MOSES So You Want to Start a Farm?

ORGANIC FACT SHEET So You Want to Start A Farm? NEW FARMER Resources for the Beginning Farmer

So, you want to start farming! Agricul- In relation to your farming venture and ture can provide many opportunities, and your broader life, what are your: beginning farmers come from a diversity • Personal goals? of backgrounds and bring with them a diversity of goals and interests. If you • Economic goals? are seriously considering starting up an • Environmental goals? agricultural business, there are a number • Community goals? of important things to consider and plan for. This factsheet is meant to assist you After thinking about and writing down in thinking about how to specifically de- some thoughts on these questions you fine your goals, how to educate yourself, should be better able to define the goal how to market your products, and finance for your agricultural enterprise. An- your agricultural venture. The resources swers to other general questions such and links here will help as you begin your as those listed below will help to fur- agricultural venture, and if you choose, ther refine your goals. Remember, the in the preparation of a business plan that best goals to set are specific and realis- outlines what your goals are and how you tically attainable. will attain them. • Do you want to work with animals? ---Define Your Basic Goals------• Are you interested in growing The first step to take when thinking about vegetables, fruits, or row crops starting a farm is to define your goals. like corn and soybeans? Start by asking yourself some basic ques- • Do you want to make a living tions about your interests and goals. To solely from the farm? do this you should first identify your own values, so take some time to sit down and • Do you want to do on-farm think about the following things, as sug- processing to add value to your gested by the book Building a Sustain- products? able Business developed by the Minne- • Do you have an aptitude for sota Institute for Sustainable Agriculture fixing machinery? (MISA). • What do you like to do? Since farming can be repetitive, you should enjoy your chosen work.

MOSES • PO Box 339 • Spring Valley, WI 54767 715/778-5775 • [email protected] • www.mosesorganic.org So You Want to Be A Farmer...

The next question to ask is whether University of MN AgPlan you want to operate a hobby farm, or www.agplan.umn.edu if you want to formally start an agri- Helps rural business owners develop cultural business. If you wish to start a business plan for free. a farm business, you will want to think ATTRA/National Sustainable about the legal structure of your opera- Ag. Information Service tion. You may want to operate as a sole www.attra.ncat.org/marketing.html proprietorship, which means that you Many resources on business don’t have to register your business, planning. and farm operations and other income and household activities are more or State of Wisconsin Dept. less legally merged. Other options in- of Financial Institutions clude forming an S- or C- corporation, 345 W Washington Avenue or a limited liability company (LLC), Madison, WI 53703 which is the choice of many small farm- 608-261-9555 ers. Those who choose to incorporate www.wdfi.org their farm activities generally do so for Building a Sustainable Business liability reasons, the main difference book developed by the Minnesota between the various options is in the Institute for Sustainable Agriculture way your activities will be taxed. For 411 Borlaug Hall, 1991 Buford Cir. basic information on incorporation go St. Paul, MN 55108-1013 to www.business.gov/register/incor- 1-800-909-MISA poration. To find more information www.misa.umn.edu on business planning and developing The Organic Farmers Business business plans, and on how to register Handbook by Richard Wiswall your business check out the following Cate Farm, 135 Cate Farm Road resources: Plainfield, VT 05667 US Small Business [email protected] Association www.catefarm.com www.sba.gov Maryland Rural Enterprise Wisconsin Office Development Center 740 Regent Street, Suite 100 http://mredc.umd.edu/ Madison, WI 53715 rootbeginning.html 608-441-5263 Some great online materials. Minnesota Office Minnesota Dept. of Employment 100 North Sixth Street and Economic Development Suite 210-C Butler Square 651-259-7114 Minneapolis, MN 55403 [email protected] 612-370-2324 www.positivelyminnesota.com

