Reaching New Audiences: Implementing the Nevada Herds & Harvest Program

Program Overview

Staci EmmCarol Bishop

Pamela PowellHolly GatskeJay DavisonSteve LewisSteve Foster

Loretta Singletary

Standard Beginning Farmer and Rancher Development Project

Funded by the National Institute of Food and Agriculture (NIFA)

Began August 1, 2012.Long term goal…

◦Create and enhance the sustainability of Nevada’s Beginning Farmers and Ranchers (BFR’s) through education, mentoring, and outreach to own, operate and sustain an agricultural operation.

The BFR Project

Production basicsEntrepreneurshipBusiness and financial trainingEnvironmental complianceDiversification and marketing strategiesMentoring and Outreach

The BFR Project

The project specifically targets…

◦Hispanic◦American Indian◦Women◦Individuals that qualify as socially

disadvantaged and limited resource

Creating a New Program

How do you create a program with sustainability

UNCE was reinventing itself at the same time due to a 70% budget reduction.

Several planning meetings discussed marketing and branding UNCE agriculture programs.

Going Back to Basics – Creating Program Sustainability

Current agriculture social and economic environments in Nevada were reexamined.

Marketing and public relations efforts were placed on building long-term relationships

Needed to build a dynamic participant base for UNCE agriculture programs.

Steering Committee

Active farmers and ranchers

University faculty

USDA agencies

Local farming organizations

Hot Topics

The Steering Committee selects three distinct agriculture “Hot Topics” for the year

Specialized business plans, marketing concepts, environmental compliance guidelines and other related materials evolve around the “Hot Topics”

Distance Education

UNCE provides distance education throughout the state via an Interactive Television Video (ITV) system

The ITV enables producers to attend Herds & Harvest educational workshops throughout Nevada.

Marketing Management

“Hot topics”◦Planning, implementation and analysis

Understanding producer needs

Developing educational materials to meet personal values of producers

Building a recognizable brand for UNCE agriculture programs.

The Name – Change It!

Focus group sessions revealed that the name Beginning Farmer and Rancher Project did not adequately capture program goals, nor did the name sufficiently elicit participation from existing farmers and ranchers.

A New Name was created.

New Name

Brainstorming session created…◦“Herd & Harvest”

A logo was created along with a display

Every program brochure is designed by a graphic design artist.

Herds & Harvest

Herds &

Harvest

Herds &

Harvest

Herds & Harvest

Marketing Management

UNCE, Mineral County took responsibility for program marketing and distribution

All marketing concepts were applied to all segments of the program

Program development staff was hired to assist in marketing management

Program Kick-off

2012 Cattlemen’s Update◦Reached 475 producers around the state

Created Herds & Harvest mailing list

Utilizing Enterprise Budgets for Producer

Mentoring

Methods

Introduced in collaboration with topic

Instruction in basic components

Followed by hands-on example

Is it worth it?The Importance of Enterprise Budgets

Carol Bishop, M.S.Extension Educator

Northeast Clark County

Can you break even?

What’s your number?

Net revenue = gross revenue – operating or variable costs – fixed costs

Per Square Foot / Per Acre

+ =

Enterprise BudgetsUse this information to estimate

outcomes from future activitiesNot recordkeepingGuesstimation

Purpose

Help with decision making ◦Crop choice ◦Extent◦Equipment purchase or custom work◦Labor

Added benefits

AGRONOMICS DETERMINES ECONOMICS

Where do I start?

What equipment do I need? ◦Investment Summary

Is this a perennial crop?◦Establishment Costs

What are my revenues & expenses?◦Costs & Returns

What if I need a loan?◦Monthly Cash Flow

Example

Assumption◦Hoop house◦Part of 5 acre operation◦Travel in summer months to market◦Sell on-farm and locally in winter

Investment Summary

What will I need to conduct this operation?

