HMI Announces New Peer-to Peer Learning Program

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Open Gate On-Farm Learning Series

We are very excited to launch our newest program for farmers, ranchers, and land stewards.  The Open Gate On-Farm Learning Series consists of facilitated day-long, peer-to-peer farm/ranch that are held on farms and ranches throughout the U.S. Each farm/ranch day is hosted by an experienced Holistic Management practitioner and features numerous innovative and sustainable agricultural topics and practices.

We are planning on holding ten of these in 2013 at various U.S locations. Our first one will be held at the Paicines Ranch in central California and we are accepting registrations.  If you’d like to be notified when registration is open for the remaining events, be sure to sign up for our E-newsletter.

You can find the list of planned events and registration information here.

 

New Holistic Management Reference Material

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We’ve just completed a reference piece that highlights the Holistic Management Whole Farm/Ranch Planning System. This short piece  highlights the  framework, the basic principles, the six practices and the seven testing questions. It’s a handy piece for anyone practicing Holistic Management. It’s available for you to download for free. Please feel free to share with producers you know that want to build sustainable, profitable farms and ranches.

Holistic Management Highlights

Learning How to Create Profit

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 Editor’s Note: The following article is from IN PRACTICE, HMI’s  bi-monthly publication. It features one of the key components of Holistic Management® Financial Planning–planning profit before expense. As Jeff it explains, this critical paradigm shift has helped many farmers with their financial planning. To subscribe to IN PRACTICE or get a free introductory subscription, click here.                     

 

By Jeff Adams

 


Jeff Adams on Walnut Hill Farm at Elm Springs moving cattle

Recently the ole light bulb came on when I had a financial epiphany of sorts. Before I dive into the epiphany let me provide some background. Recently Ginny and I attended a two-day financial workshop taught by Holistic Management International as part of their Future Farms series in the Upper Piedmont of Virginia.  This is a course that challenges many of my farm paradigms.

The two day course revolved around a simple accounting formula known to many:

Income – Expenses = Profits

Many of you may have seen this formula on more than one occasion.  The thing is Holistic Management turns this traditional formula on its head.  Math is math and math allows the change so that the new formula is:

Income – Profit = Expenses

There is even a third version of the formula that I have never seen, but as long as you have two of the variables you can determine the third:

Expenses + Profits = Income

The first formula is a line in a 1960 presidential campaign by then Senator John F. Kennedy, who said: “the farmer is the only man in our economy who buys everything at retail, sells everything at wholesale, and pays the freight both ways.”  This line sums up the traditional commodity farmer.  A commodity farmer is in a position of acceptance.  These farmers often work under contract to large multi-national corporations.  They accept whatever prices the large corporation’s demands they work for.  The corporation is concerned for the corporation and doesn’t care about the farmer’s plight.

You purchase many of these products from the grocery on a weekly basis, you know them: milk, poultry, beef, corn products, wheat products, etc.  Let me explain.  If you look at a typical dairy operation, the farmer sells his milk to a creamery who converts the raw product into a gallon of milk on the grocery self.  The creamery sets the price on both ends.  The creamery gives the farmer a price that he can take or leave. 99.9% of the time the farmer is forced to take the price, to keep a roof over his head.  What you may not know is that in this arrangement the farmer generally losses money on every gallon of milk he sells.  The creamery is the middle man, and the middle man is making the money.  This is why so many dairy farmers go out of business every year.

 

Commodity farming is defined by:

Income – expenses = profits.

If you made it this far, here is the epiphany.  Under this type of farming the farmer is a slave to the formula.  The farmer can’t control his income, and by and large he can’t control his expenses—sad but true.  When I take my calves to the sale barn I have two basic choices: 1) accept the bid price or 2) carry the calves back home.  This really isn’t a choice because the tractor payment is due tomorrow.

 

This is true throughout the commodity exchange.  But I am not a commodity farmer. The formula Holistic Management is teaching puts me in the driver’s seat.  It is a formula of control not a formula of acceptance.