2 MOSES Fact Sheet

---Get Educated------The Land Stewardship Project’s The next question to ask yourself is Farm Beginnings™ program: This whether you have the knowledge nec- program provides opportunities for essary to make your chosen venture a participants to learn first-hand about success. Most beginning farmers have goal setting, whole farm planning and many production related questions. sustainable production methods from Many have very little experience with experienced farmers. The program du- agriculture, while others have some ration is one year, during which time background or history with farming. participants spend time learning in the The number of possibilities is endless, classroom, on farm tours and through but most beginning farmers are going mentorship and hands-on experience. to have at least a few things to learn about production, as well as financing The course begins in October of each and marketing. If you are interested in year and is held at varying locations producing organic crops or livestock, throughout Minnesota. Farm Begin- it is important to have a firm under- nings is also held at two locations in standing of the organic regulations and Illinois. Stateline Farm Beginnings how to go about transitioning crop and serves southern Wisconsin and North- pasture land to organic. Management ern Illinois, while Central Illinois Farm of organic systems takes a somewhat Beginnings serves central and southern different approach, with a strong focus Illinois. Also, the Foundation for Agri- on soil health and quality, and getting culture and Rural Resources Manage- educated about organic strategies for ment, located in Medina, ND, offers an fertility management, as well as pest “Organic Farming 101” course, which and weed control, is extremely impor- is adapted from the Farm Beginnings tant to ensure the success of an organic materials. operation. Land Stewardship Project Extended Trainings 821 East 35th Street, Suite 200 A great way to answer the numerous Minneapolis, MN 55407 questions that arise, and to gain more 612-722-6377 experience, is to pursue any of a num- [email protected] ber of education and training programs. www.farmbeginnings.org Many beginning farmers look for short Lake Superior Farm Beginnings term, more hands-on approaches to Lake Superior Sustainable Farming learning, and there are many oppor- Association tunities to take advantage of. We will 310 Carlton Ave P.O. Box 307 highlight a couple of opportunities be- 218-834-0846 low. [email protected]

3 So You Want to Be A Farmer...

---Other Training Programs------FARRMS Collaborative Regional Alliance for 301 5th Ave SE, Medina, ND 58467 Farmer Training (CRAFT) 701-486-3569, [email protected] This program, coordinated by Angelic www.farrms.org Organics in Caledonia, IL (also coor- Midwest Organic and Sustainable dinators of the Stateline IL Farm Be- Education Service (MOSES) ginnings) helps new farmers learn by Farmer-to-Farmer Mentoring Program linking them with experienced grow- This program pairs an established or- ers through internship, employment ganic farmer with a transitioning-to- and mentoring relationships. On-farm organic farmer, to help these new to training, business planning and various organic farmers negotiate the various field days on a diversity off arms pro- USDA regulations and modify their vides participants with a well-rounded operations to meet organic standards. base of knowledge useful in starting Mentors share practical information on their own operations. This program is day-to-day activities on the farm. The mostly active in the northern IL and program accepts applications on a roll- southern WI region. ing deadline for mentors and mentees. Joanne Wiedemann-Wolf Selections and pairings are made in late Program Coordinator fall. The program is open to farmers in 815-389-8455 the upper Midwest. [email protected]. Harriet Behar www.learngrowconnect.org/farmer MOSES Organic Specialist University of Wisconsin Center for Home Office: 43299 Patton Road Integrated Agricultural Systems School Gays Mills, WI 54631 for Beginning Dairy Farmers 608-872-2164 Dick Cates, Coordinator [email protected] 608-265-6437 or 608-588-2836 www.mosesorganic.org/ [email protected] mentoring.html www.cias.wisc.edu/dairysch.html Educates interested people on how ---On-Farm Work------to create a successful pasture-based Another way to gain experience with dairy and livestock operation. agriculture is to intern or volunteer Illinois Farm Beginnings on an operation that suits your inter- www.illinoisfarmbeginnings.org ests. Many opportunities are available, Stateline: 815-389-8455 or especially on organic and sustainable [email protected] farms, which commonly have a need Central: 847-570-0701 or for seasonal workers who have minimal [email protected] experience but a willingness to work hard in the field. This experience gives