Lists all tools & equipment neededCost at time of purchaseHow long it will last

Investment Summary for Hoophouse Production

Annual Equipment Costs

Description Purchase

Price % UsePurchase

PriceUseful Life

(Yrs) Salvage Value

Annual Capital

Recovery Annual

Insurance Annual Taxes

Annual Repairs

Annual Fuel & Lube

Buildings, Improvements, and Equipment

Land 37,500.00$ 7% 2,625.00$ 150.00 -$ 17.50$ 8.74$ 13.13$ -$

Land preparation 497.50$ 100% 497.50$ 5.00 -$ 99.50$ -$ -$ -$

Hoophouse 1,289.38$ 100% 1,289.38$ 5.00 -$ 257.88$ -$ 6.45$ 12.89$

Ground Cover 209.15$ 100% 209.15$ 5.00 -$ 41.83$ -$ -$ -$

Trellising 210.00$ 100% 210.00$ 10.00 21.00$ 18.90$ -$ -$ -$

Row Cover and Pins 113.44$ 100% 113.44$ 5.00 -$ 22.69$ -$ -$ -$

Shade Cloth 315.28$ 100% 315.28$ 5.00 -$ 63.06$ -$ -$ -$

Implements 750.00$ 100% 750.00$ 10.00 75.00$ 67.50$ -$ 4.13$ 8.25$

Drip Irrigation System 1,303.74$ 100% 1,303.74$ 5.00 -$ 260.75$ -$ -$ 13.04$

Water Tank 285.00$ 100% 285.00$ 10.00 28.50$ 25.65$ -$ -$ 3.14$

Sub Total 42,473.49$ 7,598.49$ 124.50$ 875.25$ 8.74$ 23.70$ 37.32$

Machinery and Vehicles

Cooler Trailer $ 6,996.70 50% 3,498.35$ 15.00 349.84$ 209.90$ 12.81$ 19.24$ 38.48$ -$

1/2 Ton Pickup 30,000.00$ 15% 4,500.00$ 8.00 450.00$ 506.25$ 16.48$ 24.75$ 49.50$ 198.00$

Sub Total 36,996.70$ 7,998.35$ NA 799.84$ 716.15$ 29.30$ 43.99$ 87.98$ 198.00$

Total 79,470.19$ 15,596.84$ 924.34$ 1,591.40$ 38.04$ 67.69$ 125.30$ 198.00$

Establishment Costs

What will I need to do the first year of planting the crop?

First year of perennialHigher costs / less returns ‘Bottom line’ capitalized over life of crop

Operating Establishment Costs

Total Units Unit Price/Cost

Per Unit Total

Cost/Value

Total Cost/Value Per Acre

Your Farm

OPERATING COSTS Rodent Control 50.00 Acre 1.50$ 75.00$ 1.50$ ________Insecticide 50.00 Acre -$ -$ -$ ________Herbicide 50.00 Acre 55.00$ 2,750.00$ 55.00$ ________Fertilizer 50.00 Acre 52.00$ 2,600.00$ 52.00$ ________Irrigation 50.00 Acre 130.00$ 6,500.00$ 130.00$ ________Alfalfa Seed 50.00 Lbs/Acre 2.60$ 6,500.00$ 130.00$ ________Roundup 2.00 Quarts/Acre 14.50$ 1,450.00$ 29.00$ ________Accounting & Legal 1.00 Annual 250.00$ 250.00$ 5.00$ ________Fuel & Lube 1.25 Annual 9,214.88$ 11,518.60$ 230.37$ ________Maintenance 1.00 Annual 10,926.62$ 10,926.62$ 218.53$ ________Utilities 1.00 Annual 3,600.00$ 3,600.00$ 72.00$ ________Miscellaneous 50.00 Acre 5.00$ 250.00$ 5.00$ ________Interest Operating Capital 37,136.18$ $ 0.065$ 1,206.93$ 24.14$ ________

