2 - Vermont Housing and Conservation Board

Vermont Farm
Viability Program
2011 Annual Report

2011 Vermont Farm Viability Program Advisory Board
Chuck Ross (Chair), Secretary, Vermont Agency of Agriculture, Food and Markets
Gary Braman, Loan Officer, USDA Farm Service Agency
Rusty Forgues, Addison farmer, The Rusty John Farm
Alex Ibey, Economic Development Specialist, Vermont Department of Economic Development
Sarah Isham, Senior Agricultural Loan Officer, Vermont Economic Development Authority
Douglas Lantagne, Dean, UVM Extension
Hannah Noel, Highgate farmer, Maplewood Natural Organics
Earl Ransom, Strafford farmer, Rock Bottom Farm & Strafford Creamery
Bill Suhr, Shoreham apple grower, Champlain Orchards
Gus Seelig, Executive Director, Vermont Housing & Conservation Board
Vermont Farm Viability Program
Vermont Housing & Conservation Board
58 East State Street, Montpelier, VT 05602
Ela Chapin, Program Director
802 828 2117 | ela@vhcb.org
Liz Gleason, Program Assistant
802 828 3370 | liz@vhcb.org
www.vhcb.org/viability.html
Front cover photos, top to bottom: Beth Kennet and son at Liberty Hill Farm, Rochester;
Bread and Roses farmstand at farmers market; David Fried at Elmore Roots Nursery;
sheep at Maple Wind Farm, Huntington; Mimi Arnstein at her farm stand in Marshfield;
Back cover photos, top to bottom: Tyler and Melanie Webb of Stony Pond Farm in Fairfield
at the Burlington Farmers Market; James Bove of Chapin Orchard in Essex; greenhouse at
Jericho Settlers Farm; Ray Shatney and Janet Steward at Greenfield Highland Beef Farm
(Plainfield and Greensboro); Jim Choiniere, Bristol & Addison farmer
This report is made by the Secretary of the Vermont Agency of Agriculture,
Food and Markets, in collaboration with the Vermont Housing &
Conservation Board, pursuant to 6 V.S.A. § 4710(f)

Vermont Farm Viability Program
Dear Members of the General Assembly:
January 31, 2012
We are pleased to present this annual report for the Vermont Farm Viability Program. Since 2003, the
program has offered on-farm business planning, financial and technical assistance services to 336 farmers.
Since 2009, the program has supported 49 agriculture-related businesses with financial and technical
services, enhancing the development of Vermont’s processing and distribution infrastructure. Ag-related
grants and technical assistance awards have increased capacity at slaughterhouses and meat processing
facilities, expanded food-grade grain processing facilities, and supported the expansion of businesses aggregating
and marketing Vermont-grown vegetables, meats, cheeses and other products.
· In 2011, 40 farms were enrolled and 21 farms and 10 ag-related businesses received matching grants to
expand or build new infrastructure, improve farm facilities, or start new value-added enterprises
· Since 2005, the program has awarded 99 grants totalling $405,000, leveraging more than $1.1 million
in farm investments through loans, other grants and private funds.
· 95-100% of participating farmers report improvement in their financial analysis skills and business
planning skills.
This has been an exciting year during which, with support from the Vermont Ag Innovation Center, we
added business planning and technical assistance offerings to meet the needs of farm businesses wishing
to scale up their meat and vegetable production, helping to meet increasing and often year-round demand
from processors, restaurants and retail outlets. Also with AIC funds we have partnered with the Vermont
Food Venture Center and NOFA-Vermont staff to deliver expanded, one-on-one technical assistance to
farm and food businesses throughout the state.
We wish to thank the USDA Natural Resources Conservation Service for identifying funding for the
Vermont Farm Viability Program in 2012. NRCS funds secured by Senator Leahy since 2005 have matched
state funding provided by VHCB, paying for program services and administration. Funding from USDA
Rural Development, the Castanea Foundation and the John Merck Fund is instrumental to the Implementation
Grants Program.
The Farm to Plate Strategic Plan and the Working Lands Enterprise Investment Bill lay out a comprehensive
agenda for Vermont agriculture. The Vermont Farm Viability Program will play a role in the
implementation of these efforts, as we continue to assist farmers and ag-related businesses to strengthen
and expand their operations, increasing the production of food, fiber and fuel products to meet the growing
demand both in-state and beyond.