4 MOSES Fact Sheet those thinking about starting a farm AgriCareers an excellent chance to gain hands-on www.agricareersinc.com experience and can be an eye opener Agri-Management Group in terms of the many different aspects www.agri-man.com of running a farm. The Local Harvest website is one place where farm jobs ---Field Days and Trainings---- are listed, but there are many others as Many other events of interest to begin- well. If you know of farms in your area, ning farmers are occurring all the time, or search for them using Local Harvest sponsored by the above organizations or some other service, give them a call or others like them. Organizations that or check their website, as most farms offer short-term trainings (from a cou- require some form of seasonal labor. ple hours to two days) and field days You may also want to peruse the web- in sustainable agriculture and organic sites of agricultural recruitment and farming are listed below. placement services. These services usually list permanent large-scale and con- Midwest Organic and Sustainable ventional livestock and crop farm jobs Education Service (MOSES) for those with experience, but once in a 715-778-5775 while jobs on farms focused on organic [email protected] or sustainable management also ap- www.mosesorganic.org pear. Coordinates and supports trainings and field days throughout the up- ---Online Job/Internship per Midwest. Also check the MOSES Boards------events calendar for an extensive list of happenings related to organic ag Local Harvest around the Midwest (www.mosesor- www.localharvest.org/forum ganic.org/events.html). MN Institute for Sustainable Ag University of Wisconsin Center for www.misa.umn.edu/Jobs_Internships Integrated Ag. Systems School for Midwest Organic and Sustainable Beginning Market Growers Education Service (MOSES) John Hendrickson, Coordinator www.mosesorganic.org/jobs.html 608-265-3704 World Wide Opportunities on [email protected] Organic Farms (WWOOF) www.cias.wisc.edu/wisconsin-school- www.wwoof.org for-beginning-market-growers ATTRA This three day program provides attra.ncat.org/attra-pub/internships information on how to start up a market gardening operation. Agricultural Placement Services Hansen Agri-Placement www.hansenagriplacement.com 5 So You Want to Be A Farmer...

Michael Fields Agricultural Institute ---Online Resources------262-642-3303 A large amount of information on crop [email protected] production, animal husbandry, organic www.michaelfieldsaginst.org certification and sustainable produc- MFAI hosts and sponsors many events tion techniques is available for begin- around WI and IL every summer. ning farmers on the web. The Univer- Topics range from managing organic sity of MN Extension Service (www. matter to tractor safety. extension.umn.edu/Agriculture) and Land Stewardship Project the University of WI Extension Service 612-722-6377 (www.uwex.edu/topics/agriculture) www.landstewardshipproject.org provide comprehensive production re- Offers field days and trainings lated resources. ATTRA, The National throughout MN. Sustainable Agriculture Information Sustainable Farming Assoc. of MN Service (attra.ncat.org), has a wealth of 320-226-6318 or [email protected] informative publications on sustainable www.sfa-mn.org and organic production techniques. Coordinates and supports sustainable Many resources are available online to ag related events around MN. assist producers in learning more about organic production strategies as well Practical Farmers of Iowa as the organic regulations and certifi- 515-232-5661 cation process. The Midwest Organic [email protected] and Sustainable Education Service has www.practicalfarmers.org many materials on their website (www. Coordinates events and field days in mosesorganic.org) to assist produc- IA that educate producers on ecologi- ers interested in going organic. The cally sound agricultural techniques. Organic Trade Association sponsored PFI also supports on-farm research website www.howtogoorganic.com is on sustainable and organic crop and also a good resource for beginning or- livestock production. ganic farmers, with many links to help- Angelic Organics Learning Center ful information. The Practical Farmers 815-389-8455 of Iowa website (www.practicalfarm- www.csalearningcenter.org ers.org) and the University of Wiscon- Angelic Organics offers on-farm sin Center for Integrated Agricultural trainings and educational events for Systems website (www.cias.wisc.edu) all ages in Northern IL. They also also have good information on organic manage the CRAFT program (men- production. tioned above under “Other Farmer Training Programs”), which includes ---Marketing ------field days and other training events. The next question a person must consider when thinking about starting to 6 MOSES Fact Sheet farm is how to market your products. CSAs consist of consumers buying a It is extremely important for beginning “share” in the farm and paying a flat farmers to clearly identify their market fee up front before the season begins. before they start operating. A steady In return, the farmer provides the cus- market is critical to financial success, tomer with a certain amount of produce and many farmers find that relying on (or other product) every week or so for a diversity of markets brings them the the entire growing season. Arrange- most stable income. In some cases, ments vary, but usually customers meet such as with conventional commod- the farmer to pick up the produce and ity crops, a farmer can sell to, or con- may sometimes be asked to volunteer a tract with, their local grain elevator, or couple hours on the farm. Since CSAs in the case of conventional beef cattle, rely on direct to consumer marketing, sell at auction. Cooperative marketing CSA producers depend heavily on ef- opportunities may also exist for crops fectively advertising their operations. and livestock through local coopera- This means getting the word out there tives or through the National Farmers by advertising. This is where websites Organization. Often large-scale veg- like Local Harvest, or that managed by etable growers contract with buyers the Land Stewardship Project around or distributors, meaning they agree at the Twin Cities, and organizations like the beginning of the year to provide the the Madison Area Community Sup- buyer with a certain amount (by weight ported Agriculture Coalition (MAC- or volume) of the crop in question at SAC) around the Madison, WI area are a certain price. Terms and conditions useful. New producers will want to wait will vary. Cooperative marketing op- to use the CSA model until they are portunities may also exist for vegetable confident in their growing skills and re- producers. source base.

