Making the Most of Your Dues Dollars

MCA closed out its fiscal year on September 30th with income exceeding expenses by $730.00. Your state association continues to be a financially strong and committed to the outstanding stewardship of every dues dollar collected. Our total membership dues income for 2018 was slightly below budget expectations even though we had a very good year in terms of our membership renewal percentage and we continue to be blessed by rising “fair share” contributions. In 2018 MCA invested a full 25% of its annual budget directly into youth-directed programs and sponsorships.

The Maryland Beef Check Off Program

The Maryland Beef Check Off program finished FY 2018 with a total check off revenue of almost $95,000, in line with our budget expectations and in spite of the frustrating and damaging closure of one of the few remaining livestock markets (Westminster Livestock) in our state. The amount of money available for programs directly delivered in Maryland was approximately $42,000. The primary program areas funded by your check off investments were; health professional education and outreach, consumer information and education and consumer marketing. We continue to keep beef front-of-mind with today’s consumers while using many new and innovative social media platforms to extend our reach.

In addition, we continue to partner with the Northeast Beef Promotion Initiative to leverage our dollars for the greatest good. I would encourage you to check out the exciting things happening in our region at www.nebpi.org. You can also add your farm to the new Northeast Beef Directory while at their site!

Finally, please remember to remit your check off dollars for all your private treaty beef sales during 2018 (feeder cattle sales/purchases, freezer beef, breeding cattle etc.) Forms are available at www.marylandcattle.org and follow the check off link.

Field Day and Annual Meeting Scheduled for Saturday, July 13th!

Come join your board of directors for an exciting field day co-hosted by MCA and Hedgeapple Farm in Buckeystown. Plans for the program are underway and will include some excellent educational sessions, a beef cutting demonstration, and a farm tour. MCA will hold its annual business meeting during lunch. As always, we need your input and your help as we consider the future of our association, plan future educational opportunities, and steward the resources provided by the membership. Please mark your calendar today and plan to attend the field day and annual meeting next July!

In an effort to meet some of the educational interests of our members, MCA is partnering with the new Central Maryland Forage and Livestock Conference scheduled for Friday, January 18, to be held at the 4H Camp Center in Frederick County. More details regarding registration and the full schedule for the day will be available soon on the MCA website.

Some of the topics to be covered include:

•  Feeding Lower Quality Hay

•  Are Clovers Worth It and Are Phytoestrogens in Clover Good or Evil?

•  Advancements in Alfalfa Production and Management

•  Incorporating Annual Species into Your Forage System

Confirmed speakers include:

Dr. Jessica Williamson, Extension Forage Specialist, Penn State University
Dr. Dennis Hancock, Forage Crops Extension Specialist, University of Georgia

New Central Maryland Forage and Livestock Conference!

2019 Northeast Pasture Consortium Annual Conference!

You will remember that MCA hosted this excellent conference in 2017 in conjunction with our annual convention. The meeting rotates around locations in the northeast region and in 2019 will be again held very close to us. The 2019 annual conference will be held in Grantville, PA at the Holiday Inn Harrisburg- Hershey Conference Center on February 19 and 20.  And, the Pennsylvania Forage Conference will convene on February 21 at the same location. The Holiday Inn Harrisburg-Hershey is located at 604 Station Road, Grantville, Pennsylvania off I-81, exit 80.

Some planned topics include:

•  Promoting Clover Growth in Pastures,

•  Managing Pastures before, during, and after Weather Extremes,

•  Meat Marketing Strategies & Results from NY and New England Survey Results.

Specific program details and registration information will soon be available on the MCA website. Plan now to attend!

Is It “Farm to Fork” or “Fork the Farmer?”

I know that many of you are involved in direct-marketing of your beef through means such as an on-farm stand or at the local, seasonal, farmers markets. I wonder if you get comments and questions from your customers that go something like this; “I wish I could find your meat on the menu of some of our local restaurants” or “I wish I knew more about where the meat comes from when I eat out. Do you sell to any local restaurants?” or “Why don’t you sell to the local “farm to fork” restaurants?” and so on.

Like so many simple questions, the answer is not quite as simple as one might think. After all, there has been a major, and probably well-intentioned, promotional push by local economic development agencies and other advocacy groups to try and link-up local farmers and growers with local restaurants under the banner of “Farm to Fork” or the larger “Eat Local” and “Locovore” movement.

There are many and varied motivations for this effort like reducing the “transportation (carbon) footprint” related to food procurement, improving consumer “health”, enhancing the viability of local farms, moving toward “sustainability” in the food system (insert your definition of that here), improving food quality and food safety, eating “fresh”, enhancing consumer perception of farmers, “saving” the Chesapeake Bay, preventing global warming, saving Polar Bears; OK, I’m getting carried away.

