October 26, 2023

Please read the letter that was sent to the EPA regarding the Herbicide Strategy Framework to Reduce Exposure of Federally Listed Endangered and Threatened Species and Designated Critical Habitats from the Use of Conventional Agricultural Herbicides.  Many National, State, and Regional Agricultural groups have signed this letter voicing their non-support for this proposed strategy and the reasons why.

Ag Group Herbicide Strategy Comments (pdf; 496KB)

August 2, 2023

NYS Trooper, Matt Luft, presented on Commercial Vehicle Awareness at CLEREL, including a mock truck inspection to raise awareness to what they look for when doing an inspection.  The power point presentation slides that he used are attached for your reference.

Commercial Vehicle Awareness (pdf; 4945KB)

• NYS Trooper, Matt Luft, presentation

April 1, 2022

Project ideas may include:

• Drainage

• Soil amendments

• Fencing

• Crop changes or improvements

• Land renovations

• Farm structure improvements

Eligibility Requirements:

• Chautauqua County resident

• Farm business designation — File Schedule F

• Each project must include a business plan indicating planned improvements. Don't have a plan? We can help you develop one, free of charge.

Visit: http://chautauqua.cce.cornell.edu/agriculture

Contact: Lisa Kempisty, Extension Educator
(716) 664-9502 Ext. 203
ljk4@cornell.edu
525 Falconer Street
P.O. Box 20
Jamestown, NY 14702-0020

Funding for this program is limited. All completed applications will be considered and awarded on a first come first serve basis. Eligible projects may receive a grant of up to $10,000 per farm. Grant funds can reimburse up to 10% of removal fees and up to 25% of remediation or improvement expenses.

Application (pdf; 131KB)

Kevin Martin, Extension Educator, Business Management
Lake Erie Regional Grape Program

July 19, 2017

Portland, NEW YORK (7/20/17) --

Kevin Martin, from the Lake Erie Regional Grape Program (Penn State University), is currently creating baseline economic data to provide regional grape growers with commercialization strategies for spatial vineyard management. Baseline economic data will be used to measure the economic benefits of next generation vineyard technology. The local application of this technology focuses on the sustainability of the bulk juice industry. The industry stands to benefit from increasing average vineyard health while minimizing management inputs. Variable vineyard management offers the potential to increase yields or reduce vineyard input costs.

Spatial vineyard management requires the use of tractor mounted sensors logging sensor data and GPS location. Once data is reviewed, informed management decisions can be applied at a variable rate to the vineyard block. Variable rate management may involve targeted use of hand-labor or traditional vineyard maintenance equipment. Variable rate vineyard management may also involve modifying equipment and adding technology to allow the machine to manage vineyards differentially based on sensor data.

The adoption of technology may require substantial investment on the part of the grower. To maximize the benefits of technology, LERGP is working with grape growers to familiarize them with sensors and data management. "This work goes beyond mapping underperforming areas," Martin states, "commercialization of technology is going to require increasing average yields in those areas to justify the investment in sensor and GPS technology. By surveying local growers and variability in their vineyard, we will begin to understand the potential economic impact sensor technology can have on our grape industry."

Efficient Vineyard is a global effort to improve the performance of vineyards, particularly those geared toward bulk production. The project is funded by USDA Specialty Crops Research Initiative. More information on the research and extension team, sensors and the project can be found at efficientvineyard.com

Profit maps (pdf; 459KB)

• Variable rate vineyard mapping and profit map

Kevin Martin, Extension Educator, Business Management
Lake Erie Regional Grape Program

June 4, 2015

https://lergp.com/s/6-04-15-Nitrogen-Worksheet.xls

Kevin Martin, Extension Educator, Business Management
Lake Erie Regional Grape Program

March 6, 2014

Please take a look at the following sample partnership agreement. The agreement is designed to serve as a template to foster discussion regarding issues that need to be considered in any partnership, particularly one involving multiple generations with disparate goals. At twelve pages long, there is a lot there. Take a look at each section heading, which highlights the necessary sections. Language within those sections should be changed based on individual circumstances.  As such, this partnership agreement should not be construed as a valid legal document or legal advice. Use it to inspire decisions about the way you want your future partnership, LLC or Corporation to look. 

https://lergp.com/s/Sample-Partnership-Agreement.pdf

Edith Byrne, Association Program Educator I
Lake Erie Regional Grape Program

March 26, 2013

Videos created through projects funded by North East Center for Risk Management Education, New York Farm Viability Institute, NYS IPM Program and LERGP.