We look forward to another year serving Vermont’s agricultural businesses. Please call us with any questions
you may have.
Sincerely,
Chuck Ross, Secretary
Gustave Seelig, Executive Director
58 East State Street | Montpelier, VT 05602 | 802 828 2117 | www.vhcb.org/viability.html
A program of the Vermont Housing & Conservation Board established
in collaboration with the Vermont Agency of Agriculture, Food & Markets

vermont farm viability program
PROGRAM MISSION
The Vermont Farm Viability Program (VFVP)
strives to enhance the financial success and long-term
viability of Vermont agriculture. The VFVP provides
financial and technical services to eligible Vermont
farmers and agriculturally-related businesses. The program
emphasizes the development of sound business
plans in conjunction with technical advice from an individual
or team of advisors, selected to match each
individual farmer’s or business’ needs.
Assisting Farm Businesses
During the approximately year-long process that
culminates with the completion of a written business
plan, the Program offers business planning assistance
which includes in-depth financial analysis, analyzing
marketing strategies, developing goals, and creating a
plan to meet goals. Once business plans are complete,
the VFVP offers further assistance in monitoring and
implementing the goals of the business plan, including
grants for capital projects when funding is available.
During the implementation phase, participants may be
referred to financing services, grant sources, or other
programs that may be of assistance in meeting business
plan goals. The Program enrolls between 35-50 farms
each year.
Assisting Value-Added
Food and Farm Businesses:
Developing Vermont’s Processing,
Storage and Distribution Infrastructure
With funding from the USDA Rural Development
and the Vermont Agricultural Innovation Center
in 2011, the VFVP provided business planning
and technical assistance services to farms producing
value-added products and to value-added food businesses
that provide processing, storage or distribution
services to, or purchase products from, Vermont
farmers. In addition, with private foundation funding,
the VFVP offered grants for capital expenses related
to infrastructure development to these same kinds of
businesses.
Since 2003, 336 farmers have completed business
plans through VFVP. These businesses
own or rent over 105,000 acres and provide the
equivalent of over 1,100 full-time jobs.
2011 highlights:
• 40 farms developed business plans
• 44 farms received follow-up planning and
technical assistance
• 15 farms received technical assistance
awards
• 21 farms were awarded implementation
grants
• 23 ag-related businesses received business
planning services or grants
ENROLLED FARMS
• 13 percent are dairy farms
• 28 percent produce vegetables
• 87 percent raise meat or livestock
• 23 percent are conserved
• 28 percent are certified organic
• 35 percent sell value-added products
“The Farm Viability Program is making
a real difference for farmers across
the spectrum—from dairy to beef to
vegetable farms and for value-added
producers like cheese makers—this
program is giving farmers the benefit
of an inside look at business planning
decisions that can increase profits.
As a result, farms are expanding,
diversifying, and hiring help—all good
indicators for the industry and for
Vermont’s economy.”
— Secretary Chuck Ross
Agency of Agriculture, Food & Markets
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Program Partners
Business planning and technical assistance
services are delivered on the farm or site of business,
and are provided by contractors or by the
following organizations as a part of the Vermont
Farm Viability Program Network:
UVM Extension provides a range of services to
farmers, including Farm Viability programming.
Extension Farm Viability staff are spread throughout
the state and cover a wide variety of expertise,
from conventional dairy to diversified farms. The
UVM Extension Farm Viability Programs pair
farmers with an adviser, working together to catalog
assets, create a plan, incorporate ideas for new
business ventures, and access financing.
The Intervale Center provides farm viability
assistance through their Success on Farms
Program. They utilize skilled staff, business consultants
and veteran growers to develop business
plans with a diversity of farmers, including vegetable
and fruit growers, dairy farms, livestock
producers, and value-added producers. The program
works to enhance not just the profitability
of farms and value-added agricultural businesses,
but also their social and environmental sustainability.
