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GROWING INFRASTRUCTURE
WITH YOUR VEGETABLE FARM
Katie Brandt & Tom CaryGroundswell Farm
Share in 2 to 3 words:
What would make your farm better in
2016?
VEG FARM INFRASTRUCTURE Groundswell’s Story General Ideas Types of Infrastructure Propagation Greenhouses Hoophouses Wash/Packhouse Coolers Tractors & Equipment Delivery Trucks
Budgeting
10 Years in the Muck!Year Infrastructure Sales Inf.$ FTE Challenges2005
Lease 7 acres of muck in December!
$0 $0 0 Nerves, decisions
2006
16x48 Greenhouse, Well, Truck $17K $12K
2/0 Zero infrastructure, few building skills
2007
Tractor, 8x8 Cooler, Disc, Rotavator
$38K $9K 2/1 Doubling business
2008
Truck, Brush Hog, Hiller, Spin-Spray
$46K $5K 2/1.5
2Floods, interpersonal
2009
GH expansion, $10K Farmer buyout, buy farmsite @ $24,500
$63K $2K 2/2 1 Flood
2010
G Tractor, Potato Planter $87K $8K 2/2.5
New farmer
2011
Potato Digger, Paper pot planter*
$131K
$4K 3/4 Special orders
2012
NRCS Hoophouse, 10 acre ($63K),well*
$132K
$11K
3/5 Drought, Baby
2013
Delivery Truck, Manure spreader, Lifter
$166K
$9K 4/5 Cooler space
2014
30x48 Wash Station, Tractor, Rotavator, Plow, Delivery Truck, Semi-trailer cooler
$190K
$55K
5/5 Building delays
2015
Driveway, Wash Station, Barrel Washer
$193K
~$10K
4.5/6
Staff turnover, Tom arm, high yields
2016
22x32 greenhouse, Semi-trailer cooler
? ? 4.5/6
?
* Starred items were poor investments
ESSENTIALS Walk in CoolerGood soil!!
Greenhouse
Wash stationHarvesting tools
Marketing plan
Farmworkers
Crop plan
Irrigation plan – Drip, sprinklers, solid set, etc.
IMPROVEMENTSMore cooler space
Tool storageScales
Delivery Truck
GROWER TO GROWER STUDY
2002 to 2004 UW-Madison Center for Integrated Agricultural Systems
19 growers 6 @ ½ to 3 acres; 8 @ 3 to 12 acres; 5 @ 12 to 80 acres 18 of 19 were organic or no-spray
Equipment ½ to 3 acres own $2K to $27K of equipment per acre Most at 3+ acres own $4K to $13K of equipment per acre
Up to $27K per acre Up to $70K per farm
13-14% of earnings reinvested in Equipment or Major repairs, regardless of farm size
GROWER TO GROWER STUDY
SURVEY:WHAT 5 INFRASTRUCTURE INVESTMENTS PAID FOR THEMSELVES IN 3 YEARS OR LESS?Hoophouses (5)Greenhouses (3)Cultivators/Cultivating tractors (3)Delivery trucks or trailers (2) Automation of vents in tomato house.
1 year payback due to reduced fungal disease.
Wash packWalk-in coolers (2)TractorWellImplements - potato hiller, mulch layer, carrot lifter, brush hog, undercutter bar/lifter, barrel washer
Not sure/didn’t keep good records (2)MANY THANKS TO Real Food Farm, Full Hollow Farm, Green Wagon, Seeley Farm, Little Red Organics, Green Gardens & Stone Coop Farm
Purchase
Came with Farm
Under $10 K
$10K - $50K
$50-$100K
$100-$200K
Farmland
Imp/Exp Wash Station
Cooler
Tractor
Cultivating Tractor
Implements
Greenhouse
Hoophouse
Delivery Truck
Well
SURVEY: HOW DO YOU CHOOSE INFRASTRUCTURE INVESTMENTS FOR YOUR FARM?Affordable (3) Payback time (2)Labor savings (1)Energy Savings (1)
Needs (2)Reduced Stress (2)Improves crops or soils (1)Ability to move if lease ends (1)
10-year long-range planning (1)Farmworker recommendations (1)
ROXBURY
www.Roxbury farm Do you enjoy fixing and maintaining equipment?Weakest linkHow much value does the equipment generate?How can you pay for the equipment?Is the equipment in good working order? Can nature do anything that you want your equipment to do? What is your personal goal with this farm? Is the new piece of equipment part of the total system of the farm?
