Vermont Farm Viability Enhancement Program

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							Vermont Farm Viability
Enhancement Program




     2009 ANNUAL REPORT
             to the
        General Assembly

       January 31, 2010
         VERmONT FARm ViAbiLiTy PROGRAm AdVisORy bOARd
 Roger Allbee, Chair; secretary, Vermont Agency of Agriculture, Food & markets
            Gary braman, Loan Officer, UsdA/Farm service Agency
                         Vicky Carson, Newbury farmer
sarah isham, Agricultural Loan Officer, Vermont Economic development Authority
           doug Lantagne, dean and director, UVm Extension service
                         david marchant, Fairfax farmer
     Gus seelig, Executive director, Vermont Housing & Conservation board
                        bill suhr, shoreham apple grower



                          VERmONT FARm ViAbiLiTy
                          ENHANCEmENT PROGRAm

                               Vermont Housing &
                              Conservation board
                                58 East state st.,
                              montpelier, VT 05602
                             www.vhcb.org/viability
                          Ela Chapin, Program director
                         802 828 2117 | ela@vhcb.org


    Cover photos, left to right: Jeremy Russo, North Rupert (Lee Krohn photo);
        Cellars at Jasper Hill, Greensboro (Cellars at Jasper Hill photo);
            Lewis Creek Farmstand, starksboro. back cover photos:
    sugar House (Vt. Agency of Agriculture photo); scholten Farm, Weybridge
            _____________________________________________

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 Enhancement Program
                                                  January 31, 2010


 Dear Members of the General Assembly:

     We are pleased to present this annual report for the Vermont Farm Viability Enhancement
 Program. Created by the Legislature in 2003, the program is a collaboration between the Vermont
 Agency of Agriculture and the Vermont Housing and Conservation Board.
     The purpose of the program remains constant: to enhance profitability and quality of life on
 Vermont farms. Basic services provided under the program are in-depth business planning and
 individually tailored technical assistance. The program also makes a concerted effort to help dairy
 farmers by providing financial support for Dairy Management Teams—a key service offered by the
 uvm Extension Service.
     We wish to thank Senator Leahy for successfully including the Vermont Farm Viability Program
 in annual federal appropriations. The funds secured by Senator Leahy pass through the usda Natu-
 ral Resources Conservation Service and are made available to the Viability Program to supplement
 state funding for on-farm business planning services and program administration. We are also grate-
 ful to Representative Welch who has worked to secure federal funding for the program.
     A combination of state, federal, and private funding has enabled the Viability Program to become
 an important resource for farmers throughout Vermont. In 2009 the program helped 42 farmers to
 complete comprehensive business plans. The program also provided follow-up planning and tech-
 nical assistance to 36 farmers who had completed business plans in the previous year. In fiscal year
 2009, the Viability Program used $100,000 from the Castanea Foundation: $60,000 to make 16
 small grants to farmers, helping them to implement business decisions and add new enterprises, and
 $40,000 for grants to expand slaughter and meat processing capacity in the state.
     Many farmers report increases in net income as a result of their participation in the program.
 Others say that the Viability business planning process combined with implementation grants made
 it possible for them to become more efficient, to expand, to diversify, or to facilitate an ownership
 transition.
     We invite you to learn more about the program’s accomplishments during 2009. We also look
 forward to talking with you about how to maintain the program and build upon its past success.

    Sincerely,




    Roger Allbee, Secretary                               Gustave Seelig, Executive Director
    Agency of Agriculture, Food & Markets                 Vermont Housing & Conservation Board




58 East State Street | Montpelier, VT 05602 | 802 828 2117 | www.vhcb.org/viability
               A program of the Vermont Housing & Conservation Board established
             in collaboration with the Vermont Agency of Agriculture, Food & Markets
    “I am currently involved in the program and it has already changed my whole farm plan . . .
    I now have a great insight into the future of my farm and my potential income, expenses and
    overall production plan . . . I highly recommend this program to anyone . . . to take advantage
    of the help from respected and established farmers and businesses in our state. We are lucky
    to have such a program!”
                              —Chip Allen Natvig, Pebble Brook Farm, Moretown/Northfield




