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Informational Toolkit for Beginning Farmers

 

Value Added Agriculture Program at Iowa State University Extension

  

Beginning farmers may be at early stages of their working life, mid-career, or retired from another occupation. Farm start ups may involve working into an established family farm or renting a few acres and raising high value crops for direct marketing. No matter the path to a farming business or the type of farm enterprises involved, good information is important for the success of these new start-ups.

 

The Value Added Agriculture Program staff at Iowa State University Extension has compiled some potentially useful information for operators of new farm start ups. Included are general information about farm leases and farm management, new farmer loan programs, beginning farmer training programs, mentoring programs for beginning farmers and more specific information about developing agricultural business and marketing plans.

 

Resource links provided below are predominantly from Iowa, but include additional resources from the upper Midwestern U.S. and Canada

 

General Information Resources

  • Beginning Farmer Center - The Iowa State University Extension Beginning Farmer Center was created in 1994 by the Iowa Legislature. The center’s mandates include facilitating the transition of established farming operations to beginning farmers and developing models to increase the number of family farming operations in Iowa. The center has several programs to help beginning farmers including Farm On - a program to link retiring farmers with new farmers, Ag Link – a seminar for college students and their parents who plan to farm together, Farm Savvy – a farm transition manual, and individualized assistance.
  • Agriculture Online®----Farmers for the Future - “Farmers for the Future” is a special feature of Agriculture Online, the internet news service of Successful Farming magazine. The Farmers for the Future site has several profiles showing how young and beginning farmers are achieving their dream of full-time farming. A calendar of events, free e-newsletter, and links to articles all geared to assist  new farmers are some of the resources the site offers.
  • Farmcentre.com - Farmcentre.com is management resource for farm business owners and others in the agriculture industry. The site is developed and maintained by the Canadian Farm Business Management Council. It has more than 4000 pages, and is updated daily. The site has a special beginning farmer section that includes new farmer profiles, on-line workshops, management spreadsheets, chat rooms and more.
  • Agricultural Marketing Resource Center (AgMRC) - an electronic national resource for producers interested in value-added agriculture. AgMRC offers producers the ability to:
    • investigate value-added commodities or niches,
    • gather information on creating a business
    • research general market and industry trends
    • locate resources in a directory and use AgMRC developed tools. Specific Iowa resources on agricultural laws and regulations, contact people and programs are available at the AgMRC Iowa Directory.
  • Iowa State University Extension Value-added Agriculture Program - The ISU Extension Value-added Agriculture Program performs several trolesa dn provides educational and business development services to Iowans working in agriculture. The variety of services provided include:
    • educational programs for farmers and groups about value-added business development, marketing and market exploration
    • assistance for individual farmers and companies with marketing and business plans
    • keeping ISU Extension staff, communities and companies aware of new opportunities in value-added agriculture
    • assistance in technology transfer
    • monitoring trends and developments that provide new value-added agriculture opportunities, and
    • conducting market research under contracts for companies

Educational/Training Programs

  • Ag-Link-----Iowa State University - A program conducted by the Beginning Farmer Center of Iowa State University Extension to help students and their families make the transition to a multiple generation farm business. The four-day seminar is conducted each year in two, two-day sessions; one in the late fall and the other in late winter. During the seminar, participants will:
    • Discover how to address major issues that can lead to failure in a multiple generation farm business; 
    • Find out whether an existing operation is large enough to support an additional partner;
    • Learn the basics of estate planning;
    • Uncover alternatives for transfer of farm assets; and
    • Get the most recently published resources for those considering a multiple generation farm business.
  • Growing Your Small Market Farm (Iowa) - The program assists potential and existing local producers learn the skills needed to create and strengthen successful farm business ventures. This program addresses the special needs of farm business ventures by providing a practical, hands-on approach to developing a small business--whether just starting out or ready to grow. The one-year training program is offered each calendar year. The program includes Saturday classes in Des Moines from January through mid-April, one-on-one assistance as needed throughout the year, and group meetings in November and December to review business plans and share experiences. For more information, contact Penny Brown-Huber at 515-289-0238 or email: BrownPennyL@aol.com. Brochure: http://www.leopold.iastate.edu/news/events/grow.pdf 
  • Sustainable & Entrepreneurial Agriculture Program, Iowa Valley Community College, Marshalltown - This new program offers participants the chance to learn sustainable farming techniques and effective small business strategies and includes:
    • Practical knowledge to train a new generation of farmers in local food production, environmental stewardship, small business planning.
    • Hands-on experience with Central Iowa farmers practicing sustainable agriculture, vegetable production, certified organic farming.
    • Numerous degree and certification options: Associate in Applied Science, Associate in Arts, One-Year Certification .
  • Farm Beginnings™ - Farm Beginnings™ is a program of the Minnesota Land Stewardship Project with support from the University of Minnesota Extension Service. Farm Beginnings ™ is an educational training and support program designed to help people who want to evaluate and plan their farm enterprise. Farm Beginnings™ participants engage in a mentorship experience and network with a variety of successful, innovative farmers; attend practical, high quality seminars, field days and conferences; and receive resource materials.
  • School for Beginning Dairy Farmers - The University of Wisconsin School for Beginning Dairy Farmers is the only program of its kind in the nation for an education in grass-based dairying. The school has been designed to provide the opportunity for motivated individuals to educate themselves about grass-based dairying. The specialized training includes traditional classroom activities, hands-on internships, farm tours of our previous graduates' grass-based dairies, and a strong emphasis on the business knowledge and financial planning required to run a successful dairy business. Classroom instruction at the school runs from the middle of November through the end of March and students typically participate in internships from April through July, though those dates are flexible.
  • Farming Together Workshop, Purdue University - The annual January workshop provides valuable information and answers questions on the issues involved with bringing someone into the operation. The workshop provides an opportunity for you, your son, daughter, or partner to begin making decisions together as to the future of the farming operation.