My point is that sound-bites sound nice but are often not supported in fact or in reality. Let me give you an example. Some time ago we at Hedgeapple Farm had a visit by a young lady who was hired (on a contract basis) to energize the “farm to fork efforts” in Frederick County. She was being paid to convince farmers that it was somehow in their best interest to sell their home-grown farm products to local-area restaurants (especially during restaurant week) so as to enhance their farms’ exposure to consumers and hence their profitability and sustainability. Lots of glitz and glamor when you see your farm name on such and so restaurant with their

5-star chef. “That will certainly drive customers to your farm market.” Maybe yes; maybe no. Seems hard to tell and even harder to measure. But, results don’t really matter when your contract salary is fixed and does not depend in any way, shape, or form on the actual results of the program you are selling. Just dazzle the farmer with, well you know, the stuff our bulls produce and get them to agree to sell their products to the local chefs.

Now before I hear cries of outrage, please understand that I love and respect chefs and the very hard work they do, in a very competitive environment, to provide exceptional dining opportunities to their patrons. There is no question in my mind that if you give a 5-star chef a 5-star product to work with, the result will be a 10- star dining experience. I also know that just about every chef and restaurant owner is faced with very difficult financial and economic decisions every day as they plan their menu offerings.

I have often heard that chefs and restaurant owners use something called “The 30% Rule” as they look at their purchasing options and menu decisions. That rule goes something like this (more or less); a chef works hard to pay no more that 30% of the advertised menu price for the center-of-the-plate protein on the front-end purchase of that protein. Remember that they still have to add at least a starch to the plate and have server

costs, overhead, and other expenses to cover through their menu prices. Here is an example; Let’s say restaurant X offers a 16 ounce New York Strip Steak as a menu option at $25.00. Applying the 30% guideline, that chef would seek to purchase that strip steak for no more than $7.50 regardless of the source (local farmer, provisioning company, Sam’s Club, Costco etc.).

Now knowing this, you are reasonably obligated to decide if you can profitably offer your NY Strip Steaks, which probably sell for between $15.95 to $19.95/lb. to your local customers, to a restaurant for half that price at wholesale. And, even further (now venturing into some knowledge that is often lacking with many small, local, part-time farmers) what is your actual cost of production on that NY Strip steak? Does $7.50 even represent any profit for you? If not, does the “glitz and glamour” balance off the loss? Are you investing in some sort of advertising that will pay dividends later in the form of more customers coming to the farm and paying the regular price? Maybe and maybe not. Hard to measure for sure.

In addition, most chefs are demanding and may not order on a consistent or predictable basis.  And, working with local restaurants requires a willingness to provide an adequate volume of specific specialty cuts, generally the higher-end cuts, which are easily sold in other ways at greater profit.  So, if you sell your “premium cuts” (like the middle meat steaks and specialty cuts, not ground beef) at wholesale, what does that do to your inventory of product left at the farm? Is this scheme ever economically sustainable for the farmer?

In addition, you will be hard-pressed to find any restaurants/chefs willing to accept only a seasonal supply of your products, especially the menu mainstays like steaks. Couple this with the fact that the true costs for producing beef “off-season”, especially of the grass-fed and finished variety, are extremely high and generally unprofitable for producers unless adequate high-quality, stored forage can be harvested on-farm in a cost- effective manner.   Most small to mid-sized farms are incapable of this if the true cost is understood and accounted for.

Listen, there is no way a local, small-scale farm can compete with the Midwest feedlots and larger cattle operations on price and we should not have to. In most cases we produce value-added specialty products that come with a higher cost of production, lower volume and limited (or even seasonal) availability. There is just no way we can or should try to compete with the “commodity giants” that deliver their wholesale products to restaurants on semi-trucks every single day. That is not our niche and no glitz and glamor can change that fact.

Remember the person who visited the farm with her smoke and mirror pitch? I asked her if she had considered asking the restaurant folks if they would be willing to raise their menu prices for the local items to be able to pay a fairer price to the farmers. I figured this would also provide a good indicator of the patrons commitment to “put their money where their mouth is”, so to say. The question insulted her!

So I have to ask; why is it always the farmer who is supposed to concede? Maybe it’s because many small or even mid-sized beef producers don’t know first-hand, with precision, what it costs to put a pound of beef in the meat case. But, that knowledge is critical as it will drive almost all of your business-related decisions, as it should be if you endeavor to achieve economic and environmental sustainability. That is just the cold, hard reality of the business of, well, everything that is business! How’s that for a simple answer? Happy local eating!