Presentation Transcript

1. Starting a CSA Beginning Farmer Webinar Eric & Joanna Reuter Chert Hollow Farm, LLC
2. What is Community Supported Agriculture? Customers sign up as members/subscribers for a period of time, generally paying up front, in exchange for a share of a farm’s production Members share in the risk of the farm Receive less in lean times More in good times Most commonly for produce, but also meat, dairy, eggs, baked goods, flowers, etc. Excellent summary of CSAs from Local Harvest: http://www.localharvest.org/csa/ Numerous full-time, professional farmers operating diversified small farms rely on CSA for a portion of income
3. Goal of this talk: Tell the story of the path that we took to start a CSA Outline numerous questions that we had to answer Give examples of what other farms have done Tell you what we decided & why Each farm & each CSA is unique Our answers aren’t “right”; just what we thought would work best for us in our first year
4. Farm location influences the nature of the CSA Chert Hollow Farm, LLC How accessible is the farm? Where is it relative to population centers? Columbia
5. Farm characteristics influence the nature of the CSA How much land? How is it most suitably used? Best land & primary focus: Intensive vegetable production on limited area Focus on closing loops and keeping costs to a minimum Marginal land: Diversification/ on-farm fertility
6. Farmers’ interests & skills influence the nature of the CSA Geologists/natural scientists by training Appreciation of natural diversity Data-oriented, keen on record keeping Computer skills Culinary interests; “foodies” Independent, self-sufficiency minded
7. CSA Basics Why CSA? Is a CSA right for us?
8. CSA from a member perspective Pros Cons Fresh, delicious food from known source Eating with the seasons Experience new types of produce Reduce need for constant grocery shopping Potentially very cost effective way to get veggies/food Build connection with farm (often good way for children to learn to love veggies) Potential to lose out if farm has bad year (or if join a bad farm) Weekly shares may not be compatible with schedule of those who travel frequently May feel overwhelmed with produce at times May sometimes end up with produce items that don’t like very much
9. CSA from a farm perspective (notably, ours) Pros Cons Members pay early in year; cash available when expenses tend to be highest (seeds, supplies) Guaranteed outlet for crops that tend to be overabundant at farmers markets (squash, tomatoes) Know that food has a home; waste reduction Diversity of crops a major asset Build connections with members Allows greater focus on growing food, less on marketing, during the busy season Produce doesn’t have to pass “good looks” contests of market stands Unusual but tasty products & varieties Slightly imperfect items Produce doesn’t have to sit on market stand, wilting, before customers receive it Farm setting itself is an asset; add value to CSA with on-farm events On the hook to perform on a weekly basis through the season Starting a CSA is a long-term commitment; can’t easily back off for a season or a year Less potential to cash in on a “bumper” year Requires high level of record keeping & organization CSA farmers have a responsibility to be well prepared to avoid giving a bad reputation to CSAs in general
10. What kind of CSA? Single-farm CSA Multi-farm CSA Members join a single farm; reliant on the successes & failure of that one farm Multiple farms collaborate to balance strengths/weaknesses & to buffer against loss Grey area in between Some multi-source buyers call themselves CSAs Farm supplements own produce with one or a few produce items (potatoes) Farm promises members to buy in product in case of extreme crop failure CHF CSA; focus of this talk
11. Are we experienced enough to start a CSA? Is the farm ready? Do we have enough experience in this location across a range of weather conditions? Do we grow enough diversity? Are we confident that we can provide enough week-to-week stability of production? Do we have sufficient infrastructure for supporting a CSA (irrigation; produce storage space; transport for shares; etc)?
12. Is the farm buffered against risk? Drought Irrigation lines & reliable water source Methods that improve water-holding capacity of soil Flood Not in floodplain Catastrophic weather event (hailstorm, tornado, severe cold) Multi-season planting plan Pests, crop diseases Diverse planting plan Methods that improve soil & make farm more resilient Equipment failure Limited reliance on equipment Expertise in equipment repair Backup equipment available Farmer injury/illness Trained workers/employees/family members
13. Detailed CSA Planning
14. Membership Production Excess Management Miscellaneous Logistics How many member households? How many weeks of production? What to do with excess production? How to get shares to members? How often and what days to distribute? What products? Where are our target customers? Many Questions What will we pack the shares in? How to take payment? Payment schedule? Fringe Benefits How to set the share prices? Will there be a deposit? What will the newsletter be like? How to advertise? What should the member agreement say? How much food per share; how many crops? Labor Should there be different share sizes? What newsletter format? Should there be a core group? How to manage administrative tasks? What amount of each crop will members want? Ground rules for product use? Split shares ok? Should members get choices in share contents? What kind of on-farm events? Should there be a work component? How to fill extra labor needs?
