The installation steps - the Economic Development Plan Let
where we left things ...
In previous posts, we had told the first administrative steps that we performed. Regarding the essential steps before being declared settled, we were moved several times by the Chamber of Agriculture, for different diagnoses, we completed our experience in each passing a season in an organic gardener different, and we made the course "21 h" (3 days training) during which we met other young people being installed, and some players who we have to do as future farmers (MSA, agricultural credit, public administration, ...).
The next step, which took several months, and affects almost at its end today, is the development of the Economic Development Plan (BDP).
This is to develop a predictive accounting for 5 years, which will be presented to the bank that will finance the Young Farmer Loan, which will then be heard in the Chamber of Agriculture, to be presented in CDOA (County Commission Orientation Agricole) with the rest of our dossier.
The EDP must be conducted with a management center approved. We had to make up numbers, they then worked and shaped. We were told that bringing these figures would be fast enough, but given the complexity of the activity we have chosen, if we want to do something that is pretty much the road, take the time to build the project.
Very often in gardening, we first determine a plan of rotation to see what we can produce, ie the surfaces are fixed for each crop that is wishes to practice, depending on available plots. It then reflects on how to market production. This reasoning is much simpler than the reverse.
However, as we begin our business with a large proportion of the outlets in AMAP, and to optimize the contents of the baskets, we reasoned the other way:
We knew had a minimum of 40 to 50 contracts AMAP (1 basket per week per contract) per farmer in order to sustain our business. We selected 50 contracts to supply the first year, plus the equivalent volume of 25 contracts for sale at the farm. From the second year, we will go to 80 contracts, maintaining the same volume of vegetables sold at the farm.
From there, we developed all the baskets, week by week over an entire year, while looking in the seed catalogs Bio, to see which vegetables could be produced for each period. We fixed the quantities each vegetable for each basket so that it is appropriate for a family of 3 to 4 people.
For direct sales, we have not always kept the same proportions as for the baskets: some traditional vegetables available in larger quantities, such as potatoes, others in smaller quantities, or a shorter period, such as beans and raw zucchini, and some are not designed for direct sales and will be reserved for AMAP, like strawberries and asparagus.
We calculated the areas necessary for sowing or planting each crop, and the quantities of seeds and seedlings to buy. For this, we took into account average yields obtained in organic gauges possible for planting each crop, and possible losses during cultivation (pests, diseases, poor germination, weather) or after harvest (during storage ).
We then selected a large number of varieties of each vegetable, in order to estimate the cost of seeds and seedlings. We will not buy very few plants, because the cost is very important because the choice of varieties available is quite restricted: in bioinformatics, there is a major supplier for transplants, and it works mainly with F1 hybrid varieties (though some would like, we can justify our preference for non-hybrid varieties in another message). In return, we know that self-produce their own transplants requires a lot of work and discipline, a knowledge which we do not yet exist and that we risk loss before planting ... but for now, the results of our seedlings are quite satisfactory.
We assessed the remaining operating costs (fertilization, crop protection, fuel, equipment maintenance and buildings, staff costs, ... ).
Finally, we had to quantify the investments required over the next five years. For the instruction of our record, it must provide all the quotes for all investments. In one recent posts, we mentioned that we would have to drill again. This is part of the expenses that were not foreseen at the start and it took us to encrypt the last minute.
Small note in brackets, for drilling, we also had to start the procedures for reporting and application for withdrawal of water. In order to have this authorization, we will have to make an impact study by a private consultant. Price tag .... € 3,000 (excluding taxes, of course). This is just one example among many that illustrates the obstacles that may arise during an installation. We understand that many are deterred from moving! In short, the end of the bracket.
We have (almost) met all these figures and estimates, we shared a lot with the person who makes our Economic Development Plan, and we first met the banker in charge of Credit Agricole installation files. Again, one wonders how young people who start from nothing and who want to move can get there. We leave on a loan that is around € 60 000 for two. Most of the time, setup projects far exceed € 100 000 loan for one person. There is an organization, the SIAGI which a fee will guarantee up to 30% of the loan amount after considering the matter. If SIAGI endorses, the Regional Council will guarantee you 30% more. The banker has insisted that it provides a guarantee or bond the remaining 40%, totaling 100% Guarantee! How can a young person who has almost nothing and does not engage the responsibility of a loved one?
Our case will be presented to the Chamber of Agriculture next week and will be approved or not by the bank in early December, then it will go before the County Commission Orientation of Agriculture on December 15.
meantime, we have theoretically not allowed to begin to operate, since to be considered young farmers and be eligible for installation aid, we must be deemed non-installed. In the meantime, we must prepare early spring crops, but ... shhh! say nothing, it is not official ...
