farm smart: optimizing woodlot through various maple syrup models
TRANSCRIPT
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Optimizing Woodlot with
Maple Syrup
Nick BettsBusiness Management
Economic Development Division
Guelph, Ontario
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Background of project
• University Student Experiential Learning (USEL)
Program
– Paighton Smyth’s work
– Farmer/OMAFRA/UG Consultation
• Summer 2016 data collection and analysis
• Goal:
To better understand how to increase farm
sustainability
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Model Focus
• What exists, but not in abundance?
• Market opportunity outside of CBOT?
• Relevant across most/all of Ontario
• Production focus:
– Beef
– Lamb
– Maple Syrup
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Why Diversify?
• Economic Health
– Risk management
• Resource Health
– Contribution to livestock health*
• Market Support
– Value of Public Trust*
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Risk Management
• Increases effectiveness of product
management based on demand
• Enables flexibility to increase/decrease
production to optimize return
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Agroforestry Around the World
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Hypothetical System
1000 Acre Farm
- Bale Grazing System
- Rotational Pasture System
Beef
Cow/Calf Operation
Agroforestry Options
Sheep
Lamb/Ewe Operation
• Shelter for beef
• Diversified production
• Agroforestry component helps
offset GHG emissions
• Shelter for sheep
• Can graze between smaller trees without damage
• Diversified production
• Agroforestry component helps offset GHG emissions
• Decreased parasite load
• Improved pasture quality
• Similar feed requirements
• Diversify production
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Why Maple Syrup?
• Concentrated forests that
are currently underutilized
• Range/Flexibility of
production opportunities
• “Permaculture”
• Easily Scalable
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Gradient of Opportunity
Time
Investm
ent
(and R
OI)
Rent Bush
• No labour required
Rent Bush with Lines Investment
• Labour required initially
• No labour in long term
Bulk Syrup Production
• Labour required during peak season
Direct Market Production
• Intense labour required during peak season
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Concept
1,000 Acre Farm
Beef
Tree-AgSheep
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Scaled Representation
• 100 scaled
Grey Bruce County
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Calculations Included…
• Capital
– Required investments
• Ex. shelter, water troughs & lines, fencing,
handling equip, maple production equip
– Required maintenance
• Ex. fence repair, feed, water system, shelter,
handling equip
• Special care livestock
– Late gestation
– Replacement over winter
– Incl. feed costs
• NOT included: Land
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Livestock Production
January to April
- Bale grazing
- Solar water systems
- Access to woodlot
May to October
- Rotational pasture grazing
- Water line system
- Access to woodlot
November to December
- Strip grazing through corn fields
- Solar water system
- Corn stalk for shelter
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January-April• Bale grazing systems
– Sheep need rolled out bales in high amounts of snow
– Cattle can access large bales without difficulty
• Access to trees for weather extremes
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100 scaled
May-Oct- Rotational pasture grazing
- Water line system
- Access to woodlot
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November - December
• Strip grazing through corn fields
– Solar water system
– Corn stalk for shelter
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Lamb/Ewe Operation
• Target Gross Margin – 25%
• Based on:
– $160.00 value per lamb
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Cow/Calf Operation• Target Gross Margin – 15%
• Based on:
– 600lb weaned calf
– $1.50 average price per pound
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Maple Syrup Production
• Option #1 – Leased Land
– Annual income from leased bush
– Minimal to no investment cost
– No labour required
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Maple Syrup Production
• Option #2 – Leased Land with Taps
– Annual income from leased bush
– Investment cost of lines
– No labour required
– Investment paid off in under 4 years
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• Option #3 – Bulk Syrup
– Produce bulk sap sold to processors for value added
goods
– Investment of lines, taps, storage equipment
– Labour required
– Investment paid off in under 5 years
Maple Syrup Production
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Maple Syrup Production
• Option #4 – Direct Farm to Market
– Produce, package and market maple syrup
products
– Investment of lines, taps, processing equipment
– Intense labour required
– Investment paid off in just over 5 years
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Labour RequirementsAssumptions
• 1.5 Full Time Equivalents
• Owner/Producer and spouse part time during busy season
• Different demands depending on maple syrup production
J MF
J
A
J
JJ
J
M J J A S O N D
Lambing
and
Calving
All young stock
off property
except
replacements
Bale grazing Rotational pasture
grazing
Strip
grazing
through
corn
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Labour Distribution• Option #1 - minimal time to manage leasing option
• Option #2 – minimal time to manage leasing option after initial labour
investment
0
0.5
1
1.5
2
Full TimeEquivalents
Required (FTE)
Month
Option #1 and Option #2
Maple FTE
Beef FTE
Sheep FTE
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Labour Distribution
• Bulk Sap Production Increased labour
• Direct to Market during peak season
0
0.5
1
1.5
2
2.5
Full Time Equivalents
Required (FTE)
Month
Option #3 and Option #4
Maple FTE
Beef FTE
Sheep FTE
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Example
INCOMERent Sugar Bush – Option #1
$14,625
Sheep Production
$29,000
Beef Production
$29,000
Labour
1.5 FTE
EXPENSES• Annual Maintenance
• $16,705
• Annual Loan Payments
• $9,636
TOTAL• Income
• $72,625
• Expenses
• $26,341
• Overall Gross Margin
• $46, 284
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The Calculator
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Next Steps
• Better understand farm-level statistics
Labour Requirements
• Replication relevance
Other Locations
• Market access (abattoirs /processors)
Livestock Processors
2017
2017