Where Do We Grow From Here?

By Jane Eckert - Eckert AgriMarketing

“What should I do next?”

This is the number one question I get from almost every farmer I meet, and the answers I give are usually a surprise to them.

Most farmers think they need to make big changes to make big profits. “Should I build a corn maze?” or “Is it time to open a bakery?” or “Should we convert one of the buildings to a hunting lodge?”

These giant steps might be exactly the right move, depending on your business, but in reality, there are usually some very basic changes that can help make you more money without the large investment. And, only after you’ve addressed the basics, should you move onto complex changes that require long-term planning and financing.
So what are those basics?

ONE: Think like a business! Farmers often make choices from their gut rather than from a business plan. Develop short-term and long-term strategies and consider how committed your family is to your plan. There is a variety of resources and workshops in Kansas for people wanting to develop a business plan. Check with the Department of Commerce, Small Business Development Centers and your extension professionals for help finding the training you want.

TWO: Remember your biggest advantage: you’re a farm. No amusement park or mall can compete with that! Create an authentic farm or ranch experience, starting at your front gate with good landscaping and an attractive sign. Decorate with lots of farm themes, design signs with country graphics, in the fall display piles of pumpkins and hay stalks, use antique furniture as display cases in the market, display photos or mounted game in hunting lodges, etc.

THREE: You may need MORE. Offer more activities, more experiences and more products for sale. This will attract more customers, who will then spend more time and more money on the farm!

Be sure you offer a variety of simple, fun, interesting activities focused on your target demographics. Hold special festivals, and stagger events throughout the day. They can be as basic as three-legged races or face painting. Provide wagon rides and animal viewing areas to reinforce the farm experience. Hunting lodges may want to offer the option that you clean the birds and put them on ice for easy travel home. Ranches might offer appropriate clothing gear or CD of the guest experience, which may be necessary for the customer’s comfort while also providing a great memorabilia.

Be sure you have plenty of food concessions so guests don’t leave hungry or go get lunch at a fast food place. Remember, the more time each customer spends on the farm, the more he’ll spend during his visit! And the most basic way to increase revenue is by increasing the sales dollars-per-customer.

FOUR: Start or expand a school tour enterprise for immediate revenue growth, or if you offer a school tour, make sure it provides obvious educational value. Schools are having increased difficulty justifying the costs of field trips, so you need to help the educator by providing age appropriate presentations and materials.

When organized properly, you can run many groups through the farm daily. Make sure there is a good educational component (hire a teacher to help you), and market the program aggressively to schools located within an hour’s drive.

FIVE: Charge admission to the farm and include all activities. Charge according to the “experience” that you provide; It is something that cannot be found or bought in the city. Most farmers I’ve found are reluctant to charge what the experience is worth.

SIX: Begin with the basics. Be sure your store is well stocked. Offer a wide array of produce, even if you don’t grow it. Customers want the convenience of one-stop shopping. Use a country theme for everything in the store. Add a line of private-label jams, jellies, soup mixes, etc. that will give you a brand identity and don’t forget the Land of Kansas made products. Include a nice assortment of country-themed gifts and houseware items.

SEVEN: As you attract bigger crowds, you can expand into activities and retail enterprises that require bigger financial investments. If you’re located close to a large population base, you can add more enterprises. But, before you expand, check out the competition. Be sure you are offering something unique that customers will pay for.

Again, begin with the obvious. If your store is doing well and has a strong customer base, a bakery is the next logical step. If the public is coming to pick apples, they’ll probably enjoy a corn maze. Think about outdoor recreation such as fishing, cross-country skiing or horse rides on trails.

EIGHT: Crunch the numbers! You may not be an accountant, but you must understand all the financial implications associated with expansion. Adding a bakery, a bunkhouse, or inflatables is more than just the cost of equipment; there maybe costs to upgrade electricity, hire extra labor to run the counter, add insurance, etc.

Revenue from a venture may have a positive ripple effect. For example, a food concession may bring in only so many dollars, but it keeps guests on the farm who then buy more produce and retail items. Respect the bottom line. Don’t fudge the numbers, even if they’re related to opening a fudge shop!

Yes, there is a lot to think about. And it can be overwhelming when you’re bombarded with many good ideas and wonder where to begin. Following these steps will help.

Jane Eckert, a national speaker, author and agritourism expert, is principal of Eckert AgriMarketing (www.eckertagrimarketing.com), a firm that helps farmers sell products directly to consumers and develop their operations into tourist destinations. Jane can be reached by phone 314-862-6288 or you may to email her directly.