Income – Profits = Expenses

By selling at farmer’s markets I control my income, and the course has given me the tools to sharpen my pencil on expenses.  No longer will I sit back and accept.  This epiphany has my mind going a thousand miles per hour.  It has given me a boost of much needed energy.  I am looking at so many changes on the farm because of a simple formula change—it is unbelievable.

Before I always accepted expenses never understanding that I could control expenses; not in little ways but in big ways.  Gone are the days of trying to lower an electric bill by $5.00, when I should look at seriously reducing a $40,000.00 feed bill.  Bigger bangs mean bigger bucks.

In the back of my mind I must have known about the formulas, but I couldn’t see the proverbial forest, because of the proverbial trees.  But it does explain why I would turn people down offering to make a purchase at lower than listed prices.

It took a week to have the epiphany, but I am so grateful to Seth Wilner, our instructor, and HMI for opening my eyes to a simple life changing formula.

Jeff Adams owns Walnut Hill Farm at Elm Springs, LLC, near Fredricksburg, Virginia.

New Zealand Holistic Management Certified Educator in the News

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John King, a Holistic Management Certified Educator was in the news recently. John is from Beckenham, Christchurch, New Zealand.

The only people who should be making decisions about the land are the people managing it.

That is the belief of John King, a Certified Holistic Management educator who brings a “whole systems” approach to farming businesses….

Read the rest of the article at the Otaga Daily News

HMI Receives Grants

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We are so honored and pleased to announce that we just received grants from two well respected organizations.

The Clif Bar Family Foundation has awarded HMI $5,000 in support of our work. They state, “Among the hundreds of proposals we have received, your organization stands out as one that will offer social and environmental change.”

Farm Aid, which is a a past supporter of HMI, is continuing their support with a $7,500 grant. The grant will go toward continuing development of our Holistic Management whole farm planning curriculum.

As a non-profit organization, we rely on grants from organizations like these, as well as donations from individuals like you.  These contributions allow us to provide vital training and educational programs to struggling farmers, ranchers like these.  As we close out the year, please consider joining Farm Aid and the Clif Bar Family Foundation in supporting our mission to educate people for a sustainable future.

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FREE IN PRACTICE Journal Archives Updated

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We’ve just added more back issues of In Practice, the journal for Holistic Management® practitioners to our free archive.

In Practice is published by HMI and will keep you in touch with the progress, innovations, and excitement generated by those practicing Holistic Management. You can purchase a subscription for yourself you someone you love, in the HMI store.  If you’ve never received In Practice before, you can contact us and request a FREE electronic introductory one year subscription.

And of course you can check out older back issues in our FREE archive.

 

 

 

 

New survey of 1,000 young and beginning Farmers shows what the next generation needs

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We are delighted to see the work of The National Young Farmer’s Coalition and The Greenhorns, two groups who are serious about the future of farming. This press release was recently distributed by the The National Young Farmer’s Coalition, reporting on a recent  survey they conducted:

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http://www.youngfarmers.org/newsroom/building-a-future-with-farmers-october-2011/

The National Young Farmer’s Coalition recently released a study showing that the nation’s young and beginning farmers face tremendous barriers in starting a farming career. The survey includes 1,000 farmers from across the United States and reports that access to capital, access to land and health insurance present the largest obstacles for beginners. Farmers rated farm apprenticeships, local partnerships and Community Supported Agriculture (CSA) are the most valuable programs to help beginners.

“If Congress wants to keep America farming, then they must address the barriers that young people face in getting started,” says Lindsey Lusher Shute, Director of the National Young Farmers’ Coalition. “We need credit opportunities for beginning and diversified farmers, land policies that keep farms affordable for full-time growers and funding for conservation programs.”
Report findings include:
78% of farmers ranked “lack of capital” as a top challenge for beginners, with another 40% ranking “access to credit” as the biggest challenge.
68% of farmers ranked land access as the biggest challenge faced by beginners.
70% of farmers under 30 rented land, as compared to 37% of farmers over 30.
74% of farmers ranked apprenticeships as among the most valuable programs for beginners.
55% of farmers ranked local partnerships as one of the most valuable programs, and 49% ranked Community Supported Agriculture (CSA) as a top program.
Lack of capital was found to be the biggest challenge for beginners. Although the USDA’s Farm Service Agency offers loans to beginning farmers, current loan rules often disqualify even experienced farmers with good credit and small loans are hard to come by. For real estate transactions, FSA loans take too long to process — up to thirty days to qualify and up to a year to receive funds – and the $300,000 loan limit doesn’t go far in many real estate markets.
Land access was the second biggest concern. Farmers under the age of 30 were significantly more likely to rent land (70%) than those over 30 (37%).