NOFA-VT has been providing technical assistance
to dairy, livestock, and fruit & vegetable
producers since 1994, adding fruits, grains, and
seeds along the way. With funding from VHCB,
they expanded to add business planning services
in 2003. NOFA works with organic producers,
other producers interested in transitioning to
organic, farmers exploring alternative energy or
energy efficiency systems, and farmers pursuing
value-added products.
Land For Good offers education and assistance
to owners and managers of working lands, entering
farmers, and other-land use decision-makers
throughout New England. LFG joins the Farm
Viability Network in 2012 to provide specialized
transfer planning expertise.
Cheryl and JD DeVos, Ferrisburgh & Charlotte
After conserving their farm in 2004, Cheryl and JD
DeVos transitioned to organic with help from NOFA-
VT provided through the Farm Viability Program. In
2009, they reapplied to VFVP, this time to plan for a
value-added organic milk bottling facility. A 2010
Farm Viability implementation grant will help them
purchase equipment for the new enterprise: Green
Mountain Organic Creamery, due to open in 2012.
Chris Siegriest, Westford
At Bread and Roses Farm, Westford native Chris
Siegriest grows vegetables under the community
supported agriculture (CSA) model. The business
has grown to offer 70 full-sized shares and pursues
a social mission as well: producing vegetables to
fill 50 smaller shares for residents at a local senior
housing development at a subsidized price. Chris
completed a business plan with the Farm Viability
Program in 2010, working with staff at the Intervale
Center to focus on financial analysis.
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Ben Gleason, Bridport
Bridport farmers Ben and Theresa Gleason
have become well-known across New England for
their organic grain-growing expertise. Ben grows
around 40 acres of his own wheat each year to mill in
his facility and has recently begun contracting with
nearby farmers to grow wheat for the business.
In 2009, Ben milled a record crop of wheat—35
tons. This dramatic increase in production led Ben to
write a business plan and apply for an agricultural
infrastructure grant from VFVP. The grant allowed
him to double the footprint of his millhouse and install
an additional mill and sifting equipment. The
increased capacity of the mill, coupled with the contracts
from other farmers to grow wheat for him, has
expanded production to almost 140 tons of wheat
per year—a 400% increase.
The Middlebury Co-op has been purchasing Ben’s
flour for almost fifteen years. In fact, Gleason Grains
whole wheat flour is the only bulk whole wheat flour
sold at the co-op. Says bulk foods manager Reiner
Winkler, “The whole wheat flour has been a huge
seller all along and it is a very good price…anyone
who discovers his flour becomes very fond of it!”
Program Evaluation and Impacts
Program participants evaluate the program after
their business plan is complete, and at the end of their
second year, following additional work with their advisor
to update and implement their business plan.
For farmers that completed plans in 2010, average
gross income increased 38% (over $12,000) in the year
after completing their business plan. For farmers enrolled
in 2010, 97-100% report their financial analysis
skills and business planning skills have improved since
enrolling in the program.
Farmers interviewed after their first or second
year of the program said satisfaction with their overall
business management ability rose from 31% before
the program to 88% afterwards. Satisfaction with their
ability to generate income rose from 31% to 69%, and
their ability to understand the direction they would
like the business to take increased from 28% to 84%.
Farmers and ag-related businesses that receive a
grant also complete an in-depth survey after their
project is complete. Survey results show that the implementation
grants program helps farm and ag-related
businesses implement business plan goals, increase
profits, improve access to financing, and create new
jobs, while leveraging the investment of other funding
sources for these improvements:
• 89% of phone survey respondents said that without
grant funding, the project either would never have
happened, happened later, or happened at a much
slower rate.
• 92% of phone survey respondents stated that the
implementation grant contributed to making their
business more profitable.
• Eleven phone respondents offered additional details
on job creation, reporting at least 35 FTE positions
were created on these eleven farms, an increase of
3.2 FTE jobs per business!
Irene Recovery Efforts
In the wake of Tropical Storm Irene, the VFVP redirected
$60,000 to UVM Extension for disaster
recovery planning to affected farms. Eighty farms were
contacted. Half reported damages and received shortterm
recovery assistance. Six severely damaged farms
are working on disaster recovery plans with UVM advisors.