TOTAL OPERATING COSTS 47,627.15$ 952.54$

OWNERSHIP COSTSCASH OVERHEAD COSTSLiability Insurance 500.00$ 10.00$ ________Office & Travel 250.00$ 5.00$ ________Annual Investment Insurance 1,111.74$ 22.23$ ________Annual Investment Taxes 110.00$ 2.20$ ________

TOTAL CASH OVERHEAD COSTS 1,971.74$ 39.43$

NONCASH OVERHEAD COSTS (Capital Recovery)Buildings, Improvements, & Equipment 2,434.80$ 48.70$ ________Machinery & Vehicles 10,966.77$ 219.34$ ________

TOTAL NONCASH OVERHEAD COSTS 13,401.57$ 268.03$

TOTAL OWNERSHIP COSTS 15,373.31$ 307.47$

TOTAL COSTS 63,000.45$ 1,260.01$

YEAR ONE INCOMEAlfalfa Hay 3.50 Tons 144.00$ 25,200.00$ 504.00$ TOTAL GROSS INCOME 25,200.00$ 504.00$

TOTAL ESTABLISHMENT INVESTMENT 37,800.45$ 756.01$

Costs & Returns

How much can I expect in returns?What costs do I have?

Gives the ‘bottom line’Bottom line will change with scale of

operation

Southern Nevada Hoophouse Production Costs and Returns, 710 sq ft., 2010

Sq. Ft Total Units Unit

Price/Cost Per Unit

Total Cost/Value

Total Cost/Value Per Square

Foot GROSS INCOMETomatoes 354 913.32 lb 2.50$ 2,283.30$ 6.45$ Golden Summer Squash 356 1281.60 lb 2.00$ 2,563.20$ 7.20$ Squash Blossoms 356 4272.00 blossom 0.50$ 2,136.00$ 6.00$ Baby Greens 354 233.64 lb 3.50$ 817.74$ 2.31$ Mustard 89 53.40 lb 4.00$ 213.60$ 2.40$ Kale 89 86.33 lb 3.00$ 258.99$ 2.91$ Spinach 178 142.40 lb 3.00$ 427.20$ 2.40$ TOTAL GROSS INCOME 8,700.03$ 12.25$ OPERATING COSTS Seed 8.00 Pkg 14.50$ 116.00$ 0.16$ Starter Plants 30.00 6 pack 1.50$ 45.00$ 0.06$ Insecticide 1.00 Quart 25.00$ 25.00$ 0.04$ Fertilizer 1.00 Quart 13.00$ 13.00$ 0.02$ Irrigation 1.00 Annual 16.20$ 16.20$ 0.02$ Operator Labor 320.00 Hourly 13.00$ 4,160.00$ 5.86$ Accounting & Legal 1.00 Annual 50.00$ 50.00$ 0.07$ Fuel & Lube 1.00 Annual 198.00$ 198.00$ 0.28$ Maintenance 1.00 Annual 125.30$ 125.30$ 0.18$ Packaging 2000.00 Clamshells 0.16$ 320.00$ 0.45$ Packaging 300.00Wax Boxes 1.00$ 300.00$ 0.42$ Advertising/Signs 2.00 Units 90.00$ 180.00$ 0.25$ Transportation 12.00 Trip 70.00$ 840.00$ 1.18$ Miscellaneous 710 Sq Ft 0.20$ 142.00$ 0.20$ Operating Capital Interest 4,982.00$ $ 0.065$ 161.91$ 0.23$ TOTAL OPERATING COSTS 6,692.41$ 9.43$ INCOME ABOVE OPERATING COSTS 2,007.62$ 2.83$ OWNERSHIP COSTSCASH OVERHEAD COSTSLiability Insurance 50.00$ 0.07$ Office & Travel 250.00$ 0.35$ Annual Investment Insurance 38.04$ 0.05$ Annual Investment Taxes 67.69$ 0.10$ TOTAL CASH OVERHEAD COSTS 405.73$ 0.57$ NONCASH OVERHEAD COSTS (Capital Recovery)Buildings, Improvements, & Equipment 875.25$ 4.38$ Machinery & Vehicles 716.15$ 3.58$ TOTAL NONCASH OVERHEAD COSTS 1,591.40$ 2.24$ TOTAL OWNERSHIP COSTS 1,997.13$ 2.81$ TOTAL COSTS 8,689.54$ 12.24$ NET PROJECTED RETURNS 10.49$ 0.01$

