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Old 09-25-2013, 09:54 AM
 
Location: Somewhere in America
12,304 posts, read 11,058,538 times
Reputation: 20570

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Quote:
Originally Posted by Teddy52 View Post
I have a question about farmers' markets and roadside stands selling directly to the public.

Many people will presume selling price x yield is what the farmer will have for income.

That would be true if ......ALL..........of his product was able to sell at every farmers market or at his roadside stand.

A former neighbor of mine picked fresh sweet corn and had a daily roadside stand.
You paid for it on the "honor system"

Usually 3/4 got sold every day at his price and the remaining 1/4 got fed to pigs every night.

Not everything grown gets sold at optimum prices.
People already in the business know that.
Many " newbies" do not.
Road side stands are different from farmer's markets. I see a number of vendors sell out of many items - sometimes everything - at our farmer's market.

Also if you're doing calculations for income and living off a farm, you can never assume 100% will sell. There will be failed crops, crops eaten by animals and bugs, weather disasters (a late frost destroyed the apple crops in NYS last year), rot before picked, items that don't sell (many items don't have a 24 hour shelf life).

And selling price x yield isn't your income. You have plenty of overhead - land, seed, fertilizer, irrigation, harvesting, storage, etc.
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Old 09-25-2013, 10:33 AM
 
3,438 posts, read 4,836,925 times
Reputation: 5408
Quote:
Originally Posted by ss20ts View Post
Road side stands are different from farmer's markets. I see a number of vendors sell out of many items - sometimes everything - at our farmer's market.

Also if you're doing calculations for income and living off a farm, you can never assume 100% will sell. There will be failed crops, crops eaten by animals and bugs, weather disasters (a late frost destroyed the apple crops in NYS last year), rot before picked, items that don't sell (many items don't have a 24 hour shelf life).

And selling price x yield isn't your income. You have plenty of overhead - land, seed, fertilizer, irrigation, harvesting, storage, etc.

selling price x yield .........IS.......your GROSS income

It is up to the individual to figure out how to make NET income more resemble GROSS income

( retired dairy farmer here.......lived on a farm for 67 years.......my son now runs the dairy farm )
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Old 09-25-2013, 10:45 AM
 
Location: Somewhere in America
12,304 posts, read 11,058,538 times
Reputation: 20570
Quote:
Originally Posted by Teddy52 View Post
selling price x yield .........IS.......your GROSS income

It is up to the individual to figure out how to make NET income more resemble GROSS income

( retired dairy farmer here.......lived on a farm for 67 years.......my son now runs the dairy farm )
You didn't say gross income. I'm an accountant...job titles don't mean much. Not to mention that most people don't seem to grasp the difference between gross and net incomes.
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Old 09-25-2013, 11:00 AM
 
3,438 posts, read 4,836,925 times
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You may be an accountant and also know the difference , but every FARMER I ever knew sure DOES know the difference between gross income and net income
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Old 09-25-2013, 11:36 AM
 
Location: Somewhere in America
12,304 posts, read 11,058,538 times
Reputation: 20570
Quote:
Originally Posted by Teddy52 View Post
You may be an accountant and also know the difference , but every FARMER I ever knew sure DOES know the difference between gross income and net income
Well, you haven't met every farmer on earth. And the original poster is NOT a farmer! Neither is everyone on this thread.
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Old 09-25-2013, 12:28 PM
 
Location: Forests of Maine
31,147 posts, read 50,318,661 times
Reputation: 19849
Quote:
Originally Posted by Teddy52 View Post
I have a question about farmers' markets and roadside stands selling directly to the public.

Many people will presume selling price x yield is what the farmer will have for income.

That would be true if ......ALL..........of his product was able to sell at every farmers market or at his roadside stand.

A former neighbor of mine picked fresh sweet corn and had a daily roadside stand.
You paid for it on the "honor system"

Usually 3/4 got sold every day at his price and the remaining 1/4 got fed to pigs every night.

Not everything grown gets sold at optimum prices.
People already in the business know that.
Many " newbies" do not.
Baby-sitting a parking lot all day is not much fun, either.

I got into a Buyers Club, where they only order every 2 weeks. When farmers make their delivery they know ahead of time exactly how much of what has been sold. Most vendors drop-off and leave. As a member of the group, after I drop-off produce, I stay and help with the break-down / distribution. It can be nice to know how much has been sold before you leave the farm.

