Farming for the Future Fall 2009
is a quarterly publication of the
Agriculture and Land-Based Training Association (ALBA)

Articles in English | Haz CLIC AQUI para Español

Brothers’ Farm: Young Faces in Agriculture
Business Plans Help Farmers Measure Progress
Growers Gather for PM Workshops
Farmers’ Market EBT Access Derailed
Calendar of Events



Brothers’ Farm: Young faces in agriculture

You cannot refer to Octavio without including Francisco. Octavio and Francisco García López are brothers, and when they are not at school, you can find them taking care of their farm. More than a year ago ALBA leased land to Octavio after he graduated from the Farmer Education Program, PEPA. Octavio recently graduated from Alisal High School and this past summer he worked really hard because in September he will have less time to dedicate to his crops since he enrolled for 13 units at Hartnell College in Salinas.

Of course, they would like to go to the “bailes” (dances) more often, or they would love to spend more time playing soccer or just hanging out with friends, but instead they spend most of their free time working the land. When Octavio, two years older than Francisco, decided to take the PEPA course and graduated as a beginning organic farmer, he had one goal in mind: farming would be a way to overcome disadvantages as a young Latino and as an alternative to provide an economic base while he completes his education. “In PEPA I learned that I can work for myself not for others, moreover I can cultivate and work as a farmer without compromising my health,” explained Octavio.

Brothers’ Farm is the name they chose for their business. Even though the sales from the first year were not what they had projected, they are putting their best effort into their second year. In fact, they just got a second acre in ALBA’s Small Farm Incubator Program. This year they planted squash, cucumbers, beets and chard, but what they are really looking forward to is planting strawberries in November.

“We did OK the first year, it was definitely a learning experience, the cucumbers did not do well at all, our old pick-up broke down, we had no transportation, the weeds just took over our parcel, we sold what we could to ALBA Organics and thank God for that,” Octavio explained. “This time I really want to start the strawberry plants in the green house to make sure they do well.”

Octavio and Francisco are from Ciudad Hidalgo in Michoacán, Mexico. They live with their parents, two younger brothers and a little sister in Salinas. This year Francisco will be in his senior year of high school. They are aware of the gang groups that dominate the area; but at the same time, they know it is better to stay away from them. As Octavio explains, “Gangs are a waste of time; you put your family at risk and yourself, also once you are in you cannot leave.”

Octavio is looking to the future, “I don’t know yet what major I’ll choose, all I know is that with my brother’s help, I’ll be able to manage college and farming at the same time. I really want to continue farming.”

Postscript

Nearly a month after this story was first written, local newspapers announced the death of Erik García López, one of Octavio and Francisco’s younger brothers. Erik was 14 years old and became the 22nd homicide of 2009 as a result of gang violence in Salinas. At this writing the García family has not received information about further criminal investigation; nor have they been able to obtain referrals from authorities for social services.

When we saw Octavio working in his field the day after his brother was killed, we were surprised at first, but the reality is that his farming must go on. Octavio now has more responsibility on his shoulders since he became the head of the family. His father left Salinas to bury Erik in their native town. ALBA farmers and staff provided immediate financial support to the García Family, as we have all experienced their loss.

Behind each farmer there is a story of courage. ALBA works with strong people guided by determination to re-make their lives despite numerous and often profound barriers. ALBA will continue to guide its work by recognizing and supporting those who put fresh food on our tables.

Business Plans help farmers monitor progress towards goals and increase profitability

For nearly 25 years, the Rural Development Center now operated by ALBA has served hundreds of families as a small farm business incubator program. In summer 2008, we announced a new requirement in order to renew incubator land leases; farmers would need to maintain an up-to-date Business Plan. ALBA’s motive in developing this requirement was simple; an up-to-date plan would help farmers be better able to measure progress towards their business goals and understand how well they were managing their finances. By going through the process of updating business plans, farmers would analyze and make strategic adjustments to their operations in order to reduce costs and increase profits. Most importantly, farmers gain significant leverage when applying for small farm financing if they can present a sound plan.

