Stories

Wake Robin Farm’s Transition to Value Added Dairy Production
By A. Edward Staehr, Communications Director, NY FarmNet/NY FarmLink

Bruce and Meg Schader established Wake Robin Farm in 1999 as a family owned vegetable and cut flower farm business. The farm started operating under the Community Supported Agriculture model, where customers purchase shares of production prior to harvest season. Over time, demand grew, and the Schaders still continued to supply all labor and management for their farm. Owning and operating a vegetable farm requires considerable labor during peak production months, and the Schaders were looking for options to spread their labor more evenly over the year. An option they wanted to explore was the feasibility of incorporating a value added dairy enterprise into their overall business.

Meg was looking for assistance on project feasibility and suggestions for marketing a new product. As a result, she contacted NY FarmLink to discuss a multitude of factors related to finalizing a business plan. A renewable grant from the NY Farm Viability Institute provides funding for NY FarmLink to work with farmers such as the Schaders, who request business planning assistance. An initial step involved evaluating production costs on a per unit basis to identify which container volumes would offer the best returns when selling milk. Starting a dairy enterprise from the ground up required significant inputs, and construction cost overruns are of great concern in such instances. A 15 percent contingency was added on to construction cost projections, which turned out to be conservative.

Producing a dairy product with a limited shelf life requires astute marketing, and the Schaders did considerable homework in establishing outlets for their dairy products. Before purchasing cows, they surveyed potential customers and projected product demand. Pasteurized whole milk and yogurt are two products produced at Wake Robin Farm, and there are a plethora of establishments that now carry Wake Robin Farm dairy products. Local grocery stores such as Green Hills and Big M are merely two examples of outlets that sell either whole milk, or plain or vanilla yogurt from Wake Robin Farm. Another market outlet is the Syracuse Regional Market, and the Schaders have found that Eastern Europeans, who purchase food at the market, have a fondness for whole milk.

At the present time, the Schaders are processing 100 gallons of milk per week from their herd of Jersey cattle. Future plans include significantly expanding the amount of milk processed. Allocating production between bottled milk and yogurt is described by Bruce as a “balancing act”. All products are marketed within a 30 mile radius, and a business goal is to continue to sell everything locally. The Schaders have transitioned from cultivating vegetables to cultivating markets. An illustration of this transition is that their cultivating tractor is now for sale.


NY FarmNet Newsletter, Spring 2007: 25, p.1

NY FarmNet Consultants Integrate the Next Generation into Moserdale Farm
By A. Edward Staehr, Communications Director, NY FarmNet/NY FarmLink

Andrew Moser contacted NY FarmNet when he wanted to evaluate the potential of returning home to Moserdale Farm in Copenhagen, NY to work with his father Doug, and business partner Patty Beyer. A recent divorce in the family was a point of concern for Andrew, and he wanted an objective opinion on whether he should consider entering into a business agreement at Moserdale Farm. Financial Consultant Donald New was assigned to work with Andrew, and encouraged him to go into business with his father and business partner Patty, provided certain changes were made.

Properly entering into a business agreement required significant work, and New first evaluated the financial performance of Moserdale Farm to determine whether the business could support another member. A bank that financed the Mosers recently dropped all agricultural loans, and Doug had to find a new lender. New saw an opportunity to restructure debt, which would alleviate cash flow concerns that Moserdale encountered. In addition, he also worked with Doug and Andrew to complete a NY FarmLink-developed workbook on intergenerational farm transfer. New’s personal experiences farming with family helped him gain confidence with all parties involved at Moserdale Farm.

Financial considerations are merely one aspect of formulating a business agreement. Personal issues such as communication, having a shared vision, and jointly setting goals are equally important. Personal/Family Consultant Leonard Freeborn worked with the Moserdale Farm management team on issues such as improving communication to set goals as a team. Andrew and Patty both credit Doug as being a people person and having a desire to create a harmonious working environment. This desire helped Freeborn achieve successful results in enhancing the Moserdale team’s interpersonal communications skills.

Valuing each individual’s skills and seeing potential for Moserdale Farm’s future provided encouragement for Doug to create an opportunity for other business partners to gain equity. Such long term thinking has benefited the farm business in many ways. For example, Andrew recently purchased property that Moserdale Farm had rented for the past six years. This purchase added another 260 acres to the farm and illustrates the benefits of cultivating a positive land lord/tenant relationship.

Business growth is also allowing Patty Beyer to have an opportunity for building equity in the farm business. In the 1990’s, she left Cornell Cooperative Extension to start a heifer boarding business. Beyer presently boards heifers for Moserdale and keeps financial records. Her goal is to begin building equity in the milking herd. This goal will be realized when the farm begins expanding from the present size of 340 cows to 500 cows.

Enlisting the assistance of others is helping the management team at Moserdale Farm realize a goal of expansion. A key factor in moving the business forward, cited by all three members of the Moserdale team, is persistency from NY FarmNet in keeping the team focused on implementing a plan for the future. Part of the plan begins with forming a new business structure to allow for protection against liability, as well as providing opportunities for partners to build equity. In addition to assistance from NY FarmNet, Moserdale is working with Farm Credit to place farm assets into a Limited Liability Company.