 

Mentoring Programs
  • Iowa Mentors for Beginning Farmers Interested in Value-Added Agricultural Enterprises - The Iowa State University Extension Value-added Agriculture Program has identified a group of experienced farmers willing to mentor new and aspiring farmers. The program provides descriptions of the farmers and their areas of expertise along with their contact information. Beginning farmers may review the mentor list and contact the mentors directly by telephone or email. Each new farmer and mentor will jointly decide how much help and what type of help can be provided.
  • Learning the Farmer Way: Farm Apprenticeship Program - This placement service, sponsored by Practical Farmers of Iowa, links people seeking work experience on sustainable farms with farmers who need help and who are willing to share their experience and knowledge. Download the apprentice and farmer application forms, or for more information contact Apprenticeship Program Coordinator Kamyar Enshayan at: kamyar.enshayan@uni.edu or telephone 319-273-7575. 
  • Minnesota Organic Farmers’ Information Exchange - The Minnesota Organic Farmers' Information Exchange (MOFIE) links producers with information needed to farm organically and successfully by connecting with other experienced organic farmers. The program consists of a dynamic group of 22 certified organic producers from all over the state of Minnesota. Their expertise covers many areas of organic production in Minnesota such as crop, beef, dairy, poultry, vegetable, fruit, maple syrup, and flower production. Each mentor has generously agreed to answer questions through phone calls or emails.

 
Linking Services for Landowners and Beginning Farmers

  • Farm-On (Iowa) - A service of the Beginning Farmer Center of Iowa State University Extension to help preserve family farm businesses by matching beginning farmers who do not own land, with retiring farmers who do not have heirs to continue the farm business.
  • Land Link Services (Nebraska) - This program of the Center for Rural Affairs in Nebraska serves to increase opportunities for beginning farmers while encouraging good stewardship. Computer data base matching and consulting services bring beginning farmers and landowners together. Retirement planning, beginning farmer financing, farm business, and environmental assessment information is used to assist in transferring family operations to a new generation of farmers and ranchers.
  • Farm Link (Wisconsin) - The Wisconsin Farm Center's (a division of the Wisconsin Department of Agriculture, Trade and Consumer Protection) Farm Link program can help identify available farm transfer options, find the farmer who best matches specific operations, and develop a linkage plan to ensure a smooth transfer. The staff works to match farmers who share compatible goals and needs, and it also refers farmers to appropriate contacts in their region to help plan the transfer.
  • Farm Transitions Program (national) - A program of the National Farmers Organization to help established farmers pass on the farm or ranch to the next generation, another branch on the family tree, or another promising person, who is ready to assure that it thrives.     
  • The National Farm Transition Network - a coalition of organizations in the United States interested in fostering transitions among newer and older generations of farmers. They maintain a list of groups that provide land link services.