Please click on the link below to view on the LERGP You Tube Video Page:

• Developing a Fiscal Plan
  

• Introduction to Promoting Sustainability in Bulk Juice and Wine Operations I 
  

• Introduction to Promoting Sustainability in Bulk Juice and Wine Operations II 
  

• Promoting Sustainability in Bulk Juice and Wine Operations III

Kevin Martin, Extension Educator, Business Management
Lake Erie Regional Grape Program

March 21, 2013

Social Security Calculator: Click here for download

Social Security Calculator : Instructions

Use the above spreadsheet to estimate your future Social Security Benefits

Detailed Instructions

1. Find your wage Information. Your wage information can be found at: http://www.socialsecurity.gov/myaccount/

2. Enter wage data on the “Age and Wage" sheet. See step one to find historical wage information. Future wages will significantly impact your SSI benefit. Enter your anticipated earnings to see the impact of working longer or harder.

3. On the same sheet enter your Age Information. Enter your current age. Enter your expected age of retirement. Enter your full retirement age

4. Enter anticipated inflation from now until retirement

Kevin Martin, Extension Educator, Business Management
Lake Erie Regional Grape Program

Last Modified: March 19, 2013

Assumptions

• Land: It is assumed that land is already owned by the grower as that is the most common practice. Open land itself may be valued at $1,500 per acre. Open land in Chautauqua County is valued at $800 – $2,000 per acre for agriculture purposes. Annual ROI on this investment could be as little as $45.

• Vineyard layout: Spacing is assumed 7×9 or 658 vines per acre.

• Tile drainage: While tile drainage is not required on soil types most well drained soil already has an established vineyard. A common tile drainage system would include 4″ pipes at 18′ spacing with an 8″ mainline.

• Trellis system: 220 4″ pressure treated posts per acre as well as 35 end posts and anchors per acre.

• Wage Rates: Wage rates reflect the actual costs of growers of $12 per hour for unskilled labor. Piece rate wages for pruning are assumed at .3 per vine.

• Harvest and Hauling: Grapes are assumed harvested and hauled by the owner operator at a cost of $120 per acre.

• Machinery: Machinery depreciation was estimated at a discounted rate based on the assumption that economies of scale will reduce per acre depreciation costs for new plantings.

• Overhead: Similar to machinery, overhead costs should rise as the grower expands holdings but per acre costs should fall. The overall savings are captured entirely in the new planting acreage and estimates of new overhead costs are included.

• Cost of Capital: A 2.5% interest rate change on capital investment and operating capital was changed. This rate represents a real rate based on a six percent nominal rate of interest and an expected rate of inflation of 4%.

• Yields & Prices: Revenue is displayed as a matrix as fluctuations in yield and price will continue to be volatile. We could estimate an average, but you will never have an average year. The revenue matrix illustrates the floor, ceiling and expected revenue the planting may have.

• Vineyard Establishment Costs

The good news is, the cost of vineyard establishment does not impact the cash flow as dramatically as the total cost of the vineyard does. Establishing a vineyard will normally increase unpaid labor costs quite substantially. Most of the establishment labor is either low-skilled labor or completed by grower owners and family.

Even with this competitive advantage, it often makes more sense to purchase an existing vineyard.

Realizing the benefits of a new trellis, new vines, and orderly planting simply take far too long to justify any interest charges. Even any reasonable ROR will likely be greater from purchased vineyards, rather than newly planted vineyards.

Tile is a significant variable in vineyard plantings. Growers have experimented with plowing tile in to reduce such high installation costs. These costs clearly illustrate why most well drained soil already has existing plantings. Planting on well drained soil could result in establishment cash outlays as low as $2,600 per acre. Also, at $3,900 per acre this cost should be one specifically targeted by the grower. Negotiate with the installer, entertain more efficient installation methods, and properly assess exactly how much drainage the site requires. Establishment labor and maintenance until cropping begins will increase those costs, but could potentially result in less expense than a well-drained gravel site with an existing planting. Total labor for trellis construction, planting, and fertilizer application is 16 hours. Cash outlay for that labor will vary between $250 per acre and $80 per acre. For a large grower with a salaried employee costs could be lower as much of this additional labor can take place outside of the normal growing season.

While planting costs vary, even if expenses are comparable to existing plantings, it can make economic sense to plant. Minimizing unproductive land along with the upkeep and taxes associated with that land improve efficiency.