T
             he purpose of the Vermont Farm Viability
             Enhancement Program is to enhance the              FARm ViAbiLiTy
             financial success and long-term viability of
             Vermont farms by providing business plan-
                                                                PROGRAm PROFiLE
ning and technical assistance services to farmers. Dur-         since the inception of the Vermont Farm
ing the approximately year-long process that culminates         Viability Enhancement Program, 230 farms have
with the completion of a written business plan, the             completed business plans through the Program.
Program offers in-depth financial analysis, assistance in       These farm businesses own or rent more than
goal setting and an analysis of the strengths, weaknesses
                                                                69,000 acres and provide the equivalent of more
and opportunities of the farm business, and guidance
                                                                than 750 full-time jobs.
and assistance in the development of a plan for meeting
these goals. Additional analysis and assistance is pro-         PARTiCiPANTiNG FARms: dEmOGRAPHiCs
vided as needed for each individual farm, such as farm
transfer planning, cash flow or enterprise analysis, and           • Approximately one half are dairy farms
technical assistance. In the year following business plan          • 34 percent produce vegetables
completion, the Program conducts follow-up visits and              • One-third are conserved
provides additional planning and technical assistance              • One-third are certified organic
and help revising financial satements and business plans           • Are diversified in the agricultural products
for all farms. In addition, the Program offers grants and          they produce and raise, including everything
further assistance for business plan implementation                from maple sugar, sheep, goats and rabbits
projects with funding through a usda Rural Develop-                to berries, flowers, vegetable starts and
ment Rural Business Enterprise Grant, the Castanea                 mushrooms
Foundation and the John Merck Fund.                                • 20 percent sell value-added products
    Farmers that enroll in the program are often pursu-            such as cheese, yogurt, wine, frozen
ing some kind of transition or expansion, such as initi-
                                                                   vegetables, sausage, soup or pickles
ating new products or on-farm processing, expanding
into new markets, constructing a new barn, transferring         in 2009:
farm ownership, or examining energy efficiency. In
some cases farmers may be preparing to apply for a grant           • 42 farms received assistance
or loan. In other cases farmers are simply interested in              developing business plans
setting and documenting their goals, plans and finances            • 36 farms received follow-up visits and
with the assistance of a business planning professional.              technical assistance
All enrolled farms are also offered technical assistance,          • implementation grants were awarded
in such areas as marketing, herd management, produc-                  to 16 farms
tion, facilities design, or bookkeeping.
                                                            4
    The Program was established in 2003 at the Vermont          processors. Four operators ranging from small custom
Housing and Conservation Board (vhcb) in collabo-               processors to larger commercial processors are using
ration with the Vermont Agency of Agriculture, Food             grant funds to expand facilities and increase efficiency,
and Markets. The Program enrolls between 35-50 farms            resulting in greater availability of meat processing
each year. Business planning and technical assistance           services for farmers and others raising livestock. The
services are delivered to farmers on the farm, and are          grant recipients were Brault’s Market in Troy, The Royal
provided by contractors or service provider grantees            Butcher in Randolph, Vermont Smoke and Cure in
of vhcb. Primary grantees are the Intervale Center,             South Barre, and the Enosburg Meat Market.
Northeast Organic Farming Association–Vermont,                      The Castanea Foundation has provided funds for
University of Vermont Extension, and Working Land-              business plan implementation grants in 2009 through
scapes, Inc.. Additional farm business consultants and          2011 and the John Merck Fund has provided a grant
technical specialists are contracted directly by vhcb.          for 2010.
The Vermont Small Business Development Center is                    Implementation assistance includes further business
another partner, providing a variety of services through        planning, financial analysis, and professional services
grantee organizations.                                          to implement business plan projects. Projects awarded
    Business planning and technical assistance services         in 2008 were completed, and the program received a
are delivered to farmers on the farm, and are provided          second two-year Rural Business Enterprise Grant from
by contractors or grantees of the Vermont Housing and           the USDA Rural Development to continue to offer this
Conservation Board. Primary grantees are the Intervale          assistance in 2010 and 2011.
Center, Northeast Organic Farming Association–Ver-
mont, the University of Vermont, and Working Land-              Dairy Management Teams
scapes, Inc.. Additional farm business consultants and          Beginning in 2007 the Vermont Farm Viability Pro-
technical specialists are contracted directly by vhcb.          gram provided funding to UVM Extension for the de-
                                                                velopment of its Dairy Management Teams Program.
Business Plan Implementation Assistance                         This program brings together teams of advisors appro-
    The Farm Viability Program offers assistance to             priate to the individual farm to address various issues
farms that have completed business plans with the               affecting the dairy’s profitability and management over
Program and want to implement changes that have                 the course of one year through facilitated monthly
been studied through the planning process. In FY 09,            meetings on the farm. Farmers, a facilitator and ad-
37 applicants requested over $300,000 in grant funds.           visors work to solve specific farm issues rather than
The program awarded the available $60,000 to 16 farms,          providing a written business plan, focusing on pro-
leveraging an additional $400,000 dollars through loans,        duction and efficiency issues. Many dairy farms that
other grant programs and private funds to complete 16           have completed a business plan are enrolling in the
on-farm projects. Grants ranged from $2,000-$6,000,             Management Teams program in order to implement
helping projects such as purchasing cheese making,              farm expansions, production improvements and other
ice cream making, and livestock handling equipment;             aspects of their business plan. The Farm Viability Pro-
constructing and improving barns, winter storage and            gram granted UVM $100,000 over the past two years
packing facilities, and greenhouses; installing energy-         to support the development of the Dairy Management
efficient equipment and heating systems; and equipment          Teams Program. Currently more than 20 farms are en-
related to biodiesel processing of oil-seed crops.              rolled and meeting with their teams. Approximately
    In addition to grants for farmers, the program now          25 dairy farms will be enrolled and 10 farms will have
offers business plan implementation grants to agricul-          completed the program by the end of 2010, allowing
turally-related businesses involved in the processing,          UVM to evaluate the impacts of the program on Ver-
marketing or distribution of local food products. Eleven        mont dairy businesses.
businesses with combined requests of $183,600 applied
for $40,000 of funding in FY09 available for meat-related

