This document provides an overview of starting a commercially viable produce farm from the perspective of John Parker, owner of Edible Earth Farm. It details his experience in the first year of operating the farm, including infrastructure built, crops grown, lessons learned, and revenue sources pursued. The second half provides advice for aspiring farmers on scale, skills, equipment needs, and financing considerations for starting a successful farm business.

1. SO YOU WANT TO BE A FARMER:
an in-depth look at starting a
commercially viable produce farm
John (Johnny) Parker
Follow Us on Twitter:
@backtothefarm
@edibleearthfarm
A look back at year one of Edible Earth Farm

2. BEFORE WE BEGIN
• Please place mobile devices on vibrate or mute.
• Feel free to Tweet or blog this session. Twitter
hashtag: #pasa20.
• Please hold your questions till the end of the
presentation. I have a lot to cover. I allotted time for
a Q&A discussion.
• Session website:
http://edibleearthfarm.com/starting-a-farm.html
A look back at year one of Edible Earth Farm

3. Session Overview
 This session attempts to look at starting a produce farm from a
business perspective
 The first half of the session is a pictorial journey of year on at
Edible Earth Farm
 The second half we’ll talk about the specifics
 Beware: Lots of eye candy
 This session will not broach issues like plant varieties, soil fertility
or plant health. That’s not to say these items are not important.
Horticulture and farming experience is an important component in
starting a farm. Note the discrepancy in session description: we
will not be talking about crop selection.
 Admittedly, this presentation takes advantage of the promotional
opportunity I have here today, speaking to you. I’ll indicate where
it is not obvious.
 Important skill as an aspiring farmer: never miss an opportunity
to promote your farm, your product or yourself.
 Not a SPIN farming session

4. Session Details
 Who am I
 What is Edible Earth Farm
 Year One
 How we started
 What we did
 Our lessons
 So You Wanna Farm?
 Scale
 Skills
 Infrastructure & Equipment
 Revenue Streams
 Pricing
 CSA Resources
 Marketing your Farm
 Financing a Farm
 Diversification
 Farming Resources

5. Who Am I
 What qualifies me to speak here today? Very little!
 I hold an off-farm job at Carnegie Mellon University and I work
as a sales rep for Woodward Crossings
 Worked on an organic farm and at a French restaurant as a
teenager
 Moved to Pittsburgh to go to culinary school
 Dropped out of culinary school to open a vintage clothing
boutique in Pittsburgh’s Southside
 Eventually, I returned to school and studied computer science
and software engineering
 I’m determined to build a financially viable produce farm
 Started Edible Earth Farm with my wife
 I try to apply software engineering principles to farming (e.g.
risk management, systems optimization, formal processes)

6. Edible Earth Farm
 A produce growing business started by John and
April Parker
 Established initially as a micro-farm to:
 Limit risk
 Minimize initial investment
 Jumpstart a larger, commercially viable operation
 Use the opportunity to gather and analyze data
 Begin to build efficiencies
 Understand the market
 Do we still enjoy it after the first year?
 In 2010 it was managed full-time by April. I
worked on weekends and during paid time off
from my day job. We had lots of help from friends
and family.

8. Distance Makes the Heart Grow Fonder
2.25 hours 110 miles

9. Starting
Equipment

10. Year One Objectives
 Grow on 1+ acre using intensive cropping
techniques
 Build important infrastructure
 Start an 18 week CSA w/ ~20 members
 Participate in weekly farmers’ market
 Develop processes
 Provide a high quality product
 Market the farm
 Learn
 Start small. Don’t fail!

11. The Immediate Tasks
 Drill water well and run irrigation lines
 Build produce cooler
 Build mobile hoophouse
 Purchase a delivery truck
 Purchase supplies
 Find someone to start seeds
 Build sorting/washing/packing station
 Find a market to sell at
 Cultivate
 The list goes on ……………..