Monthly Cash Flow

Shows income and expenditures by monthJust for operation costsUseful for knowing when operating loans

will be needed and when they can be paid back

Usually required to obtain loan

Description January February March April May June July August September October November December Total

Production:

Tomatoes -$ -$ -$ -$ -$ -$ 456.66$ 913.32$ 913.32$ -$ -$ -$ 2,283.30$

Golden Summer Squash -$ -$ -$ -$ -$ 128.16$ 897.12$ 897.12$ 640.80$ -$ -$ -$ 2,563.20$

Squash Blossoms -$ -$ -$ -$ -$ 106.80$ 747.60$ 747.60$ 534.00$ -$ -$ -$ 2,136.00$

Baby Greens -$ 245.32$ 327.10$ 327.10$ 81.77$ -$ -$ -$ -$ -$ -$ -$ 817.74$

Mustard -$ 71.20$ 71.20$ 71.20$ -$ -$ -$ -$ -$ -$ -$ -$ 213.60$

Kale -$ 32.37$ 64.75$ 97.12$ 64.75$ -$ -$ -$ -$ -$ -$ -$ 258.99$

Spinach -$ 53.40$ 106.80$ 160.20$ 106.80$ -$ -$ -$ -$ -$ -$ -$ 427.20$

Total Income -$ 402.30$ 569.84$ 655.62$ 253.32$ 234.96$ 2,101.38$ 2,558.04$ 2,088.12$ -$ -$ -$ 8,700.03$

Operating Inputs:

Seed -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 116.00$ -$ 116.00$

Starter Plants -$ -$ -$ -$ 45.00$ -$ -$ -$ -$ -$ -$ -$ 45.00$

Insecticide -$ -$ -$ 25.00$ -$ -$ -$ -$ -$ -$ -$ -$ 25.00$

Fertilizer -$ -$ -$ -$ 13.00$ -$ -$ -$ -$ -$ -$ -$ 13.00$

Irrigation -$ -$ -$ 6.08$ 2.03$ 2.03$ 2.03$ 2.03$ 2.03$ -$ -$ -$ 16.20$

Operator Labor 117.00$ 143.00$ 143.00$ 169.00$ 494.00$ 234.00$ 702.00$ 936.00$ 728.00$ 416.00$ 26.00$ 52.00$ 4,160.00$

Accounting & Legal 4.17$ 4.17$ 4.17$ 4.17$ 4.17$ 4.17$ 4.17$ 4.17$ 4.17$ 4.17$ 4.17$ 4.17$ 50.00$

Fuel & Lube 10.42$ 10.42$ 20.84$ 20.84$ 20.84$ 20.84$ 20.84$ 20.84$ 20.84$ 10.42$ 10.42$ 10.42$ 198.00$

Maintenance 6.59$ 6.59$ 13.19$ 13.19$ 13.19$ 13.19$ 13.19$ 13.19$ 13.19$ 6.59$ 6.59$ 6.59$ 125.30$

Packaging -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 320.00$ 320.00$

Packaging -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 300.00$ 300.00$

Advertising -$ -$ -$ -$ -$ 90.00$ -$ 90.00$ -$ -$ -$ -$ 180.00$

Transportation to Market -$ -$ -$ -$ -$ -$ 168.00$ 336.00$ 336.00$ -$ -$ -$ 840.00$