Before formalizing this requirement, ALBA board and staff researched requirements of other business incubators, and discussed the idea with small business development consultants and farmers. Upon announcing the new requirement, some farmers immediately questioned the process. Their greatest concerns were, “Why do I need a business plan if I am already in business? Creating a business plan is too time-consuming and I am very busy; therefore, do I really need one? How will the information contained in the business plans be used?” We addressed these farmer concerns and explained why creating a business plan could only help them and their business. Improving the way finances are managed could only increase the return on a farmers’ investment.

ALBA established training and resources to support the business planning process with each farmer. We organized a three-part business planning series in October 2008 that focused on introducing what business plans are and how they are used; the importance of business goal setting & recordkeeping; and creating yearly budgets, seasonal cash flow projections, and profit and loss calculations. The last step in the business planning process was to learn and practice how to present your business plan to an audience. Upon completion of the workshop series, farmers had the opportunity to meet one-on-one with ALBA staff and interns to complete their business plans.

Although the business plan concept was initially not well received by some farmers, going through the process proved to be a worthwhile experience for all involved. While looking at past financial documents, farmers and staff were able to quickly identify whether and how money was being lost. For instance, some farmers’ income taxes were being inaccurately submitted by their own tax preparers on a “Schedule C-Profit or Loss from Business” instead of a “Schedule F-Profit or Loss from Farming,” which resulted in overpayments to the Internal Revenue Service (IRS). Because many farming expenses were not being reported, one farmer ended up paying taxes one year, when he should have been getting a refund of over $3,000! As an owner of a small farm business, $3,000 can make or break your business.

In the end, the business planning process proved to be a success for everyone! As a result of attending the workshops, farmers learned how to create their cost of production spreadsheet and learned how to construct and interpret their financial statements. ALBA developed a standard electronic Business Plan template for farmers that includes historical figures and projections for the future. Electronic copies of farmer business plans will remain in the ALBA office and farmers should feel confident to update them annually with limited help from ALBA staff or outside expertise. Today, 95% of ALBA incubator participants have an up-to-date business plan, and ALBA staff learned a tremendous amount as well! With these results ALBA is continuing to adapt its education and technical assistance programs to continue to meet the long-term business development needs of beginning and aspiring farmers.

Growers gather for Integrated Pest Management workshops

Recently ALBA provided bilingual workshops attended by more than 40 growers seeking practical pest management solutions. On April 27, we discussed the organic certification process, organic markets including ALBA Organics, and conservation funding for organic practices.

Growers took part in insect scouting at ALBA on May 13, discussed an integrated greenhouse whitefly management program, and explored beneficial insect host plants and biodiversity. The next workshop on May 20 included hands-on Lygus degree day modeling and discussion of alfalfa trap crops for Lygus control along with demonstration of a tractor-mounted “Bug Vacuum” for use in strawberries and trap crops.

At the final workshop on May 28, we discussed crop rotations that break disease cycles and biological soil treatment methods, essential oil pesticides and low-till agriculture. Contact Chris Goodson at (831) 227-5404 for more information on any of these topics or for referrals to technical assistance.



Photo courtesy of Monterey Bay Aquarium

Farmers’ Market EBT Access Derailed

In early 2009, ALBA organized state legislation (AB537 sponsored by Assemblyman Juan Arambula) to increase EBT access at farmers’ markets. Currently only one in five California farmers’ markets accepts federal nutrition assistance benefits through EBT. We sought to require farmers’ markets to adopt EBT or accept assistance to do so by 2012. The result would have been greater consumer access to fresh foods in farmers’ markets. The measure passed in Ag Committee on April 29; however, it was not approved by the Appropriations Committee. It was estimated that the state cannot afford the time and expense to assure that Californians who depend on EBT can access farmers’ markets. ALBA will continue to advocate for widespread EBT access in farmers’ markets.

If only 5% of the EBT money that is not claimed in Monterey County was used in the five markets that currently accept EBT, each market would have $12,000 per week in additional sales!