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Farm Viability staff convened two meetings in
2011 to address the coordination of recovery-related
technical assistance in the wake of Tropical Storm
Irene. Meeting in September and November, with a
third meeting scheduled for this March, federal, state
and regional ag development leaders met to share information,
resources, and identify gaps in technical
assistance to the farm community. Outcomes of these
meetings to date have included new partnerships; collaborations
in outreach to recovering farm businesses;
the identification of particular issues that the VAAFM,
State Legislature or other authorities may need to address;
and improved awareness among farm service
providers of various resources available to farmers.
Professional Development for
the VT Farm Viability Network
Each year the FarmViability Program provides
significant professional development opportunities
to farm and food business advisors,
at regular meetings of the Vermont Farm Viability
Network as well as at occasional special
trainings or conferences. In 2011, the following
trainings sessions were provided for farm
service providers and consultants:
• Food Safety: Training on GAPs requirements
for small farms
• Food Safety: Presentation by new UVM
Extension food safety specialist Londa
Nwadike
• Disaster Recovery Resources: presentation,
roundtable, and coordination discussion
• Technical Assistance: Panel presentations
from various technical assistance consultants
• Technical Assistance: Updates on the Vermont
Ag Development Program
• Management Analysis: clarifying management
roles and decision-making strategies
• Financial Analysis: Financial Planning
Tricks and Tools
“This grant will not only benefit
my business, but also many
other small scale farms in Vermont.”
— Clark Parmelee
Clark Parmelee, a 2010 VTC Dairy Management
graduate, began working on dairy farms
in the Randolph area at the age of 13 and has
been actively involved in agriculture ever since.
During his time at VTC, Clark began raising
broilers, pork, and beef on his parent’s farm. His
goal is to scale up production in order to create
a viable, diversified farm providing full-time
employment.
Clark began helping neighbors to slaughter
their chickens in 2010 and quickly realized there
was high demand for small-scale poultry processing
in the Randolph area. He used a $5,000
Farm Viability Ag Business grant to purchase a
mobile poultry processing unit. Clark worked
closely with the meat inspector at the Agency of
Agriculture and the UVM Extension food safety
specialist to ensure that the operation would be
clean and safe.
By mid-September, Clark had processed poultry
for at least 25 small-scale producers, mostly
in the Randolph area. Clark plans to begin marketing
in 2012 to slowly scale up operation of
the mobile unit.
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Pete Colman, Vermont Salumi
Leaders in Vermont’s food system have exciting
things to say about artisanal cured meats and Rowan
Jacobsen of Vermont Public Radio believes that “Salumi
(aka charcuterie or cured meats) is the obvious
next frontier in Vermont’s food revolution.”
Pete Colman (at left, below, with his right-handman
Sumner Crowel) plans that his new business,
Vermont Salumi, will fill this niche. Vermont Salumi
was launched in January of 2011, informed by Pete’s
five years of making prosciutto as a hobby—a skill
learned from time spent in Italy with his father’s family
and friends. When he began looking into opening
“The business planning process helps you
take a really good look at your business and
gives you an idea of things to come. With
a solid plan and reasonable requests for
funding I have not had trouble accessing
capital.” — Pete Colman
a business making only cured meats, though, he
found that the regulatory requirements to sell dryaged
meat and the turn-around time of the product
(it can take several months to a year or more for
cured meats to be ready) were prohibitive.
With the help of a business planner from the
Vermont Farm Viability Program, Pete was able to
examine the costs and benefits of a cured meat business
and create a plan for getting there.
Farm to Plate
Strategic Plan Implementation
The Farm to Plate plan lays out ambitious goals for
Vermont’s food system over the coming 10 years, and
has established a critical new piece of infrastructure,
the Farm to Plate Network. VFVP Director Ela Chapin
will play a role in the development of this new network
as the first chair of the Farm to Plate Technical Assistance
Working Group, and as a member of the Farm
to Plate Network steering committee. The VFVP will
play a role in implementing key objectives relative to
the goals and strategies of the Farm to Plate Strategic
Plan, including:
• Training for scaling up: Provide specialized
scaling-up technical assistance and business planning
services for farmers and value-added food
entrepreneurs seeking to serve larger markets;
• Support infrastructure improvements at
slaughter and meat processing facilities. Increase
custom and mobile slaughter capacity;
• Improve producers’ ability to access retail
market outlets that require GAP or
other forms of food safety certification;
• Increase the number of farmers participating
in technical assistance and business planning
services, especially related to diversification strategies,
farm transfers, and retirement planning;
• Increase local egg production to meet
50% of local demand by 2020;
• Double in-state goat milk production to
serve the value-added cheese industry.
