Friday, September 26, 2008

The Business of Agriculture

The Business of Agriculture
Issue II Version 1 Series 1

How would a diversified farm earn enough money to pay for its debts. It would have ot sell products produced on the farm. What would those products be. They would be dependent on what the farm is capable of. What is the farm capable of? It depends on what is the basis of the farmers capability. This is the final answer, what is the farmer capable of?

On a diversified farm that is based in dairy operaions, including various dairy types, the farm is capable of consistant income. Dairy operations have a daily output, and if staggered they are able to produce year round income streams. While winter production is lower it can be sufficeint to support the basic cost of the operations, if structured properly to make the best use of the raw materials. A raw producer is only capable of producing income from buyers. If the value of milk products are reduced, the income of the farm is affected immediately. It is also limited by the amount of dairy production animals that are raised. As there is many other factors, the dairy operations are highly affected by many market factors, and by many on farm factors. In the case of dairy cattle, how many cattle the farm has is directly porportionate to the potential income of the operation. If one cow produces a certain volume of milk on average throughout its wet period then the total amount of cows will produce a certain quantity of milk for a given period of time. If the cow is wet for a certain amount of time, they will then be dry for a certain period of time. Given this, a conventional operation will then have times when they are wet, and times when they are dry.

Friday, September 19, 2008

New Plan B

“The Farm”

Starting over, okay, in an old home town. We know the where, we need to discover the how. This is a document to discover how we are going to build, operate, and finance “the farm”.

Where is in Oswego County. Exactly where in Oswego County is a little more difficult to determine as yet, but preliminary searches has identified at least a couple of potential opportunities; however further investigation will be necessary to completely vett out the short list of properties. Some indicators are, that it is East of Mexico, West of Parish, and South of Central Square, although this is not precise enough to determine that it be exactly in an area, or that it is not in any of the particular municipalities, but that our belief is that our opportunity is most likely in an area near or between the Hamlet of Hastings, and the Villages of Mexico and Parish.

The why may be easier to determine. “The Farm” is the base of all our operations, including our agricultural ones. First “the farm” is exactly what it is, a farm. A diversified agricultural operation with dairy and meat purposes, as well as horticultural and grain purposes. The basis behind this is a sustainable operation that supports itself, and its community through full development of all the processes that are needed to provide the basic products that are the result of the operations. For example; grain such as wheat is useless to most animals including humans until processed. On “the farm” we will build a grist mill, to process the wheat and other grains into usable products such as groats and flours. Further we will also build a bakery that will process the flours into baked goods (mostly breads) that then will be used on “the farm” and also sold through our marketing programs. We will also provide a percentage of our production to help support our food programs for homeless and people with low to no incomes (see food bank program). Grains will not be processed for use by the animals as such, as there is very little value in the processing of grains for animals, with the exception of post processed materials, such as shaft and other hard materials which will be processed further for cellulose values, and then the final use will be as filler for animal supplements (see animal feed stock programs). This same processing program is followed throughout the outputs including the building of a dairy and creamery for the processing of raw milk products. In addition we will be building cheese caves, for the processing of dairy products. To facilitate all this building we will build several support operation buildings, such as a large back draft kiln, a foundry and forge, various other shops such as a cabinet shop, a mill wright shop, a blacksmith shop, and the list is continued (see support operations). The additional benefit to this design and building is that we will be providing work for more people in the community that will work the various operations that are on “the farm”. The secondary benefit to this plan is that we will also be preserving talents and arts that are seldom used in current technological society. We will also be providing many educational opportunities to the community to see the operations, to learn from the operations, and to duplicate the same operations in their communities. We will also be providing a tourist attraction, including accommodations and hospitality, appropriate to the programs. Additional support systems include development of a community school, a community health and wellness center, and a knowledge center for independent study of the greater knowledges. We will also be developing energy programs some of which will be traditional and some of which are experimental; such as wind generation and water powered mechanical systems, but also hydrogen fuel cells, and other more experimental solar technologies (see energy plan). This is a multi year plan, with many programs being conducted through a process of appropriate development from one technology to the next. Our first program will be to build the draft kiln and forge to facilitate the processing of local materials into building materials for the other programs. We will also build a wood mill, and supporting shops to enable us to build other structures using those processed materials. We will then build housing for animals, including humans, allowing us to then begin to allocate the animals (see animal matrix) that will then provide the products that will be further processed as we continue to build other programs. We will be continuing the building programs for the first three years as we continue to build the initial functional programs of “the farm”.

The second easy question is when, well sort of. If the question of when is when will we get started, well that is now, or at least as soon as possible. We will work with the various organizations to try to get the operation started and through basic functioning by Spring of 2009. The basic functioning will require certain tools and equipment and focus to enable us to begin with the basic functional constructions while developing the basic living structures that will also be needed temporarily to create a workable foundation. We have nothing to start with, which in some ways is considered a disadvantage; however it also is an advantage. How is it an advantage? On the basis that we can structure our entire operation to be sustainable, and “green” (see “green” initiatives). One particular area where this is evident is in equipment, where we will utilize alternative fuels such as bio-diesel, but we will also utilize electrical equipment, with the energy coming from our initial energy programs. This of course means that we will need to build a bio-diesel plant very early in the process. We will need a skid steer tractor to begin building. We will need to look for one that utilizes diesel to ensure that we can utilize renewable bio-diesel fuels. This will also be the main piece of equipment that will be used on “the farm” throughout its operations. Many field operations will be performed through horse drawn processes, although, some will be performed with mechanical machines, some of which will be electric. So the when is more determined by the completion of this document, the working with various organizations (such as Cooperative Extension and Farmlink), and obtaining the seed capital to begin the process of building after we have solved the where, why, and how problems.