Miscellaneous 11.83$ 11.83$ 11.83$ 11.83$ 11.83$ 11.83$ 11.83$ 11.83$ 11.83$ 11.83$ 11.83$ 11.83$ 142.00$

Interest OC 13.49$ 13.49$ 13.49$ 13.49$ 13.49$ 13.49$ 13.49$ 13.49$ 13.49$ 13.49$ 13.49$ 13.49$ 161.91$

Total Operating Costs 163.51$ 189.51$ 206.52$ 263.60$ 617.55$ 389.55$ 935.55$ 1,427.55$ 1,129.55$ 462.51$ 188.51$ 718.51$ 6,692.41$

Net Returns (163.51)$ 212.79$ 363.32$ 392.02$ (364.23)$ (154.59)$ 1,165.83$ 1,130.49$ 958.57$ (462.51)$ (188.51)$ (718.51)$ 2,007.62$

Now the fun begins!

Interactive portion of presentation

Open excel spreadsheetStart with changes to investment

summaryChange price, amount of use, timeFollow with changes to variable costs and

returnsCreated interest for further work

Operators Labor 4.0 Monthly 2,000.00$ 8,000.00$ 1.45$ ________Adult Family Labor 4.0 Hourly 750.00$ 3,000.00$ 0.55$ ________Family Labor 160.0 Hourly 5.00$ 800.00$ 0.15$ ________Accounting & Legal 0.2 Annual 250.00$ 50.00$ 0.01$ ________Fuel & Lube 1.0 Annual 460.90$ 460.90$ 0.08$ ________Maintenance 1.0 Annual 68.78$ 68.78$ 0.01$ ________Packaging 300.0 Boxes 1.00$ 300.00$ 0.05$ ________Advertising/Signs 0.2 Annual 350.00$ 70.00$ 0.01$ ________Miscellaneous 5500.0 Sq Ft 0.05$ 275.00$ 0.05$ ________TOTAL OPERATING COSTS 14,165.68$ 2.58$ INCOME ABOVE OPERATING COSTS 272.32$ 0.05$ OWNERSHIP COSTSCASH OVERHEAD COSTSLiability Insurance 43.39$ 0.01$ ________Office & Travel 250.00$ 0.05$ ________Annual Investment Insurance 43.39$ 0.01$ ________Annual Investment Taxes 76.39$ 0.01$ ________TOTAL CASH OVERHEAD COSTS 413.16$ 0.08$ NONCASH OVERHEAD COSTS (Capital Recovery)Buildings, Improvements, & Equipment 141.90$ 0.71$ ________Machinery & Vehicles 525.60$ 2.63$ ________TOTAL NONCASH OVERHEAD COSTS 667.50$ 0.12$ TOTAL OWNERSHIP COSTS 1,080.66$ 0.20$ TOTAL COSTS 15,246.34$ 2.77$ NET PROJECTED RETURNS (808.34)$ (0.15)$

One-on-one mentoring

Held at farm or office of producer◦Record access◦Familiarity

One enterprise used as template for allAmount of time involved varied

Results

28 individualized budgets completed first year◦Small farm fall CSA◦Pasture goats◦Field tomatoes◦Meat harvesting operation

Benefits to Producer

Process itself offers benefits◦Strengths and weaknesses

Establishes break-even pointReminds producer of ‘hidden’ costsProvides producer with tool for financing

opportunities

Benefits to Extension Educator

Builds relationships and trust

Created referrals

Current trends and pricing

Establishes base budgets for future use

Thank You For Coming!

Questions?

Reaching New Audiences: Implementing the Nevada Herds & Harvest Program

EvaluationPamela Powell

Staci EmmLoretta Singletary

Carol BishopHolly GatskeJay DavisonSteve LewisSteve Foster

University of Nevada, Reno

Why This Project?

◦The livestock, forage and specialty crop industry in Nevada comprises an essential component of economic stability.

◦95.63% of all land in Nevada is devoted to farming and ranching practices.

