take on the arduous task of starting a farm. Some farmers want to grow fresh food for their communities, while others enjoy outdoor work and want to make money doing it. Knowing your own reason is vital.
PLAN
Know your land, know your markets and know your limits. Farm planning means more than just growing and selling, it also means planning for crop failures and other setbacks. A good plan can mean the difference between withstanding diversity and a failing business.
PRODUCT
Growing produce is just the first step. Knowing where to sell it, how much to sell it for and how it will be transported to market is where crops turn into profit. Understanding local market regulations, county regulations and area needs means satisfied customers and more product sold.
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Environmental Quality Incentives Program (EQIP): For the federal government, the EQIP initiatives are a way to bring local farms into better compliance with environmental standards and promote soil, water and air conservation. For the farmer, these programs can provide funding for a variety of improvements to farmland, up to $450,000.
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Air Quality Initiative: Owners of cropland, rangeland or pastureland where air quality is of concern can receive funding to address these issues with approved conservation techniques.
PEOPLE
The greatest resource for beginning farmers is other farmers. Developing relationships with others dealing with the same issues can teach a new farmer more than anything about the business of farming. Seek out local groups of farmers, and get involved with state programs like Arkansas Grown.
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On-farm Energy Initiative: Balancing a farm’s energy needs versus the cost of supply is a struggle for beginning and veteran farmers alike. This initiative offers financial assistance for on-farm evaluation of farm and irrigation systems called an Agricultural Energy Management Plan (AgEMP). The AgEMP includes: Itemized energy use by individual systems to establish a baseline for electricity and other fuel improvements; recommendations for equipment improvements and upgrades; amount of potential energy reductions and financial savings for each recommendation; cost estimates of potential improvements; and length of expected payback for energy efficiency upgrades. continued on page 18 FOOD & FARM | 17
BE T H H A LL
Winter Planning: Bean Mountain Farm in Deer debuts a new “cold frame” that allows for year-round herb and produce farming.
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nce the AgEMP plan is complete, the program then offers financial aid to farmers for the purchase of upgrades and improvements for a variety of farm facilities such as lighting, plate coolers, ventilation and fans, irrigation pumps, grain dryers, greenhouse improvements, maple syrup evaporators, heating and refrigeration units, insulation and building envelope sealing, motor controls and variable speed drives.
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Organic Initiative: Farmers with USDA organic certification are presented with numerous new problems that their conventional counterparts don’t face. This program offers financial assistance to organic farmers for several of these issues, including: Developing a conservation plan; establishing buffer zones; planning and installing pollinator habitats; improving soil quality and organic matter while minimizing erosion; developing a grazing plan and supportive livestock practices; improving irrigation efficiency and enhancing cropping rotations; and nutrient management. 18 | FOOD & FARM
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Seasonal High Tunnel System for Crops: High tunnels may not be the first thing that come to mind in terms of conservation, but they can be valuable tools for improving plant quality, improving soil quality, reducing nutrient and pesticide transportation, improving air quality through reduced transportation inputs and reducing energy use by providing consumers with a local source of fresh produce. For farmers, the benefit of these tunnels is the ability to farm in the winter, something that can be a great source of income during a time of year that can be lean for growers. For more information on government assistance and programs, visit www.nrcs.usda.gov, search “EQIP.”
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F
or costs that can’t be absorbed by the farmer or paid for by government programs, loans become necessary. There are lenders that specialize in the needs of farmers and can work with individuals based on their specific circumstances. Farm Credit (www.arfarmcredit. com) is a specialized lender that works with farmers to provide loans based on an individual farmer’s needs. The lender provides operating loans, revolving lines of credit, home loans that meet specific criteria, livestock financing and has programs geared toward young and beginning farmers. Before talking to a credit company like Farm Credit, there are a few preparatory steps any farmer needs to take to insure that the loan officer can provide the best possible plan.
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Make sure there is a business plan in place. The USDA has resources available for farmers to develop these plans. Other resources for farmers to develop a business plan include AgPlan from the University of Minnesota (www.agplan. umn.edu), while North Carolina State University has business plan assistance specifically geared toward organic farmers (www.ces. ncsu.edu).
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Have a balance sheet for the farm. The Michigan State University provides templates for free that can be used to develop a balance sheet (www.msu.edu/~steind).
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Know your markets. This is especially important because just knowing how to grow food is only half of what any farmer needs to know. The other half is knowing where to sell the crops. With all these things in place, your Farm Credit loan officer can then assess any collateral, talk about available capital and look at credit histories. Armed with this information, Farm Credit has a mission of tailoring their loan plans to each farmer’s specific needs. Of particular interest to the beginning farmer are Farm Credit’s loans to young and beginning farmers available to farmers under the age of 35, and farmers who have either never farmed or have been involved in farming for less than 10 years. Based on eligibility, business plan and credit score, custom terms for beginning and young farmers may be available such as modified credit standards, discounted interest rates, modified collateral standards and full or patial payment of any required loan guarantee fees. The greatest benefit to using Farm Credit is that they do not require that the farms they work with be of any certain size, so the small urban farmer is just as welcome to seek info on available loan programs as the large commodity crop farmer. The type of farm is also not restricted, as Farm Credit offers financing for the purchase and maintenance of livestock as well as crop loans for vegetable and grain farmers.
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Bring tax information for the farm. The IRS has a guide for taxes specifically geared toward farmers. arkansasfoodandfarm.com
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Making it Work: Maintaining land, equipment and crop quality is an ongoing process that can reap great benefits for farmers and their communities.
5: KEEPING IT GOING
Developing a farm is hard enough, but the work maintaining one never stops. Once a farm is running, questions of insurance and risk management arise—and, of course, the on-the-job learning is a neverending process.
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n terms of risk management, Arkansas Farm Bureau (www.arfb.com) provides multiple benefits for the Arkansas farmer including lobbying for farmers rights, monitoring and disseminating information that affects farmers, and providing education and safety information to the public. In addition, Farm Bureau’s insurance division (www. afbic.com) can provide the sort of safety net that means the difference between success and failure. Don’t think insurance is necessary? As the USDA says, “It doesn’t cost anything to ask about insurance.” The National Sustainable Agriculture Information Service is another good resource that provides 20 | FOOD & FARM
tutorials for beginning farmers on making farms sustainable, creating business plans, marketing and assessing risks. In addition, the organization also provides substantial tutorials on row crops, specialty crops, livestock, organic farming, composting and water management. The site also lists internships available for potential farmers who want some practical experience before starting a business. Finally, the best resource for any beginning farmer is other farmers. The Arkansas Department of Agriculture’s Arkansas Grown program organizes an annual event for farmers to meet other farmers as well as chefs and grocery store representatives. The Arkansas Farmers Market Association (www.arkansasfarmersmarketassociation.com) is a valuable resource for what is happening in the state farmers market scene. Volunteering with student groups like the FFA and 4-H can connect any new farmer with farm families, a resource that cannot be discounted.
Local farmers markets are not just a resource for great local food, they are also a treasure trove of people who have the practical experience that comes with experience. Our specialty crop farming community is friendly and eager to share tips, secrets and information on things they’ve tried that did not work. Becoming a farmer means more than just growing crops and selling them— it means becoming part of a community that is connected both to the land and to one another. Just one more reason to get involved and get to know people all around the state!
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