                                                            5
                                  2009 Program Farms
                            Production of Agricultural Products

               cow dairy
               vegetables
                    beef
             sheep dairy
               goat dairy
on-farm dairy processing
     apples & tree fruits
                  chicken
            energy crops

                            0%   5%      10%     15%       20%   25%    30%       35%          40%      45%   50%



 Participating farms represent the diversity of Vermont’s agricultural industry, producing a wide variety
 of agricultural products – from apples, berries and maple sugar to dairy products, beef and grains.
 The graph above shows the percentage of the Program’s 2009 participating farms that produce each
 agricultural product listed. Many farms produce more than one product.




                                 Distribution of Farms by County
         25%
                                                                         % of 2009 Farms Enrolled

         20%                                                             % of Enrolled Farms to Date
                                                                         % of All VT Farms*
         15%

         10%

          5%

          0%

                                        Essex
                   Addison                                    Orange
                                              Franklin Lamoille Orleans
                                                                     Rutland        Windsor
                             Caledonia             Grand Isle                 Windham
                        BenningtonChittenden                              Washington
                                                                               *2002 U.S. Census data

     2009 participating farms represent 11 of Vermont’s 14 counties. Since 2003, the Program has
     served farms in every county of the state, roughly proportionate to the number of farms in each.



                                                       6
Program Changes; FY10 Upcoming Projects                         and regional agricultural and food systems infrastruc-
    Beginning with the fiscal year 2010, several changes        ture, as well as facilitate grass-roots solutions to the
have been made to the enrollment process. Farmer ap-            processing, marketing and distribution of local food
plications are reviewed on a quarterly basis, with four         products.
enrollment deadlines throughout the year, rather than               With support from the John Merck Fund, the pro-
year-round enrollment on a first-come, first-served             gram will contract with outside consultants to com-
basis. In addition, farmers now pay an enrollment fee           plete two projects to improve the program. The first
of $75 for the program. These changes were instituted           is an external program evaluation which will be un-
by the Advisory Board as a way to streamline the en-            derway by the spring and will analyze both program
rollment process, enroll farms that are the best fit for        process and impacts. The second will be a project to
the program as competition for the program increases,           develop an in-depth analysis of the direct and indirect
and to encourage farmers’ commitment to complete                economic impacts of Farm Viability Program invest-
the program.                                                    ments.
    In 2010 the program will continue to expand its
awards to agricultural-related businesses, and begin            Program Impact
to provide planning assistance to these businesses. A               Approximately 230 Vermont farms have used the
total of $75,000 will be awarded to meat and poultry            Vermont Farm Viability Enhancement Program to
slaughter and processing as well as grain processing            develop a business plan. All but three of these farms
facilities. The program will use usda rbeg funds                remain in business, and 96% of participating farmers
to provide business planning assistance, focusing on            believe the services received are helping make their
slaughter and meat processing facilities and grain pro-         business more profitable. In fact we have found that the
cessors, utilizing private contractors. With rbeg funds         majority of participating farms see increases in gross
we are also providing strategic planning and business           sales and net profits the year following their business
planning and technical assistance to non-profit and             plan. Nearly all farmers (90%) expect to use their busi-
community-based organizations, including the fol-               ness plan to help them remain focused on their busi-
lowing entities: lace, the Addison County Local Food            ness goals, and more than two-thirds of farmers will
Collaborative, Dairy Farmers Working Together, and              use it to measure financial progress, and in making de-
Food Works’ Farm to Table Program. These invest-                cisions regarding the feasibility of business expansion
ments are expected to contribute to improving local             or diversification. Additionally, three-quarters of par-