As a produce manager in a grocery store, my Dw takes delivery from farmers at her loading dock. That is also a good way to handle business.
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Old 09-25-2013, 02:01 PM
 
3,438 posts, read 4,836,925 times
Reputation: 5408
Quote:
Originally Posted by Submariner View Post
Baby-sitting a parking lot all day is not much fun, either.

I got into a Buyers Club, where they only order every 2 weeks. When farmers make their delivery they know ahead of time exactly how much of what has been sold. Most vendors drop-off and leave. As a member of the group, after I drop-off produce, I stay and help with the break-down / distribution. It can be nice to know how much has been sold before you leave the farm.

As a produce manager in a grocery store, my Dw takes delivery from farmers at her loading dock. That is also a good way to handle business.

sounds interesting ( buyers club )
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Old 09-25-2013, 02:10 PM
 
3,438 posts, read 4,836,925 times
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With many states relaxing the rules on the sale of raw milk, having a small group purchasing milk might be profitable.

One can easily get 2-3x the price you would as a dairy farmer.

I had the opportunity , but did not as I am not a believer in raw milk.

For those that are, there is opportunity.
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Old 09-30-2013, 03:08 PM
 
Location: Interior AK
4,729 posts, read 8,736,591 times
Reputation: 3364
Quote:
Originally Posted by Teddy52 View Post
I have a question about farmers' markets and roadside stands selling directly to the public.

Many people will presume selling price x yield is what the farmer will have for income.

That would be true if ......ALL..........of his product was able to sell at every farmers market or at his roadside stand.

A former neighbor of mine picked fresh sweet corn and had a daily roadside stand.
You paid for it on the "honor system"

Usually 3/4 got sold every day at his price and the remaining 1/4 got fed to pigs every night.

Not everything grown gets sold at optimum prices.
People already in the business know that.
Many " newbies" do not.
Feeding what you don't sell to your livestock reduces your feed expenditures, which can ultimately increase your net profit -- both by saving you money on feed costs and by generting more animal product. Eating a portion of your produce and animal products yourself alsoo reduce your own food budget, which increases your Net Income. It takes some math & accounting skills to work this out so you get a balance that is profitable (or at least breaks even).

Hypothetical example:
  1. You have 1-acre of BoBo Fruit.
  2. The average yield is 100 lbs per week, for 6 weeks in August.
  3. First, you must adjust for loss (pests, spoilage, wastage) - 25% is a good figure.
  4. So you plan for 75 lbs per week, for 6 weeks in August.
  5. The average price in your area for BoBo Fruit is $5/lb.
  6. The absolute most you can expect to make is 75 lbs x $5 x 6 weeks = $2250
  7. Deduct any taxes from that - again 25% is a good figure, so figure you'll net $1687 after taxes
  8. If it costs you more than $1687 in fuel, power, water, transportation, advertising, etc to grow and sell -- then BoBo fruits will not be profitable on it's own.
HOWEVER --
  1. You also have pigs and chickens, and they eat BoBo fruits.
  2. Feed for the pigs and chickens costs $5+ per lb -- so feeding them the BoBo fruits is financially viable. (Feeding them surplus and wastage is ALWAYS viable, since it's better to get something than nothing).
  3. This increases the Net profit on any pig or chicken product, as long as the cost of growing the BoBo fruit is still less than the cost to buy feed, and the animals experience the same growth rate on BoBo as on whatever formulated feed ration.
Depending on the Math --
  1. You may be better off feeding your livestock the BoBo fruit and selling the animal products instead (keeping in mind that animal products cost more to market than produce due to permits, licensing, etc). In that case, the animal product is your venture, and any sales of surplus BoBo Fruit is gravy.
  2. You may be better off converting your BoBo Fruit into another "value-added product" (keeping in mind that processed foods cost more to market than whole produce due to permits, licensing, etc).
  3. You may be better off selling a portion of your BoBo Fruit whole, processing blemished fruit into your VAP, and feeding any salvageable surplus and byproducts to your livestock, and composting any unsalvageable surplus and byproducts for next season's fertilizer.
  4. You may be better off growing or raising something else on your acre, something that sells at a higher price than BoBo, has a longer growing season or higher yield, has less overhead costs, or more alternate income opportunities.
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Old 10-03-2013, 01:35 PM
 
1,751 posts, read 1,188,202 times
Reputation: 2332
didnt the show 'green acres' teach you anything
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