Relationship Marketing

Spring is one of my favorite times of the year. Not only is nature blossoming back to life but the farmers' market season is upon us!

I love when the Columbia Farmers' Market finally opens. I know I'll be able to purchase loads of fresh and locally grown items; things I've missed during the seemingly unending winter. Besides being fresh and local, I like to buy directly from the farmer. Not only do I know most of the farmers at the market through work, but many of them I have developed a relationship with them outside of the working relationship. They know who I am; they know my kids and my purchasing likes and dislikes. This is called relationship marketing. Once a producer develops a personal relationship with a customer, it makes it awefully hard for that customer to stop buying from you.

So you might want to consider how you can develop relationship marketing within your marketing plan. Make it a point to learn your customers names, give attention to their children and always smile. For more information on marketing direct to the consumer go to the Missouri Alternatives Center's website and click on the letter "M".

Advertising

When most people think of the word advertising they usually want to know how much it will cost them; big bucks they think. Well, not all advertising needs to be expensive. There are lots of things you can do that are considered advertising that won’t cost you an arm and a leg. Here are some of those ideas.

* business cards – always carry them with you so they are handy to hand out

* create a colorful logo so even without wording people will know instantly who it is

* wear baseball caps with your logo and/or the name of your farm

* write press releases about your farm or farm products and send to the local newspapers

* wear t-shirts with your logo and/or the name of your farm

* place posters or colorful notices about your farm and products around town

This is just a short list but there are simply lots of creative ideas you can come up with that won’t cost you tons of money.

Meeting to Explore Introductory Beekeeping Skills

(written by Tim Baker, Horticulture Specialist, Grundy County Extension Center)

In the fall of 2008, MU Extension held a series of meetings on beekeeping in Northwest Missouri. The workshops were taught by Raymond Heldenbrand, a Daviess County beekeeper. When we held the meetings in Jamesport, Stanberry, and Spickard, I was amazed at the response. In all, over 100 people attended the three meetings.

Ever since then, I’ve been getting calls asking when we were going to have the next meeting. These calls have come from all over.

In response to that demand, we are again going to have a meeting on beginning beekeeping, taught by Raymond Heldenbrand. The meeting will be held on May 6th, at the Daviess County Public Library, in Gallatin, MO. The meeting will begin at 6:30 PM.

Raymond has extensive knowledge of beekeeping. He has kept bees for over 15 years. He will discuss basic bee biology, what equipment you need to buy, how to take care of the bees, and even how to capture a swarm.

In addition to his discussion of basic beekeeping, Raymond will bring equipment to demonstrate. He will also have an observation beehive with live bees in it so you can see them up close. Since they are contained in the hive, and can’t get out, you don’t need to worry about getting stung.

While the meeting is geared toward beginning beekeepers, some of the people who attended the meetings in 2008 were already beekeepers, with extensive knowledge. They came to share and discuss their love of beekeeping. It was interesting to see the discussion of beekeeping methods among experienced beekeepers, and a lot of helpful knowledge was shared at all levels. So if you are already a beekeeper, you are welcome too.

If you would like further information on this meeting, please call the Daviess County Extension Center at 660-663-3232.

NOTE:  For additional information about beekeeping, there is a great publication called Beekeeping in the Midwest from the University of Illinois.  Plus there is the Missouri State Beekeepers Association which has annual meetings, newsletter and sets up a booth at the Missouri State Fair each year as well as lists all the local associations across the state so you can find a local monthly meeting close to you.

Loans for Socially Disadvantaged Persons (Minorities and Women)

Overview

The U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA) makes and guarantees loans to eligible socially disadvantaged farmers (SDA) to buy and operate family-size farms and ranches. Each fiscal year, the Agency targets a portion of its direct and guaranteed farm ownership (FO) and operating loan (OL) funds to SDA farmers. Non-reserved funds can also be used by SDA persons.

An SDA group is a group whose members have been subject to racial, ethnic or gender prejudice because of their identity as members of a group without regard to their individual qualities. These groups consist of American Indians or Alaskan Natives, Asians, Blacks or African Americans, Native Hawaiians or other Pacific Islanders, Hispanics and women.

