RASMUSSEN FARMS
Hood River, Oregon
Basil Childers for The New York Times
Offering Memorandum
RASMUSSEN FARMS
3020 Thomsen Road
Hood River, Oregon 97031
(541) 386-4622 FAX (541) 386-4702 1-800-548-2243
www.RasmussenFarms.com
Dear Prospective Buyer:
We are presenting you with a unique opportunity to own a Hood River Valley icon –
Rasmussen Farms. Our family has decided to sell this very popular and nationally
recognized destination farm as retirement beckons.
It is the desire of our family to sell the property and business as one unit, although we
will consider other options. This memorandum has been prepared for the purpose of
providing potential buyers with general information concerning the property and business
that encompass Rasmussen Farms. The family prepared all information contained herein
and, where appropriate, from other sources deemed reliable; however, we do not
guarantee its accuracy and expressly disclaim any and all liability for representation,
expressed or implied, contained in, or omitted from this memorandum. Prospective
buyers should conduct an independent investigation of all matters deemed material.
The information contained herein is intended to be reviewed only by the party receiving it
from our family and should not be made available to any other person or entity without
our written consent.
Please contact me for additional information and to arrange for a tour of our farm.
Complete financial records and more detailed information are available to qualified,
interested buyers.
Sincerely,
David Rasmussen
(503) 780-1571
Email: dave_ras@msn.com
Table of Contents
Section 1 – Pricing and Terms
Section 2 – Business Overview
Section 3 – Property Description
Section 4 – Business Inclusions
Section 5 – Annual Farm Events
Section 6 – Approved Preliminary Site Plan for Minor Partition
Section 7 – Aerial Photo of Rasmussen Farms
Pricing and Terms
Sale Price
Property and Business as described in this memorandum $ 1,200,000
Financing
Seller financing is available subject to buyer's qualifications
Rasmussen Farms – Offering Memorandum 1
Business Overview
On a busy weekend last fall, approximately 5,000 people visited the farm to enjoy
activities such as Pumpkin Funland, find the perfect pumpkin, and to purchase fruit and
other products. The success of Rasmussen Farms is based on almost a half a century of
farm direct sales, long established farm events, a wide variety of products, and the down
home feeling that lets customers feel like the farm is their own.
History and Future
Farm direct sales began in 1963 as a way to sell surplus crops and improve profits for the
farm’s berry and vegetable production that was primarily sold to processors. By the mid
1970’s, the sale of fruits and vegetables directly to consumers had become the core
business and product sold to processors was eventually discontinued in 1979.
Product selection was increased to include many fruit and vegetable products grown in
the local area, plants and flowers, and food products made in Oregon. The business was
expanded over the years to include the sale of mail-Internet based gift packs (1976),
products sold for fundraising events (1992), and flower services (1985). In addition, a
large emphasis was placed on offering many scheduled events that are held each year on
the farm.
The farm enjoys an excellent reputation and enormous name recognition in the region
due to the many years of direct sales, numerous farm events, and breadth and quality of
products; it’s truly become a destination attraction of it’s own entitlement.
The general public is wanting more and more of a direct, on the farm experience, for
recreation and to know where their food is grown. Recent problems with foreign
products have significantly increased the concern for the latter. This situation, in
conjunction with the farm’s name recognition and reputation, provides a unique
opportunity for the business to enjoy tremendous growth in the years to come.
Business Segments
Farm Direct Sales – sale of fruit, vegetables, berries, plants and flowers starting in the
spring and ending in late December. U-pick is available for strawberries and vegetables.
See Annual Farm Events summary for activities that take place each year on the farm.
Fundraising – sale of flower baskets and planters in the spring and evergreen wreaths
during the holiday season. Fundraising products are marketed to non-profit organizations
that in turn sell them during fundraising events. Marketing material and suggested prices
are provided to the organizations.
Flower Service – marketed as “Welcome Flowers”, hanging baskets and planters are
provided and maintained for commercial accounts throughout the mid-Columbia area
Rasmussen Farms – Offering Memorandum 2
during the growing season. This division also does custom flower plantings and flower
rentals for weddings and other events.
Mail-Internet Sales – sale of fruit, evergreen wreaths and Oregon products that are
packaged as gifts and shipped to all 50 states. Sales occur mostly during the holiday
season, but products are also shipped at select times during other times of the year. Our
pear sampler gift was featured as the “Best of the West” in Sunset magazine.
Financials
To be provided to qualified, interested buyers upon signing a nondisclosure agreement.
Reason for Sale
Lynn and Dollie Rasmussen have operated the farm for over 50 years and have decided it
is time to retire and let someone with more energy operate the business.
Investment Considerations
• Large, loyal direct sale customer base built over the past 45 years – many
consider the farm their own.
