Back to the Future Doesn’t Work

Courtesy of Roxanne C.,Philadelphia PA

A new year and the same old hard luck farmers story. Once again it recounts the woeful tale of failing beginning farmers – you know the type. No farming background. Go to college. Run up debt. Quit unsatisfying city jobs. Escape to the country, Get a small piece of property.Buy a few assorted animals.Try to sell organic vegetables. Bills mount.Sales don’t happen. And the blaming starts. Agribusiness. The government. Changing weather. Lack of a level playing field. Brutal economics.

The root cause of their failure is their choice of an outdated “back to the land” startup model. You know, the one based on the agrarian ideal. The one that requires many acres, loads of overhead, debt and risk. The one that makes it harder and more expensive than it needs to be. The one that increases the chances of failure. The one that makes no business sense.

The successful 21st century farmers we know and helped train, honed their production skills on backyard size plots and serviced whatever types of markets they could access the quickest and easiest, using the least amount of gear they could afford or barter for. Some move around. Some scale up. Some specialize in certain crops. Some branch out into processed food. More and more of them who we do online meetups with have passed the 5 years in business milestone. A few have now passed the 10 year mark. What they all have in common is they aren’t trying to create the future of farming by returning to the past.

SF photo farm caution sign business sense

TO LEARN A FAST,ECONOMICAL, LOW-RISK, MODERN WAY TO START A FARM, START PURCHASING THE SPIN GUIDES HERE. IF YOU’RE NOT READY TO GO ALL-IN JUST YET, MEET SUCCESSFUL FARMERS IN OUR MEMBERSHIP GROUP. YOU CAN JOIN IT HERE.

RELATED POSTS:
Advice You Won’t Hear At Farming Conferences
Reality Check for New Farmers
Farming Has A New Narrative
Make This the Year of Logistical Thinking
Getting Back to Business                                                                                                    Are You Ready for Self-Employment?

 

Seeding Rate Helps Answer Whether A Crop Is Worth Growing

Courtesy of Wally S., Wally’s  Market Garden, Pleasantdale SK

The planning questions keep coming, and last week the big one was, “How do I know if a crop is worth growing?” Getting an accurate read on your seed costs is a big part of the answer. In fact, knowing the cost to seed a bed is make or break in planning.

To get an accurate read on your seed costs, you need to determine your seeding rate per bed. To do that, you need to determine the following for the crop in question:

> # of rows per bed
> width of each row
> in-row spacing
> # of seed required per row
> # of seed required per bed

Using benchmarks from SPIN’s Crop Profiles, let’s look at carrots as an example.

> # of rows per standard size bed: 3
> width of each row: 2”
> in-row spacing: 12” apart; 30 seeds per foot
> # of seed required per row: 750 seeds
> # of seed required per bed: 1,125

Next, using the seed cost stats from SPIN’s Crop Profiles, look at what seed costs look like:
> typical cost per 25M quantities: $20 – $40
> cost to seed a bed: $2 per bed for the most expensive varieties

If you use SPIN’s revenue target of $100 per bed, you can see the seed cost per bed is way less than the revenue per bed. And in fact, some types of carrots can generate revenue of close to $200 per bed. So now you can see why SPIN categorizes carrots as a very high value crop.

Do the same calculations for more expensive sprouting microgreens seed, and you could start to see costs of up to $20 to seed a bed. Factoring in other costs and your labor, you need to determine when the answer to, “Is a crop worth growing?” is “No.”

There are lots of variables that can come into play too. You can tweak your seeding rate, raise your prices, or negotiate seed costs. But as with all businesses, at the end of the day it comes down to knowing what calculations to make. Seeding rate is an important, but overlooked one.

DDG3 photo 18You’ll get a feel for the amount of seed you need to use after a few trial plantings. The goal is to figure out the minimum amount of seed you need in order to achieve your targeted yield.  And then record that rate and figure out the cost to seed a bed.  

GET MORE SEED SAVVY IN THE SPIN ONLINE SUPPORT GROUP. FREE TRIAL MEMBERSHIP WHEN YOU PURCHASE ANY SPIN GUIDE.