 

 

 

Farm Succession Strategies

Farm Business Development and Business Planning
  • Agricultural Marketing Resource Center (AgMRC): Business Development - This section provides information and tools for developing a business. In addition to understanding the nuts and bolts of starting and operating a business, the farm business operator needs to understand the perspective of groups and individuals who will be influenced by your business.  The information provided is applicable for both value-added agricultural processing and marketing operations and for farm businesses, particularly those involved in specialty and value-added enterprises. Information is provided on getting prepared, starting a business, operating a business, and strategy and analysis.
  • Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses - This guide was developed to address the evolving business planning needs of beginning and experienced rural entrepreneurs. The business planning process is illustrated using the experiences of a Minnesota farm that developed an on-farm processing business. This guide will assist today’s alternative and traditional business owners alike with the creation of a holistic business plan rooted firmly in personal, community, economic and environmental values. The hope of the developers is that, with a business plan in hand, today’s farmers and rural entrepreneurs will be able to take that first step toward the creation of a successful and sustainable business.
  • Iowa Agricultural Innovation Center - The Iowa Agriculture Innovation Center is an Iowa 504 non-profit corporation, established by the Iowa Department of Agriculture and Land Stewardship (IDALS) whose purpose is to provide assistance to Iowa's agricultural producers in the production, processing, development and marketing of value-added agricultural commodities and products.


Financial Information and Loan Programs

  • Farm Service Agency (FSA) Online:  Farm Loans Program -  FSA makes direct and guaranteed farm ownership (FO) and operating loans (OL) to family-size farmers and ranchers who cannot obtain commercial credit from a bank, Farm Credit System institution, or other lender.  FSA loans can be used to purchase land, livestock, equipment, feed, seed, and supplies.  The loans can also be used to construct buildings or make farm improvements.                                                                               
    • Farm Service Agency Beginning Farmer Loan Program - The Farm Service Agency (FSA) provides direct and guaranteed loans to beginning farmers and ranchers who are unable to obtain financing from commercial credit sources. Each fiscal year, the Agency targets a portion of its direct and guaranteed farm ownership (FO) and operating loan (OL) funds to beginning farmers and ranchers.
    • A beginning farmer or rancher is an individual or entity who (1) has not operated a farm or ranch for more than 10 years; (2) meets the loan eligibility requirements of the program to which he/she is applying; (3) substantially participates in the operation; and, (4) for FO loan purposes, does not own a farm greater than 30 percent of the average size farm in the county.           
  • Farm Credit Services of America---Programs for Young and Beginning Producers - Farm Credit Services of America offers multi-faceted young and beginner producer programs and financing for less established producers. Along with various financing options, they offer scholarships for those choosing agriculture as a vocation, plus educational benefits to help foster good financial practices for their sustained success in agriculture.
  • Iowa Agricultural Development Authority - The Iowa Agricultural Development Authority (IADA) was established in 1981 to provide financial assistance to Iowa's grain and livestock producers. Two IADA programs - the Beginning Farmer Loan and Loan Participation Programs - may help Iowa farmers purchase agricultural land, depreciable machinery or equipment, breeding livestock or buildings. The IADA loans also may be used to improve existing buildings or farmland.


Farm Leasing Arrangements

Farm Business Management

  • Farm Business Management - Farm business management resources from Iowa State University Extension.
  • Organizing the Farm Business - This publication is designed to acquaint readers with the various forms of farm business organization and their advantages and disadvantages. It can help farmers evaluate what special circumstances or needs they may have, illustrate how to discuss these factors with farm advisers, and assist decision makers in selecting the type of business organization that best fits their needs.
  • Farm Financial Management Series - Iowa State University Extension. The farm financial management publications series illustrates how to develop and interpret the three major financial statements (net worth statement, cash flow budget, and income statement).  
  • Farm Financial Planning Program - Farm Financial Planning is Iowa State University Extension's farm financial analysis program. It consists of one-on-one financial counseling, a computerized analysis of the farm business, and referral to other extension programs or outside services that may be useful.
  • Financial Trouble Shooting - This publication describes a simple framework that can be used to identify the type of financial problems that a farm business is experiencing, clarify the underlying causes, and list a number of management responses that could contribute to its resolution. For beginning farmers, understanding financial problems that can face farm businesses may help with business decision making to avoid similar situations.
  • Farm Economics: Current Issues - This site features current issues, resources, and useful links for farm economic information in Iowa.
  • Ag Decision Maker - Ag Decision Maker is a decision-oriented agricultural business web site designed for farmers, lenders, farm managers, agriculture instructors, and others. Ag Decision Maker is written by economics and farm management specialists at Iowa State University and other Universities and institutions across the mid-west. It includes a newsletter, analysis spreadsheets, and a section on Value-added Agricultural Decisions.