The Agency:

■ Helps remove barriers that prevent full participation of SDA farmers in FSA’s farm loan programs; and

■ Provides information and assistance to SDA farmers to help them develop sound farm management practices, analyze problems, and plan the best use of available resources essential for success.

Types of Loans and Uses of Loan Funds

Direct farm ownership loans (FO) and farm operating loans (OL) are made by FSA to eligible farmers. Guaranteed FO and OL loans are made by lending institutions subject to Federal or State supervision (banks, savings and loans, and units of the Farm Credit System) and guaranteed by FSA. Typically, FSA guarantees 90 percent of any loss the lender might incur if the loan fails. FO funds may be used to purchase or enlarge a farm or ranch, purchase easements or rights of way needed in the farm’s operation, erect or improve buildings, implement soil and water conservation measures, and pay closing costs. Guaranteed FO funds may also be used to refinance debt.

OL funds may be used to purchase livestock, poultry, farm equipment, feed, seed, fuel, fertilizer, chemicals, insurance, and other operating expenses. The funds also may be used for borrower training costs, closing costs, and to reorganize and refinance debt.

Terms and Interest Rates

Repayment terms for direct OL depend on the collateral securing the loan and usually run from 1 to 7 years. Repayment terms for direct FO vary but never exceed 40 years.

Interest rates for direct loans are set periodically according to the Government’s cost of borrowing.

Guaranteed loan terms are set by the lender. Interest rates for guaranteed loans are established by the lender.

Downpayment Program

FSA has a special loan program to assist socially disadvantaged and beginning farmers in purchasing a farm. Retiring farmers may use this program to transfer their land to future generations.

To qualify:

■ The applicant must make a cash down payment of at least 5 percent of the purchase price.

■ The maximum loan amount does not exceed 45 percent of the least of (a) the purchase price of the farm or ranch to be acquired; (b) the appraised value of the farm or ranch to be acquired; or (c) $500,000 (Note: This results in a maximum loan amount of $225,000).

■ The term of the loan is 20 years. The interest rate is 4 percent below the direct FO rate, but not lower than 1.5 percent.
 
■ The remaining balance may be obtained from a commercial lender or private party. FSA can provide up to a 95 percent guarantee if financing is obtained from a commercial lender. Participating lenders do not have to pay a guarantee fee.
■ Financing from participating lenders must have an amortization period of at least 30 years and cannot have a balloon payment due within the first 20 years of the loan.

Sale of Inventory Farmland

FSA advertises inventory property within 15 days of acquisition. Eligible SDA and beginning farmers are given first priority to purchase these properties at the appraised market value. If one or more eligible SDA or beginning farmer offers to purchase the same property in the first 135 days, the buyer is chosen randomly.

Where to Apply

Applications for direct loan assistance may be submitted to the local FSA office serving the area where the operation is located. Local FSA offices are listed in the telephone directory under U.S. Government, Department of Agriculture or Farm Service Agency. For guaranteed loans, applicants must apply to a commercial lender who participates in the Guaranteed Loan Program. Contact your local FSA office for a list of participating lenders.
 

Further information is available from local FSA offices or on the FSA Web site

Grow Your Farm Graduation

Last week I attended the final session of the Warrenton Grow Your Farm class. What an outstanding experience!! It was obvious that the leaders, Shelly Bush Rowe and Janet Hurst, had led the six families through fruitful learning exercises, interactions with key professionals and potential mentors, and serious planning and budgeting. The camaraderie and support that has developed within the group was abundantly evident.

Each of the participating families was at a different point in their planning, but all had made huge progress in their planning and actions since the first meeting. The Knolls of Seven Cedars Farm may have progressed the most, partly because they were already in business and pretty certain of the direction they wanted to go. During the Grow Your Farm course, the Knoll’s focused on their goals + strengths + resources + constraints and mapped out their future direction. They came to the last class session with a new sales brochure, new business cards, a price list for the plants they will be offering for sale and the beginnings of a website. If you need hostas, ornamental grasses, flowering perennials, knockout roses and/or flowering shrubs, the Knolls are ready for you; call (314) 541-0195. They’re located in the Jonesburg area.

