Project Title - Farming Alternatives:  A Workshop on Evaluating the Feasibility of New Farm-Based Enterprises  Round 1(2003)

Situation: Farm families’ looking at alternative enterprises has increased in an effort to improve net farm income.  Their chief focus in resent years has been at the “idea” level.  That is thinking about, learning about and contemplating various and sundry enterprises with an emphasis on the production side of the equation.  Many are serious about adding an enterprise but are unsure of the next steps. 

The skills necessary to evaluate the feasibility of a new farm enterprise or rural-based venture are important and often lacking in the farm community where, again, the chief focus has been on production.  Farm families need to engage in a step-by-step process that will help them assess personal, family, and business goals; research local and regional markets; analyze production feasibility, profitability and cash flow of an enterprise; make final decisions and develop a business plan.

Response:  To address this issue, UW –Extension Ag Agent Jim Faust received a grant from the Kohl fund to conduct a three-day workshop titled “Farming Alternatives: A Workshop on Evaluating the Feasibility of a New Farm-Based Enterprises.”  Curriculum developed under Cornell Universities Farming Alternatives Project served as the basis for the workshop.  Faust recruited Robert Cropp, Ag Agent in Pepin County and Joann Utphall a business major from UW Stout to help in teaching and facilitating the sessions. 

Expected outcomes for the workshop included:

• Farm families will develop and assess personal, family, and business goals.
• Farm families will assess their farm resources and identify alternative enterprise possibilities.
• Farm families will develop a market survey to assess local markets.
• Farm families will analyze production feasibility, profitability and cash flow of an enterprise.
• Farm families will make decisions concerning alternative farm enterprise development.
• Farm families will write a business plan for the enterprise of their choice.
• Farm families will successfully implement a new, value added enterprise.

Results:  Eight farm entrepreneurs, each representing a different kind of farm enterprise, attended the three workshops. Participants completed the worksheets associated with the above expected outcomes.  Six of the eight participants made the decision to go forward with their respective farm enterprise choice.

Evidence:  After completion of the Farming Alternatives Workshop, a pre-then-post test method of evaluation was employed to assess behavior change. Participants were instructed to rate themselves on a scale of 1 to 5 where 1 = almost never, 2 = seldom, 3 = about half of the time, 4 = often, and 5 = almost always on the objectives found on table 1.   The following table summaries the difference in workshop participants changes in self reported behavior “before workshop” and “after workshop.”

The workshop objectives showing the greatest “before workshop” and “after workshop” difference was the objective to write a business plan.  The objectives dealing with completing a market survey and market plan were next with difference of 1.86.  The objective showing the least “before workshop” and “after workshop” difference was the one in which attendees formally assessed their farm resources and identified alternative enterprises. 

When asked what “things did you learned that you plan on using in your farm operation”, the following responses were given;

• Business planning
• A framework to attack the big problems
• Business planning
• Marketing prioritizing
• Determining compatibility of enterprises that could add profit
• Procedures to follow in developing markets
• Analysis of the details of our operation
• Cash flow analysis
• Writing goals
• Keeping good record
• Doing a balance sheet
• Doing a profit & loss statement
• Putting all resources to use, even human
• Considering objectives of all family members

Finally, when participants were queried on “what additional topics would like to be seen addressed”, the following responses were given;               

• More time                            
• Hands-on case study to work through
• More specific websites for examples
• More time on marketing & business planning
• More time on the financials, I.e. cash flow
• Keep it to just livestock or crops

Since this was a pilot workshop a number of questions were asked to determine the “market value” as well as determine the number of days participants would be willing to commit to.  The evaluation discovered that attending individuals would be willing to spend $75 for a workshop of this kind.  Further, they felt that four days would be a time commitment they would be willing to make.