Funding
The Farm Viability Program is funded by a combination
of state, federal, and private sources. State of
Vermont funds through VHCB and federal sources
from USDA Natural Resource Conservation Service,
USDA Rural Development, and the Vermont Agriculture
Innovation Center fund business planning and
technical assistance services for farmers and ag-related
businesses. In 2011, the Farm Viability implementation
grants program was supported with generous private
foundation funds from the Castanea Foundation and
the John Merck Fund.
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Jeremy and Leslie
Michaud and family
with Agriculture
Secretary Chuck Ross
Kingdom Creamery Churns Out Yogurt & Ice Cream:
Now one of the largest family-operated dairy processors in New England
The Michaud family has operated Clair-A-Den
Farm in East Hardwick for over seventy years. Three
generations have grown and diversified the farm
to its current size of 700 acres, with just over 1,000
cows, a 6,000-tap sugaring operation, and an on-farm
composting business. The Michaud family has continuously
pursued new ideas to expand their farm’s
horizons in order to ensure the long-term profitability
of their farm for future generations.
Though the family had already expanded and diversified
their business, Jeremy and Leslie Michaud
felt that to continue to succeed in the face of fluctuating
milk prices they needed to diversify their
core milk business. When the nearby Vermont Milk
Company went on the market in 2009, Jeremy and
Leslie jumped at the opportunity. They turned to the
Vermont Farm Viability Program to write a business
plan that would evaluate the market demand and
feasibility of a creamery and help secure financing
to start Kingdom Creamery of Vermont, a valueadded
yogurt and ice cream facility using milk from
Clair-A-Den Farm.
Jeremy and Leslie worked closely with Rosalie
Wilson, a business advisor in the Farm Viability
network who specializes in sales and marketing, to
develop the plan and secure a loan to start the pro-
cessing facility. After completing market research,
they realized a niche for several products made on
a mid-sized scale: soft-serve mix, Vermont-made
premium ice cream, and Vermont-made yogurt. The
Creamery opened in October of 2011 and is selling
product in more than 50 stores across Vermont. Operating
the processing facility allows the Michauds
to return a higher milk price to the farm than selling
in bulk, which increases and stabilizes income
for the farm, and the Creamery has hired three additional
employees since its inception.
“
The Farm Viability Program
and the consultant helped
take a wild idea and bring
it to earth, give it substance and turn
it into a reality. Kingdom Creamery
of Vermont could not have been
accomplished as effectively on our
own.” — Leslie Michaud
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2011 Agricultural
Infrastructure Grants
• $9,250 grant to Vermont Salumi for sausage
and cured meat processing equipment to increase
production level
• $5,825 grant Putney Mountain Winery for
sparkling cider production equipment to increase
efficiency of cider production
“The Farm Viability Program helped us
get a handle on the finances of the project,
and the grant funding for equipment
purchase made our regional product
launch a reality. We are thrilled that VT
Goldburgers are now available in 15
natural food co-ops in Vermont, New
York and Massachusetts. Thanks to this
program we are utilizing thousands of
pounds of organic VT grown produce and
supporting our farm with year-round
income.” — Oliver Levis
Earth Sky Time Farm, Manchester
On their farm along Route 7A in Manchester, Bonnie
and Oliver Levis grow vegetables and orchard
fruits and operate a licensed commercial kitchen.
They market their products through their farmstand,
CSA, and Vermont co-ops.
In 2009, they enrolled in the Farm Viability Program,
working with consultant Mike Ghia at UVM Extension.
The business planning process helped them
to organize their financial systems and record-keeping.
In 2011, Oliver and Bonnie received an implementation
grant of $6,700 towards the building and
outfitting of their farmstand and to expand production
of their veggie burgers, Vermont Goldburgers,
by purchasing a robot coupe mixer, a large woodfired
oven, and renovating their commercial kitchen
bakery.
