Methods for calculating marketing costs

Beef cows on pasture

By Jim Munsch, Coon Valley, Wisconsin — Take a stroll through the meat market, do some math, and your first inclination is to say that direct marketing of beef will pay a producer.

We farmers have been basically saying that for years. Ever since I can remember, I’ve heard uncles, cousins and neighbors complain about store prices for food, and the fact that the “middleman” is making all the money. Behind this emotional observation is an acknowledgement of a real economic truth: Middlemen tend to be a small number of for-profit organizations with considerable economic power compared to individual producers of much smaller scale and with feeble economic power. In some cases their performance can be inconsistent, resulting in equally inconsistent demand and prices for your products. Continue reading “Methods for calculating marketing costs”

To succeed, we must plan for seven generations

Jim VanDerPol

By Jim Van Der Pol, Kerkhoven, Minnesota — This is the fifth and final column of a series on my thoughts on the impacts our farms and businesses may have upon our families, the communities in which they are located, and ultimately upon the world at large. I started with an illustration of a deflected arrow, went on to talk about our farms and our children, then about labor and technology, value-added farm product-based businesses, and learning to do business with our friends.

This piece is last because I put it off. It is the most intimidating of all, because in it I will try to convince you that all of these things are possible. It is necessarily then about attitude, about core belief, be it philosophy or religion; that is, about how we view ourselves and our place in the universe. Continue reading “To succeed, we must plan for seven generations”

From zero to $300,000 in five years

Farmers in front of stalls

Young couple shows there’s money in start-up grass dairy

By Larry Tranel, Kieler, Wisconsin —There is no money in dairying. Dairying is too much work. It takes too much capital to start dairying. You can’t graze dairy cows profitably. You cannot outwinter dairy cattle and survive. You can’t crossbreed dairy cows. You can’t start dairying with high-priced land and cows.

You can’t be profitable with 15,000 pounds of milk per cow. One person cannot handle 80 cows. Profits of $1,000 per crop acre or $1,000 per cow for return to labor cannot be done. Earning $30-$50 per labor hour milking cows is impossible. Landlords are better off getting rid of the dairy cows and cash cropping the farm. You can’t earn a 20% return on assets from dairying. You need more than 80 cows or 80 acres to make it dairying. The naysayers go on and on. Continue reading “From zero to $300,000 in five years”

A self-sufficient, competitive no-grain dairy

Cows on pasture

Sixty-five cows, 100 acres and no input purchases required

By Nathan Weaver, Canastota, New York — If you read Joel McNair’s column last month, you are expecting this article.

I do not greatly disagree with the presentation on heavy supplemental feeding, and the numbers presented from the featured farms are impressive. I do not expect these on-farm financial situations to change drastically and suddenly. Continue reading “A self-sufficient, competitive no-grain dairy”

To really market, you need the right processor

Farmer with cow

By Tom and Susan Wrchota, Omro, Wisconsin — If you want to sell a few head of grain-fed beef in sides and quarters, you shouldn’t have much trouble finding a processor who can do the job for you. But if you want to target a high-end niche market for grass-finished beef in an effort to produce the margins required to make a living from a small-scale enterprise, you need a processor who is up to the task.

In the nearly 15 years that we’ve been marketing grass-finished meat, our business has evolved to meet both customers’ needs, and ours. Staying small and simple wasn’t going to cut it if we wanted to make a full-time living selling grass-finished beef and other farm products, so we had to grow and become more complex. Continue reading “To really market, you need the right processor”

It’s tough to beat $4.65 per hundredweight

Farmer in pasture

Tim Pauli’s model offers small-farm hope for an uncertain future

Belleville, Wisconsin — For a while now I’ve had a theory that if we could turn the calendar back about six decades, and proceed from that point in agriculture on a path very different from the reality of what mainstream Americans chose, the world would be a better place.

And when I think these thoughts, Tim Pauli is usually part of the process. Continue reading “It’s tough to beat $4.65 per hundredweight”