      Dollars Requested versus Awarded for Plan Implementation Assistance
          $350,000
          $300,000               $
                                 requested
          $250,000               $ awarded
          $200,000
          $150,000
          $100,000
           $50,000
               $-
                        FY05 grants     FY06 grants        FY07 grants      FY09 grants     FY10 grants
                         (Argosy)        (Argosy)           (Argosy)        (Castanea)      (Castanea)



                                                            7
ticipating farmers find that the planning process helps       Rural Business Enterprise Grant of $200,000 for the
them see their business with a new perspective and            primary purpose of making business plan implemen-
identify strengths and weaknesses in the business.            tation assistance available to farmers.

Summary of Program Funding                                    Assessing Demand and Future Need
   The Program’s funding is derived from commit-                  Demand for this program continues to be strong as
ments by the Vermont Housing and Conservation                 evidenced by the more than 60 farmers who applied in
Board from the Housing and Conservation Trust                 2008 for fewer than 45 slots. We continue to have more
Fund. This has been supplemented by federal funds             interest than we can serve, and make referrals to other
administered by the USDA Natural Resources Con-               programs such as to UVM Extension, Women’s Ag
servation Service (NRCS), secured for Vermont’s               Network (provider of business planning courses), the
program by Senator Leahy. In Fiscal Year 2009 the             Vermont Small Business Development Center, or other
total amount for direct Program service (VHCB plus            providers and programs where appropriate.
NRCS) is $596,000, including $350,000 from VHCB                   Competition and interest for our implementation
and $246,000 from NRCS. For Fiscal Year 2010 the              grants program has never been higher and our pool of
Program has a total of $460,000, including $230,000           applicants has grown. In November 2008 we recieved
each from VHCB and NRCS. (see Chart 1, below)                 applications requesting $300,000—five times the
   In addition, the Farm Viability Program has been           amount of funding available—for capital improvement
able to offer business plan implementation assistance         grant awards. We are currently seeking matching fund-
through several sources of grant funds. The Program           ing for funds received from the Castanea Foundation
received $100,000 in FY09 from the Castanea Foun-             and the John Merck Fund, which we will use over the
dation to continue and expand the implementation              next several years to make grants to on-farm projects
grants program, and will receive $150,000 from Casta-         and agriculture-related businesses for projects focused
nea in FY10. For FY10, the Program has also received          on local food processing, marketing and distribution.
$45,000 from the John Merck Fund to support the im-
plementation grants program and an external program
evaluation, and a two-year USDA Rural Development




Chart 1. History of Farm Viability Program Funding from State, Private and Federal Sources
           VHCB         %      NRCS       %     RBEG           %    ARGOSY      %    CASTANEA       %     TOTAL
 FY03     $100,000    100%                                                                               $100,000
 FY04     $300,000    100%                                                                               $300,000
 FY05     $409,165    72%    $158,000   28%                                                              $567,165
 FY06     $400,000    59%    $225,000   33%              $50,000               7%                        $675,000
 FY07     $343,000    43%    $282,000   35% $125,000 16% $50,000               6%                        $800,000
 FY08     $446,645    70%    $ 65,000   10% $ 75,000 12% $50,000               8%                        $636,645
 FY09     $350,000    50%    $246,000   35%                                          $100,000     14%    $696,000
 FY10     $230,000    28%    $230,000   28% $199,000 25%                             $150,000     19%    $809,000
 VHCB - Vermont Housing & Conservation Board; NRCS - USDA Natural Resources Conservation Service
 RBEG - Rural Business Enterprise Grant from USDA Rural Development; Argosy & Castanea - Private Foundation funds