SURVEY:DO YOU HAVE ANY ADVICE FOR FARMERS WHO PLAN TO IMPROVE THEIR INFRASTRUCTURE?
Visit other farms/talk to farmers (3) Be scrappy! Build simply to start (3) We built everything the first 2 years after we bought our land.
HUGE capital expense. Wish we had taken more time to evaluate our needs before we spent so much money on buildings
Think of long-term farm needs (2) Remember payback times (2) Consider reductions in stress & exhaustion Be efficient with space & remember work flow patterns
Think of farm goals Get lowest interest rates Don’t invest too much in specialized equipment
Washing $100Ks of veg in a tent shantytown . . .
OR
Build well from the start
SURVEY: GREENHOUSES
Size 700sf ~1000sf (2) ~1500sf (2) ~2100sf (2)
Ventilation Rollup sides Thermostats & fans Automatic peak vents
Heat Propane Natural Gas Wood boiler with passive
solar Heat mats
Floor Gravel Weed Barrier
205 to 299 sf/a
HOOPHOUSES FOR WINTER GROWINGBenefitsGenerate incomeIncrease sales of winter storage cropsWorker retention
Survey: None (2)1,700 sf Propagation house 3,000 sf gothic, rollup sides7,000 sf
30'x96', 14'x126', 14'x160', all with rollup sides16,000 sf
(1) 30ft x 96 Waldo, (3) 30ft x 144 ft Rimols. All have automatic roll up sides with manual cranks too, automatic peak vents, double plastic, roll up or large slider doors (8 ft by 8 ft), and circulation fans
24,000 sf(5) 30x144 ft, (1)30x96 ft, one layer poly, vents at ends
with thermostat, roll-ups to 5 ft4 ground to ground, 2 gutter connects (# sf?)
MSU Student Organic Farm 120-member 48-week
CSA Hoophouse 2200 sf/a
110sf/CSA member
SURVEY:WASH STATIONS
Structures – Pole Barns Lean-to’s A garage A corn crib
Floors Concrete floor with center drainDry well
Equipment Triple sinks 55 to 300 gal. sinks (some with bubblers) Salad Greens
5 gallon salad spinnerWashing Machines for drying salad greens
RootsRoot spraying tablesBarrel washers
Food SafetyDrop-down hoses Hand-washing sinksDrip tables
Heat & ACWhite boards
192 sf/a100 sf/a
WASH STATION DESIGN Leopold Center Wash Lines
Cost under $1000 for structure and sinks Full design and supply list online
Hoophouse Cost
$3,000 for hoophouse $4,000 for cement floor $13,000 for equipment
http://www.leopold.iastate.edu/cool_tools/wash_stations
WHOLESALE SUCCESS
COOLERSSurvey6X8 to 12X12 coolersTwo farms had multiple coolers with different temps
A mobile insulated trailer with cool-bot
Reefer truckNon-mobile 50 ft. semi-trailer with multiple temp zones
180cf/a + 400 cf/a
MSU Student Organic Farm 120-member 48-week CSA Cooler 1000 cf/a
50 cf/CSA member
COOLERS VS COOL-BOTS! Coolers Available used High Humidity Well-insulated Need professional installationCool-bots Low cost to convert insulated spaces
Study shows can be effective if well insulated
May need to add humidity or cover produce
http://practicalfarmers.org/farmer-knowledge/research-reports/2015/coolbot-vs-commercial-chilling-systems-in-walk-in-coolers/
35°F 45-55°F 38-40°F
SURVEY:TRACTORS20 – 85HP Tractors40 – 50 HP common in survey
Cultivation Tractors (often Allis Chalmers G)With cultivators, planters, planet jr, hillers, furrowers
Allis Chalmers G or other cultivation tractor
SURVEY: 3 FAVORITE IMPLEMENTSBed Prep
Rotavotor (4)Falc SpaderR2 rinaldi power harrowPoly Mulch layer
Cultivators (4)Tillage
Chisel plowDisc
HarvestPotato digger (2)Undercutter bar/lifter
Other Brush hog Snow blowerJang seederElectric fence
“We don't like most of our implements. They're frustrating.”
Figure 2. Percentage of organic field crop and vegetable producers in Michigan that have access to agricultural equipment. Source: Carolyn Lowry PhD Dissertation, MSU Horticulture, 2015.
Farm Equipment Lists Grower to Grower
1.5 a = $6K 5 a = $35K 20 a = $43-
85K Sustainable Veg.