• One of the most recognized destination farms in the Northwest. Nationally
recognized several times by Nickjr.com as one of the “best places in the USA for
Halloween” and Sunset magazine as a “must see”. The farm has been in
numerous publications including The New York Times as well as featured on
various local, international, Food Network, and Public Broadcasting television
programs. Media coverage has extended from Alaska to Hawaii as well as Asia,
and Europe.
• Long history (over 25 years) of frequent annually scheduled farm events that draw
new and repeat customers, large groups and bus tours.
• Well-established, reputable business – 45 years farm direct sales and over 30
years mail (Internet) gift pack sales; one of the oldest and most respected
destination farms in Oregon.
• The Hood River Valley is a very popular day trip for an ever-growing urban
population – the Portland metro area is just an hour away by car or bus tour. The
area is also well known for it’s many farm direct sales made popular by the Hood
River Fruit Loop, an organization that actively promotes farm direct sales.
• Located in the highly desirable Eastside, just one mile off the Mt. Hood highway
– the chosen route for most visitors to the valley.
Rasmussen Farms – Offering Memorandum 3
• Fertile silt loams with mostly flat to gradually sloping topography and full
irrigation rights from East Fork Irrigation District. Ideally suited for orchard,
vineyard, berry, and vegetable production
• Approved Measure 49 claim with the State of Oregon, which provides the
opportunity to sell or develop up to two additional home sites on the property (see
Property Description section for additional detail).
• The business has historically been recession proof as it appears urban customers
reduce long trips and vacations in favor of closer and shorter outings during
economic downturns.
• The sellers are in there seventies and have purposely not pursued various
opportunities nor attempted to expand their current business for over five years.
This provides a new owner with a unique opportunity to achieve tremendous
growth in the business.
Business Opportunities
To be provided to qualified, interested buyers upon signing a nondisclosure agreement.
Rasmussen Farms – Offering Memorandum 4
Property Description
Legal South ½ of the SE quarter of the SE quarter of Sec 24, Township 2
Description North, Range 10 East of the W.M., in the County of Hood River and
State of Oregon (2N-10E-24-4600) with a physical address of 3020
Thomsen Road Hood River, OR.
Land 19.70 acres m/l of Wy’east hood silt loam soil with mostly flat to
gradually sloping topography and full (19.3 acres) senior (1895)
irrigation rights from East Fork Irrigation District. Irrigation water is
delivered to the property under pressure and no pump is required. The
property is zoned EFU (exclusive farm use).
Measures 37/49 Oregon’s land use regulations prohibit dwellings on EFU zoned
property except for farmer occupied homes on commercial farms
thereby minimizing the number of dwellings in rural areas. Oregon
voters approved two ballots in recent years – Measure 37 and Measure
49 – to reinstate some property rights to long-time property owners
who had lost property rights without compensation.
Sellers received a M37 waiver (approval) from Hood River County
and the State of Oregon and subsequently filed and received tentative
approval from Hood River County for a Minor Partition to divide the
property into three parcels: 17.97 acres, 1.03 acres, and 0.70 acres
(see preliminary site plan attached).
Upon passage of M49, Sellers filed a M49 claim with the State for two
additional home sites on the property. The State issued a final order
(approval) on Sellers M49 claim in early 2009.
With this approval, the property owner can proceed with partitioning
of the property into two additional parcels that can be sold as
individual rural homes sites or owner could elect to construct homes
and either retain or sell them. Alternatively, it may be possible for the
property owner to donate, in the form of a conservation easement, all
or part of the M49 rights to an organization and receive a charitable
donation that could provide a substantial tax reduction.
Landscape View of Mt Hood, Mt Adams, most of the mid and west side of valley,
Features and next to east hills; all season Thomsen Creek located towards west
end of property; mature trees along south lawn; and, 100 year old oak
tree.
House Approximately 1,600 square foot, 1½ story, 3 bedrooms, 1 bath, home
office, utility room, large front porch. Built in the 1920s with
Rasmussen Farms – Offering Memorandum 5
concrete foundation, composition shingle roof, and pellet stove and
electric baseboard heat.
Greenhouses 1 – 20’ x 95 poly/aluminum framed (2000)
1 – 30’ x 50’ poly/aluminum framed w/wood stove (2000)
1 – 20’ x 48’ poly/aluminum framed w/wood stove (2000)
1 – 32’ x 100’ poly/aluminum framed w/concrete foundation and
walkways (2000)
1 – 16’ x 16’ wood/fiberglass solar heat design (1970s)
Lath House 30’ x 50’ cedar lath house with pole construction used for spring plants
and summer events (2001)
Sales Barn 36’ x 144’ wood frame w/concrete foundation and pole frame
construction, corrugated metal roof, and mostly concrete floor. Used
for sales, prep, storage and includes 12’ x 18’ square foot walk-in
cooler. 225 square foot office and 225 square foot covered area
attached to front of building. (1960s)
Milk Parlor 18’ x 30’concrete block w/concrete foundation/floor and composition
shingle roof. Built as milk parlor and wired for hot water, floor drains,
etc. – ideal for value added farm products such as cider, jam, bakery,
and ice cream. (1950s)
Tool Shed 96 square feet wood frame w/concrete foundation/floor and corrugated
metal roof. (1950s)
Utilities Domestic water is supplied by Crystal Springs Water District.