                                                          8
viability profile:
Ekolott Farm and Riverside Emus
Newbury, Orange County

    Ekolott Farm is a diversified farm that grows corn         the homemade system currently in use on the farm.
and grains for traditional and alternative uses (such          The funding also helps to support the purchase of a
as biomass fuels and biodiesel components) and                 bagging scale, which will improve efficiency and help
raises emus for sale and value-added products. Roger,          Larry and Peggy reallocate their time to other farm
Bernice, and their son, Larry Scott, moved their dairy         duties.
herd to Vermont in 1980. Ekolott Farm today is a                   Larry and Peggy continue to consider ways in
family partnership consisting of the Scotts and Peggy          which they can transition the farm to a viable, income
Hewes, who joined the family in 1990. Initially, the           producing operation. Their biggest challenge is transi-
farm’s primary function was a traditional Vermont              tioning the farm’s equipment from dairy to diversified
dairy farm, but the farm’s livestock diversified in 1994       agriculture and, potentially, to farm-scale biodiesel
with the purchase of the first emus. However, with             production. Some of these projects are already under
dairy prices failing to support the farm, the milking          way with the conversion of a former dairy barn into
herd was sold ten years later.                                 a storage facility for dry hay, grain, and oilseed crops.
    As more of the farm’s focus shifted towards the            Other former dairy facilities have been converted into
harvesting and processing of corn and oilseeds for al-         large equipment storage areas as well as for raising
ternative fuels, the need grew for proper mechanized           some of the farm’s livestock. Larry and Peggy recently
storage equipment. With strong sales and high de-              began construction of a large walk-in freezer, which
mand for dried shell corn, Larry and Peggy saw that            they hope will help reduce their costs and provide
much time was being lost due to inefficient systems            greater flexibility. They are encouraged by the growth
used to clean, weigh, and bag their seed products. The         in sales over the past few years, and they continue to
Farm Viability Program provided an implementation              look forward to diversifying the resources at Ekolott
grant for $6,000 to help fund the purchase of a new            Farm.
air cleaner for corn and oilseeds, which will replace




                                                                                                  At Ekolott Farm, a
                                                                                                  barn expansion and
                                                                                                  construction of a
                                                                                                  large walk-in freezer
                                                                                                  is under way.




                                                           9
viability profile:
Brotherly Farm
Brookfield, Orange County


    Craig Russell operates and manages Brotherly
Farm, a certified organic dairy farm located on the
hillsides of Brookfield in Orange County. Renting his
farmland and facilities from his father, Craig supple-
ments his pasture land with an additional 400 acres
rented from neighboring residents and farmers.
Together with his business partner, Ken, Craig and his
family transitioned the farm to organic dairy produc-
tion in 2006. Initially, part of the motivation for the
transition was related to health concerns: the Russell’s
home water supply had become contaminated, which
they believe was due in large part to run-off from
conventionally managed farm operations nearby.                   needed to bring the farm into compliance with the
Their children, they thought, should be raised on                National Organic Program standards. In 2007, the
a farm that emphasizes stewardship and ecological                farm expanded its offerings by growing organic
responsibility. Passing these practices onto future gen-         vegetables and raising cattle, pigs and turkey for meat
erations would be their legacy.                                  production.
    The timing of the organic transition has helped the              As they began to consider the nutritional health of
Russells manage through the current crisis in conven-            the herd, it followed that their environmental condi-
tional milk prices. At the time of the transition, Craig         tions should be considered as well. Brotherly Farm
was grazing the herd, and there were few changes                 applied for an Implementation Grant of $5,000 to
                                                                 renovate the calf house and install energy-efficient
                                                                 equipment. However, while implementing these
                                                                 changes, Craig discovered that the calves would be
                                                                 served better overall if they were located in individual
                                                                 calf hutches outside of the main barn. This provided
                                                                 the opportunity to reconfigure the calf house as a new
                                                                 tie-stall feeding and care area for the high-producing
                                                                 cows in the milking herd. In addition, Craig and Ken
                                                                 installed two energy-efficient fans controlled individ-
                                                                 ually with automatic temperature triggers—control-
                                                                 ling both the overall internal temperature as well as
                                                                 providing for healthier ventilation. The benefits were
                                                                 realized almost immediately: pounds of milk per cow
                                                                 are up, cash flows have increased, and revenue-to-cost
                                                                 ratios are stabilizing. Craig says, “Without the help
                                                                 of the Farm Viability Program, I don’t think I would
                                                                 still be in business.” Overall, Craig is confident that
  Young Alex Russell in the barn at Brotherly Farm, where the    Brotherly Farm will survive the current dairy crisis,
  Russells are fine-tuning their organic dairy operation.        and he’s beginning to provide his son Alex with the
                                                                 skills of a dairy farmer.
                                                                10
viability profile:
Lewis Creek Farm
Starksboro, Addison County