With vegetables, specialty crops, spe- Alternately, smaller sized producers cialty meats like lamb, or with organic looking to serve their local markets may products, a somewhat different ap- choose to market directly to consum- proach to marketing may be necessary. ers through farm stands or at farmers The growing demand by consumers to markets. Others, individually or coop- know where and how their food is pro- eratively, choose to sell to grocers, food duced is driving a surge of marketing co-ops or restaurants in their local area. opportunities for products produced lo- Some producers may work individually cally, sustainably and certified organic. or cooperatively to market their prod- Many small scale producers choose to ucts directly to institutions such as market their products directly, through schools or hospitals. Contracts may be farmers markets and Community Sup- available in some areas for organic pro- ported Agriculture (CSA) operations. duce, grains, and other field crops. 7 So You Want to Be A Farmer...

Examples of companies buying organic University of Wisconsin Extension grains are SunOpta, Northland Organ- 1-877-947-7827 ics, or Ceres Organic Harvest. Niche, [email protected] specialty markets such as organic tofu http://learningstore.uwex.edu/ or natto soybeans for export to Japan Direct-Marketing-C12.aspx (extra certification for the Japanese or- Many publications related to direct ganic market would be necessary in this marketing available for a small fee. case), may also provide opportunities National Sustainable Agriculture for organic crop producers. Information Service (ATTRA) www.attra.ncat.org/marketing.html Marketing organic milk is usually done Many great resources on marketing through larger companies or coopera- strategies. tives, although a number of organic Madison Area Community Supported dairies market their milk directly to Agriculture Coalition (MACSAC) retail outlets. You will need to carefully 608-226-0300 explore your state regulations before [email protected] you plan on this, however. Organic www.macsac.org meats probably require the most cre- WI CSA listings, farm endorsements ative marketing, as there is very little and local programs. marketing infrastructure in place, but solid customer demand. Many meat Land Stewardship Project (LSP) producers sell directly to retail stores 612-722-6377 or restaurants, but other opportunities www.landstewardshipproject.org also exist with the growing institutional MN CSA listings and local programs. market. Research, Education, Action and Policy on Food Group (REAP) Marketing associations and coopera- 608-310-7836 tives also provide opportunities for [email protected] organic crop and livestock producers. www.reapfoodgroup.org From vegetables to beef, many organi- Southern Wis. programs include “Buy zations and materials exist to assist in Fresh Buy Local”, which connects lo- the marketing of organically and sus- cal growers with restaurants, retail tainably produced foods, and their con- stores and other food outlets. tact info is listed below. Also consult Dairy Marketing Service - Midwest the Midwest Organic and Sustainable 1-866-367-8181 Education Service’s (MOSES) Upper www.dairymarketingservices.com Midwest Organic Resource Directory Kansas City, MO company provides for potential buyers of organic ag prod- assistance with marketing milk to ucts (www.mosesorganic.org/resource- large wholesale buyers. Also works directory.html). with organic producers. 8 MOSES Fact Sheet

