Hot News

3.18.2008

By CARYL VELISEK
Staff Writer

WEST FRIENDSHIP, Md. — Change is the watchword for future farmers, according to the speakers at the Central Maryland Women In Agriculture Forum held at the Howard County Fairgrounds on March 12, and the way in which an enterprise is marketed can spell the difference between success and failure.
Dr. Dennis Hall of the Pennsylvania Center For Farm Transitioning in Harrisburg, Pa., spoke in two separate segments on the program.
In his second session he asked the question, “Who will be the next generation of farmers?”
Aside from the demographics — i.e. age, race, ethnicity, raised on the farm, etc. — Hall proposed the next generation will be innovative, eager to change with the changing times, look for new markets that may not have even existed five or 10 years ago, will use business techniques not used in farming but used in other businesses, will use the new technology like the Internet, and that BMPs will become the standard.
“The new generation of farmers will use state-of-the-art ag practices,” Hill said. “They will be agile, able to move with the changing times. They will follow the confluence of market trends and adapt to new market opportunities and incorporate new practices and knowledge as they occur.”
The new generation of farmers will be collaborative and look for support outside the farming community, Hill said.
“And they will be building bridges with lending partners.”
Bill Schrodel, who is an account executive with Mid-Atlantic Farm Credit in Westminster, Md., spoke about those ‘bridges’, or relationships with financial institutions. He emphasized the importance of dealing with someone who not only understands the business, but also developing a long-term relationship with the lender.
“If you are starting a business, treat it as a business, not a hobby,” Schrodel said.
He spoke of the importance of having a good business plan, a mission statement, knowing what the goals are and a marketing plan and what one wants to achieve.
“Develop a partnership with your lender and keep him informed of your progress and any problems,” Schrodel said. “Meet with your lender and rely on him. He should believe in you and be there to advise you when needed.”
Schrodel listed the “5 C’s of Credit” as:
• Capital consisting of financial condition — equity, working capital, leverage;
• Capacity (repayment);
• Conditions, or loan structure, loan purpose
• Character, or evaluation of management; and;
• Collateral.
“I don’t want your farm,” Schrodel said. “I want you to succeed.”
Ben Beale, who is the Extension Educator for the agricultural sciences in St. Mary’s County, concurred.
“We live in a changing world,” Beale said, “and much of that change is driven by population growth.
“One of the keys to success is identifying your market,” Beale told the audience.”
Understanding the needs and wants of the customer is the purpose of the business, he said.
“Once you establish there is a need, you need to ask what sets your product apart from others on the market and what the competition is.”
Niche markets are extremely important in the marketplace today, Beale said. “Buy local, support local farmers, freshness of product, are all important to today’s consumer as is convenience.”
And not just convenience of use, but convenience of where it can be purchased.
“This is a competitive business,” Beale said. “You need to find that competitive edge.”
Others on the program included Phyllis Kilby, president of Kilby Inc., a dairy farm in Colora, Md., and Kilby Cream, an ice cream business that is an off-shoot of the family dairy business. Kilby works in partnership with her daughter, Megan Coleman, and her son, Brad’s wife, Lisa, running the ice cream business. When they first began thinking about the ice cream business, the men in the family didn’t think it was a good idea to have at their location, Kilby said.
“We live down a long gravel lane and they didn’t think that would work with the traffic we anticipated.”
But it has. Mothers who bring their children for ice cream don’t have to worry about them being close to the road and there is room to play.
The farm is located across the road from an elementary school, which has helped get word of the product out.
“This is a local product we see from beginning to end,” Kilby said. “We hire local high schoolers to work with us and many of them get to move up in the business. We treat our business like a family.”
Each of the three women has their own area of expertise, Kilby said.
“Lisa likes to cook and knows food chemistry and develops different ice cream flavors. Megan is creative and does parties and thinks of different activities we can incorporate into the business. And I know everybody because I’ve been here so long, and am the ‘clean up person.’’’
Joy Levy from the Howard County Department of Planning and Zoning, gave an update on estate planning issues and what steps are necessary when starting a business on land in one of the farmland preservation programs, and recommended checking with the program as well as the zoning board before starting any new venture. The forum was opened to a question and answer period before adjourning.