Diversifying and expanding can help a farm survive for the next generation
Producers who find the right fit when it comes to incorporating value-added products into their operation can sometimes reap rewards far greater than extra money in their pocketbook.
“Value-added is something I think about when people want to bring the next generation back to the farm and support more family members on the farm,” Amie Breshears, Ag Business Field Specialist with the University of Missouri Extension, said. “It is definitely something that folks can consider to help diversify their operation and expand what they are doing and keep the farm going for the next generation.”
Explore Options
The first step for producers wanting to find ways to integrate value-added products is asking questions. What is being produced? What value could be added to the current products and operation? What are some outside-of-the-box ideas related to the operation? Are there different ways to present the products to customers? What additional can be done to generate revenue?
Those are just a few questions to get producers brainstorming. Agriculture business specialists encourage producers to simply walk through the exercise of dreaming about what more their operation could be doing. “Sometimes we are so used to doing what we do, and the supply chains are there and set, that we don’t even think about what somebody might pay more for if we added on a little more,” Breshears explained.
Taking on a new avenue or changing the operation a bit may take producers out of their comfort zones, but the effort can pay off.
“Thinking outside-of-the-box isn’t easy or quick always, so sometimes you do have to think about new markets and engage in different places than you have before,” Breshears said.
Find the Right Fit
Incorporating value-added products may not be for all operations. And not all ideas are feasible or financially beneficial. Yet, regardless of whether producers choose to integrate value-added products into their operation or not, it’s still a positive experience for producers to take the time to consider all the possibilities for their agricultural business.
“I don’t think it is a one-size-fits-all. But I do think there is some kind of opportunity in every operation to do some value-added if folks are willing to do it. It is not a short-term thing; you have to carve a path. But Missouri has more resources now more than ever to help you,” Breshears said.
Utilize Resources
A new resource for producers in Missouri is the Missouri Agriculture, Food and Forestry Innovation Center (MAFFIC). The center provides resources and technical assistance to help producers navigate value-added agricultural production and marketing.
MAFFIC works with partners throughout the state including the Show-Me-State Food, Beverage and Forest Products Manufacturing Initiative; Missouri Agricultural and Small Business Development Authority (MASBDA); and University of Missouri.
Experts at MAFFIC provide producers with a variety of free services including tips on best business practices, finding markets for products, calculating product costs and more. Breshears serves as an advisor for MAFFIC and its clients. She encourages producers to take advantage of the resources available to help them capture more value for their business and improve profitability.
Breshears looks at the big-picture benefits of value-added products. “The reason I get excited about value-added ag is because it helps hold on to more Missouri dollars which is good for Missouri farms. I see it as a way to hold on our young people, to keep people farming who want to be farming, and to get people into farming who want to get into farming,” Breshears shared.