• $16,250 grant to Vermont Refrigerated Storage
for a digital inventory management and
accounting system benefiting farmers selling
to large markets who are in need of tracking
for food safety plans.
• $10,000 grant to The Royal Butcher for excavation,
foundation, and plumbing for a
slaughterhouse addition to increase efficiency
and throughput of this critical facility.
• $10,995 grant to Westminster Meats to purchase
a vacuum packing machine to increase
meat and poultry processing efficiency.
• $10,000 grant to the Mad River Food Hub to
support the purchase of equipment to outfit
their meat processing room and commercial
kitchen.
• $5,000 grant to Clark Parmelee of Parmelee
Farm to purchase a mobile custom poultry
processing unit to provide slaughter services
to producers raising fewer than 1,000 meat
birds per year.
• $2,300 grant to Sharon Beef to purchase a
thermal printer to add value to the end product
for their clients as well as improve plant
efficiencies.
• $10,000 grant to Grow Compost to help implement
an Aerated Static Pile Management
system to increase the efficiency of their operation
and improve product quality.
• $8,900 grant to Holton Farms towards construction
of a cold-storage unit for more
effective and safer crop storage, and a commercial
kitchen to process products from their
farm as well as others for inclusion in their
CSA.
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Implementation Grants to Farmers
Following completion of a business plan, farmers
enrolled in the Farm Viability Program become eligible
for implementation assistance in order to put their
business plan into practice. Since 2005, the program
has awarded 99 implementation grants for capital projects
totaling $405,000 and 88 implementation awards
for technical assistance. This $405,000 in grant funds
has leveraged approximately $1,178,074 more in farm
investments through loans, other grants and private
funds. In 2011, VFVP awarded 21 farms with implementation
grants totaling $95,000 and 15 farms with
technical assistance awards totaling $40,050.
Agricultural Infrastructure Grants
In 2009, in partnership with the Castanea Foundation,
the program began making awards for business
plan implementation grants to agriculture-related
businesses involved in the processing, marketing or
distribution of local food. In 2009, four awards were
made to meat processing businesses totaling $40,000.
In 2010, awards targeted the grain processing industry
as well as meat and poultry processing, and five awards
were made totaling $65,000. In 2011, ten awards totaling
$88,520 were made. In the three years this
assistance has been available, $193,520 in awards to
processors has leveraged an additional $600,000.
Looking Ahead to 2012:
Need & Demand
Demand for business planning, implementation
technical assistance and implementation grants
continues to surpass the VFVP’s capacity. There is a
growing interest in the program from farms transitioning
in ownership or farm type, beginning farmers,
and in farms pursuing value-added products, as well as
a high demand for assistance and grants for infrastructure
improvements in the value-added food sector as
well as on farms. The VFVP will strive to meet that
need in 2012.
In the coming year, the VFVP will continue to partner
with the Vermont Sustainable Jobs Fund to enroll
businesses in the Vermont Agricultural Development
Program and, through funding from the Ag Innovation
Center, will collaborate with NOFA-VT, the University
of Vermont and the Intervale Center to increase meat
production and processing capacity in the state by
providing technical assistance and feasibility analysis
to new and existing enterprises, and sponsoring trainings
that bring together Vermont meat producers and
processors.
“The Farm Viability Program helped our
business on several levels. We were able to
develop a website that helped significantly
improve our marketing operations, a
business plan that helped underpin
a new tractor purchase and several
enterprise expansions, and improve
our bookkeeping, database, and human
resource management.”
— Andy Jones
Intervale Community Farm
Sitting on the sandy soils of the Champlain Valley,
the Intervale Community Farm is in its 21st year—
a feat that couldn’t have been achieved without the
spunk and determination of farm manager Andy
Jones. In 2008, the farm faced a critical junction and
sought out the Vermont Farm Viability Program for
in depth, one-on-one planning. In order to preserve
the relationship the farm had built with the community,
the business planning process helped to usher
in a cooperative system with the farm’s customers.
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Vermont Farm Viability Program
Vermont Housing & Conservation Board
58 East State Street, Montpelier, VT 05602
www.vhcb.org/viability.html
802 828 2117
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