Wisconsin Department of Agriculture, Farmers interested in processing their Trade and Consumer Protection Direct agricultural products on farm have Marketing Resources additional licensing requirements. WI Local Food Marketing Guide The labeling of products follows cer- www.datcp.state.wi.us/mktg/busi- tain protocol mandated by state and ness/business_resources/index.jsp federal governments, and food safety 123-page book available online helps guidelines must be followed by farm- with marketing and legal advice. ers to ensure healthy food reaches the Local Harvest consumer. The table below shows some www.localharvest.org examples of the licensing requirements CSA listings. in Wisconsin for selling various types of agricultural products. The table is just Farm to School an overview; other considerations may www.farmtoschool.org be necessary. Check out the Wisconsin Farm to school connects K-12 schools Local Food Marketing Guide for more with local farms to provide healthy information. meals in school cafeterias while sup- porting local growers. ---Licensing Requirements------Wisconsin Organic Marketing Alliance (may be necessary for ag producers) 608-427-2201 Raw Vegetables/Fruit [email protected] No license required for selling from the organicmarketingalliance.org farm, at the farmers market or to retail Assistance marketing feed and grain outlets crops. Cut Vegetables/Fruit National Farmers Organization 1. Selling from Farm: Retail food estab- 800-247-2110 lishment license required. Processed in www.nfo.org commercial kitchen. Commodity marketing assistance for 2. Selling at farmers market or to retail: conventional and organic growers. Same as above but product must be Wisconsin Grass-Fed Beef Cooperative fully labeled. 715-965-3756 Poultry (Meat) [email protected] 1. Selling from farm (under 1,000 birds/ www.wisconsingrassfed.coop yr): No license needed. Must be fully labeled, including “Not Inspected”. Must With selling and marketing your prod- be handled to ensure food safety. ucts come legal responsibilities. As a 2. Selling from farm (over 1,000 birds/ food producer, it is important to be yr): Retail food establishment license aware of what permits, licensing and required. Must be fully labeled. other legal requirements are necessary 3. Selling at farmers market: Mobile and what regulations must be followed. 9 So You Want to Be A Farmer...