12. H2O Well
Never Leave A Ditch Open!

13. Produce Cooler
Stats:
12’x12’
Low ceiling
20K BTU A/C
R-20+

14. Sorting/Cleaning/Packing Station

15. Early-Season

16. Mid-Season

17. Oakland Farmers’ Market
Click to Play Video

18. 2010 CSA
Click to Play Video

19. Lesson: Weeds
 Employ a strategy that’s proven
 Stay on top of them
 Be able to identify weeds
 Understand how to manage them
Diamond Scuffle Hoe
S-tine Sweep
Backpack Flamer
Wheel Hoe
by
Valley Oak Tool Company
Composting Mulch Cultivation
Buckwheat Crop Rotation
Hay and Straw Hand Weeding
Stale Seedbed Technique

20. Lesson: CSA the First Year?
 CSA in first year is not recommended
 Time consuming to organize and market
 Cost prohibitive at less than 40 shares
 For us, we were selling at prices less than we could
command at a market
 Constant product supply including variety is required
 Worked for us because we may have quit had we not
cashed their checks
 We received lots of encouragement from our CSA
customers
 A CSA is certainly something that should be
considered for subsequent years
 In the initial year, use farmers’ markets to build
interest in a CSA

21. Lesson: Pests and Disease
 Seek knowledge from experienced farmers
 Learn to identify early signs
 Scout often
 Employ a proven crop rotation strategy
 Understand the lifecycle of the pest or
disease

22. Lesson: Farm Finances
 Don’t overspend
 Prepare for a substantial initial investment
 Purchase equipment only when necessary or when you
can determine that it would greatly reduce costs or
resources
 Prepare to operate at a loss for at least two years
 Know your input costs
 Be frugal but not cheap
 Weigh the cost of a product or service with the potential
value of a long-term relationship with a vendor
 Borrowing money is an unfortunate reality
 Constantly evaluate financial risks
 Learn to manage financial stress in a healthy and
constructive way

23. So You Wanna Farm?
 How big?
 Start small but not too small
 Don’t under commit
 Initial capital and risk comfort will most often dictate initial
size
 Be sure you have the necessary startup capital. It’s very easy to
underestimate.
 Don’t start without necessary equipment and infrastructure
 Let your budget drive your size and don’t overspend
 There are economies of scale. However, they require
experience to harness.
 Be sure to develop a 5 year plan for growth that takes data
from revenue projections. Revise yearly.
 Don’t jump in too early
 Prepare to operate for several years with minimal or no
profit

24. Important Skills
 Time management
 Including the ability to quickly reschedule around changing
weather conditions
 Knowing when good enough is better than perfect
 Developing efficiencies through process optimization
 Learn to leverage economies of scale but also beware of
the point where there are diminishing returns
 Mechanical knowhow
 People management
 Risk management
 Stress management
 Computer and web skills
 Industry knowledge
 Customer relations

25. Large Equipment Needs
 Tractor
 If farming more than 3 acres, a tractor is a must
 Buy large, buy newer. 40HP-50HP w/front end loader and pallet forks.
 A skid loader and a tractor are an ideal setup. Tractors are not designed
to do a lot of FEL activities. Hard on tractor transmission and clutch.
 Tiller
 Can often buy two used for less than the price of one new. While
BCS tillers are nice, Troy-Bilt Horse tillers will do the job.
 Shop for good used equipment. If you can’t tell the difference, buy
new instead. Consider the cost of a new piece of equipment and
average its cost over the life of the product. Oftentimes, new
equipment wins out when you factor in repair costs and downtime.
 Mist Blower/Sprayer
 Use to spray crops. Mix spraying agent with a sticker.
 Delivery truck, Pickup truck, Trailer
 Shop for fuel efficiency

26. Large Equipment Needs Contd..
 PTO Driven Tiller
 If farming more than 3 acres, a PTO driven tiller is
advised
 Can find many on the used market but you don’t know
how they were cared for
 Mulch Layer
 Worth its weight in gold!
 Purchase one that will produce raised beds
 Heat up the roots of the plant better and helps keep roots dry
 Buy a good quality layer
 Propane Flamer
 Used in controlling weeds
 Pre-emergence flaming helps give plants a head start.
Heat will burst the cells in the small weeds killing them.

27. Large Equipment Needs Contd..
 Jang Seeders
 Jang JP series
 Seed singulation
 Reduces seed cost
 Reduces need to thin
 Dense planting
 Great for intensive cropping operations
 Does very well with small seed
 Can singulate lettuce and carrot seed
 Combine with pre-emergence flaming for great
results. Particularly with slow to germinate seed.
 NOTE: Does not seed large non-spherical shaped
seed
Specs:
 JP-3 12” outside row 3 seed heads
 JP-6 22” outside row 3,4,5,6 seed heads
 JP-6W 36” outside row 3,4,5,6 seed heads
 Not cheap. Very well engineered.
WoodwardCrossings.com
Or contact me: johnny@woodwardcrossings.com

28. Infrastructure and
Equipment

29. Revenue Sources
 CSA
 Farmers’ Markets
 Local Farm Alliance
 On-site Market
 Wholesale
 Restaurants
The more sources you choose, the less risk exposure you
have to significant loss. However, taking on additional
revenue sources comes at a price in time and resources and
can oftentimes impact the quality of the product. Start
small and try to limit risk. Expand as you become
comfortable.