Secretary of Agriculture, Tom Vilsack, is calling for hundreds of thousands of new farmers nationwide. Over the past century, the total number of American farmers has declined – from over 6 million in 1910 to just over 2 million today. For each farmer under 35 there are now 6 over 65 and the average age of farmers is 57. The USDA expects that one-quarter (500,000) of all farmers will retire in the next twenty years.
The ‘good food’ movement is inspiring many young people to farm, both from farming and non-farming backgrounds. These farmers have the potential to offset the numbers of retiring farmers and keep family farms active, but land tenure and lack of capital are getting in the way.
“Young farmers are poised to redefine the American landscape along with our food scene”, says Severine vT Fleming, Director of The Greenhorns, “We are strong of will, and determined to make farming sustainable in this country.”
“With the release of reports such as this one, the agrarian revival, this influx of young and beginning farmers, gains status – we’re not just a few people spread across the country, we’re a well organized, politically active group that can be documented,” says Tierney Creech of the Washington State Young Farmers Coalition. “We know who our senators and representatives are, we vote, and our friends and families vote. We need USDA and government support to succeed and we’re going to let the nation know that.”

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At HMI, our hats are off to this work which is so important to the future of farming and ranching!

Farmer Training Programs Under Attack

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The National Young Farmer’s Coalition is sponsoring a petition to the US House of Representatives requesting that they not cut funding to Beginning Farmer Training Programs.

As of September 30th, the most important federal program to train the next generation of American farmers will run out of money. In 2012 alone, the Beginning Farmer and Rancher Development Program funded forty training programs that provided new farmers the business and technical skills that they need to build successful, independent farms. Much of the good work HMI has accomplished with our Beginning Farmers & Ranchers: Women in the Northeast program has been as a result of BFRD funding.

With an unprecedented number of American farmers expected to retire in the next twenty years, the nation needs this federal program – and the thousands of new farmers it supports.

By signing this petition, you will be helping to ensure that future programs receive funding and work to benefit new farmers.

We encourage you to consider signing this important petition.

HMI Presents Results of Program for Women Farmers

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If you’ve followed HMI for very long, you’ve probably heard about our Beginning Farmers & Ranchers program.  The program started in 2009 when the USDA National Institute for Food & Agriculture’s Beginning Farmer and Rancher Development Program provided 3 years of funding to HMI to teach beginning women farmers in the Northeast about Holistic Management whole farm/ranch planning. We wanted the women to improve their ability to manage their farms successfully for the triple bottom line of profit, land health, and quality of life and build support networks to sustain that success. The primary goals of this 3-year project was to train 270 women in whole farm planning and help them develop whole farm plans as well as build capacity for an ongoing Beginning Women Farmer program in the Northeast.

A key component of the program was to gather and analyze data so we could understand the degree to which the women achieved triple bottom line results, as well as the effectiveness of our training efforts. Now that the program has come to an end, we are pleased to share these results with the HMI Community.

As you’ll see the results demonstrate the success of this program at every level due to strong collaborative arrangements and adaptive project management in response to the feedback from participants, instructors, mentors, state coordinators, and project director.

As a matter of fact, the program and the results were so successful the USDA/NIFA/BFRD group recently awarded HMI another grant to continue training women in the Northeast and Texas.

Dr. Ann Adams, HMI’s Director of Education and project manager for the program will be presenting these results at the 6th Small Farms Conference in Memphis, TN on September 18-20, 2012. If you’re attending the conference, please be sure to stop by and say hello to Ann.