As a contrast to the Knolls, Dave and Margita came to the first class with only the idea that they hope to one day own a small farm. And, even though they have not yet found that “right” farm it was evident the 8 sessions had been valuable to them in helping sort out feasible options that fit their goals, personalities and resources…and for helping them avoid making a potentially unwise decision.

After giving her testimonial on the value of the 8 sessions and 3 farm tours to her, one participant asked the question: “Why didn’t more people enroll in this course?” And, the conclusion was: It is NOT about the number of people who enroll; it IS about helping families and individuals who are truly interested and committed to assess their unique situation and develop a plan (or plans) that fit with their aspirations, resources, lifestyle choices and income needs.

A “tip of the hat” to all involved in Warrenton for a successful and inspiring, Grow Your Farm group journey.  (Ken Schneeberger)

Specialty Crops Workshop

May 13, 2010 all day

Missouri State University • Mountain Grove Campus • Faurot Hall Room 101/102

A workshop for fruit, vegetable and cut flower growers and for those who are considering such an endeavor is offered. The new high tunnel and Drangen work cart will be featured at the meeting.

Sponsored by the State Fruit Experiment Station - Missouri State University, Kansas State University, University of Missouri Extension and Lincoln University.

Register by Tuesday, May 11
Admission Cost: $15.00 includes lunch and handouts
Contact: Pam Mayer at PMayer@MissouriState.edu or (417)547-7533

Specialty Crops Workshop Schedule

8:30 am – Registration begins

8:45 – 9:00 Welcome

9:00 – 9:45 Cut Flower Transplant and Bedding Plant Production in High Tunnels, Dr. Alan Stevens - Kansas State University

9:45 – 10:15 – Vegetable Production in High Tunnels, Mr. Andy Read - South Central Regional Horticulture Specialist

10:15 – 10:30 Break

10:30 – 11:00 Highbush Blueberry Basics, Dr. Martin Kaps - Research Pomologist

11:00 – 11:30 Elderberry Production, Mr. John Avery - Fruit Grower Advisor

11:30 – noon Bramble Production, Ms. Marilyn Odneal - Outreach Advisor

Noon – 1:00pm Lunch at the Station

1:00 – 2:00 Tomato Grafting Discussion and Demonstration, Dr. Sanjun Gu - State Vegetable Specialist

2:00 – 3:00 Progress report of the new high tunnel at Mountain Grove

3:00 – 3:30 Field demonstration of the Drängen motorized work cart.

Are you considering a CSA?

Community supported agriculture (CSAs) refers to farms where consumers interested in healthy, safe food join in an economic partnership with growers seeking stable markets. (Click here for history of CSA.) Consumers pay in advance for a whole season of produce which they receive on a weekly basis from roughly mid-May until October. For beginning farmers, the concept of CSAs is attractive because it helps to lock in customers (you don’t lose your members to someone else at the farmers’ market and consumers just don’t wimp out and quit coming to market). It’s also nice because theoretically you should share the harvest risk with your members. If cool, rainy springs lead to delays for full summer vegetables, members of your CSA will understand and eat what is available. Eaters like CSAs because they get to know one farmer, and – speaking from personal experience here – it provides an adventure in eating vegetables! As a farmer for a CSA you need to be prepared to offer lots of recipes – most consumers don’t have enough recipes on hand to figure out what to do with bok choy three or four weeks running!

But beginning farmers should think hard about jumping into the CSA model right off. CSAs require excellent management skills in addition to production skills. Growing such a wide variety of crops (usually 60 or more different vegetables, herbs, fruits or other crops) throughout the growing season requires knowledge of different growing techniques and carefully planned planting and harvesting, in addition to extra labor. Really – if you haven’t been producing vegetables for another farm or on your own for at least 5 years you should delay starting a CSA until you’ve been able to experiment with farmers’ market and restaurant sales. Another way to get involved in CSA without everything falling on your own shoulders is to partner with other farmers to create a cooperative CSA. Missouri has a number of CSAs -- you might check out Fair Share Farm to see one with core group members doing a lot of work or check out a cooperative CSA such as Fair Shares in St. Louis. You can also catch up on regular CSA articles written by farmers in “Growing for Market” a great little magazine for direct marketers.  (Mary Hendrickson)