 

Processing and Marketing Information

  • Iowa Department of Agriculture and Land Stewardship (IDALS)- The Iowa Department of Agriculture and Land Stewardship (IDALS) provides information and programs on everything from commodity prices to century farms. Three bureaus are highlighted in the sections below that will help those wanting to market more directly to consumers. Be sure to check out the general link here for listings of other information and programs.
    • Agricultural Diversification & Market Development Bureau - The Agricultural Diversification & Market Development Bureau has information on agritourism, organic certification, apiary, fruits and vegetables and many other diverse agricultural products. It also features a calendar of events, several market directories, news and contacts.
    • Horticulture & Farmers’ Markets Bureau - The Horticulture & Farmers’ Markets Bureau complies and distributes the Farm Fresh Directory (includes Farmers' Markets, Christmas tree growers, honey producers, fruit and vegetable producers, and strawberry growers), and the Honey pollinators directory. It also provides information on the Farmers’ Market Nutrition Program for low-income or at-risk community members and the “Taste of Iowa” program.
    • Meat & Poultry Bureau - The Meat & Poultry Bureau provides information on processing, labeling and marketing regulations for meat and poultry.
    • Iowa Agricultural Innovation Center - The Iowa Agriculture Innovation Center is an Iowa 504 non-profit corporation, established by the Iowa Department of Agriculture and Land Stewardship (IDALS) whose purpose is to provide assistance to Iowa's agricultural producers in the production, processing, development and marketing of value-added agricultural commodities and products.
  • Iowa CAFÉ II  Training for New Food and Farming Ventures: Marketing - This resource provides a series of key questions for producers of agricultural and food products to help focus marketing efforts where they are most needed. Many additional resources are provides to assist with marketing planning and market research.
  • Agricultural Marketing Resource Center (AgMRC) - Includes a section which provides information to help you understand and analyze value-added markets and industries. Each section contains AgMRC developed information, information from other sources and links to related Web sites.


Landowner / Farmer Relationships

  • Managing Landlord-Tenant Relationships- A Strategic Perspective - Some important principles can guide landlord-tenant relations. This publication provides insight into the needs and wants of parties involved in land lease arrangements and provides guidelines and suggestions for building open communication and good working relationships among landowners and farmers.
  • Preparing a Tenant Business Prospectus — In a farm business prospectus, farmers can highlight their farming philosophy and objectives as well as their production and management skills. It is one method of providing landowners a way to identify potential business partners and for them to learn about the farmer’s skills and their operation. This may be particularly useful for farmers who are managing a specialty crop or livestock business and/or involved with value-added agricultural enterprises.
  • Developing a Farm Newsletter for Better Communications between Tenant and Landowner - More and more Iowa landowners do not live in the local community or in the state and many are one or more generations removed from the farm. Even those that farmed in the past may not be familiar with specialty and value-added agricultural businesses. A farm newsletter, sent periodically throughout the year, can improve landowners understanding of current farms, their activities and challenges.



Profiles of New Farmers

  • Agriculture Online®----Farmers for the Future: "Up by their bootstraps” series. The “Up by their bootstraps” series, as featured in Successful Farming magazine, features young or beginning farm families that are following a business plan to achieve a dream---raising their family on a full-time farm.
  • Farm Beginnings Profiles - Profiles of a few of the people that have graduated from the Land Stewardship Project’s Farm Beginnings™ program in Minnesota over the years. Their stories illustrate how these people are using creativity, hard work and a passion for farming to get established on the land.
  • Farmcentre.com---New Farmer ProfilesCanadaFarmcentre.com is management resource for farm business owners and others in the agriculture industry. The site is developed and maintained by the Canadian Farm Business Management Council. The site has a special beginning farmer section that includes new farmer profiles, on-line workshops, management spreadsheets, chat rooms and more.

Organizations and Discussion Groups for Beginning Farmers

  • Beginning Farmer Network - Iowa State University has a club specifically for students interested in farming after graduation. The club meets monthly and provides speakers on topics of interest. The club also takes trips to learn more about ways to enter farming. The club advisor is John R. Baker, ISU Beginning Farmer Center.
  • Iowa Farm Bureau Young Farmer Program - Young farmers looking for fellowship, educational opportunities, leadership development and fun with a group of other young farmers are welcome to join the Iowa Farm Bureau Young Farmer Program. The program brings together young farmers, ages 18-35, from across the state and encourages young farmers to become active participants in agricultural organizations at all levels – county, state and national.
  • New Farmer Forum - This forum is one of several hosted by The New Farm online magazine. The New Farmer Forum is one of four discussion groups where readers can come and exchange insights. The publication welcomes new farmers to come join an ongoing discussion or to start their own thread.
  • National Young Farmer Educational Association (NYFEA)- The purpose of the NYFEA is to develop leaders, inspire service, strengthen communities, and enhance the success potential for American agriculture, especially the beginning farmers. The objective of the NYFEA is to accomplish this mission through programs and services designed to provide: a. a national framework to inspire personal achievement; b. educational opportunities to build business and environmental stewardship skills; and c. leadership and service opportunities for living and working in a local and global community.                                    


 
 
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