Poultry (Meat) cont’d...retail food Farmers can also access loan programs establishment license. Must be pro- through their State Departments of cessed at state inspected facility. Fully Agriculture, and many states (not WI) labeled. Check local ordinances. also have Aggie Bond Loan programs, 4. Selling to retail outlets: Same as which are specifically directed to- be above, but also warehouse license. ginning farmers. In Wisconsin, the Dairy (Milk, Cream, Butter) Department of Agriculture and Trade 1. Selling from Farm: Dairy license, Policy’s Farm Center can assist growers dairy plant license, personal license for with accessing loan programs, financial butter production. Fully labeled. counseling, including enterprise analy- 2. Selling at farmers market or to retail: ses, feasibility analyses and assistance Mobile retail food license for farmers with debt restructuring. In Minnesota, markets. the State Department of Agriculture’s Ag Development and Financial Assis- ---Financing------tance Division can help producers access loans and grant programs suited to Another important thing to think about their needs. The Minnesota Farmer As- when beginning a farming operation sistance Network also provides advice is how the venture will be financed. In and financial guidance to farmers. The most cases, loans will be needed to fi- University of Minnesota’s Small Farms nance the purchase of land, equipment Center also provides information on and infrastructure. Depending on the marketing and financial assistance, as scale of the operation, the investment well as offering farm credit mediation may range from rather small to quite services. The Center for Farm Financial significant. Producers are usually going Management, also at the University of to access loans through lenders who are Minnesota, can provide producers with members of the Farm Credit System, a tools to assess their financial situation government sponsored enterprise con- and plan the future of their operations. sisting of a nationwide network of co- The state of Minnesota has many loan operatively organized banks and asso- programs available, including basic ciations. Members of the Farm Credit farm loans, dairy modernization loans, System are required to serve the needs sustainable agriculture loans, and so of beginning farmers and have a pro- on. gram in place to furnish sound credit to beginning farmers. Financial plan- The USDA Farm Service Agency (FSA) ning and certain loan programs can be is another important source of operat- accessed through State Departments ing loans, land acquisition loans and of Agriculture. There are a number of beginning farmer loans. The FSA pro- different loans available to finance the vides low-interest loans for established acquisition of land or fund operating producers and beginning farmers who expenses. 10 MOSES Fact Sheet cannot obtain credit from other sourc- ing at land, pay attention to soil types, es. These programs can be useful for landscape, and set up to determine beginners who do not have the assets whether the property suits your needs. which would allow them to purchase a Don’t fall in love too quickly! large quantity of land or make exten- MN Dept. of Ag: Agricultural Develop- sive equipment purchases. ment and Financial Assistance Divison Lori Schmidt, Office Manager Grants are also sometimes available [email protected] for beginning farmers, usually through 651-201-6556, www.mda.state.mn.us/ the state. These monies are generally grants/grants.aspx available to support the farm planning www.mda.state.mn.us/about/ or marketing, but not for buying land divisions/agdev/agfinance.aspx or buildings. The state of Minnesota Information on grants and loans has a number of grants available for available to ag producers. farmers for investment in livestock, University of Minnesota Center for specialty crops and sustainable agri- Farm Financial Management culture, as well as administering cost 1-800-234-1111 sharing for organic certification. Wis- The Center for Farm Financial consin also has cost sharing for organic Management, University of Minnesota certification and specialty crop grants, 130 Classroom Office Building along with grants for the development 1994 Buford Avenue of value added products and new tech- St. Paul, MN 55108 nologies and a Buy Local Buy Wiscon- www.cffm.umn.edu sin grant program to provide technical assistance to growers. Minnesota Farmer Assistance Network 1-877-898-MFAN (6326) ---Finding a Place to Farm------651-201-6326 (local) [email protected] The final step in the process is finding www.mda.state.mn.us/about/ land to begin farming on. New farmers mfan.aspx can do well by starting out on rented Advice on financial and regulatory land, but some choose to buy property. concerns. You can use local realtors, but there are also some resources online where indi- viduals looking to buy and sell or rent land can connect, such as the MOSES Land Link-Up (www.mosesorganic. org/landlinkup.html) and the Land over >>> Stewardship Farmland Clearinghouse (www.landstewardshipproject.org/fb/ Wisconsin Dept. of Agriculture and land_clearinghouse.html). When look- Trade Policy Farm Center Division of Ag. Development 11 ---Finding a Place to Farm, cont’d Wisconsin Dept. of Agriculture and Farm Credit Administration Trade Policy Farm Center [email protected] Division of Ag. Development www.fca.gov 800-942-2474 Locate ag banks that are part of the http://datcp.state.wi.us/core/ FCA in your area. agriculture/agriculture.jsp University of MN Small Farms Center http://datcp.state.wi.us/core/ www.extension.umn.edu/SmallFarms marketingagriculture/marketing Betsy Wieland, Extension Educator agriculture.jsp Hennepin County Marketing, financial, legal, conserva- 417 N 5th St, Suite 200 tion resources and more for Wisconsin Minneapolis, MN 55401 farmers. [email protected] USDA Farm Service Agency p. 612-596-1175, f. 612-348-8532 Wisconsin State Office Nathan Winter, Extension Educator 608-662-4422 McLeod/Meeker Counties Minnesota State Office 840 Century Ave. 651-602-7700 Hutchinson, MN 55350 www.fsa.usda.gov [email protected] Low interest loans for farmers. Search the website for county offices. ~ updated August 2010

The Midwest Organic and Sustainable Education Service (MOSES) serves farmers striving to produce high-quality, healthful food using organic and sustainable techniques. These farmers produce more than just food; they support thriving ecosystems and vibrant rural communities.