After completing two years of cucumber enterprise budgets, Ann Franzenburg and Emma Johnson looked at their farms and decided: “Let’s do cherry tomatoes.” For this enterprise budget, both farmers did a careful accounting of the revenue, costs, and labor for their 2017 cherry tomato crops. The analysis of their data, and their comments on varieties, […]
December 6, 2017
In a Nutshell
• 12 fruit and vegetable farms provided a
profit-loss statement and simple balance
sheet for 2014.
• Four of the 12 are meeting their personal
expectations for profitability.
• Seven of the participating farms also
provided data for Year 1 (2013)
• Number of years farming as a business
ranged from 1 – 35 years.
• The range (difference between highest
and lowest reported values) is large for
many aggregated categories. Averages
(and medians) with large ranges associated
should not be used as benchmark
• No two farm financial strategies or situations
are the same. This report serves
as a starting point for profitability conversations,
and for farmers to compare
their own numbers with their peers.
• For six farms whose largest market was
Summer CSA, they earned, on average,
68 percent of their total revenue
through Summer CSA.
• All participating farms had debt to asset
ratios <0.62. • Net income ratios among farms ranged from -0.11 to 0.83. • Gross income per acre ranged from $3,020 to $30,191. • The conclusion of the report includes reflections from four participating farmers on their numbers, financial strategy, and using this report.
April 27, 2017
Enthusiasm for local fruits and vegetables continues to grow among consumers, the media, and farmers. Little attention has been paid to the bottom line of the local foods movement: How does a beginning farmer build a successful business? Are Iowa fruits and vegetable farms currently making a profit? Can a farm generate profit raising only fruits and vegetables? What do successful fruit and vegetable […]
September 28, 2015