15. How many member households? A few Hundreds Anything in between Chert Hollow Farm 1st year: 20 households Considerations: Generally a good idea to start conservative & plan to expand; good first impression is important Income goals Past production: What would shares look like if split up previous year’s production?
16. Where are our target customers? Nearest large population center in general Specific neighborhoods Specific workplaces Smaller town/towns in the region Rural dwellers in our vicinity Considerations: Delivery considerations: Greater efficiency if customers somewhat clustered geographically The larger the pool of prospective customers, the more likely membership goals will be achieved Rural mentality not CSA conducive: some people grow their own veggies; many are lower income; few prioritize spending money for quality food
17. How much to charge per share? Full share prices range from hundreds to >$1000 ~$35-$45 per week typical for full shares $1100 + sales tax for full share $700 + sales tax for partial share Some farms have flexible “pay-what-you-can” pricing arrangements Considerations: Farm income goals What can target customers afford? Will there be a work component/discount for work? What others in the area are charging Don’t forget sales tax Separate summer & winter seasons? Certified organic or not? Will there be a deposit? $50 deposit reserves a membership Yes No
18. Should there be different share sizes? Share size (& price) set by number of members in household Share price set by defined share types Full share Partial share Single share Share size: one size fits all intended for multi-person households intended for single-person household Considerations: Too many share sizes: unnecessary complexity to manage Too few share sizes: risk turning away potential customers
19. Ground rules for product use? Some examples: Households allowed to split shares &/or give away produce freely Only take what the household can use during the distribution week For use by the household, food preservation encouraged If out of town, expected to skip share instead of giving share away, with return benefit of access to extras when others are away; maximize benefit of product within membership
20. How many weeks of production? Set number 25 weeks is common for summer season Flexible number within a defined time frame; actual deliveries based on product availability Time frame: Full year Season Summer season Winter season Considerations: Past production season Risk distribution Bookkeeping effort Price sticker shock
21. What products? Produce Vegetables Fruit Herbs Meat Milk Eggs Baked goods: Some farms use to add value in event of crop failure Flowers Offered for sale to members but paid independent of the CSA. Considerations: What the farm already produces Regulatory considerations
22. How much food per share; how many crops? Number of produce types per week 5-10 is common range Total volume per share Approx. a grocery bag Estimated weight per share Number of people that share will likely feed Considerations: How to describe to customer & how much to plan for are slightly different questions Vagueness in quantity description probably a good idea
23. What amount of each crop will members want? Goal: Standard grocery store bundles are a good place to start Draw on market sales experience: How much do people tend to buy? How much do we eat? Reality: Actual distributions sometimes have > or < target Use newsletter to provide recipes to feature appropriate quantities Beets: Just one: grate it on salad Lots: borscht Potatoes Just a few: potato pizza
24. Should members have choices regarding share contents? How to implement? No choice A little bit of choice Swap box Some choice Any distribution type: Limited customization via online survey A lot of choice Farm-stand-style pick up: Available produce set out for members to select; give guidance on how much, especially for limited items
25. What to do with excess production? Give it to members Sell it to members in bulk Sell it through another outlet Farmers market Restaurant sales Other wholesale Preserve it ourselves Give it to the food bank (maybe for a tax break) Feed it to pigs/chickens/goats Send it to the compost pile Considerations: Time/expense of selling at other outlets Effectiveness of other methods at eliminating surplus
26. What will the newsletter be like? Content: Description of produce/products Tips about how to store produce/how long it will store Menu ideas & recipes Food preservation advice Farm updates: good news & bad news Discussion of or links to relevant information about food, farms, farm policy, etc. Nature observations on the farm Announcements of farm events Authorship: Farmers Workers/interns Members
27. What newsletter format? Considerations for choice of blog-format newsletter: No printing costs, no paper waste No additional cost (if already have website or use free blogging platform) Full color No time spent formatting or editing to fit on one page (more time for content) Provide links to existing content; content accumulates over time Members get menu/recipe ideas as soon as newsletter goes live, no wait until share is in hand Survey of members said they were happy with digital format via blog or email; all members have internet/email access Open to world Pro: advertising Con: failures announced to world, too Digital, formatted for printing Digital, blog format Print