Macroeconomic conditions make this a particularly interesting time for investment. Money is generally this cheap two or three times a century. Credit requirements are tight but for those with capital a reasonable return on investment (ROR) in a long-term investment is not available. The Federal Reserve continues to manipulate long-term rates to encourage investment. Thirty-year notes currently yield 4.55%, a mere 2% above long-term inflation. Given current inflationary pressure, actual yields could easily average 1%. Ten-year notes currently yield 1.82%. Actual rates could easily fall below 0% if the economy recovers before 2016.

Historically the major concern with expansion was that the grower would use a great deal of capital for a ROR that could just not compete with the market. At this time the ROR in the market looks downright awful. Anticipating negative yields over the next decade is not at all a stretch.

March 13, 2013

1. Not knowing your Cost of Production: COP, or what it costs you to produce one unit is the lynchpin for profit. Every management decision must be weighed against how it affects your COP. Too few farmers know their cost of production and if you do not know your COP, can you truly be considered in the business of farming?

2. No plan for transferring the farm to the next generation: Life happens, but without adequate planning and preparation it may not happen the way you desire. Transitioning the farm is a long term, on-going and arduous process encompassing every segment of the farm and family. You need to start early, involve everyone, and modify as life provides changes.

3. Inadequate financial recordkeeping: If you keep your financial records only for tax preparation, Uncle Sam appreciates your efforts but you have given up a management tool for determining COP and making profitable decisions. Without adequate records for making decisions your outcomes are based on guesses and wishes.

4. Lack of a clearly defined business plan: Farmers are great at planning day-to-day production activities but long-term plans get lost in the every day work. Planting the crop, breeding the cow, and marketing the crop must happen, but determining how each cog relates to profitability will keep you in business for the next generation.

5. Lack of Communication: Farmers tend to be uncommunicative, but family businesses have many official and unofficial partners with a stake in the business. It is important to keep these partners (spouse, children, employees, lender, equipment dealer, farm supply dealer, etc.) aware of what you are doing at least to the level of their involvement.

6. Avoiding or deferring taxes: The desire to not pay taxes leads to tax decisions that may have long-term negative implications rather than decisions that manage for long-term profitability. We often forget that the tax bill will come due some time in the future.

7. Lack of financial reserves: Both businesses and families lack the financial reserves necessary to make weathering tough times less difficult. This current economic downturn has changed the landscape and businesses will need to depend on these reserves in conjunction with tools provided by their lender.

8. Not managing family living expenses: The family can be a black hole in sucking up money. The only way to manage that black hole is to know what it costs your family to live and then to manage your resources.

9. Following your neighbor: Farming operations are different and the factors that drive your neighbor's decisions are not the same factors you deal with. Why should you follow him? I bet he did not get to be successful following his neighbor.

10. Jumping on the latest/newest/hottest enterprise: The learning curve for new enterprises is steep and expensive. A lot of homework needs to be done before launching a new enterprise, and it is rare to see that homework done. Because an enterprise is successful somewhere does not mean you can make it work here, but the reverse is also true. The right idea, coupled with the right resources, markets, and management traits are essential in raising an idea from the kitchen table to a profitable enterprise.

11. Not training the next generation: Farmers are good at teaching the younger generation about production but less so about financial management. This has a lot to do with a lack of communication, murky long-term plans, and a willingness to share control. If the farm is going to survive for generations, that training must occur.

Kevin Martin, Extension Educator, Business Management
Lake Erie Regional Grape Program

March 13, 2013

New York State recently passed the Wage Theft Prevention Act. This law is similar to new requirements in Massachusetts, and Illinois. In the past record keeping requirements were similar to Pennsylvania. Employers have to document standard payroll data such as hourly rate, hours worked, and ensure piece rate employees were making at least minimum wage. These requirements are in addition to the new hire notices that went into effect on October 26, 2009. This law takes effect in April 2010.

Simply handing cash or even checks to someone may seem adequate. However, failure to follow the letter of the law may lead to liability for the legal definition of wage theft. Inadequate record keeping may leave your business vulnerable to fraudulent claims of wage theft.

Allegations of wage theft for grape farmers often arise because of the culture surrounding hand pruning. A bilingual worker with legal status manages the crew and may take payments directly for contractual work completed. This ‘crew-leader’ may then make payments to other pruners. While this is common practice in other industries, it is specifically banned in agriculture by federal law. Crew leaders must be registered and there are essentially no registered crew leaders. This puts the responsibility on the grower to pay employees directly without an intermediary. Many growers continue to allow a leader to manage the group but generally pay employees directly. Without allowing a pseudo-leader it can be challenging to find labor. By allowing such a leader, but still paying employees directly, it can be challenging to comply with all labor law requirements because of the lack of communication and contact you have with your employees.