Who is the next question. At this time the program is headed by myself and my wife. We feel the need to begin this program and direct it through its first few years, while we are certain that others will be involved in different capacities as we continue to build “the farm”. I am currently unemployed at this time, so I am collecting unemployment while I search for a job in the area where we are planning on locating. I am also a self employed general contractor, although because we are currently not located where we are planning on being located, I will have to re-build the business once we are located in the area we plan on being located. I am also seeking to obtain my insurance certificate so that I can offer people and businesses in my community insurance products. This will be in addition to all that we are planning on doing with “the farm” and the various other organizations that we are planning or will be involved with. My wife Arleta, will be obtaining her degree in Accounting so that she will be able to offer that service to people in our community. She is also obtaining her tax preparer certificate so that she can offer that service while she completes her degree. She will also be making products for sale, with some proceeds going to our not-for-profit organization. She will be making candles and jewelery which we will sell on-line and in various boutiques in the area. She will also be working to building her soap and personal care products company, as we are able to fund that program as well. We will be selling our agricultural products in various stages of production, continuing to build the diversity of production systems to better serve our community (see farm production).

Lastly is how. This is where I have the greatest difficulty. I have nothing but my knowledge to bring to this. Well that and my determination and physical capability to get the job done. I am not a great sales person, so selling the plan to investors will be difficult for me, but necessary. We will need to find not just seed capital to allocate land and basic equipment, but also operations capital, growth capital, and of course capital for the purchase of animals, seed stocks (see seed banks), and tools and equipment for operations of “the farm”. I do not know how much this will cost, as this is a work in progress. I will work to determine at least how much we will need to seed “the farm”, but there will need to be more cost figures determined. We will need to estimate our potential incomes from all the various steams. Consider that a portion of the production is provided directly to needs organizations through our not-for-profit organization. This is not loss, but overage that will be absorbed by the incomes and funding derived by the members of such programs as the Community Supported Agriculture, and home delivery programs (see income stream plans). We will also market our products in local markets, through local farmers markets, local grocery stores, local restaurants, and local schools. We will also be developing hospitality programs which will include an on farm market, an on farm restaurant, and other such processed food programs. We will be working with local farms to assist us in diversifying our product matrix, and to enhance the local agricultural network. These are but a few examples of our marketing programs, and will be included in our income matrix. I will need assistance in planning this part of the plan as this is not an area where I am very strong.

This is all I got for now, more will be done later, but for now, I must pack our belongings as we have lost our house and have to be out in the next six days. We have by the grace of great friends and relatives been able to afford to make the move from Geneva, NY to Oswego, NY (or actually North Syracuse, NY for the moment) and secure our belongings until we can complete the planning process at least to the point of obtaining the initial seed capital.

This is published on my blog so that anyone that wishes to comment may have that opportunity.

Sunday, September 07, 2008

The World Wastes Half Its Food!

The World Wastes Half Its Food!

Getting to this one, whoa, what a source for fire. Ya, know don't get me started. But I will get back to this, and we'll have a good time then, yea, oh yea, we'll have a good time then. Slow and to the tune of whatever is going on in your head.

Low-cost Living

Low-cost Living

This blog is a great resource for simple living advice.

Thursday, September 04, 2008

Now and Future Plans

Our plans are to build a horticultural operation, based on three main green houses and perennial gardens. This is based on our current potential property. We will build two 20x40x20 tunnels (tube houses) and one 20x60x20 tunnel that will create a L shaped green house complex. This complex will also have a fence around it, allowing our chickens to be used to keep the complex clean. In the green houses we will grow market crops specifically for target markets. We are currently working with individual organizations to determine what they are seeking and this will determine what we grow. All the operations will be certified organic. We will be installing a water treatment plant that includes filtering systems designed by myself. It will include the OWR by Nordic Living Water. It will also include a gray water system that will provide continuous water to the green houses through a passive filtering system and drip and mist system.

We will build an electronic monitoring system based in open source technology and utilizing hand held computer for local data capture and wireless network for instant transfer of captured data of both active and passive monitoring systems. This will all be held in a database that will be used to analyze the data and then provided to our customers in near real time, so that they will have up to date information on the health and progress of their crops. This will also allow us to provide data for educational purposes, and to educational institutions, specifically our educational partners, including Cornell University and Cornell's Cooperative Extension. W are currently working with Cornell's Cooperative Extension to put together the financial plan needed to begin operations.

We will also feature extensive perennial gardens with many herbs and other plants for seasoning and medicinal purposes. The gardens will also be ornamental and based in permacultural practices, providing for aesthetic values. We will also be featuring local connections to local educational institutions to provide educational opportunities to elementary through high school students about organic agricultural.

We are also talking with the farmer that owns the land surrounding our property to arrange for some type of expansion of our current property either through a long term lease or through a purchase plan that will allow us to expand our operations into livestock, dairy and other operations.

We will also be considering housing in the future, to provide some type of housing provision for individuals and couples who will assist us in the operations of our organization.

We currently are in contact with several retailers, and restaurants in Rochester and Seneca Falls, NY to provide them with green house products. We will also provide products direct on the farm through a farm stand. We are also considering local farmers markets, however we have not investigated that avenue as thoroughly yet to consider it a viable outlet at this time.

More information is available about this project by contacting the principal James E. Doud at this site, through the comment system. We can not provide an email address here, as the level of spam that will be generated does not allow us to do this at this time. We are working on this, and will be putting a website up soon, that will allow people to contact us directly.

We are also interested in investment partnerships, in either finance or in knowledge, and they can contact us through the website once it is up and running. The web address will be posted here when it is completed and operating.