The Organic Farmer's Business Handbook

1. What is "The Organic Farmer's Business Handbook" by Richard Wiswall about?

• Comprehensive business guide: The book is a practical manual for organic farmers on managing finances, crops, staff, and achieving profitability.
• Focus on business, not just production: Unlike most farming books, it emphasizes the business side of farming, including record keeping, financial planning, and marketing.
• Step-by-step systems: Wiswall provides detailed systems for tracking income and expenses, creating crop budgets, and making informed business decisions.
• Tools and templates: The book includes worksheets, templates, and a companion CD with Excel tools to help farmers implement the advice.
• Real-world experience: Drawing from decades of personal farming, Wiswall shares both successes and failures to illustrate key business concepts.

2. Why should I read "The Organic Farmer's Business Handbook" by Richard Wiswall?

• Profitability focus: It teaches organic farmers how to make their farms financially sustainable, not just ecologically sound.
• Practical, actionable advice: The book is filled with real-world examples, templates, and step-by-step instructions that can be immediately applied.
• Addresses common pitfalls: Wiswall discusses the most frequent mistakes organic farmers make, especially in business management and record keeping.
• Paradigm shift: The book challenges the stereotype of the "poor, dumb farmer" and empowers readers to plan for profit and quality of life.
• Suitable for all levels: Whether you’re a new or seasoned farmer, the book offers valuable insights for improving your farm’s bottom line.

3. What are the key takeaways from "The Organic Farmer's Business Handbook"?

• Farm for profit, not just production: Prioritize profitability by understanding and managing the business side of farming.
• Track everything: Systematic record keeping of both income and expenses is essential for identifying profitable and unprofitable crops.
• Use crop enterprise budgets: Detailed crop budgets help compare profitability across different crops and guide decision-making.
• Plan proactively: Set clear financial and personal goals, and use tools like marketing charts, production plans, and cash flow projections to achieve them.
• Efficiency matters: Streamlining production, office management, and employee management can significantly increase profits and reduce stress.

4. How does Richard Wiswall define "true sustainability" in organic farming?

• Beyond ecological practices: True sustainability includes financial health, not just environmental stewardship.
• The "Mile-High Fence" analogy: Farmers should monitor all inputs and outputs, aiming to use freely available natural resources (solar dollars) as much as possible.
• Solar dollars concept: Sustainable wealth is generated by harnessing natural cycles and sunlight, rather than relying on finite or transactional resources.
• Recycling and self-sufficiency: Farms should strive to recycle nutrients and minimize dependence on external, purchased inputs.
• Long-term viability: A truly sustainable farm can support itself and its farmers indefinitely, both ecologically and economically.

5. What is the "Profit = Income – Expenses" principle in "The Organic Farmer's Business Handbook"?

• Core business equation: Profitability is determined by subtracting all expenses from total income, a simple but powerful concept.
• Analyze by enterprise: Each crop or farm enterprise should be evaluated separately using this equation to identify profit centers and loss leaders.
• Plan for profit: Set a target net profit and work backward to determine necessary sales and production levels.
• Adjust as needed: Increase profit by raising prices, reducing costs, or focusing on more profitable crops.
• Avoid passive profit: Don’t just accept what’s left at year-end—actively plan and manage for the profit you want.

6. How does Richard Wiswall recommend tracking income and expenses on an organic farm?

• Use simple systems: Employ invoices, inventory sheets, and CSA logs to track all sales and income sources.
• Maintain a Crop Journal: Record all labor and production activities for each crop as they happen, making later analysis easier.
• Separate fixed and variable costs: Track both direct production costs and overhead expenses for accurate crop budgeting.
• Bundle office tasks: Set aside regular time for office work and use organized filing systems to manage paperwork efficiently.
• Leverage technology: Utilize spreadsheets and bookkeeping software (templates provided) to streamline calculations and reporting.

7. What are crop enterprise budgets, and why are they important in "The Organic Farmer's Business Handbook"?

• Detailed cost analysis: Crop enterprise budgets break down all costs and income for each crop, including labor, materials, and overhead.
• Compare profitability: They allow farmers to see which crops are most and least profitable, guiding future planting decisions.
• Customizable templates: The book provides templates and examples that can be tailored to any farm’s unique situation.
• Informed decision-making: Budgets help identify where to cut costs, raise prices, or drop unprofitable crops.
• Foundation for planning: Accurate budgets are essential for creating business plans, cash flow projections, and long-term strategies.

8. What marketing strategies does Richard Wiswall suggest for organic farmers?

• The Marketing Circle: Continuously ask what, to whom, why, and how you market your products to improve customer acquisition and retention.
• Diversify sales channels: Consider wholesale, retail, CSA, farm stands, and restaurants to spread risk and maximize sales.
• Professionalism matters: Deliver on time, communicate clearly, and act professionally to build strong relationships with buyers.
• Brand identity: Develop a consistent look and feel for your farm’s materials (signs, labels, invoices) to enhance recognition and trust.
• Manage CSA programs carefully: Avoid giving away too much product and ensure share values match what members pay to maintain profitability.

9. How does "The Organic Farmer's Business Handbook" address effective management and employee relations?

• Clean desk, clear mind: Organize office space and paperwork to reduce overwhelm and increase efficiency.
• Master to-do lists and calendars: Prioritize tasks, schedule them, and follow through to ensure important work gets done.
• Employee management: Provide clear job descriptions, set expectations, and foster mutual respect to build a productive team.
• Legal compliance: Understand and fulfill IRS and workers’ compensation requirements for employees.
• Communication and boundaries: Regular meetings, clear policies, and defined roles (especially when working with family) are crucial for smooth operations.

10. What advice does Richard Wiswall give on retirement planning and financial security for organic farmers?

• Start early: Begin saving and investing for retirement as soon as possible, even if only small amounts.
• Live within your means: Saving requires spending less than you earn, regardless of income level.
• Invest wisely: Consider a mix of savings, investments, and reinvesting in the farm, but recognize that equipment is an expense, not an investment.
• Use tax-advantaged accounts: Maximize contributions to IRAs and SEP IRAs for tax savings and long-term growth.
• Plan for succession: Estate planning and clear documentation ensure your farm and assets are handled according to your wishes.

11. How does "The Organic Farmer's Business Handbook" guide readers in writing a farm business plan?

• Demystifies the process: Breaks down business plan writing into manageable steps, emphasizing its value as a roadmap for your farm.
• Skeleton outline: Provides a clear structure—cover page, executive summary, descriptions, analyses (SWOT, management, market, enterprise), planning, and financials.
• Financial statements: Teaches how to create Profit and Loss Statements, Balance Sheets, and Cash Flow Projections.
• Actionable strategies: Encourages setting goals, analyzing strengths and weaknesses, and planning for implementation and evaluation.
• Living document: Advises reviewing and updating the business plan regularly to keep it relevant and useful.

12. What are the best quotes from "The Organic Farmer's Business Handbook" by Richard Wiswall, and what do they mean?

• “Farm for profit, not production.” – Emphasizes that profitability, not just growing crops, should be the primary goal for sustainability.
• “The biggest fallacy in farming is that there is no money in it.” – Challenges the cultural stereotype that farming can’t be lucrative, encouraging a shift in mindset.
• “Profit = Income – Expenses.” – A simple but powerful reminder that every farm decision should be evaluated through this lens.
• “Sharpen your pencil.” – Encourages farmers to do the necessary financial analysis to uncover hidden profit centers.
• “A clearly defined goal should define your quality of life.” – Stresses the importance of setting personal and business goals to guide decisions and maintain motivation.