    Hank Bissell has owned and operated Lewis Creek          facilities, much larger than other similar areas on the
Farm since 1981. The 150-acre farm is located along          farm, will help streamline the harvest, reduce labor
the narrow valley of Lewis Creek. Hank farms rough-          costs, and increase storage capacity for profitable
ly 45 acres of vegetables, strawberries, and flowering       vegetables such as carrots and potatoes.
plants—all of which is distributed throughout Ver-               The Farm Viability Program has been a tremen-
mont. This requires a crew of employees through the          dously successful experience for Hank. The process of
year, and as many as a dozen workers during the peak         developing and revising his long-term business plan
season. He believes in sustainable farming practices,        has allowed him to anticipate variability in the market
and his products are all grown within the Vermont            as well as adapt to changes in the farm’s partner-
Ecologically Grown standards. Developed by the               ship structure. He is excited about future prospects,
Vermont Vegetable and Berry Growers’ Association,            including the potential to expand the tillable acre-
these standards represent a combination of best prac-        age. He expects that if business continues to expand
tices from the organic and non-organic systems of            he will be able to retire comfortably and transfer the
agriculture. Most crops are never sprayed, but when          farm to the next generation of sustainable farmers.
required great care is taken to apply either organic or
low impact sprays. Hank’s wish is to provide Ver-
monters with the healthiest products without sacrific-
ing quality or carrying a premium price for organic.
    Lewis Creek Farm has been able to weather the
last few years well. Despite volatility in energy and
fertilizer prices as well as fluctuations in food prices,
the farm has managed to continue to grow with its
focus on staple essentials like carrots, potatoes, cab-
bage, and broccoli. The business is mixed between
wholesale and direct sales, with a majority of sales to
restaurants and stores, and a steadily increasing Com-
munity Supported Agriculture program. The scale
and diversity of such an operation, however, requires
substantial investments in cooling, storing, and pack-
ing systems in order to deliver fresh, quality products.
The Farm Viability Program awarded an Implemen-
tation Grant of $4,185 in 2006 for a new walk-in
cooler facility that doubled the total storage capacity
at the farm. By building the new cooler adjacent to
the existing one, Hank is able to utilize some of the
existing refrigeration systems while maintaining dif-
ferent temperatures for storing different vegetables. A
second Implementation Grant of $2,250 was awarded                Hank Bissell sells produce wholesale and directly. Two Via-
in 2009 to fund the purchase and construction of a               bility Program Implementation Grants have helped him add a
weatherized washing and packing room. These new                  new cooler and a room for washing and packing vegetables.