Production from Start-up to Market (Grubinger)
TRACTOR FARMING ESSENTIALS
Brush Hog or Flail MowerManure Spreader or
Cone Spreader
Primary Tillage
PlowChiselDiscSubsoiler
Cultivators
Plastic Mulch Layer or Weed Barrier
Secondary tillage
TRACTOR FARMING IMPROVEMENTSPotato Hiller & Plastic mulch puller
Cultipacker
Potato DiggerPotato Planter
Undercutter Bar
SURVEY: DELIVERY TRUCKS Pickup Trucks with caps (4) Trucks with trailers
5x8ft. Insulated trailer with coolbot 6x20 Refrigerated trailer
Box Trucks (2) Cargo Van Minivan Personal vehicles
Pack ‘N Cool Design at https://plantsforhumanhealth.ncsu.edu/pack-n-cool
/
BUDGETING FOR INFRASTRUCTURE1. Enter all supplies into an excel file
a) Get exact prices to the penny for new itemsb) Make a high – low range for used items &
adjust as you learn more
2. Total3. Trim away what isn’t essential4. Multiply by 1.3 (or more) to include
unexpected expenses5. Total & trim away again
Continue Budgeting Annually
Less detailed than 1st seasonNote the large
“Supplies” budget
Track expenses & income and use for planning
Helps to figure out how & if to make large purchases
Expenses Low est. Best Est. High EstimateTractor repairs 1,000 1,000 2,000 Polk St. Payment 4,000 4,000 4,000 Polk St. (Cary loan) 4,000 4,000 4,000 Labor 35,000 40,000 43,500 Labor Taxes 4,000 4,000 4,000 Supplies 12,000 12,000 12,000 Seeds 3,500 3,500 3,500 DeliveryTruck 7,000 7,000 7,000 Sell Pickup truck (4,500) (4,000) (3,500)Gasoline 2,400 2,400 2,400 Propane 2,500 2,500 2,500 Insurance 2,500 2,500 2,500 Utilities 800 800 800 Pay Farmers 31,000 31,000 31,000 Total 108,800 114,300 119,300 Income High Est. Best Est. Low Est Market 34,000 28,000 10,000 Harvest Health 11,000 9,000 3,000 Nourish 2,000 2,000 - WM Co-op 4,000 4,000 3,000 CSA 74,000 74,000 74,000 Total $ 125,000 $ 117,000 $ 90,000 Profit Income 125,000 117,000 90,000 Expenses 108,800 114,300 119,300
Profit $ 16,200 $ 2,700 $ (29,300) Cash assets
Starting Bank balance 14,000 14,000 14,000 Profit 16,200 2,700 (29,300)Year end balance $ 30,200 $ 16,700 $ (15,300)
Assumes 2015 sales & expenses +$7500 MONTHLY CASH FLOW PROJECTIONgarlic sales and tom pay at 2016 rate ($5000)Company: Pre- OWNER:____________________
Start-up Month: Month: Month: Month: Month: Month: Month:Position 1 2 3 4 5 6 7
1.) CASH ON HAND (BEGIN. OF MO.) 9352 9352 8397 5803 15183 13564 14148 192792.) CASH RECEIPTS a. Cash Sales (+$7500 for garlic in Oct) 2902.89 4810.22 15299.79 9086.22 16178.23 23798 23977.11CSA price increase ($25 each for full share, $15 for half) 571 571 571 571 571 571 571 c. Loan or Other Cash Injection (tax return) 4000 -4000 d. Loan or Other Cash Injection e. Loan or Other Cash Injection f .3.) TOTAL CASH RECEIPTS 0 7474 5381 15871 9657 16749 24369 205484.) TOTAL CASH AVAILABLE 9352 16826 13778 21674 24841 30313 38517 398275.) CASH PAID OUTSEEDS 1199.35 3807.07 27.23 129.73 133.8 610.5 192.6Fertilizer 0 0 1175 356 1564.4 32.72 235Gas 0 124.47 41.96 182.62 210.59 386.92 249.35Payroll 342.37 0 0 1171.07 3418.79 8402.91 9108.74Payroll taxes 1776.64 0 95.38 0 1468.72 2779.22 6681.04Minimum wage increase of 35 cents 85 0 4 47 196 447 632
e. Subtotal Variable Expenses 0 3403 3932 1343 1886 6992 12660 17098
2012
FUNDING INFRASTRUCTURE! Buying Reinvesting profits Do you qualify for loans?
FSA Greenstone FCS 0% credit card transfers Do you want/need to spend $$ interest
payments? Alternative Funding Strategies
Family Loans Crowdfunding Investments by customers
WHAT WAS YOUR BEST FARM IMPROVEMENT EVER?