The connection between climate change and farm land

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From the Sacramento Bee Newspaper: Food and farming are a big part of California’s identity. After all, the state produces 400 different crops and livestock products; provides more than half of the U.S. supply of fruits, vegetables and nuts; and is the country’s leading dairy supplier.

Many agricultural landscapes pervade California culture – cattle grazing among oak woodlands; vineyards splashing fall colors; almond orchards blooming pink in spring; vast rows of tomatoes, strawberries and lettuce, and more.

Most Californians take the existence of farming and ranching for granted, but this is a mistake. There are mounting pressures to convert farmland to other types of land uses. More than 1.3 million acres of important farmland and grazing land has been converted to other uses since 1984, including more than 1 million acres lost to urbanization. Most aging farmers want to see their land stay in agriculture, but it’s challenging for new farmers to get into the business because of the high cost of land and equipment, so farm families sometimes have little choice but to sell to developers.

Protecting the state’s working lands is important not just for reasons of culture and identity. Agriculture is a $37 billion industry and the backbone of many rural Californian communities and related industries. California’s Central Valley is one of the last great Mediterranean climate agricultural production areas on the globe, and the food produced here for California and the nation is an issue of national security. There are also recreational benefits to be considered since hunting, hiking and tourism can be compatible on agricultural lands.

Ranches and farms also offer numerous environmental benefits. They provide wildlife habitat for birds, pollinators and many other animals. Importantly in our arid climate – especially because water scarcity will become more acute with climate change – agricultural lands serve as groundwater reservoirs where rainfall penetrates soils, in contrast to paved urban areas. And when farmland is properly managed, it can filter water for nearby communities.

New reports released Tuesday by the California Natural Resources Agency and the California Energy Commission provide valuable data on climate change adaptation. One of the studies, funded by the Energy Commission’s Public Interest Energy Research Program, adds a new and compelling reason to protect California’s working lands. Led by Louise Jackson, a team of researchers at the University of California, Davis, in cooperation with county agencies, conducted an inventory of greenhouse gas emissions on Yolo County farmland and studied how agriculture can adapt to climate change. This study, which can be found at http://agadapt.ucdavis.edu, provides a tool for assessing agriculture’s responses to climate change at the regional level.

Importantly, the study found that urban land accounts for 70 times more greenhouse gas emissions per acre than cropland. According to the authors, this finding “suggests that land-use policies which protect existing farmland from urban development are likely to help stabilize or reduce future emissions, particularly if they are coupled with ‘smart growth’ policies that prioritize urban infill over expansion.”

The authors go on to state that even greater climate benefits can be gained by using farming practices that reduce emissions, sequester carbon and buffer crop production from uncertainties in future climate and fluctuating energy prices.

Until three years ago, the state funded a popular program called the Williamson Act, which offered property tax reductions for farmers who agreed to keep their land in production for 10-year periods. Budget cuts have axed the funds, and there are now virtually no public funds to encourage farmers to hold onto their land.

There are other well-documented policy tools available for protecting farmland. Three ingredients are needed to make them work.

First, we must balance competing uses and develop criteria and guidelines for prioritizing the most high-value agricultural lands. Accommodating a growing population, preparing for a secure renewable energy future and building a 21st-century transportation system must not be accomplished at the cost of paving or “solar paneling” over vast acreages of prime land that we need to feed ourselves.

Second, we must find sources of funding to ensure that maximal community benefit can be obtained from working lands while ensuring that farmers and ranchers can afford to get in and stay in business. One potential source of new funds is California’s cap-and-trade program, which is expected to raise more than a half billion dollars this year, increasing in following years. The Legislature is currently debating an investment plan for the funds; it should include farmland protection.

Third, because land use decisions are difficult, development pressures intense and issues of property rights sometimes contentious, we need political leadership, public awareness and support. Thanks to the team of UC Davis researchers and government funding for their study, we can add climate protection to the compelling list of reasons to invest in the long-term protection of California’s farms and ranches.

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