                                                            11
viability profile:
Scholten Farm
Weybridge, Addison County


   Roger and Patty Scholten operate an organic dairy farm            With success in marketing directly to local con-
in Weybridge, which the couple leases from Middlebury            sumers combined with strong sales to retailers and
College. Working with a herd of 80 Dutch Belted, Jersey,         restaurants in New York City, the cheeses are gaining
and cross-bred cows, the Scholtens ship between 900,000          attention from Williams Sonoma and other national
and 1,000,000 pounds of milk each year to Organic Valley.        retailers. The opportunity to continue to expand
A few years ago, Roger and Patty decided to diversify their      cheese production may help the Scholtens weather
products in order to try to generate more revenue from           these difficult times faced by Vermont’s dairy farmers.
their dairy herd.                                                In addition, their operation provides a valuable contri-
   Faced with falling dairy prices and a limited organic         bution to Vermont’s agricultural heritage.
milk quota, their idea of diversifying production through
value-added products accelerated quickly. Patty took a
course in cheese production, and soon she began making
her own cheese on the farm under the name Kaas by Cass.
   Initially, she found that the herd’s strong milk compo-
nents allowed for a yield of one pound of cheese per 4.5 to
7 pounds of milk. In order to make a consistent product,
however, their operation would require several equipment
purchases—as well as the college’s approval to construct a
new cheese production shed attached to the milking barn.
With an Implementation Grant of $3,350, matched with the
family’s personal savings and a grant from Efficiency Ver-
mont, the Scholtens were able to purchase a variable speed
pump, pH meter, and a cheese drying rack.
   Patty initially considered making up to 10,000 pounds of
cheese annually with an ultimate goal of producing 20,000
pounds each year. The milk for their cheeses is pasteur-
ized, placed into molds, and the cheeses are dried on the
farm. The soft-ripened cheeses are then transported to the
Cellars at Jasper Hill Farm, a new 22,000 square foot facility
that helps smaller farms without the space necessary to age
their cheeses. The Cellars also assist in marketing Vermont
cheeses like Kaas by Cass. Quick success has driven a strong
demand for Patty’s cheeses, and the Scholtens are now con-
sidering transitioning their entire operation to cheese and
yogurt production over the next several years. If successful,
their operation could become the largest single-farm pro-
ducer of cheese in Vermont.
                                                                    Roger and Patty Scholten are considering transitioning their
                                                                    entire dairy operation to cheese and yogurt production. A
                                                                    grant helped them purchase cheese making equipment.
Meat Processing Facilities Use $40,000 to Improve and Expand

    In April 2009 the Farm Viability Program an-
nounced $40,000 in grant awards to meat processing
facilities in Troy, Randolph, Barre and Enosburg. The
grants represented a new funding opportunity under
the program for “agriculture-related businesses,”
established to develop and invest in agricultural
infrastructure and to improve the viability of agricul-
ture-related businesses. The next deadline to apply for
funding for meat, poultry and grain processing facili-
ties is February 11, 2010.
    Four operators ranging from small custom proces-
sors to larger commercial processors will use grant
funding to expand facilities and increase efficiency,
resulting in greater availability of meat processing
services for farmers and others raising livestock.             Brault’s Market in Troy
The grant recipients are: Brault’s Market in Troy, The
Royal Butcher in Randolph, Vermont Smoke and
Cure in South Barre, and the Enosburg Meat Market.
Three of the four offer retail sales on site.                  “These grants will give meat processors in Ver-
    “The importance of these funds to meat process-        mont the ability to expand and improve their facili-
ing facilities in the state cannot be underestimated.      ties to help meet the increased demand for Vermont
We have seen a tremendous increase in demand in            products. With improved processing facilities, farm-
people looking to buy local. I call it a renaissance       ers have the potential to increase what they produce
of the past—knowing where and how your food is             and it opens new market options to them.”
grown is again becoming an important aspect to con-            Brault’s Market, providing custom and commercial
sumers when buying food,” said Secretary of Agricul-       meat processing and a retail market in Troy, will con-
ture Roger Allbee.                                         struct an addition, increasing their processing area
                                                           and retail space. The Royal Butcher, a meat proces-
                                                           sor, butcher shop, retail store and bottle redemption
    “These grants will give meat proces-                   center in Randolph, will expand and improve their
                                                           processing area. Vermont Smoke and Cure, a smoke-
 sors in Vermont the ability to expand                     house and processing facility in South Barre distribut-
                                                           ing ham, bacon and sausage throughout New England
 and improve their facilities to help meet
                                                           and beyond, will purchase processing equipment to
 the increased demand for Vermont prod-                    increase their production capacity. The Enosburg
                                                           Meat Market, a retail meat market and custom cutting
 ucts. With improved processing facilities,                shop, will construct an addition, adding processing
                                                           and cooler space while creating separate processing
 farmers have the potential to increase                    areas for game and farm animals.
 what they produce and it opens new                            Upcoming grant rounds are announced to farmers
                                                           who have completed business plans with the Viability
 market options to them.”                                  Program and to agriculture-related businesses. For
                                                           more information, visit www.vhcb.org/viability or call
  —Secretary of Agriculture Roger Allbee                   Program Director Ela Chapin at 828-2117.