30. Revenue Source — CSA
Potential: Not uncommon for 1000+ CSA member operations on 30
acres
Cost prohibitive at < 40 members
Pros:
 Potential revenue stream early in the year. Although, increasingly,
members expect payment plans which increases the costs to
manage and diminishes an early revenue stream.
 Predictability. Unlike growing for market, it’s much easier to plan
how much to grow.
 Flexibility with product and varieties
Cons:
 Extensive amount of effort to plan, organize and manage
(especially if it’s your first year)
 Marketing costs
 Less of a connection to customers compared to other direct-to-
consumer sources
 Increasingly competitive due to its popularity among produce
farmers

31. Revenue Sources – Farmers’ Markets
Potential: $5000-$10,000 max first season. Varies by market.
Being certified organic often will open doors to markets that
would otherwise not accept additional produce farmers. Harder to
find good markets because of the increasing number of smaller
local markets.
Pros:
 A great way to move product that hasn’t been used in CSAs,
sold to restaurants or wholesaled
 Great way to meet and interact face to face with your
customers
 Immediate and honest feedback
Cons:
 Good markets are often difficult to get into
 Revenue variability -- You’ll have bad weeks
 Can be very political
 Location at the market matters
 Tenured vendors almost always have better spots at market

32. Revenue Sources – Local Farm Alliance
Potential: Varies depending on your status in the alliance
Structure of co-ops/alliances vary greatly. Oftentimes, there will be buy-
in fees and yearly dues.
Pros:
 Allows growers to focus on growing
 Harness the experience of alliance employees to pack and
distribute CSA shares, recruit new members and market the
service
 Price is better than wholesale
 Less emphasis on product uniformity compared to wholesaling
Cons:
 Impacts a farms ability to build a brand insofar as the marketing
is done under the name of the alliance
 Selling for less than you could command in other retail channels
 With a large alliance, demand for product from any given grower is
reduced. It becomes imperative for a grower to partner with an
alliance that has few growers and a commitment to growth

33. Revenue Sources – On-site Market
Potential: Very difficult to project
Revenue is largely dependent on location, local demographics, nearby
competition, having quality traffic, complementary products, product
availability and product selection
Pros:
 Minimal start-up costs
 Minimal risk
 Little or no transportation costs
 Minimal labor costs to staff, if you can limit the time the market is
open to a day or two
Cons:
 If the farm is located in a low-traffic area, getting customers can be
difficult and will require advertising costs
 Margins may be slim in areas where people expect better priced
products
 Much like a farmers’ market, you will likely experience revenue
variability
 Takes away from farming time – be sure to limit hours

34. Revenue Sources – Wholesale
Potential: Difficult to project
Being successful at wholesale requires vast amounts of experience and
resources
Pros:
 Relatively dependable source of revenue
 Minimal marketing costs
 Can focus on specializing in products that do well in your area and
soil
Cons:
 Lots of waste. Distributors demand product uniformity.
 Packaging costs.
 Distributors demand product packed to specifications.
 Margins are slim. Difficult to compete with large California farms that
can harness years of experience and economies of scale.
 Inability to get feedback from customers
 At the mercy of the distributor

35. Revenue Sources – Restaurant
Potential: Difficult to predict first year revenue. Can reliably use first
year as baseline for subsequent years.
Be realistic about pricing. Distributors add about 20% to the
wholesale purchase price. Monitor commodity prices and adjust
pricing accordingly.
Pros:
 Can often command prices close to retail for high quality items
 Outlet for large quantities of product
 Learn about hot varieties that may also sell well at market
 Chefs love local products
 Immediate and honest feedback
Cons:
 Requires significant marketing effort
 Difficult to predict demand
 Requires significant time to engage chefs, accept orders and
deliver product
 Some chefs want multiple deliveries per week