Electricity and DSL Internet service provided by Hood River Electric
Co-op.
Perennial 1½ acres of Hood and Rainier strawberries planted in 2007 and 2008.
Crops
Personal Most farm and business equipment and supplies are included.
Property Signature items, such as moss covered horse and wagon, are not
included in the sale, but Seller will allow them to be used by Buyer for
up to five years.
Inventory Packaging and product inventory are not included in the purchase price
and will be sold at current wholesale cost.
Rasmussen Farms – Offering Memorandum 6
Business Inclusions
• Customer lists for each business division, if applicable
• Proprietary mail order software and database
• Internet site – www.rasmussenfarms.com with conditions and time limit
• Use of “Rasmussen Farms” name and logo with conditions and time limit
• Detailed monthly schedule/time line for farm events and activities
• Supplier contacts and past purchasing records
• Farm and greenhouse planting records and varieties
• Log for Welcome Flower and private plantings
• Promotional press packs, wedding packs
• All available previously used advertising and art work
• All available pictures and props for farm events
• One year of operating support and consulting by Sellers to help assure smooth
transition and continued success of business
Rasmussen Farms – Offering Memorandum 7
Annual Farm Events
Farm events have been a long-standing tradition at Rasmussen Farms going back to the
late 1970s and make this business unique from it’s competitors. Many customers have
made it a family tradition to attend one or more of these events each year.
Blossom Festival – held in April and coincides with the Hood River
Blossom Festival celebrating the valley’s orchards in (hopefully)
full blossom. Apples and Pears available from controlled
atmosphere storage. We feature our Pansy Party, over 40 kinds,
recipes and greenhouse Open House. 4-H farm animals petting area.
Summer Sensations – held in June during strawberry season. U-
Pick and ready picked strawberries. Free strawberry shortcake and
treats. Greenhouse fun with lots of special sales. Herb recipes,
collections, and wreaths. Make your own planters and baskets
workshop. Strawberry shot put. Live music on the weekend.
Cherry Celebration – held in early July during cherry season. We
provide a large variety of cherries and offer recipes and samples of
cherries, cherry pie, and Oregon cherry products.
Van Gogh Days – held in early August and celebrates 60 kinds of
sunflowers. Customers have the perfect opportunity to paint, cut,
take photos and enjoy the many colors of summer. Live music, free
wine tasting, vegetable games and treasure hunt for the kids, and
quilt and art show and sale.
Gravenstein Apple Days –held in mid August to kick-off the fall
fruit season. Fresh cider, Gravenstein apple pie, and recipes. Also,
family activities, featuring a pie walk, Chicken Dance, and live
music. Opening of the Corn Maze.
Rasmussen Farms – Offering Memorandum 8
Pear Party - held in mid September at the peak of the pear season
featuring many varieties of pears. Samples of pears, pear pie and
Oregon food products plus lots of recipes, live music and "how-to"
demonstrations of drying apples and pears. Wine tasting featuring
pear wines and "perry" (pear hard cider).
Apple Express – held in late September when apple season begins
with over 50 kinds of apples including heirloom and experimental
apples. Free samples, live music, apple cider, apple pie and other
desserts. Free Danish Aebleskivers and recipes. Pumpkin Funland
preview and a covered picnic area.
Pumpkin Funland – held from October 1st to mid November; it’s a
wonderful, unique world created with pumpkins, gourds, squash and
from items conjured up by our staff. There is also a corn maze in
the cornfield with scenes throughout. U-pick pumpkins, fall deco,
and, of course, fall vegetables and fruits. Pumpkin bowling and our
covered picnic area. Sunset Magazine noted Pumpkin Funland as a
"must see" for fall. Pumpkin Funland was also nationally rated as
one of the eleven best places in the USA for Halloween by
nickjr.com.
Rasmussen Farms – Offering Memorandum 9
Approved Preliminary Site Plan for Minor Partition
Rasmussen Farms – Offering Memorandum 10
Aerial Photo of Rasmussen Farms
3020 Thomsen Road Hood River, Oregon 97031
2N 10E 24 TL 4600
Rasmussen Farms – Offering Memorandum 11