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Farm Viability Program Implementation Projects Funded in 2009
Farm Projects
 •	 Hank Bissell, Lewis Creek Farm, Starksboro:
    $2,250 for winter storage expansion
 •	 Russell Deberville, Deberville Dairy, Washington:
    $3,000 for covered barnyard
 •	 Steve & Karen Getz, Dancing Cow Dairy, Bridport:
    $3,000 for cheese making facility
Expansion and Equipment
 •	 Kimber & Matthew Harvey, Harvey Farms, Flor-
    ence - $3,000 for barn addition and rototiller for
    compost bedded pack
 •	 Tim & Loraine Hescock, Vermont Trade Winds,
                                                                               Farmstead Gouda cheeses produced by Taylor Farm in
    Shoreham - $3000 for maple production expan-
                                                                               Londonderry. The Viability Program provided business
    sion                                                                       planning assistance.
 •	 Andy Jones, Intervale Community Farm, Burling-
    ton - $4,000 for irrigation system improvements
    and expansion                                                            •	 Ken Leach & JonCee Kelley, True Love Registered
 •	 Jill Kopel, New Leaf Organics, Bristol - $2400 for                          Holsteins, Rupert - $3,000 for ice cream pasteur-
    greenhouse improvements and expansion                                       izer
                                                                             •	 Mitchel Richardson, Maple Tree Fence Co -
                                                                                $3,000 for livestock handling system
                                                                             •	 Craig Russell, Brotherly Farm, Brookfield - $5,000
                                                                                for calf housing renovation and variable speed drive
                                                                             •	 Jeremy Russo, South Wind Farm, Pawlet - $3500
                                                                                for cheese making equipment
                                                                             •	 Roger & Patricia Scholten, Scholten Farm, Wey-
                                                                                bridge – $3350 cheese making equipment and
                                                                                variable speed pump
                                                                             •	 Larry Scott & Peggy Hewes, Ekolott Farm, New-
                                                                                bury - $6,000 for oil seed cleaning and bagging
                                                                                system
                                         Cellars at Jasper Hill photo        •	 Sebastian vonTrapp, von Trapp Farm, Waitsfield -
                                                                                $6,000 for wood furnace boiler for cheese making
 The Farm Viability Program provided feasibility analysis to the
 Cellars at Jasper Hill in Greensboro and has assisted cheese
                                                                                facility
 makers who are aging their cheeses at the Cellars with busi-                •	 Tyler Webb, Stony Pond Farm, Enosburg - $6,000
 ness planning, technical assistance, and implementation fund-                  for hoop facility
 ing. Cheesemakers send their “green” cheeses to be ripened,                 •	 John Williamson, State Line Farms, Bennington
 marketed and distributed by the Cellars.                                       - $3500 for oil seed and grain processing equip-
                                                                                ment




                                                                        14
Ag Related Business Projects:
 •	 Brault’s Market, Troy - $14,000 for construction
    of addition to create work and retail space
 •	 Royal Butcher, Randolph - $14,000 for construc-
    tion of expanded processing area
 •	 VT Smoke & Cure, Barre - $7,000 for processing
    equipment and expanded capacity
 •	 Enosburg Meat Market, Enosburg - $5,000 for
    construction of addition to separate game and
    farm livestock processing




                                                                 The Viability Program assisted with the costs of bringing Ivan
                                                                 Larcher, a cheesemaking expert from France for a week-long
                                                                 workshop with Vermont cheesemakers.




 Vermont Smoke and Cure used a grant for ag-related busi-
 nesses to add processing equipment and expand capacity.




    “I found the process quite helpful.
    Business planner and technical assistants
    were excellent. I plan on using this busi-
    ness plan to help with marketing, budgeting
    and feasibility studies regarding internet
    sales, and value added products.”
    — James Bove, Chapin Orchard, Essex



                                                                 Randall Farm cows. The Viability Program provided business
                                                                 planning assistance and an Implementation Grant.



                                                            15
Vermont Farm Viability enhancement Program
         Vermont Housing & Conservation board
         58 East state st., montpelier, VT 05602
                 www.vhcb.org/viability
              Ela Chapin, Program director
             802 828 2117 | ela@vhcb.org




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