28. How to get shares to members? Members pick up from farm Members pick up from market stand Other drop-off location for member pick up Delivery (to work or home) (a few shares) (most shares) Considerations: Farm location Availability of possible drop-off locations Time/expense of each option Total driving efficiency (including time/money spent by customers to pick up share) Driving risk
29. What will we pack shares in? Boxes Cardboard Wooden Plastic Bags Cloth Plastic Considerations: Cost: up-front & replacement cost if lost/damaged/not returned Organic integrity & ability to clean Space efficiency when in use & when not in use Protection provided to produce Advertising value Ease of packing
30. How to advertise? Market presence Website/online presence Our own website Local Harvest website Posts on local food blogs Paper (pdf) brochure Word of mouth Newspaper story Newspaper/radio/magazine advertisement Considerations: Cost Audience
31. How to take payment? Cash/check Credit card PayPal (convenient for members, but has fees) 3rd party CSA-management package What should the payment schedule be? Deposit ($50) Choice of: 1 payment (due January) 3 payments (Due January, March, May) Custom payment plan
32. What kind of on-farm events? Potlucks Farm tours Tasting events Food preservation demonstration Farm-to-table meals Campfires Who can come? Members of member households & any current house guests Considerations: Way to provide value even if have catastrophically bad growing conditions Way to connect to members and have excuse to do something fun, if enjoy hosting such events Events provide motivation to keep farm looking good/house clean Liability risk of having members on farm People have busy lives; too many events may dilute turnout
33. How often & what days to distribute? Members receive shares: Weekly Every other week (an option for members to select a lower-priced share) Farm distributes shares: Twice a week Three times a week Other Monday & Thursday Considerations: Time management for each packing/distribution effort Cost of going to delivery/drop-off location(s) Produce storage time/shelf-life
34. What should the member agreement say? Outline roles & responsibilities of the farmer(s) Outline roles & responsibilities of the customer(s) Make timely payment Understand & accept risk Accept any conditions set by the farm with respect to product use (for example, no reselling, no split shares) No refund
35. Should there be a core group? For many CSAs, the core group is considered absolutely essential. Yes No We’re too independent-minded to want to work with a committee. Core group: A group of members who serve a support role for the CSA. Duties may include: Administrative tasks Advisory role (what to grow, price structure, etc.) Social committee (arranging farm events, potlucks) Member communications (newsletter writing/formatting, providing recipes, answering questions) And whatever else the farmer needs
36. Should there be a work component? Yes, required of all members Yes, but optional No * Work component: Members are expected to work a certain amount during the season, often a couple of shifts, often in exchange for a reduction in share price. Considerations: Will members untrained in farm practices provide enough help to be worth the management effort? Are all members physically able to fulfill a work requirement? Can alternative forms of help be assigned? How far is the farm from where most members live? What is the core goal of the work component? To get work done? To connect with members? To let members develop an appreciation for farm work? How safe is the farm for visitors? What happens if a member gets hurt while taking part? Does the farm have liability insurance? How will children be managed? How much management effort will be put into scheduling member work shifts? Will a work component scare away prospective members? (Busy folks with well-paid jobs , for example)
37. How to manage administrative tasks? Do it yourself Core group 3rd party online CSA-management package (see Growing for Market, Jan. 2011) CSAware Member Assembler Farmigo
38. How to fill extra labor needs? Avoid extra labor needs Work share (each member puts in a few shifts) Employees Paid in cash Paid in product (less IRS paperwork) Interns “Full work share”: Take the CSA work-share concept to the extreme, with a few members working weekly for their shares rather than paying cash; remit sales tax
39. Produce Production Planning
40. What to grow? Beans Winter squash Radishes Potatoes Sweet corn Lettuce Leeks Spinach Strawberries Fall radishes Fennel Sweet potatoes Kohlrabi Melons Peanuts Carrots Summer squash Okra Kale Turnips Garlic Beets Tomatoes Tomatillos Collards Eggplant Cabbage Scallions Onions Sweet peppers Basil Parsnips Swiss chard Edamame Shiitake Snow peas Cucumbers Sorrel Chinese cabbage Snap peas Hot peppers (Not a comprehensive list for Chert Hollow Farm)
41. What to grow? Biological diversity: Diversity by family Beans Winter squash Radishes Potatoes Sweet corn Lettuce Varietal Diversity Example: We grow about a dozen varieties of garlic Diverse: Harvest dates Culinary uses Cold/heat tolerance Pest sensitivities Leeks Spinach Strawberries Fall radishes Fennel Sweet potatoes Kohlrabi Melons Peanuts Carrots Summer squash Okra Kale Turnips Garlic Beets Tomatoes Tomatillos Collards Eggplant Cabbage Scallions Onions Sweet peppers Basil Parsnips Swiss chard Edamame Shiitake Snow peas Cucumbers Sorrel Chinese cabbage Snap peas Hot peppers
42. What to grow? Seasonal diversity Beans Winter squash Radishes Potatoes Sweet corn Lettuce Leeks Spinach Strawberries Fall radishes Fennel Sweet potatoes Kohlrabi Melons Peanuts Carrots Summer squash Okra Kale Turnips Garlic Beets Tomatoes Tomatillos Collards Eggplant Cabbage Scallions Onions Sweet peppers Basil Parsnips Swiss chard Edamame Shiitake Snow peas Cucumbers Sorrel Chinese cabbage Snap peas Hot peppers spring for spring harvest, summer for summer harvest, summer for fall harvest, fall for fall harvest, fall for winter harvest, fall for spring harvest
