Harvesting A Profit

Making a living on a small farm has probably never been easy. Today's combination of rising costs, declining commodity prices and high expectations makes it especially difficult.

Lots of folks have taken jobs in town to support their farming operation, and fewer families live on or near their farms these days. Some would like to change that trend.

Ron Macher, a Missouri farmer who has weathered the ups and downs of small-scale agriculture for 30 years, points out that small farms (179 acres or less, grossing $40,000 a year or less) make up 80 percent of the farms in the U.S.. While the volume of their output is dwarfed by the other 20 percent, the contributions of small farmers are much larger in other ways.

"These self-employed agripreneurs do not feed 5,000 people per farmer, do not ship everything to Asia or Africa or Europe or the Moon, and do not farm by the University rulebook," says Macher, who publishes the magazine Small Farm Today.

"They do, however, raise safe and healthy crops and livestock to the benefit of their local area, and keep themselves and their families fed, clothed, housed, secure, and happy, and their contributions to the rural community and to the world at large far exceed anything that franchise operations or megafarms have done."

To help other small-scale farmers trying to survive, or new farmers trying to get started, Macher has written a book on Making Your Small Farm Profitable.

Most small farmers are more interested in the lifestyle than the money, but profitability is critical to keeping the family on the farm and the farm in the family. "Sustainability requires profitability," he points out.

Achieving profitability on a small scale requires sound planning, a good set of skills, savvy marketing and realistic expectations. Those who expect to leave their work at the office after a 9-to-5 shift should seek another profession.

Small farm "agripreneurs," as Macher calls them, need to take a realtsic look at "the big picture" and ask themselves some critical questions:

  • "Where is the market for my product?"

  • "Is this the right place to produce this product?"

  • "Will my neighbors be supportive and helpful?"

Making Your Small Farm Profitable suggests and analyzes dozens of enterprises and markets, both conventional and exotic, that have profit potential, from raising organic beef or pork to growing fava beans and bamboo.

Many crops and livestock choices require large volumes to turn a profit, forcing most small operators to look for niche markets and direct marketing opportunities like farmers' markets, subscriptions, mail-order, the Internet, restaurants and cooperatives.

"Plan to have products to sell year-round," the book suggests, offering advice on added value products.

Farmers traditionally produce a product and then look for a buyer. Alternative agriculture turns that wisdom on its head, identifying the market first and then producing to meet its needs.

To be profitable, the small farm must practice retail rather than wholesale marketing, which usually means selling direct to the consumer in some fashion.

"Direct marketing is the profit equalizer for small family farms," Macher concludes.