◦Nevada has seen an increase in small specialty crop operations.

◦Education, outreach and mentoring programs that focus on beginning farmers and ranchers is lacking.

Project Goals: Herds & HarvestIncrease communication, agricultural

entrepreneurship, business and financial management skills

Increase capacity to manage water resources effectively

Increase agricultural management knowledge and skills to implement sustainable agricultural management practices

Increase skills to develop a marketing strategy that ensures the competitiveness of their agricultural operation

Provide ongoing mentorship following workshops

Discuss our success in collecting data from Herds & Harvest

participants

Objective for Today

Limited data exists on evaluating educational programs for ranchers and farmers

Why?

Reasons for lack of participation in Surveys

Hesitation to share information with government – Lack of trust

Don’t understand importance/use of evaluationLimited time – busy scheduleYou want me to change “always did it this way” –

way of life / quality of lifeBottom line is the balance sheetWe never asked – measured growth not peopleWhole picture approach – change in practice

changing cost of productionEducators resist evaluation

Community based participatory research

A Model from the Health Care Profession

It is: 1. cooperative, engaging community members and

researchers in a joint process in which both contribute equally

2. a co-learning process3. systems development and local community

capacity building4. an empowering process through which

participants can increase control over their lives5. a balance between research and action

Our Research

Research - IntroductionFarmers/ranchers informed of UNCE research at

beginning of first day of training

Trainers engaged in research◦Provided Information Sheet

Purpose of research Methods used How data collected Participation was voluntary and confidential

◦Questionnaire (Adult and Youth) Demographics Baseline data / skill level / success means.........

Participation was not required to be a part of Herds & Harvest workshops

Research - MethodPhase OneInstrument designed to measure:

◦Knowledge gain◦Attitude change◦Behavior change???

Retrospective pre-post survey design21 topics, 5-point Likert-type scale, with

demographics1 pageIncluded an envelope to put completed (non-

completed) survey inSurveys were administered at conclusion of

training (5 workshops)

Research - FINDINGS

5 workshops (32 statewide classes - ITV)◦Field Crops: Old and New (2)◦Processing and Selling Locally Grown Meat (2)◦So You Want to Be a Produce Farmer

212 total participants50% overall completion rateOf the 105 likert-type scale questions, 96

were statically significant to <.05 when comparing pre to post mean scores

Cronbach’s Alpha reliability scores:◦.924, .923, .957, .950, .964

Research - FINDINGS W1: How to decide if Tef is a potential alternative crop W2: What production practices are required to sell meat to

Whole Foods Market W3: How to use plants and farming practices for insect

control W4: The potential income and costs associated with hog

production W5: How to decide if cellulosic biomass is a potential

alternative crop

Comments:◦ Knowledge given was excellent◦ One on one answers to my questions◦ Ability to visit with other conference attendees/networking◦ Field trips/tours◦ Enterprise Budgets

Research - Findings

◦Over 65% of the participants reported they would make changes or take actions in their agricultural practices based upon workshop education.

◦ Grass/alfalfa yield doubled due to education about fertilization

◦ CSA business doubled after attending the Processing and Selling locally grown meat working and networking with Whole Foods Management

Results

results

Researchers/educators, producers and businesses continue to collaborate and design new programs

Enterprise BudgetsProducers are learning from each otherSharing of information

◦Presentations◦Publications

results

Phase Two:

Interviews with Attendees

Phase Three:

Final Survey

Implications

Implications

The use of CBPR to help build relationships thereby increasing the participation in collecting evaluation data

Having an impact in changing production practices and marketing strategies

Development of mentoring relationshipsWillingness to investigate specialty crops

Further Research

Further Research

Optimal strategies for educating non-farming community – “helping urban residents better understand where their food comes from”

Partnerships between ag and non-ag entities

2010 Community Assessment (NRDC and UNCE)

Questions?

Thank you!