43. What to grow? Culinary diversity Leaves Herbs Roots/tubers Bulbs/stems Fruits/pods Seeds Beans Winter squash Radishes Potatoes Sweet corn Lettuce Leeks Spinach Strawberries Fall radishes Fennel Sweet potatoes Kohlrabi Melons Peanuts Carrots Summer squash Okra Kale Turnips Garlic Beets Tomatoes Tomatillos Collards Eggplant Cabbage Scallions Onions Sweet peppers Basil Parsnips Swiss chard Edamame Shiitake Snow peas Cucumbers Sorrel Chinese cabbage Snap peas Hot peppers
44. Diversity promotes stability Diversity aids in risk management Biological diversity buffers against massive loss by pests, disease, difficult weather conditions Seasonal diversity buffers against being wiped out by extreme weather event (hailstorm, etc.) Diversity distributes work load over time Diversity provides culinary interest and motivation
45. Recordkeeping Good records provide information that is crucial for planning
46. Where/when to grow each crop? Weeks of the year Locations on the farm Plan of planting, transplanting, harvesting, & other tasks Planting guide & forecast of harvest schedule Can assess week-to-week possible share contents 2012 Chert Hollow Farm Plan
47. How much to grow? Yield data available from various sources We’ve compiled some; available for download here For Excel 2007:www.cherthollowfarm.com/transfer/crop_income_comparison_model.xlsx For older Excel versions:www.cherthollowfarm.com/transfer/crop_income_comparison_model_oldExcelVers.xls
48. Share content strategizing Goal: Plan to minimize lean weeks Post-spring crop & pre-summer crop tends to be low for us (late June to early/mid July) Plan to plant a little extra of crops that do produce then Store crops such as beets, cabbage, carrots to distribute for several weeks after harvest to minimize the gap Goal: Alliums every week Goal: Don’t overwhelm with squash Avoid perfect succession plantings for some items to provide a break Goal: Salad potential every week (not necessarily greens-based); use newsletter to communicate ideas Spinach salad Lettuce salad Cabbage slaw Cucumber salad Greek salad (chunks of tomato, cukes, pepper, onion; no greens) Misc. fall greens salad (cabbage, lettuce, baby brassicas)
49. Share Customization with Online Surveys Our solution to the “share the bounty” problem
50. Why customize shares? Appeal to wide range of members Light produce eaters & hard-core veggie lovers Minimize waste Production-end waste reduction: “Share the bounty” without overwhelming those who don’t want bulk extras; efficient outlet for true excess Can offer “seconds” if explain to members what they’ll get Consumption-end waste reduction: Members can reject items that they don’t want or won’t use Improved value for members via effective trades Members get more of what they want, less of what they don’t, so perceived value greater than completely equal distribution Good record keeping is a by product of the system What has been distributed What is popular and what isn’t (and how much agreement)
51. Share customization Downsides Takes extra time to prepare & compile surveys But, office time is good balance to field work & helps make better use of field work Makes us quite reliant on internet & printer But members learn benefits of customization if they all get standard shares during a failure Share packing not as efficient as completely standardized shares But not much worse than multiple share sizes or restaurant custom packing, esp. if organized Requires good anticipation of what will be ready days to a week or more prior to harvest But not so bad with some experience Our first year in, we are convinced of a net benefit
52. Online surveys for share customization LimeSurvey Open-source software (free) Runs on a web server with database capability (not free) Example: cherthollowfarm.com hosted by WestHost Various suitable packages, generally run <$10/month
53. Online surveys LimeSurvey Spreadsheet program Develop (or copy/tweak) survey Summary table (harvest list) Results LimeSurvey sends survey invitation email Members fill out survey Packing slips Import names & email addresses Noon Sunday: surveys due Friday after lunch: prepare survey Sunday after lunch: compile surveys Monday: pack/distribute shares Repeat: send surveys on Mon. for Thurs. distribution
54. Survey example Many question types to choose from Multiple choice Free text Various array-type questions
55. Survey example Our survey also includes: Herb choices Bulk extras (as available) Milk order Egg order Administrative questions Can be completed on mobile devices
56. Summary of survey results Use a custom template in Excel to summarize surveys
57. Packing lists Print 5 or 6 to a page Cut into strips Clip to bags Behind-the-scenes trades effectively increase customer satisfaction for a set amount of food. ----------------- We put in the mental work associated with the surveys to gain more from the physical work of growing the food.
58. On to another year... End-of-year member survey Add more memberships? Raise prices? Increase/reduce share sizes? Too much/not enough diversity of product? When to hold prospective member tours?
59. Other resources Book: Sharing the Harvest Websites of CSA farms such as: Happy Hollow Farm Fair Share Farm and many more Book/CD: Market Farm Forms CSA farmers in your region
60. Questions? www.cherthollowfarm.com contactus@cherthollowfarm.com