2. The Need for Integrated
Entrepreneurs in Agriculture
• Farmers historically have been production
entrepreneurs producing a commodity
• Other entrepreneurs have added value to
these commodities
3. The Need for Integrated
Entrepreneurs in Agriculture
• The result has been a decrease in the amount of
food expenditures which go to the farmer:
1900 – 65 cents
1960 – 40 cents
1980 – 37 cents
1992 – 23 cents
2003 – 16 cents
4. How Can Farmers Become
Integrated Entrepreneurs?
1. Add value to commodity produced
2. Market directly to consumer
3. Alternative enterprises
4. Niche markets
5. Sell experience (the sizzle)
6. Brand your product
7. Sell service, management, or
convenience
5. Why Should Farmers Become
Integrated Entrepreneurs?
1.Add value to product you produce
(Name of County) County hog producer:
-Sell fat hogs at sale barn:
260 lbs. X .50/lb = $130 gross
6. Why Should Farmers Become
Integrated Entrepreneurs?
(Name of County) County hog producer:
-Direct market freezer pork to
consumers at farmers markets
195 lbs. pork X $1.49/lb = $290.55 gross
7. Why Should Farmers Become
Integrated Entrepreneurs?
(Name of County) County hog producer:
-Add value & sell service
Bill’s BBQ Service sells roasted pork
260 lb. hog = 75 lbs. roasted pork
75 lbs X $6 per pound = $450 gross
8. Which Would you Choose?
• (Name of County) County hog producer:
- $132.50
- $290.55
- $450.00
9. How Can Farmers Become
Integrated Entrepreneurs?
2. Market directly to consumers
-farmers markets
-roadside and farm stands
-CSA
-festivals & community events
-online sales
-subscriptions and orders
-many more!
10. How Can Farmers Become
Integrated Entrepreneurs?
Why direct market?
Wholesale markets pay farmers 16 cents of every
dollar consumer spends on food
Direct markets pay farmers more than 95 cents of
every dollar consumer spends on food
11. How Can Farmers Become
Integrated Entrepreneurs?
3. Alternative enterprises
Unlimited opportunities in a state of 11
million residents
12. How Can Farmers Become
Integrated Entrepreneurs?
4. Niche markets
Niche doesn’t mean small
Millions of niches in a state of 11 million!
13. How Can Farmers Become
Integrated Entrepreneurs?
5. Sell experiences
-farm tours
-pick-your-own
-corn mazes
-hay rides
-vineyard/winery
-farm vacation, dude ranch, etc.
-lots more
14. How Can Farmers Become
Integrated Entrepreneurs?
6. Brand your product
15. How Can Farmers Become
Integrated Entrepreneurs?
Progression of economic value w/ branding:
Coffee grower commodity $1.25/lb
Kroger product $6.00/lb
McDonalds service $25/lb
Starbucks experience $50/lb
16. How Can Farmers Become
Integrated Entrepreneurs?
7. Sell service, management, or
convenience
-Horse boarding
-Contract raising of heifers
-Custom farming
19. Supporting Integrated
Entrepreneurs in Agriculture
• Networks for production, processing, marketing:
-Co-ops
-Kitchen or business incubator
-Farmers markets
-Commodity groups
-Chambers of Commerce/trade groups
-Others
22. Contact Information
Put your name and affiliation on this slide. Please also
give credit to author and Ohio State University Extension
Adapted from an original presentation created by:
Mike Hogan, Associate Professor
Ohio State University Extension
October 2008