The Wage Theft Prevention Act increases record keeping requirements. Employers must provide the following information in the Employee’s primary language:

• Rate of pay

• Allowances such as meals or lodging

• Regular pay day

• Name of Employer

• Any ‘doing business as’ names

• Physical address of Employer’s office

• Telephone number

With each wage payment Employers must provide:

• Dates of work

• Rate of work

• Gross Wages

• Deductions

• Allowances

• Net Wages

Non-Exempt employee payroll statement must include overtime rate and overtime hours worked

Additional penalties of wage theft include $50 per workweek for not providing the information above. In addition, employers will have tort liability to employees of $100 per workweek, up to $2,500 and attorney fees.

The NYS Department of Labor is charged with publishing a bilingual form to assist employers in meeting these requirements. Many of these are available at: http://www.labor.state.ny.us/workerprotection/wp_forms_documents.shtm. 

Explanation Of The Law (pdf; 279KB)

March 12, 2013

Corporations, LLC, S-Corps and other business organizations have their place. In the excitement of limiting liability and developing into a sophisticated operation many growers look to these organizations. For some growers these organizations are absolutely essential and a bargain value. For small growers the tools offered are not always appropriate and the costs are disproportionate. Sole proprietorships and partnerships offer no liability protection, no flexibility in tax structure and other similar limitations. However, these organizations lower costs for insurance, filing fees, accounting services, and legal fees.

This sample partnership offers a method of transferring ownership to the next generation. It follows the research and advice of experts. For instance, ownership and management responsibilities are transferred gradually. The senior generation both requires and facilitates the input of some capital into the business. In doing so the junior generation has a vested interest in the business and a real understanding and sharing of the risks involved. The transfer of capital, however, is limited. It is structured to enable to transfer without great sacrifices in lifestyle to either party. It is also structured to create equity payments for labor. It is a tool to take the junior generation off of the payroll and to make payments for labor in equity. Equity payments and transfers are tax advantaged in every avenue. This dramatically lowers labor costs and increases the ability of the farmer to increase income of the junior generation without increasing overall costs.

This methodology is easily transferrable to other types of business plans, for a larger grower with significant liability risk coming from multiple employees an LLC would likely be a good organization that this methodology could be applied to. However, as I have said before, the sole proprietorships and partnership are drastically underrated. Even something as complex as succession planning and management structure can be handled within the confines of a partnership. This sample, specific to grapes, can give you some ideas on how exactly it can be accomplished.

Please let me know (by either email or a phone call, 716.792.2800 extension 205) if you use this template to brainstorm ways you can compose an ownership agreement or as inspiration of important things to include in your agreement. Please do not construe this template as legal advice or rely on this template but use as inspiration for your own ownership agreement.

Sample Partnership Agreement (pdf; 114KB)

Kevin Martin, Extension Educator, Business Management
Lake Erie Regional Grape Program

March 7, 2013

Benefits & Claims

The 2012 crop year provided an unnecessary reminder of the role crop insurance plays in modern agriculture. Significant spring freeze events reduced regional yields by 50%. If crop insurance had been implemented by all growers at the 65% - 75% level of coverage, payments would have easily been in excess of $10,000,000.  Premiums paid by regional growers would total approximately 900,000 annually. This illustrates the experience most growers have with crop insurance. In the event of a significant loss, the cash value of a claim typically covers the financial cost of premiums for 10 to 12 years.

Costs

Financial costs of crop insurance include an annual administrative fee and an annual insurance premium. The premium is based on the value of the maximum claim. For a typical Concord grower with a six ton average, premiums are approximately $30 per acre for 70% coverage. Changes in yield and price significantly impact the cost of the premium.  

Crop insurance requires an investment in time, as well. Walking into the purchase of crop insurance with the expectation that there will be an annual investment in time immensely increases the probability that you will remain committed to the program. This investment of time has led to the decline in CAT (catastrophic) coverage. Typically CAT coverage results in claims once every ten or twenty years. Despite the extremely high level of premium subsidy, growers tend to give up CAT policies. The time associated with filing paperwork, filing potential claims and shopping policies appears onerous when the probability of a claim is very low.

Expected Value

On average the typical expected value of crop insurance is approximately $3 for each $1 in premium purchased. Block divisions, site conditions and production risk do have the ability to change the risk of loss significantly. Those with less production risk and other factors tend to see a lower than average expected value. That being said, for nearly all growers a gross expected value of $.90 would be entirely adequate to justify the purchase of crop insurance.