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Charting Financial Benchmarks for Vegetable Farm Profits

Posted by Christina Kostelecky at Nov 29, 2017 11:28 AM |
Direct market sales (farmers markets, CSA’s, etc.) are an $86 million industry in Pennsylvania, yet very little information is available to help vegetable farmers serving direct markets make successful business decisions. In the winter of 2017-2018, PASA is coordinating a research project to help diversified vegetable farmers improve their bottom lines.
Charting Financial Benchmarks for Vegetable Farm Profits

Receive a $100 stipend!

Charting Financial Benchmarks for Vegetable Farm Profits
by Franklin Egan, PASA Director of Education

 

Direct market sales (farmers markets, CSA’s, etc.) are an $86 million industry in Pennsylvania, yet very little information is available to help vegetable farmers serving direct markets make successful business decisions. This winter, PASA is coordinating a research project to help diversified vegetable farmers improve their bottom lines. Participating farmers will have the opportunity to plug into a nationwide dataset managed by the University of Wisconsin. The research will help us understand how market channels, scale, and crop diversity influence profitability for direct market produce farmers.

 

Participants will complete a ~60 minute survey about their farm’s 2016 finances, and receive detailed information about how their businesses compare to farms across Pennsylvania and nationwide.

We are hosting two workshops in early January (see details below) to help folks organize and enter their financial data. Participants are eligible for a $100 stipend for completing the study, but must prepare some basic 2016 financial records before the workshop. Farmers are also welcome to enter 2015 or 2017 data, if they have those numbers handy.  General results from this study will be shared widely with the PASA community, but each farm’s specific numbers will be kept confidential.

At the workshop, Elaine Lemmon (Kitchen Table Consultants) will also offer a how-to training for conducting a market-channel assessment for your farm business.

If you are interested in contributing to this important research, please register at pasafarming.org/events or RVSP to franklin@pasafarming.org before Wed., Dec 20th.

Franklin can also be reached at 814-349-9856 with any additional questions.

 

WORKSHOP DETAILS (Choose One)

And here are the records you’ll need to complete the survey:

1.     Your IRS form 1040 for 2016, including Schedule F.

2.     Your property tax statement for 2016.

3.     Any documents or resources to help you estimate the current value of your farm property such as: tax assessments, original purchase price, real estate appraisals, or real estate comparables in your area. You will be asked to provide an estimated property value for your farm. This can be challenging. Please just provide your best estimate based on the information you have.

4.     A cash flow and/or profit and loss statement if you have one (or something similar) for 2016.

5.     An estimate of the total value of your machinery assets. You will be asked to provide estimates for the current value of equipment, and not the purchase price.

 

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