Events

Breakout Session 1: Realizing Your Small Woodland Dream

NOVEMBER 6, 2004

Panelists:

• Kate Hayes, Pioneer Valley Enterprise Program, UMASS Donahue Institute
• Paul Catanzaro, Forestry Extension Specialist, UMASS Extension

Overview:

The session was designed to provide information to landowners interested in developing an idea for a small forest-based business on their land. Of the approximately 45 participants, 85% identified themselves as landowners. The vast majority of landowners owned property larger in size than the regional average. 15% came to the session with a specific enterprise in mind.

Discussion:

Two resources were made available:

• “Profiles from Working Woodlands: Exploring forest-based Enterprises in Western Massachusetts” by Susan Campbell

This is a new publication which highlights people in western Massachusetts that own and operate forest-based businesses. This publication also includes discussion as to the crucial role these businesses can play in maintaining the character and rural culture of western Massachusetts. (Download the PDF.)

• “Forest Landowner’s Guide to evaluating and choosing a Natural Resource-Based Enterprise” by Jonathan Kays and Joy Drohan. $19.95 + S&H

To Order: Natural Resource, Agriculture, and Engineering Service (NRAES), Phone: (607) 255-7654 E-mail: NRAES@CORNELL.EDU

Another new publication to help landowners decide whether or not a natural resource-based business is right for them and if so, which one. The book includes detailed case studies and budgets. Highly recommended!

Additional Resources include:

Maryland Extension

http://www.naturalresources.umd.edu/Income_Home.html

Virginia Cooperative Extension:

http://www.sfp.forprod.vt.edu/special_fp.htm

Cornell Cooperative Extension

http://www.dnr.cornell.edu/ext/agroforestry/sare/index.htm

There was a discussion about motivations for a forest-based business:

• own land and want to ”do something with it”
• income
• want to work outdoors
• be your own boss
• stewardship interests

Although the audience varied in how much of their living they hoped to make from their forest-based enterprise, the majority of participants were interested in earning either most of, or partial income from a forest based business.

When considering starting a business, it is important to consider whether you are interested in for-profit or not-for-profit tax status. It is crucial to get expert advice from a professional.

Ask yourself the following questions when considering the type of business you would like to have:

• what do you like to do and what are you good at?
• do you need more education?
• what are your resources/opportunities?
• do you need to buy equipment to get started?
• what will it cost and where will you find startup money?
• what is the most appropriate use of the resources on your land?

Other important considerations:

• diversification of your business
• find your potential market
• plan for the market if your product takes time to develop
• look into trade organizations, i.e. MA Woodlands Cooperative and other groups that follow trends and can advise you
• pay attention to customers and trends in the industry
• consider value-added as a key strategy
• consider market outlets and local support : trend towards buying local
• wholesale, retail, or in-between
• think about business regulations and laws surrounding the business that you are interested in
• research local zoning to check viability of your operation
• think about the legal structure of your business

Kate spoke about the importance of getting the business plan together and the steps it entails:

Steps to figure out your business plan:

• establish lifestyle goals
• establish financial goals (i.e. supplemental or 100% income)
• environmental concerns that figure into your plan
• part-time or full-time work

It would be helpful if some organizations could have a list of individuals and organizations that could assist in the process of business planning and had expertise in the following areas:

• financial management/bookkeeping
• insurance
• banking

Look for bankers that are in tune with farmers:

• usually small town banks
• some are ag-friendly
• large banks do not make decisions locally

The Farm Credit Service deals with land-based businesses and has planning services as well. The New England Small Farm Institute has an extensive library and a bookstore. It also has an apprentice/landowner matching service. The Northeast Organic Farming Association also has good library and a video collection. MA Department of Agricultural Resources is also a good resource and offers an online subscription.

Other keys to business success:

• networking
• educating public officials and community of the benefits of your work

Once you get started remember to start record-keeping early to track:

• how much time your business work takes

Remember: enjoying what you are doing is key, and you will probably then make money.

Next Steps

Participants identified a strong interest in moving forward with their ideas.

• There was strong consensus that budget information and potential income forecasts were needed to help people advance their business idea.
• They recommended developing an informational network of people interested in developing small, forest-based businesses.