Opportunities for Entrepreneurs in Agriculture Building An Entrepreneur Friendly Community
The Need for Integrated Entrepreneurs in Agriculture Farmers historically have been production entrepreneurs producing a commodity Other entrepreneurs have added value to these commodities
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
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
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
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 = $ gross
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
Which Would you Choose? (Name of County) County hog producer: - $ $ $450.00
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!
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
How Can Farmers Become Integrated Entrepreneurs? 3. Alternative enterprises Unlimited opportunities in a state of 11 million residents
How Can Farmers Become Integrated Entrepreneurs? 4. Niche markets Niche doesn’t mean small Millions of niches in a state of 11 million!
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
How Can Farmers Become Integrated Entrepreneurs? 6. Brand your product
How Can Farmers Become Integrated Entrepreneurs? Progression of economic value w/ branding: Coffee growercommodity$1.25/lb Krogerproduct$6.00/lb McDonaldsservice$25/lb Starbucksexperience$50/lb
How Can Farmers Become Integrated Entrepreneurs? 7.Sell service, management, or convenience -Horse boarding -Contract raising of heifers -Custom farming
Supporting Integrated Entrepreneurs in Agriculture Infrastructure Networks Capital Education
Supporting Integrated Entrepreneurs in Agriculture Infrastructure: -Production infrastructure -Processing infrastructure -Marketing infrastructure -Infrastructure infrastructure!
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
Supporting Integrated Entrepreneurs in Agriculture Capital: -Revolving loan funds -Low interest loans -Micro loans -Venture capital funds -Grant funds -Special programs i.e., Tobacco funds
Supporting Integrated Agricultural Entrepreneurs Education: -Production topics -Business management
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