36. Pricing
 Develop pricing strategies for each revenue
source
 Know your cost to produce a product
 Know the competition
 Don’t underprice your product. Yet, know the
price customers are willing to pay and use it to
your advantage.
 Consider value-added items to justify higher
prices (e.g. certified organic, online ordering,
cleaner product)
 Revisit pricing strategy several times a season
 Resist the urge to have loss leaders

37. CSA Numbers
 CSA shares per acre
1acre – 20-30 shares
4 acre – 100-125 shares
 CSA pricing: $15-$30 per week/share with
the average price being $25
 Expect $3000-$5000 net return per acre
 Expect 20% yearly member attrition
 2009 average price and length $540 for 20
weeks

38. All files included in
CSA Resources
download with
permission from the
author
http://www.roxburyfarm.com http://www.roxburyfarm.com/content/7211
Greenhouse Schedule Zone 5A

39. Marketing Your Farm
 Create markets! They won’t come to you.
 Farm website
 Social media
 Local print and local CSA directories
 Online communities (e.g. LocalHarvest)
 If selling at a farmers’ market, use the
opportunity to promote other products or
locations
 Use friends and family to spread the word
 Signage
 Newsletters
 Blog

40. Social Media
 It’s a slippery slope! Once you start and to be
effective, you should be committed to building it.
 Takes vast amounts of time to manage
 Exposure to customer feedback that may be difficult to
manage given other farm responsibilities
 Return on time investment is difficult to quantify.
Building the network is slow and has minimal benefit
early in the process.
 The power it affords a business should not be
discounted
 Young customers want that level of interaction
 If you have a good product and service, customers will
spread the word
 Spread the word about specials and new products
 Gather feedback on what people want

41. Financing a Farm
 Debt is an unfortunate reality
 Build strong relationships with local lenders
 Manage debt responsibly
 Save now!
 Be conscious of opportunities to shift debt to
an institution with better terms. This has the
potential to save substantial amounts of
money over the life of your debt.
 Do the math. Only borrow when you can show
that the positively impact the bottom line.
 Set aggressive repayment goals

42. Diversification
 Farming is a high risk and low profit
business
 Find areas to expand where you can
leverage existing skills or equipment
 Quickly cull operations or efforts that are
unprofitable
 Diversify: flowers, prepared food, fruits,
meats, bees, the possibilities are
endless……………

43. Edible Earth Farm & Eatery

44. Farming Resources – Books
Market Farming Success – Lynn Byczynski
- Complete overview of a market farm operation
including:
- A look at market potential – $25,000 gross per acre
- Identifying ideal farm characteristics
- What to grow
- Production lifecycle
- Planting
- Recordkeeping
- Flower ISBN: 9780930031756
The New Organic Grower – Elliot Coleman
- Very detailed look at the full lifecycle of a market farm
including:
- Land characteristics
- Soil Fertility
- Deep-organic production methods
- Farm labor
- Green manures
- Pest management
ISBN: 093003175X

45. Farming Resources – Books contd.
The Winter Harvest Handbook – Elliot Coleman
- One of my favorite books. Explores:
- Winter production in unheated greenhouses
- Crop rotation
- Vertical growing
- Overwintering
- Soil fertility
- Movable greenhouses
- Intensive crop production
- Hardy plant varieties ISBN: 1603580816
The Organic Gardener's Handbook of Natural Pest and
Disease Control – Rodale Press
- A resource for pest and disease identification. Explores:
- Details preventative measures and organic controls
- Describes ideal growing environment for 200+
vegetables, fruits, herbs and flowers
ISBN: 1605296775

46. Farming Resources – Books
contd.
Sustainable Vegetable Production From Start-Up to Market
- Highly recommended book for aspiring farmers.
Required reading in several Masters of Sustainability
programs
- Describes recordkeeping strategies, budgets, marketing
and equipment to name only a few.
- A must for any aspiring farmer
Web Resources ISBN: 093581745X
• New England Small Farm Institute
• Roxbury Farm – Detailed production information available for
download
• Penn State Cooperative Extension
• Northwest Beginning Farmers Project
Publications
• Growing for Market
• Small Farm Journal
• Vegetable Grower – Warning!

47. Contact Info & Services
John (Johnny) Parker
814/303-9663
johnny@edibleearthfarm.com
website:
EdibleEarthFarm.com
blog: BackToTheFarm.net
twitter: @backtothefarm
My Services:
Farm Equipment Sales
Speaking Engagements
Technical Consulting
Business Software Evaluation
Project Management